According to consultancy firm Savills, outdoor industrial and logistics warehousing space is set to increase significantly across the Old Continent.

According to the latest report “Spotlight, The Emergence of Industrial Outdoor Storage in Europe”, real estate consultancy Savills expects significant growth in industrial and logistics outdoor storage (IOS) space in Europe, with investment expected to increase by 4,5% year-on-year over the next five years.

IOS provides spaces and facilities to companies that need to store goods, equipment or vehicles outdoors. Located in industrial areas, industrial areas are characterized by a large amount of open land, with typical coverage rates ranging from 20% to 40%.

Although the IOS market varies from location to location and is affected by various factors such as local regulations, connectivity and economic conditions, there remains untapped potential across Europe.

A number of factors point to future growth in this sub-segment. First, the rise of e-commerce in the Old Continent has created a need for additional space, particularly to manage seasonal fluctuations. Added to this are the vehicles needed for same-day and next-day deliveries.

Other factors include businesses that rely on large equipment requiring outdoor storage solutions and companies' desire to strengthen their supply chains following the coronavirus pandemic.

Savills therefore believes that IOS represents an attractive investment opportunity, particularly at a time when demand for storage space is set to increase amid tight supply. The consultancy also expects significant growth in rentals, which have already rebounded by 47% per year in the UK, to 2023.

Savills sees IOS as a major opportunity for all European real estate markets and expects transaction volumes to increase significantly as investors look to complement their portfolios. These assets are also likely to play an important role in the energy transition, as they could be suitable for electric vehicle and battery storage.

The Spanish Mail