On-going Supply Chain Disruption Positions Emerging Logistics Hubs for Growth as Warehouse Users Shift Strategies

Markets such as Poland, Mediterranean Ports of Spain and Greece and Turkey poised to benefit

Warehouse users are initiating new strategies to combat current and future supply chain challenges, giving rise to emerging markets in Europe that stand to benefit from increased activity, according to a new report from CBRE.

Amongst the top strategies being implemented is suppliers holding more inventory, also known as "safety stock," closer to large population concentrations to reduce shipping costs. CBRE’s EMEA 2021 Logistics Occupier Survey indicated that approximately one-third of logistics occupiers had a preference for this approach. Other strategies include diversifying product sourcing, shifting ports of entry and nearshoring or reshoring of manufacturing.

These supply chain shifts, alongside the ever-growing consumer demand for e-commerce will be key factors for industrial take-up heading into 2022. Additionally, vacancy rates are at record lows in most European countries and the market cannot produce enough new warehouse stock to meet demand and alleviate congestion. The combination of this lack of inventory and the pandemic-fuelled disruption in the flow of goods, is causing warehouse users to look outside of traditional logistics hubs to emerging logistics markets for available space and skilled labour.

Markets that can allow for more efficient communication and lower transportation costs are positioned to benefit the most. These include:

Poland. With borders between Germany and six CEE countries, as well as affordable labour costs, Poland is a strong candidate for global companies to establish manufacturing and distribution facilities.

Mediterranean Ports of Spain and Greece. Spain offers higher labour availability than most other Western European countries and is accessible through the Suez Canal, making it a compelling port of entry for goods from Asia. Piraeus, Greece has emerged as the top port in the Mediterranean and in turn, has led to heightened demand for logistics space in nearby Athens.

Turkey. Turkey is the seventh largest global exporter of textiles and apparel by value. Rising shipping costs and delayed production in mainland China will prompt retailers to consider manufacturing in Turkey.


Read the report in full here.

Tasos Vezyridis, Executive Director, EMEA Industrial & Logistics and Retail Research, CBRE
Industrial demand will shift to different ports of entry as supply chain sources expand. As production diversifies and container volumes increase, there are a number of emerging logistics markets across Europe set to capitalise on this trend, where there is a large labour talent pool and real estate costs are highly competitive.
Tasos Vezyridis, Executive Director, EMEA Industrial & Logistics and Retail Research, CBRE