BNPPRE meets Prologis – ESG & Digitalization in Logistics

by BNP Paribas Real Estate

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BNPPRE meets Prologis – ESG & Digitalization in Logistics

Logistics real estate is becoming increasingly interesting for many investors, and seemingly niche products such as data centers are also becoming increasingly important. Where does that come from? To answer these and other questions, we invited a special guest: Björn Thiemann, Senior Vice President and Regional Head Northern Europe at Prologis, a leading global provider of logistics real estate. In a conversation with our Managing Director and Head of Logistics & Industrial Christopher Raabe and today's moderator Andreas Völker, Managing Director, he will discuss whether non-ESG-compliant logistics properties can still be sold and rented at all. Trends and digitalisation in logistics will also be discussed. So stay tuned and have fun with the episode!

Logistics properties remain popular

"There are currently few vacancies and few building sites, so logistics real estate continues to be a sought-after commodity," Christopher Raabe introduces the podcast episode. The location has become much more of a focus – so investors look very closely at the location and are sometimes even willing to compromise on quality. Björn Thiemann agrees and adds: "We are noticing a significant increase in investments in the large gateway cities. Overall, it is a stable market and a strong asset class that continues to have growth opportunities."

Is it still possible to build logistics objects speculatively?

Both logistics experts observe the same changing user requirements. Decisions – for example for a move – take longer and need good arguments. "Due to the economic uncertainties in Germany, many are waiting and first using their own capacities, which they have built up in recent years," explains Raabe. Nevertheless, in his opinion, it still makes sense to build speculatively in reasonable locations: "There is little vacancy and what is vacant is absorbed faster than we can imagine." Thiemann agrees and points out that the city and municipalities are often restrictive when it comes to designating new building areas.

ESG & digitalization are essential in logistics

ESG is one of the focus topics for Prologis and its customers. In the podcast, Björn Thiemann discusses the various measures for ESG in existing and new buildings. Our BNP Paribas Real Estate expert puts it in a nutshell in the middle of the podcast recording: "ESG is also essential in logistics, especially in new construction!" Digitization and automation are also gaining ground in logistics. However, both logistics experts draw attention to the ability to use third parties, which should also be taken into account when automating logistics objects. The conclusion on Christoper Raabe's digitization is: "Technically, we have already come so far, but the legal framework is still missing. But that will come sooner than we think."