Pan‐European industrial property

Abstract

Purpose

Aims to highlights the changes ongoing in the distribution and logistics property sector across Europe and to show that wide differences remain between the sophisticated warehouse properties available in mature property markets and those available in traditional parochial markets found prevalently across the continent and especially in central and eastern Europe.

Design/methodology/approach

The briefing is based on empirical and commercial research in all the national industrial property markets within the EU. It addresses changes in the drivers affecting logistics property and the industry responses to them. The changes include outsourcing; a desire for more flexible, responsive supply chains; globalisation of manufacturing; legislative change; and growing IT capability. Industry responses include the development of complex, highly specified warehousing; increased demand for sophisticated telecommunications; and optimization of location.

Findings

Sub‐optimal locations and poor specification have a direct impact on the cost of the operations using them. As a consequence logistics providers gravitate to newer, more highly specified buildings in locations optimised for their use. In an environment where, traditionally, distribution has a national focus, optimising locations for pan‐European distribution will inevitably render some locations sub‐optimal.

Originality/value

As Europe moves towards a genuine single market, traditional, nationally‐based distribution chains become ever less efficient in the delivery of goods. Concurrently, the complexity and configuration of the warehouse product are changing to accommodate more efficient identification, storage and retrieval technologies along with the need to service new types of market.

Citation

Thompson, B. (2005), "Pan‐European industrial property", Journal of Property Investment & Finance, Vol. 23 No. 4, pp. 379-385. https://doi.org/10.1108/14635780510602435