City Logistics - real estate strategies in post-pandemic Europe

29 january 2024

City Logistics - real estate strategies in post-pandemic Europe


The City Logistics report, prepared by Cushman & Wakefield, reveals how cities and city logistics, and with them logistics real estate strategies, are evolving in a post-pandemic environment. The report's findings will provide valuable guidance on how these and other factors are influencing location and operational decisions for city logistics, both now and in the future.

City logistics is still essential

Online retail sales will continue to grow, leading to further growth in parcel delivery. Consumers want choice when it comes to delivery options but delivery strategies for retailers and parcel carriers will necessarily involve significant volumes moving into and around cities. Cities will remain resilient despite the global pandemie shifting demographic dynamics. And cities are increasingly focusing on traffic movements around cities as well as the availability of land for logistics space. All of this means that the need for thoughtful city logistics strategies remains high - and this includes city logistics real estate.

City logistics real estate comes in different shapes and sizes 

The type of real estate needed will vary according to the strategies required to meet the needs of businesses, volumes and city complexions. Real estate assets may be take the form of relatively conventional warehouses through multi-storey buildings (where location is critical and the high rental costs is outweighed by transport and other savings) to microfulfilment locations in areas of high demand such as city centres.

The future of city logistics will involve new approaches

City logistics and therefore the real estate to support it will require new ways of thinking about key factors including infrastructure (both existing and future types), intensification (especially multistorey buildings in cities with industrial land scarcity), imagination (including redevelopment, repurposing and nonpermanent real estate strategies) and integration (integrating logistics operations and space within mixed use schemes and doing it efficiently).

Stakeholders will need to be considered, creative and collaborative

Better understanding about what is required of city logistics and its real estate will lead to better outcomes for users, developers and investors. Thinking creatively about how to deliver space where it is needed - but paying careful attention to integration with other uses - will create value across stakeholder groups. Higher levels of collaboration is more likely to produce better outcomes over the longer term.

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