Valor capitalises on the supply and demand imbalance in urban logistics


Graph showing 13% per annum growth in European E-Commerce Sales from 2015 to 2020F
  • E-commerce sales in the UK, France and Germany are forecast to grow at a combined CAGR of 8.5% from 2020-2025
  • It is estimated that every additional billion dollars in e-commerce sales generates 1 million SF of demand for logistics space, resulting in continued demand for logistics and last mile delivery sites
  • New strains of demand for same day delivery are creating a new market for last mile logistics properties

Attrition of Land

  • Industrial space in densely populated urban locations is in increasingly short supply, creating immense competition for existing properties and high barriers to entry for new urban and infill warehouses
  • A high proportion of Industrial use land is being cannibalised for alternative uses, particularly residential
  • In London, land allocated for industrial uses reduced by 26.6% from 2001 to 2015, highlighting the tightening supply
Graph showing decrease of London industrial land attrition by 27% from 2001 to 2015