Rapid recovery of global trade

Two strong driving forces behind increasing user demand for logistics

A large portion of the take-up of logistics property still originates from occupiersfocussed on trade. As a result of the recovery of global trade from which the Netherlands is benefitting pur sang as an export country, the demand has increased considerably. Following a significant dip immediately after the outbreak of COVID-19 in the second quarter of 2020, export was once again considerably higher in the second quarter of 2021 (+32.6%).

Now export even exceeds pre-pandemic levels.

This is mainly due to the structure of the Dutch economy. For example, the Netherlands is a major player in the export of high-quality goods and services, and demand for these has not changed permanently because of COVID-19. The export of specialised machinery for instance increased considerably during the first half of 2021. In addition, the re-export of goods increased, partly as a result of an increase in British distributors basing themselves in the Netherlands to avoid trading problems as a result of Brexit.

Effects of the pandemic

E-Commerce is growing even further thanks to COVID-19

In addition to the recovery of global trade, there is the increasing demand from e-commerce. Thanks to compulsory shop closures, revenue from internet sales increased exponentially. On the occupier side, this can be seen from the significant increase in the number of packages delivered in 2020 compared to 2019. This can also clearly be seen in the revenues achieved by the retail trade via the internet. Before the pandemic, the revenue from internet sales by different parties increased by 15%-25% per year. This has more than doubled during the pandemic, to around 45%-70%.

Although this explosive increase is mainly the result of shop closures, there are actually long-term consequences for e-commerce. Even more consumers have become used to ordering online. Further, online businesses in particular are making considerable investments in the supply chain to gain more market share in this growing market, resulting in even faster delivery times. The result is that suppliers are increasingly looking for logistics space as close as possible to as many people as possible, or last mile logistics. As a result, demand is not just increasing, but is changing too.

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