Distribution looks to Central Europe
Although Belgium retained its pole position in the ranking, closely followed by France and Germany, the authors say that with the eastward expansion of the European Union this year, it is only a matter of time before logistics follows suit and shifts its focus. Central and Eastern Europe (CEE) is therefore singled out as the main area for future expansion.
The Czech Republic, in fifth, scores the highest out of all the countries in the region but Poland is not far behind with Hungary trailing at number eight. All three countries, however, seem well poised to benefit from the Western European search for new markets and cheaper production centers, as both Poland and Hungary made gains on their performance in the previous year, while the Czech Republic merely retained its place.
"Europe's current distribution arteries are centered on the well-established hubs of Western Europe," said John Greenwood, C&W H&B's European Industrial head. "They have traditionally formed a boomerang from Birmingham in the UK to the north, Barcelona and Madrid in the south and Germany to the east." He went on to say that EU expansion is stretching this boomerang eastward to give it a more crescent shape. This, he added, will result in the creation of new trade routes and new important hubs to serve them.
The report also concludes that cost issues have led to an outflow of demand for distribution units to the CEE region from Germany and Austria, even though these two countries have benefited from an expected growth of traffic en route to the region.
Logistics take-up, the authors say, continues to drive the wider industrial market across the continent, while a stronger leasing market is emerging, particularly from third party contractors. They add, however, that there are tentative signs of increased owner occupation on the horizon.
Speculative construction remains subdued, with developers remaining cautious because of the over-supply of units. Any supply of new buildings is being driven primarily by occupiers seeking built-to-suit accommodation.
The report also notes the renewed interest investors are showing in the maturing logistics market, especially as yields are higher than in the commercial property sector (retail and office space) because of the limited number of prime units for immediate occupation. In addition, although rents are still 1.5 percent lower than they were two years ago, in the second quarter of 2003, the last period for which data is available, there was modest growth for the first time in the six quarters.
Countries' ranking on the basis of attractiveness is calculated according to 15 factors considered important to operators' decision-making processes, ranging from rents for prime distribution units of 10,000 square meters to labor costs, road and rail density, congestion and access to the EU's core.
The Czech Republic, in fifth, scores the highest out of all the countries in the region but Poland is not far behind with Hungary trailing at number eight. All three countries, however, seem well poised to benefit from the Western European search for new markets and cheaper production centers, as both Poland and Hungary made gains on their performance in the previous year, while the Czech Republic merely retained its place.
"Europe's current distribution arteries are centered on the well-established hubs of Western Europe," said John Greenwood, C&W H&B's European Industrial head. "They have traditionally formed a boomerang from Birmingham in the UK to the north, Barcelona and Madrid in the south and Germany to the east." He went on to say that EU expansion is stretching this boomerang eastward to give it a more crescent shape. This, he added, will result in the creation of new trade routes and new important hubs to serve them.
The report also concludes that cost issues have led to an outflow of demand for distribution units to the CEE region from Germany and Austria, even though these two countries have benefited from an expected growth of traffic en route to the region.
Logistics take-up, the authors say, continues to drive the wider industrial market across the continent, while a stronger leasing market is emerging, particularly from third party contractors. They add, however, that there are tentative signs of increased owner occupation on the horizon.
Speculative construction remains subdued, with developers remaining cautious because of the over-supply of units. Any supply of new buildings is being driven primarily by occupiers seeking built-to-suit accommodation.
The report also notes the renewed interest investors are showing in the maturing logistics market, especially as yields are higher than in the commercial property sector (retail and office space) because of the limited number of prime units for immediate occupation. In addition, although rents are still 1.5 percent lower than they were two years ago, in the second quarter of 2003, the last period for which data is available, there was modest growth for the first time in the six quarters.
Countries' ranking on the basis of attractiveness is calculated according to 15 factors considered important to operators' decision-making processes, ranging from rents for prime distribution units of 10,000 square meters to labor costs, road and rail density, congestion and access to the EU's core.
