Guest commentary

Impetus for new solutions

Dr. Malte-Maria Münchow, spokesman for the Logistics Property Initiative (Logix) and Head of Purchasing and Sales Retail, Hotel, Logistics at Deka Immobilien GmbH, on limitations and solutions for the establishment of logistics properties.

Dr. Malte-Maria Münchow, Spokesman for the Logistics Real Estate Initiative (Logix) © Logix

Logistics real estate is of central importance for the functioning of an economy. The realization that this is particularly true in times of high economic growth, digitalization and automation, as well as e-commerce and multi-channel trade, has now become established in broad sections of society as well as in municipalities and business development agencies. However, there are still too few concrete answers or concepts for the challenges that arise when locating logistics real estate. The prerequisite for this is that all parties involved - associations, local authorities and business promoters, planners, developers, logistics service providers, CEP service providers and shippers - talk to each other. The Logix Initiative was founded in 2013 to promote this dialog and provide facts for discussion.

Dialogue based on facts
Over the past two years, the studies sponsored by Logix have contributed to a fact-based discussion and highlighted possible solutions. In autumn 2017, the authors of the 2nd Logix study "The future of logistics properties and locations from the user's perspective", Prof. Dr. Christian Kille and Dr. Alexander Nehm, identified a minimum requirement of an additional 30 million square meters of logistics space by 2025. In the medium term, they expect a need for 100 logistics properties close to city centres in the 15 major German cities with more than 500,000 inhabitants. An additional 150 to 200 new parcel centers or depots are expected to be needed to supply the 80 major cities with more than 100,000 inhabitants. However, there is currently not enough land available to meet this demand. The reason for this is that logistics competes with more prestigious building types such as residential or office and is generally given lower priority for approval. As a result, the logistics sector can no longer meet the growing demand for "same-hour delivery", for example, and multi-storey logistics properties increasingly have to be built in Germany's conurbations.

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Nevertheless, the authors of the Logix study also state that one of the future trends is that logistics real estate is gradually changing from a "dirty child to a worker bee to an enabler". The reason: "Dealing with the topic of e-commerce on a daily basis is changing the perception of the logistics industry and therefore its acceptance in politics and society." There is therefore hope that local authorities and cities will be more willing to make more space available for logistics use in the future. However, land is not the only bottleneck for the establishment of logistics in conurbations. The trend is exacerbated by the shortage of skilled workers. It is therefore only logical that the 3rd Logix study entitled "Location Compass - Space and Employment Potential" highlights the interdependencies between these two limitations.

Study shows options for action
The study, conducted by Uwe Veres-Homm and Dr. Alexander Nehm, also identifies solutions and practical options for action for local authorities and business development agencies in the top logistics regions. It will be presented to the public at Expo Real in October. It is to be hoped that this study will also be taken up as an impulse. Time is of the essence, because without functioning logistics and logistics real estate, the economy is at risk of suffering serious damage.

In the Einwurf section, politicians, managers and industry experts regularly comment on current topics in logistics and transportation.

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