Also innovative: this logistics property from Loxxess in the Czech Republic. © Loxxess

Due to the lack of suitable space, multi-storey logistics properties, such as those announced by project developer Four Parx for several major cities, are becoming an established trend. Frank Weber, Head of Industrial Agency Germany Jones Lang LaSalle SE, believes this is particularly true for locations with high land prices. In addition, brownfield development will continue to gain in importance both in terms of municipal policy and for project developers and, as a result, users, given the increasingly scarce supply of land.

The third study initiated by the Logistics Real Estate Initiative (Logix), which was presented in October 2018, is the first to examine the relationship between the availability of space and labor. The results confirm the glaring shortage in both areas for Germany's logistics regions. For the authors Uwe Veres-Homm, Fraunhofer Working Group SCS and Dr. Alexander Nehm, Logivest Concept, one solution lies in stronger regional cooperation between municipalities (see box) Dr. Malte-Maria Münchow, spokesperson for the Logix Initiative, comments on the results as follows: "The results of the study are both surprising and alarming. The extent to which logistics settlements are already affected by a shortage of space and/or labor underlines the need for all parties involved to work together to develop solutions. In view of the continuing very high demand for new logistics space, cities and municipalities in particular are called upon to designate new areas and work together beyond their own borders."

Automation could provide a remedy
Advances in automation and robot technology are seen by many logistics experts as a possible solution to the skills shortage. Frank Weber: "Due to the difficulties in recruiting staff, users will increasingly invest in automation. This also offers production gains with standardized processes." Matthias Schadler takes a similar view: "Robotics in intralogistics will make it possible to use every last cubic centimetre of the converted space and increase throughput speed at the same time." Consultant Neumeier sees one advantage of automation technology in its adaptability: "An automated and networked supply chain enables intralogistics companies to optimize their material flow and remain competitive through more efficient internal processes. Third-party usability is maintained even if an automation or robotics solution is integrated and can be expanded again if required. "And this is becoming increasingly efficient and also more cost-effective. This makes automated intralogistics solutions increasingly interesting for logistics service providers. Loxxess CEO Amberger explains: "Automation tends to adapt to the shell, such as automated guided vehicles. This means that investments are less long-term and not necessarily tied to one location. At the same time, stationary systems are becoming cheaper and offer fast access times with their shuttles." Furthermore, no additional requirements need to be placed on the property. As construction costs are rising, returns are falling and construction capacities are hardly available, a high degree of standardization is required during construction, says Amberger.

Flexible use is crucial
The flexible usability of logistics properties is a key requirement that is becoming increasingly important. JLL expert Weber explains: "Users from industry, retail and logistics are increasingly relying on flexible space in order to be prepared for the growing demands of online business." Multiflexible forms of use, such as those that pfenning logistics has already implemented at two locations in Germany with the "Multicube" concept (one of the Logix award winners in 2013), are a response to this development, according to Managing Director Schadler: "Pharmaceuticals today, automotive tomorrow or both at the same time: this requires an adaptable, highly flexible warehouse architecture, modern warehouse and security technology and a location that allows everything. The big box is evolving into the intelligent box. And is thus becoming a competitive tool." 2019 is an exciting year with many challenges for the logistics real estate sector. At Expo Real, the international trade fair for real estate and investment, in Munich in October, the outstanding logistics real estate development of the past two years will once again be honored with the Logix Award from the Logistics Real Estate Initiative.

3rd Logix study

© Logix

The core task of the new study by the Logistics Real Estate Initiative (Logix) was to analyze the differences in regional space and workforce potential for logistics real estate. The study was based on the 23 logistics regions in Germany identified by Fraunhofer SCS. Using statistical indicators and data collected by the authors Dr. Alexander Nehm (Logivest Concept) and Uwe Veres-Homm (Fraunhofer SCS), the logistics regions were classified into nine clusters. The results clearly show how acute the shortage in both areas already is: not a single logistics region has a high potential for space and labor at the same time. This means that all major logistics locations are already facing challenges and bottlenecks.

There is also a clear north-south divide in terms of both supply factors: In Baden-Württemberg and Bavaria or the regions of Danube, Munich, Nuremberg, Rhine-Neckar, Stuttgart and Swabia, massive problems can already be observed in terms of both the availability of space and the recruitment of workers. Larger land and labor force potentials, on the other hand, could be identified above the Main River, especially in the east and northwest of Germany. The Bremen, Erfurt and Leipzig/Halle regions still have the greatest potential in terms of logistics-related commercial space. In terms of labor availability, Berlin, the Lower Rhine region and the eastern Ruhr area still have a relatively good situation for recruiting new warehouse specialists. Together with the land situation, which is ranked in the middle of the field, these three regions have the best overall framework conditions for further development.

With Hamburg and the Rhine-Main region, two of the three most important logistics regions in Germany were rated critically in terms of land availability, although the labor force potential here still appears sufficient in comparison. The study concludes with concrete solutions for cities and municipalities. It becomes clear that the greatest potential lies in closer cooperation between municipalities, particularly with regard to commercial land planning and development. Additional detailed results and explanations of the methodological approach are described in detail in the study. It can be downloaded free of charge at http://www.logix-award.de, as can the 1st and 2nd Logix study.