16
Logistics Outlook Sweden SPOTLIGHT Savills Research November 2019 Record high investment activity Online retail drives demand Automation sets new requirements
Logistics Outlook Sweden
SPOTLIGHT
Savills Research
November 2019
Record high investment activity Online retail drives demand Automation sets new requirements
Summary
Logistics real estate has long left its niche existence behind. Today the asset class is well established with building activity and investment volumes at record highs. The demand of the segment is driven by social and technological transformations. The retail industry has reached a point of no return where long held certainties and beliefs vanish into thin air. Online retail has changed consumer behaviours, where all types of goods are a click or swipe away and goods can be delivered at an increasing speed. The dramatic and rapid growth in online retail is one of the main reasons behind logistics elevated status as an prime asset class.
The consumers ever increasing demand for rapid deliveries will continue to transform the logistics landscape, where central warehouses will be struggling to meet expectations and the supply chain will have to move closer to the consumers. Last mile is the next challenge and goods are likely to be stored closer to the final consumer. However, in the major cities and Stockholm in particular the conversions of centrally located industrial zones
for residential development have resulted in a shortage of premises close to the city centre. The shortage has led to a strong rental growth in the best locations in Stockholm as the service sector and logistics are competing for premises.
In a comparison with the core European markets (UK, Germany, France, Netherlands) Sweden is still relatively attractively priced in terms of yield and the weak Swedish Krona could offer an opportunity for foreign investors that do not hedge currency risk.
We expect a continued strong investor demand going into 2020 and the development pipeline continues to increase for projects scheduled for completion in 2021 and 2022, which indicates a continued strong demand from the tenants. Developers confidence remain strong and we expect further speculative developments in Stockholm and Gothenburg driven by demand and low vacancies.
Peter WimanHead of Research073 358 64 [email protected]
3
Logistics Report 2019
Key Drivers for logistics
Imports and exports driving demandThe Swedish economy is highly dependent on exports of goods. The net trade from January to September 2019 generated a surplus of SEK 21.2bn (€2bn). Exports were valued at SEK 1,133bn (€106bn) and imports were valued at SEK 1,111bn (€104bn). During this period, the value of exports of goods increased by 7%, while the value of imports of goods increased by 2% with the corresponding period one year ago. Since the years following the 2008 financial crisis both imports and exports has increased faster than the GDP growth. The strong cross-border trade has a positive impact on the transportation industry and logistics market.
Continued strong growth for online retailBehind every click triggering an online order there is a physical shipment of goods and in many cases return shipments as well. The Swedish online retail sector grew by 15% during 2018 and most forecasts indicate a continued 10%+ growth the coming years.The strong development of the online retail sector has had a profound impact on the logistics real estate. Against the background of the steadily growing sales revenue from online retail, there will be a continued increase in demand for logistics space.
Export of goods growth 2019
Import of goods growth 2019
Growth in online sales in 2018
7% 2% 15%
80
100
120
140
160
180
200
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
Import, Export and GDP growth
GDPImport of goodsExport of goods
Ind
ex
Source NIER
2000
80
100
120
140
160
180
200
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
4savills.com/research
Logistics Report 2019
Changing consumer behaviour is driving demand for logisticsThe change in consumer behaviour impact logistics demand, sector by sector as increasing shares of retail shifts from physical stores to online or omni-channel sales. Not only are more goods bought online but consumers demand even faster deliveries.
Swedish consumers demanding same day deliveries increased to 55% in 2018 from 35% in 2017 according to Postnord. The changing consumer behaviour form online sales will continue to drive demand for locations with easy access to densely popululated areas—not least in order to facilitate last-mile logistics and to make same day deliveries reliable. If Sweden will continue to follow more mature markets where goods can be delivered within one hour, the logistics market will continue to transform at a high pace.
The logistics market for grocery stores and restaurants is
transformed by online food-delivery platforms. There is a steady growth in consumer spending in restaurants and on groceries, which have increased the demand for logistics and transportations, especially around cities. From 2007 to September 2019 the restaurants turnover increased by 29%, during the same period spending on groceries increased by 9%.
Both sectors experience a rapid change towards home deliveries directly to the consumer, as new online platforms race to capture markets and customers. Consumers accustomed to shopping online through apps or websites, with all-out convenience and transparency, increasingly expect the same experience when it comes to ordering dinner or groceries for the week. Online sales for groceries increased by almost 30% during the third quarter of 2019 whereas physical sales increased by a more modest 3.5%.
Strong growth in grocery sales
Growth online sales Growth in physical stores
of Swedish consumers would prefer same day deliveries according to Postnord
of Swedish consumers would prefer delivery within the same hour according to Postnord
55% 35%
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
Q3 20
19
Q2 20
19
Q1 2019
Q4 2018
Source Svensk Dagligvaruhandel
Q4 2019
0 %
5 %
10 %
15 %
20 %
25 %
30 %
Q1 2019
Q2 20
19
Q3 20
19
5
Logistics Report 2019
6savills.com/research
Logistics Report 2019
Online retail driving demand for logisticsOnline retail is growing at a faster pace than overall retail sales and the growth in sales of durable goods in Sweden is now fuelled only by online retail. Over the past five years, the overall online retail sales increased by 21% per year on average across Europe. In the same time, the total retail sales increased by 2.5% per year on average across Europe.
Swedish online retail grew by 15% in 2018. With a total turnover of SEK 77bn (€7.2bn), online retail reflected 9.8% of the total retail sector. The forecast for 2019 indicates a growth of 14% and a turnover of SEK 88bn (€8.25bn) according to Postnord.
Where is Sweden compared to the UK and EU?The UK which has always been ahead in the property cycle and in terms of market maturity acts as a very useful case study for investors looking for potential opportunities on the European continent.
Of course, one size does not fit all. But compared to the UK, the Swedish online retail penetration is in circa 2012. This should help to forecast how this rapid shift in demand might be.
Savills have found a clear inflection point, when online retail reaches 10.7% of total retail sales rapid occupier demand for logistics space occur. Sweden will most likely pass the inflection point during 2019 or 2020.
Online retail per sector Two of the most online mature sectors in Sweden are consumer-electronics and books with respectively 37% and 46% online channel share. Forecasts indicate that the sectors still have significant growth potential. By 2023 home-electronics are expected to grow with 25% and books are expected to grow with 16% according to Forrester Analytics.
Clothing is the most popular segment, however, the online channel share is “only” 15% reflecting a value of SEK 12,3bn (€1,15bn). By 2023 the sector is expected to grow by 65%.
One of the most unmatured sectors is groceries with an online channel share of 2%. However, the segment is facing one of the strongest development phases. By 2023 the sector is expected to grow by 90%. A strong force behind the growth is that many of the large actors such as ICA, COOP, Mat.se and Mathem.se have allocated large resources to develop their online platforms in order to cover the whole country. However, compared to many countries in Europe, it is likely that the Swedish market will meet some restraint due to the difficulty to cover large land parcels.
0 %
5 %
10 %
15 %
20 %
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
Where Sweden sit compared to the UK and EU?
10.7%Savills have found a clear inflection point at 10.7% when rapid occupier demand for logistics space occurs.
Share of online sales in European countries in 2017 UK share of online sales
of online purchases are returned according to Postnord. 22%
Source Savills and Forrester Analytics
2007
0 %
5 %
10 %
15 %
20 %
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
7
Logistics Report 2019
The future indicates a massive demand for logistics spaceSavills has estimated the number of online retail generated shipments, including returns, to 67 million shipments in 2018. The estimation is based on how much the average online buyer spend per purchase, divided with the certain sector’s online retail turnover. An average return ratio of 22% has been used in the calculation.
Postnord handled approximately 111 million shipments in 2018, both business to business and business to consumer. Estimations by PTS (Post- och telestyrelsen) indicates that Postnord has a market share of 60%.
0
20
40
60
80
100
Foreca
st
201920
1820
1720
1620
1520
1420
1320
1220
1120
1020
0920
0820
0720
0620
05
29% UK
45% UK
60% UK
7% UK
28% UK
15% SE
37% SE
46% SE
2% SE
17% SE
Source Postnord
Clothing
Groceries
Consumer electronics
SE
K b
illio
n
Books and media
Household goods and furniture
SIGNIFICANT GROWTH POTENTIAL REMAIN IN MANY SECTORS
There is still a significant growth potential for Swedish online retail compared to the UK.
50 million This is a potential increase of approximately 50 million packages, which corresponds to almost the half of Postnord’s capacity today or the sum of Schenker’s and DHL’s capacity.
Estimated number of online retail generated packages in
2018: 67 million
Estimated number of online retail generated packages with the same online retail level as
the UK: 116 million
116 million 67 million
Strong growth for online retail
Source Forrester Analytics and HUI
Source Savills, Forrester Analytics and Postnord
2005
0
20
40
60
80
100
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Foreca
st
2019
8savills.com/research
Logistics Report 2019
Source Intelligent Logistik
Top logistics locations
1 11 21
22
23
24
25
16
17
18
19
20
12
13
14
15
2
3
4
5
6
7
8
9
10
1
225
3
1011
1819
13
17
20
21
16
1418
15
4
5
67
22
9
12
24
23
8
Gothenburg region
Örebro region
Helsingborg region
Östgöta region
Jönköping region
Eskilstuna region
Stockholm north
Malmö region
Stockholm south
Halmstad region
Växjö region
Gävle/Sandviken/Borlänge/Falun
Skaraborg
Katrineholm/Nyköping
Västerås/Köping
Trollhättan/Vänersborg/Uddevalla
Värnamo region
Hässleholm/Kristianstad/Åhus
Karlskrona/Karlshamn/Nybro/Kalmar
Ulricehamn
Trelleborg/Ystad
Uppsala/Heby
Sundsvall region
Umeå region
Karlstad/Kristinehamn
Location with access to combi-terminal
Main Highway
Important railway connection
Top ten locations
Top 25 Logistics locations in Sweden
Location is particularly important for logistics real estate. The optimal location depends on various parameters, obviously including quick access to consumer markets and the availability of labour.
Two locational parameters are deemed particularly important. On one hand, being located close to major transport hubs is one key parameter, e.g. sites at motorway interchanges, railway access but also sites near ports or airports. Therefore, many logistics facilities have been developed along major highways between the Stockholm, Gothenburg and Helsingborg/Malmö/Öresund region.
On the other hand, the availability of space, in the form of existing logistics facilities or as undeveloped land parcels, is also an important parameter. It is becoming harder and harder to reconcile the two. In the areas around Stockholm and Gothenburg, there is a lack of sites which are ready for
development, and the shortage of space is intensifying as demand for logistics space is gradually increasing.
Since 2005, Intelligent Logistik has published a ranking of Sweden’s top 25 logistics locations. The ranking list is based on existing stock, geographical location, availability of logistics space, business climate, sustainability in the logistics infrastructure, development pipeline, workforce availability, academic education and flow of goods.
In 2019, Gothenburg was ranked as the best logistics location in Sweden and has been placed at the top ever since the list was first published. The largest harbour in the Nordics, comprehensive transport infrastructure and a strong construction pace along with dedicated educations in logistics are some of the reasons why Gothenburg has placed in the top. Furthermore, the Gothenburg region has a strong history of logistics and distribution services
which originate from the mail-order era’s stronghold Borås.
Stockholm North and Stockholm South were classified as the seventh and ninth-best logistics locations in the 2019 ranking. One of the main reasons Stockholm is not higher in the ranking is the bottleneck created by the inner city, dividing the region in two locations – Stockholm North and Stockholm South.
However, the region should probably rank higher due to the high levels of new developments and the importance of the region’s consumer market. Stockholm North is the second most expansive areas in the country, succeeding Gothenburg. Stockholm North has closeness to a large population, combi-terminals and the largest airport in Sweden whereas Stockholm South also has closeness to a large population, good highway access, access to the ports in Nynäshamn and Södertälje and combi-terminals.
9
Logistics Report 2019
New developments of warehouse & logistic properties 5,000 sq m + units
Construction volume Average 2009-2019
0
100000
200000
300000
400000
500000
600000
700000
800000
T2021T2020T2019T2018T2017T2016T2015T2014T2013T2012T2011T 2010T2009
sq m
Source Savills
2009
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
New developments in Sweden continue at healthy levels with approx. 650,000 sq m being completed in 2019, which is slightly short of the record volumes produced in 2018. The development pipeline for 2020 is increasing steadily and by November 2019, just over 570,000 sq m has been scheduled for completion. So far 265,000 sq m is scheduled for completion in 2021, which will increase as we move into 2020 as production times in most cases are less than 12 months.
2018 was a record year when 670,000 sq m. was completed. The average construction volume between 2015 and 2018 has been 615,000 sq m per year, which is a high level from a historical
perspective. As a comparison the yearly average completions was approx. 420,000 sq m. in the period between 2009 and 2014.
In general, there is a big focus on large facilities (+30,000 sq m.), but in fact most of the new construction are smaller units and the most common construction size for new developments is between 5,000 and 14,999 sq m. Historically there is a clear negative linear relationship between the number of new facilities and their size. However, the number of units in the size between 15,000 and 29,999 sq m has picked up and 40% of the pipeline from 2009 to 2020 is deemed to be completed in that range between 2018 and 2020.
Building activity at record highs
Size distribution in new developments
Number 2009-2019 Number 2020-2021
0
50
100
150
200
250
30,0
00+ sq
m
15,0
00-29,9
99
5,000-14
,999
No
.
5,000-14
,999 sq
m0
50
100
150
200
250
15,0
00-29,9
99 sq m
30,0
00+ sq
m
10savills.com/research
Logistics Report 2019
Which markets has seen the most developments?
Tenant categories in new developments5,000 + sq m units
Volume 2009-2019 Volume 2020-2021 Number 2009-2019
0 0
25
50
75
100
125
150
175
200
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
Other
/Vac
ant
Indus
trial
Who
lesale
Retail
Logist
ics
sq m
No
.
Source Savills
Logist
ics0 0
25
50
75
100
125
150
170
200
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
Retail
Who
ledsa
le
Indus
trial
Other
/Vac
ant
In spite of different logistics rankings, the majority of the construction has been focused in the Stockholm and Gothenburg region over the past few years. Between 2009 and 2019, Stockholm and Gothenburg accounted for almost 50% of the total construction in Sweden.
For 2018 and 2019, the Gothenburg region accounted for 184,000 sq m in 2018 and 194,000 sq m in 2019, making it the undoubtedly largest development area. The Mälardalen region was the second largest development area with 105,000 sq m completed in 2018 and 138,000 sq m completed in 2019. Stockholm is placed fourth on the list after the E4 South sector with municipalities such as Norrköping, Linköping and Jönköping. Stockholm accounted for 81,000 sq m in 2018 and 112,000 sq m in 2019.
Looking forward, land availability in Stockholm and Gothenburg is shrinking, and development activity has started to struggle to meet the demand. Additionally, the increased demand for same-day deliveries, which is striving to become the norm, requires logistics centres to be located close to consumers. Industrial zoned land, especially near Stockholm and Gothenburg, is hard to come by and commands a significant price premium compared to the regional cities.
The regional cities continues to compete aggressively for the establishment of the facilities
to create new jobs and offer significantly less expensive land compared to the larger cities. The majority of newly constructed facilities have been for tenants such as Postnord, Schenker and DHL. Between 2009 and 2019 was just over 1,800,000 sq m or 32% of the total construction volume for tenants in the logistics category. In the development pipeline for 2020 and 2021, retail tenants are the largest category with 340,000 sq m scheduled for completion.
Who occupies new facilities in the three major cities?Construction of new facilities in the three major Swedish cities of Stockholm, Gothenburg and Malmö are dominated by logistics operators. Between 2009 and 2019 was one-third of new developments in Stockholm and Gothenburg for logistics tenants, while in Malmö was the number almost 50%.
Out of the three major cities, retail and wholesale tenants prefer the Gothenburg area. With Sweden’s largest harbour the area becomes a natural hub for the distribution of imported goods. 306,000 sq m was built for retail tenants and 296,000 sq m was built for wholesale tenants between 2009 and 2019. This corresponds to the combined volume for Stockholm and Malmö.
Geographical distribution of new developments5,000 + sq m units
2009-2019 2020-2021
0
500,000
1,000,000
1,500,000
2,000,000
Other
E4 South
MälardalenNorth
Skåne
Gothenburg
Stockholm
sq m
Stock
holm
0
500,000
1,000,000
1,5000,000
2,000,000
Gothen
burg
Skåne
North
Mälard
alen
E4 Sout
h
Other
11
Logistics Report 2019
Speculative developments Gothenburg5,000 + sq m units
Speculative developments Stockholm5,000 + sq m units
Speculative developments Sweden5,000 + sq m units
Speculative Partly let Share spec
Speculative developments
Speculative developments are at high levels, even though the majority of the newly completed development projects are fully pre-let and developed for a specific tenant. The main reason for the high share of speculative developments is most likely a result of the perceived shortage of logistics properties combined with a very low level of vacancies for fully modern logistics. The Stockholm market has had two consecutive years where speculative developments have dominated the development pipeline. In 2018 was 75% of the development pipeline speculative and in 2019 was the figure 55%.
The speculative developments in the Gothenburg region were 45% in 2018 and 37% in 2019. For 2020 the number of speculative developments has decreased and it stands at 16%, compared to 33% for 2019. This can partly be explained by the relatively low numbers of speculative developments in Stockholm and Gothenburg, which most likely is an effect of deficiency of sites which are ready for development and obviously a strong demand from tenants.
0 %
20 %
30 %
50 %
70 %
90 %
80 %
60 %
40 %
10 %
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2020
*
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0 %
20 %
30 %
50 %
70 %
90 %
80 %
60 %
40 %
10 %
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2020
*
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0
50,000
100,000
150,000
200,000
250,000
2020
*
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
0 %
10 %
20 %
30 %
40 %
50 %
45 %
35 %
25 %
15 %
5 %
Speculative SpeculativePartly let Partly letShare spec Share spec
sq m
sq m
sq m
Source Savills
2010
2010
2010
0 0
10,000 10,000
20,000 20,000
30,000 30,000
40,000 40,000
50,000 50,000
60,000 60,000
70,000 70,000
80,000 80,000
90,000 90,000
2011
2011
2011
2012
2012
2012
2013
2013
2013
2014
2014
2014
2015
2015
2015
2016
2016
2016
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
0 0 0
10 % 10 %
20 % 20 %
30 % 30 %
40 % 40 %
50 % 50 %
60 % 60 %
70 % 70 %
80 % 80 %
90 % 90 %
25
50
75
100
125
150
170
200
0 %0
10 %50,000
20 %100,000
30 %150,000
40 %200,000
50 %250,000
12savills.com/research
Logistics Report 2019
All-time high for logistics and industrial propertiesThe investment volume for logistics and industrial properties has already reached a record level in 2019. With an investment volume of SEK 26bn (€2.5bn), accounting for 16% of the total investment volume, the segment has exceeded the full year volume recorded in 2016. The lacklustre interest for retail properties has had a positive impact for logistics as investors see a strong continued growth for online retail at the expense of physical retail. Logistics yields have continued to harden and portfolio premiums have been noted in a number of transactions.
Large portfolio transactions are a key explanation for the high investment volume. Many investors consider portfolio transactions a good way to deploy large sums of capital and thereby acquire a sizeable market share in strategic locations within a relatively short period of time. The five largest transactions are all portfolio transactions and account for SEK 15.3bn (€1.4bn), reflecting 60% of the total investment volume in the sector.
The average deal size in 2019 for both logistics and industrial properties amounts to SEK 330m
(€31m). In the meantime, the average logistics transaction amounts to SEK 670m (€63m), which can be compared to the preceding 10-year average of SEK 312m (€29m).
0
5,000
10,000
15,000
20,000
25,000
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
0 %
5 %
10 %
15 %
20 %
25 %
0
20
40
60
80
100
120
140
T2019T2018T2017T2016T2015T2014T2013T2012T2011T2010T2009T2008T2007T20060
50
100
150
200
250
300
350
Transaction Volume Logistics & IndustrialVolume, MSEK (left scale). Share % (right scale)
Transactions Logistics/IndustrialNumber of transactions (left scale). Avarage deal size,
MSEK (right scale)
Logistics LogisticsProduction/Industrial Production/IndustrialOther OtherShare Avarage deal size
International investors account for 85% of logistics investments.
Invested in Logistics, Light Industrial and Industrial properties
85%
SEK
26bn
SE
K m
illio
n
No
.
SE
K m
illion
Source Savills
2006
2006
0 0
20
40
60
80
100
120
140
5,000
10,000
15,000
20,000
25,000
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
0 % 0
50
100
150
200
250
300
350
5 %
10 %
15 %
20 %
25 %
13
Logistics Report 2019
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
3 %
4 %
5 %
6 %
7 %
8 %
Prime Yield
Prime Retail WarehousePrime Logistics
Yield shift between logistics and retailInternational investors have steadily expanded their share in the Swedish investment market for logistics and industrial real estate. In 2019 foreign investors have accounted for 70% of the investments in logistics and industrial properties. With a separated volume only including logistics, international investors market share grows to an astonishing 85%.
Average European prime logistics yields compressed 20bps from 4.90% to 4.70% during H1 2019. In the core markets prime yields for logistics are currently 4.00% in
the UK, 3.70% in Germany, 4.25% in France and the Netherlands. Further inward yield movement has been witnessed in Sweden during the year, as prime yields have reached record lows at 4.5%. Long term borrowing costs remain low or negative across Europe, which will maintain an attractive yield spread for logistics real estate going forward. The prime yield in Sweden also offers an attractive return compared to the core European markets. For unhedged foreign investors the weak Swedish Krona could offer an additional opportunity.
3.70% DE 4.00% UK 4.25% FR 4.25% NL 4.50% SE
Prime Yields - Sweden is traded at a discount compared to the core European markets.
Source Savills
2008
3 %
4 %
5 %
6 %
7 %
8 %
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
14savills.com/research
Logistics Report 2019
Automated warehouses are fast growing and a key driver for the future development of logistics. Both new builds and older buildings are being fitted with automated solutions. Online retailers are becoming more sophisticated in their warehouse fit out by developing robotics and automation to drive efficiencies, speed up deliveries and minimise risks for faulty fulfilment of orders.
A high level of automatization generates an increasing requirement of energy supply for the building. Highly automated facilities can require as much energy as 10,000 family homes. Not only the installations require power, but it is clear that the number of electric vehicles are growing. For example, the number of light lorries that is powered by electricity is currently in an exponential phase which most likely will continue as the technology matures. Electric powered heavy trucks are becoming more common and Volvo has started sales on electric trucks. This will most likely further increase the energy demand of modern logistics as the vehicles will need power stations as they will be charging while being loaded. All of this will require a convenient access to sufficient energy capacity, which some locations are already struggling to be able to provide. On a side note, increasing power grid capacity can be a significantly lengthier process than building and fitting out a new development.
Automated warehouse units also require a higher technical standard of the building. The ceiling heights
continues to increase as occupiers strive to maximise the cubic space and fit the technical solutions of automated warehouses. However, high warehouse units are more costly and demand more technical instillations. Fire protection sprinkles for example can only serve the normal 12-meter ceiling heights, and therefore, higher buildings need sprinklers to be set in multiple layers. The floor bearing capacity meets higher demands both regarding general capacity and point loads. A few years ago, 3 tonnes/sq m. used to be the standard, whereas five is more common practice today.
Workers in the automated warehouses are generally more skilled with specialisation in robotics engineering and data science. This could potentially be a problem going forward, as the jobs requires a higher education, it could lead to a shortage of qualified staff. It will also be important that the facilities meet higher service requirements such as better café facilities, gyms, and other features more traditionally experienced on an office business park. More highly skilled staff would probably increase the attractiveness for the major cities, which have a larger and more educated workforce.
Automation is growing fast and set new standards and requirements
Light lorries powered by electricity
0
500
1,000
1,500
2,000
2,500
3,000
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
No
.
Source Statistics Sweden
2005
0
500
1,000
1,500
2,000
2,500
3,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Estimated power requirement for the new Axfood warehouse.
11MW
Lukas TheanderAnalyst Research+46 73 981 70 [email protected]
Niklas ZuckermanHead of Investment+46 70 839 82 [email protected]
Rikard LindkvistDirector Industrial and Logistics Leasing+46 76 894 45 [email protected]
Peter WimanHead of Research+46 73 358 65 [email protected]
Savills plc: Savills plc is a global real estate services provider listed on the London Stock Exchange. We have an international network of more than 600 offices and associates throughout the Americas, the UK, continental Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients all over the world. This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. While every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research.
Savills ResearchWe provide bespoke services for landowners, developers, occupiers and investors across the lifecycle of residential, commercial or mixed-use projects. We add value by providing our clients with research-backed advice and consultancy through our market-leading global research team.
savills.se
