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EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS | JULY 2013
EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS
LOGISTICS FACILITY USER SURVEY 2013
INTRODUCTION
Europe has a larger population and a higher
combined Gross Domestic Product (GDP) than the
U.S., yet it has 4.5 times less Class-A logistics space.
In this context, the reconfguration of the European
supply chain and the rise of e-commerce means there
is signifcant development potential for modern,
effcient distribution facilities across the region. The
questions facing developers, owners, managers, and
their customers, are: “Where are the most strategic
logistics locations in Europe, and why?”
The answers to these questions are essential for
making well-informed investment and development
decisions. Prologis has partnered with Eyefortransport (EFT) to explore industry perceptions on the
most desirable logistics locations around Europe, and
to quantify the criteria which influence site selection.
As well as demand, supply is equally important to
investors since markets with tight supply and higher
entry barriers generally outperform markets with
weaker demand/supply dynamics.
Warehouse users from a range of sectors—from retail
to automotive to pharmaceuticals—were asked to
share their views by ranking 100 locations against
various priority criteria.
Based on the results of the survey, this paper outlines:
1. Key logistics location selection criteria;
2. The most desirable logistics locations in Europe
today and in 2018; and
3. Key demand drivers of the future.
EXECUTIVE SUMMARY
Prologis has identifed 13 criteria which affect the
desirability of a logistics location and therefore the
site selection decision. The three most important
are: 1) proximity to economic networks and strategic
transportation access; 2) proximity to customers; and,
3) labor availability and flexibility.
Survey participants were asked to score 100
European distribution locations against these site
selection criteria. The top three locations were
found to be in the Netherlands and Belgium: Venlo,
Antwerp-Brussels and Rotterdam. With the exception
of two markets, Madrid and Pan-Regional Romania,
the top 10 most desirable locations are in Continental
Western Europe.
Looking to 2018, the results show that Venlo will
remain the most popular location, although its
sizable lead over the other top four locations
decreases.The results also show that locations in
Central & Eastern Europe will gear up and become
more attractive in the European logistics landscape.
Logistics facility users continue to consolidate their
operations in larger more effcient Class-A distribution centers and plan to operate in larger networks.
Almost two-thirds of all respondents expect to
operate a Pan-European distribution network by 2018.
Prologis has identifed 11 key drivers of change which
will affect (European) distribution network strategies
over the next fve years. Secular drivers such as
global trade, outsourcing and globalization will be
Figure 1
Top 10 locations in Europe
2013 2018
1. Venlo Venlo
2. Antwerp-Brussels Rotterdam
3. Rotterdam Antwerp-Brussels
4. Rhein-Ruhr Rhein-Ruhr
5. Madrid Pan-Regional Romania
6. Liège Ile-de-France
7. Central Germany Madrid
8. Pan Regional Romania Liège
9. Ile-de-France Frankfurt am Main
10. Düsseldorf Central Germany
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EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS | JULY 2013
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stronger than cyclical drivers. All but one of the 11 key
drivers will lead to further supply chain consolidation.
Increasing fuel prices, which will have the greatest
impact on distribution network strategies over the
next fve years, could support decentralization.
MOST DESIRABLE LOCATIONS
Introduction
Participants were asked to score 100 logistics
locations around Europe against 13 criteria, which
were grouped into four categories; 1) Proximity to
Customers and Suppliers, 2) Labor & Government, 3)
Real Estate, and 4) Infrastructure. The most desirable
locations today and in 2018 were determined based
on these criteria.
Top 10 Most Desirable Locations in 2013
The Benelux is the clear winner with three markets
in the top three locations: Venlo, Antwerp-Brussels
and Rotterdam. With the exception of two markets,
Madrid and Pan-Regional Romania, all markets are
in Continental Western Europe (Benelux, Germany
and France). The top four markets are among the
most attractive for pan-European distribution, and
therefore include a larger number of European
Distribution Centers (EDCs) as a result.
Eight of the ‘top ten’ locations are in Western Europe
We segmented the top 10 markets into three clusters.
The frst is one market – Venlo, with a total score
almost 1.5 times greater than runner-up, AntwerpBrussels. The second comprises Antwerp-Brussels,
Rotterdam and Rhein-Ruhr (excluding Düsseldorf),
which have relatively similar scores. The third
includes locations ranked from ffth place (Madrid)
to tenth place (Düsseldorf). The spread in terms of
scores between these six locations is only 11 points.
Among the broader 100 locations, there are common
fndings among each quartile1. Outside the top 10,
the frst quartile includes Frankfurt am Main, Prague,
Figure 2
Heatmap: Europe’s most desirable logistics locations
1) Ranked set of data which is divided into four equal groups
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Schiphol Airport and Central Poland. The second
includes Munich, Hamburg, West Midlands, Barcelona,
Warsaw and Upper Silesia. The third includes Lyon,
Stuttgart and West of England & Wales. Locations in
the fourth are in the European periphery and don’t
play a major role in the European logistics network.
Venlo won three of the four categories (Infrastructure, Labor & Government and Real Estate). It was
recognized as the best location for many specifc
criteria such as proximity to economic networks,
strategic transportation access, transportation costs,
flexibility of workforce and best location for
regulatory issues.
Survey participants ranked Venlo as the most
desirable logistics location
Antwerp-Brussels was ranked second or third in each
category. Rotterdam’s third place was primarily due
to its score as the best location for modality availability, offsetting weaker results for the proximity to
customers and suppliers requirement.
Rhein-Ruhr was a close fourth due to its proximity
to customers and suppliers. Madrid was a distant
ffth (closely followed by Liège), but scored well in
the Labor & Government and Real Estate categories.
Pan-Regional Romania might come as a surprise, but
owes its top 10 rank primarily to very good scores on
Real Estate and Labor & Government categories.
Rhein-Ruhr won the category ‘proximity to
customers and suppliers’
With regard to the verticals, retailers prefer the
United Kingdom, the pharma industry selected
Switzerland due to the incentives, and the hi-tech and
3PL customers chose markets in the Netherlands.
Location criteria between the industry groups
3PLs and shippers differ in the level of importance,
although both consider overall supply chain costs.
Real estate costs and proximity to customers &
suppliers are the most important for 3PLs while good
quality infrastructure and regulatory issues are the
most important criteria for shippers.
One major difference is that 3PLs do not own goods
whereas shippers do. As shippers take title of
goods, an attractive regulatory framework such as
customs regulation and the tax environment are vital
requirements.
3PLs are generally confronted with lower margins
which explains the importance of real estate costs
Additionally, as 3PLs’ strategy is to provide an
end-to-end service for shippers they view the
proximity to customers and suppliers as more
important compared to shippers.
Top 10 Most Desirable Locations in 2018
The survey results show that Venlo will remain the
most desirable location in 2018, although the gap
narrows slightly between the other top four locations.
Out of the top 4, Pan-Regional Romania, Ile-deFrance and Frankfurt (+3) will see the strongest
improvements by 2018. Pan-Regional Romania
will gain further popularity in the category Labor
1. Venlo (the Netherlands): 249
2. Antwerp-Brussels (Belgium): 163
3. Rotterdam (the Netherlands): 156
4. Rhein-Ruhr (Germany): 153
5. Madrid (Spain): 110
6. Liège (Belgium): 108
7. Central Germany (Germany): 106
8. Pan Regional Romania (Romania): 104
9. Ile-de-France (France): 102
10. Düsseldorf (Germany): 99
Figure 3
Top 10 most popular locations in 2013
Region Score
Figure 4 2
Score per requirement of top 5 locations in 2013

2) Figure 4: Green numbers indicate highest two scores per market
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& Government and Real Estate. Ile-de-France will
improve in all four categories by 2018. Frankfurt is
expected to improve in all four categories as well
and showed the strongest results of all locations in
the category proximity to customers and suppliers.
Six out of the 10 most improving locations are
located in Central (2) & Eastern (4) Europe. For
instance, Prague will move up seven places
to 14th position, and Istanbul will move up nine
places to 15th position in 2018.
Results show that locations in Central & Eastern
Europe will gear up and will become more attractive
locations in the European logistics landscape
Figure 6 3
Verticals
0%
10%
20%
30%
40%
50%
60%
70%
80%
Retail-Ofine
Retail-Online
Retail – Multi Channel
CPG
Hi-Tech/Electronics
F&B
Automotive
Manufacturing
Pharmaceutical
Figure 7
Geographical allocations
0%
10%
20%
30%
40%
50%
60%
70%
80%
UK & Ireland
Western Europe
Scandinavia
Southern Europe
Central Europe
Eastern Europe
3) Figure 6: CPG: Consumer Packaged Goods; F&B: Food & Beverage
Figure 5
Top 10 most popular locations in 2018
Region Change vs. 2013
1. Venlo stable
2. Rotterdam (+1)
3. Antwerp-Brussels (-1)
4. Rhein-Ruhr stable
5. Pan Regional Romania (+3)
6. Ile-de-France (+3)
7. Madrid (-2)
8. Liège (-2)
9. Frankfurt (+3)
10. Central Germany (-3)
160 respondents completed the survey and 120
completed every question. All respondents are solely
warehouse users. Our respondents were well
diversifed across industry sector and geography,
as shown in the charts.
SURVEY AND CHARACTERISTICS
OF RESPONDENTS
The 13 location drivers were scored by our
respondents weighted by importance to their
decision when choosing a location. Scores vary from
one to fve, with fve being of greatest importance.
For this survey respondents had the opportunity to
choose out of 100 locations, across 22 countries and
two aggregated regions in Central Europe
(e.g. Balkans) en Eastern Europe (e.g. Baltics).
We sent a questionnaire to a large number of
distribution center users, such as retailers, 3PLs
and shippers in the frst quarter of 2013. A total of
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KEY DEMAND DRIVERS
OF THE FUTURE
Introduction
Economic and structural drivers are constantly
changing. Companies therefore need to
continuously evaluate and optimize distribution
strategies to ensure the highest service levels for the
lowest costs. The extent to these changes and need
for consolidation differ between the different type
of logistics operations (e.g. slow movers vs. fast
movers) and products (e.g. value of product).
Based on the growth in the shipment size
(economies of scale) or the number of warehouses
(lower distances) a balancing act takes place
between transport costs and warehousing
(inventory carrying) costs.
There is a cutting point representing the lowest total
logistics costs, implying an optimal shipment size
or number of logistics facilities for a specifc freight
distribution system. Finding such a balance is the
common goal in logistics operations. In this section
we cover network changes and key drivers that will
alter (European) distribution strategies by 2018.
Distribution Networks
Figure 9 shows that 45% of all respondents run
a European distribution network and expect the
consolidation trend to modern logistics facilities to
continue, leading to more European distribution
networks at the expense of National/Local networks.
Almost two-thirds of the respondents, an increase of
19 percentage points, expect to operate in a European distribution network by 2018. For companies
with a European distribution network, nearly all will
stay as they are.
Consolidation trend will continue, driving strong
demand for modern warehouse space
Of those not already running a European distribution
network, 61.5% expect a change by 2018. For
distribution facilities users running national
networks, almost 50% expect go to a European
one by 2018 and only 15% expect to decentralize
to a regional network. For those running a regional
DC network, 51% expect to change, with most of
these moving to a European (33%) or national (15%)
network.
For those running local networks, only a quarter will
still have their local network by 2018. Results show
that warehouse users continue to consolidate their
operations in larger more effcient DCs and plan to
operate in larger networks.
Figure 9
Type of distribution network in 2013 and 2018

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Now 2018
Local Regional National European
Figure 8
Total logistics costs trade-off 4
Costs
Shipment Size or Number of Warehouses

4) Source: Prologis Research based on Herriot-Watt University
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Drivers of Change
We asked respondents to anticipate the importance
of 11 key drivers affecting (European) distribution
network strategies during the next fve years.
As seen on fgure 10, secular drivers of change
including global trade, outsourcing and globalization
will be stronger drivers of change than cyclical
drivers such as economic development and consumption. Increasing fuel prices will most
impact distribution network strategies in the
next fve years. Logistics transport costs are the
largest cost component for warehouse users
(approximately 50-60%). Increasing fuel prices are
therefore crucial as the focus shifts from inventory
to transport cost optimization.
The second most important driver is the availability
of qualifed staff, although this differs signifcantly by
country. While there are more staff available due to
increasing unemployment in Europe, it is still diffcult
to fnd qualifed and experienced employees.
This particularly applies for the Northwest of Europe
with lower unemployment fgures than Southern
and Central & Eastern Europe. The third driver of
change, infrastructure improvements, is expected
to change the market signifcantly especially in
Central & Eastern Europe where infrastructure is
developing rapidly.
Structural drivers are expected to be stronger drivers
of change than cyclical ones
There are differences between smaller companies
(revenues below €50 million) and larger companies
(revenues above €250 million) regarding drivers
of change through 2018. Smaller companies see
rising fuel prices as a bigger influencer/driver than
larger ones, and care more about the availability
of future development land when looking for a
distribution center.
Larger companies care more about access to
seaports and transportation infrastructure.
Additionally, larger frms rank environmental issues
higher than smaller companies.
E-commerce is a rapidly growing driver of demand, although growth varies by
sector. The vertical retailers expect that the maturing and continued growth of the
e-commerce market is the second most important driver of change in the coming
fve years. Retailers view infrastructure improvement and availability of staff as
the other critical key drivers for supporting growth in the e-commerce market.
Infrastructure improvements enable retailers to increase their service level,
potentially providing customers a same day delivery service.
E-fulflment centers have a greater employee density to pick and process orders.
To gain easy access to local labor pools, regional distribution centers and mail
centers must be located near population centers. This also helps e-commerce
players minimize transportation costs when handling outbound and return
deliveries, and provide a better service to customers. “Bricks and clicks,” or omnichannel retailers, offer consumers the option to collect or return the goods at their
shops. There is no “one size fts all” e-commerce distribution model, but there is
an increasing trend toward core submarkets closer to consumption centers.
E-commerce
Figure 11
Most important drivers of change for retail
2.50 2.75 3.00 3.25 3.50 3.75
Infrastructural improvements
Growth of e-commerce retail market
Availlability of qualified staff
Increasing fuel prices
Retail Sector Overall
Figure 10
Key drivers of change by 2018
2.9 3.1 3.3 3.5
Increasing fuel prices
Availability of qualied staff
Infrastructural improvements
Improving global trade volumes
Increasing level of logistics outsourcing
Further globalisation of European economy
Slow economic development
Maturing/continued growth of e-commerce retail
Low personal consumption levels in Europe
Further consolidation due to M&A among logistics
Environmental issues
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The importance of structural drivers leading to
further supply chain confguration in Europe underscores that the European logistics property market
is less mature compared to a market like the U.S.
and therefore principally driven by trade and supply
chain reconfguration.
Effects on Consolidation-Decentralization
We asked respondents if these change drivers
would lead to more or less consolidation in their
distribution network strategy over the next fve
years. Ten out of the eleven drivers of change will
lead to more consolidation (see fgure 12). The
structural drivers are consolidation among logistics
providers (82% expect consolidation), globalization
of the European economy (74%) and infrastructure
improvements (68%). The cyclical drivers are slow
economic development (75%) and low consumption
levels (72%). Increasing fuel costs, which is the most
important driver for shaping distribution networks in
the next fve years, is also the strongest contributor
to decentralization.
10 out of 11 drivers of change will lead to more
consolidation (see fgure 12)
CONCLUSIONS
There is an undersupply of Class-A logistics space in
Europe. The reconfguration of the European supply
chain and the rise of e-commerce means there
is signifcant development potential for modern,
effcient distribution facilities across the region.
Logistics companies are constantly optimizing their
distribution strategies to ensure high service levels
for minimal costs.
Logistics facility users continue to consolidate their
operations in larger more effcient facilities and
generally plan to operate in larger networks. Almost
two-thirds of all respondents expect to operate in a
European network by 2018. This is at the expense of
local and regional networks. Locations in the Benelux
are the clear winners in terms of ideal locations to
for distribution centers.
Looking forward to 2018, Venlo will remain the
most desirable location for logistics facility users,
although its lead will narrow slightly. Locations in
Central & Eastern Europe will gear up and become
more attractive in the European landscape.
Figure 12
Drivers of change and effects on distribution
0% 20% 40% 60% 80% 100%
Consolidation Decentralisation
Increasing fuel prices (3.38)
Availability of qualied staff (3.38)
Infrastructural improvements (3.36)
Improving global trade volumes (3.35)
Increasing level of logistics outsourcing (3.35)
Further globalisation of European economy (3.30)
Slow economic development (3.13)
Growth of e-commerce retail market (3.11)
Low personal consumption levels in Europe (3.07)
Further consolidation due to M&A among logistics providers (2.97)
Environmental issues (2.93)
44%
64%
68%
65%
67%
74%
75%
62%
72%
82%
58%
56%
36%
32%
35%
33%
26%
25%
38%
28%
18%
42%
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PROLOGIS RESEARCH
SITE SELECTION CRITERIA
FACTS & FIGURES
PROXIMITY TO CUSTOMERS AND
SUPPLIERS
Importance as a requirement
Proximity to Customers and Suppliers scored an
average of 3.62. This was the highest score as an
overall category.
Scores within Proximity requirement
Looking at the preferred locations on a national
level, Germany ranks highest given its central
location within Europe and proximity to customers
and suppliers.
Rhein-Ruhr was the absolute winner with a score
nearly twice that of the second region, AntwerpBrussels. All attractive locations are concentrated
in the economic heart (“Blue Banana”) in
northwest Europe.
For 2018, respondents expect that Venlo and Frankfurt will make signifcant gains, while Düsseldorf
and Antwerp-Brussels will decline slightly. RheinRuhr is expected to remain the most attractive
location in terms of proximity to customers and
suppliers. Its score will remain twice as high as the
runner-up (Venlo).
LABOR & GOVERNMENT
Importance as a requirement
Labor & Government criteria scored an average of
3.55. Labor availability and flexibility is the most
important location criteria scoring a 3.83. The two
most important drivers have to do with labor, the
least are associated with government.
Scores within Labor
& Government requirement
On a national level, the Netherlands scored highest
for labor availability and flexibility, regulatory and
incentives. The Netherlands also scored fairly high
for the requirement regulatory.
Figure 15
Top 5 locations
1. Rhein-Ruhr 112
2. Antwerp-Brussels 60
3. Ile-de-France 52
4. Central Germany 45
5. Düsseldorf 45
Location Score
Figure 14
Country Top 10
1. Germany 352
2. The Netherlands 135
3. Belgium 128
4. France 83
5. United Kingdom 75
6. Poland 38
7. Spain 38
8. Other E. Europe 30
9. Other C. Europe 23
10. Czech Republic 15
Country/Region Score
1. Proximity to customers and suppliers: 3.62
– Proximity to Customers: 3.90
– Proximity to Suppliers: 3.34
2. Labor & Government: 3.55
3. Real Estate: 3.50
4. Infrastructure: 3.43
Figure 13
Ranking of key requirements
1. Proximity to customers and suppliers: 3.62
2. Labor & Government: 3.55
– Labor availability and flexibility: 3.83
– Wages and benefts: 3.64
– Regulatory: 3.53
– Incentives: 3.22
3. Real Estate: 3.50
4. Infrastructure: 3.43
Figure 16
Ranking of key requirements
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EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS | JULY 2013
PROLOGIS RESEARCH
The Netherlands is seen as the gateway to Europe
and has low regulation barriers. This is critical for its
role as an EDC hub.
Spain’s and the United Kingdom’s positions are
due to being placed relatively highly across all four
Labor & Government requirements, the United
Kingdom gaining from the positive impression of
its incentives. The top four attractive countries for
cost of labor are in Central & Eastern Europe where
Romania scored the highest. There are signifcant
differences between EU Member States, with hourly
labor costs (incl. wages & salaries and other costs)
ranging from €3.70 and €4.40 in Bulgaria and Romania respectively to €37.20 in Denmark and €38.10 in
Sweden. Spain scored highest (5th) for the ‘cost of
labor’ driver outside Central & Eastern Europe.
Spain’s relative low scores for government specifc
drivers pushed it down to the 7th position. The runnerup for the driver labor availability and flexibility is
Poland, just behind the Netherlands.
This makes Poland an attractive country in labor
terms because it scores highly for availability and
flexibility and it is the third regarding cost of labor.
Venlo was top in three out of the four labor &
government criteria, with only the cost of labor letting it down. In the regulatory section it scored twice
as highly as the next region. The top fve regions
for both 2013 and 2018 are all in Belgium or the
Netherlands. Within these scores, Central & Eastern
Europe dominated the cost of labor criteria with
the top four spots going to regions in Romania and
Hungary, although two Western European markets
followed next i.e. Madrid and Northern England. For
incentives, regions in Switzerland and Ireland are in
the top three in 2013, although they are not there by
2018, with Bucharest being the biggest gainer as joint
#1 with Venlo.
For incentives the regions in Switzerland and Ireland
are in the top 3 in 2013, although they will not be
in 2018
By 2018, respondents expect Venlo to remain the
most attractive location for the labor & government
criteria. However, regions in Turkey jump up the
rankings mainly due to it being a favorable place for
cost of labor and Bucharest rises in 2018 due to high
incentive scores.
REAL ESTATE
Importance as a requirement
Real estate criteria scored 3.50. There are three
drivers within this category; availability of land,
availability of existing modern warehouses and
real estate costs. Real estate costs had the highest
score: 3.80.
Figure 18
Top 5 locations
1. Venlo 60
2. Pan-Regional Romania 42
3. Antwerp-Brussels 29
4. Liège 28
5. Madrid 26
Location Score
Figure 17
Top 10 locations
1. The Netherlands 151
2. Other E. Europe 108
3. Belgium 79
4. Poland 76
5. Romania 67
6. United Kingdom 61
7. Spain 57
8. Germany 55
9. Turkey 45
10. Other C. Europe 41
Country Score
1. Proximity to customers and suppliers: 3.62
2. Labor & Government: 3.55
3. Real Estate: 3.50
– Real estate costs: 3.80
– Availability of existing modern warehouses: 3.63
– Availability of land: 2.75
4. Infrastructure: 3.43
Figure 19
Ranking of key requirements
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EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS | JULY 2013
PROLOGIS RESEARCH
Scores within Real Estate requirement
Surprisingly, the Netherlands was the location
chosen most for availability of land and modern
warehouses, but it rated 3rd for real estate costs
behind Poland. Warehouse users consider total
operational costs and although real estate costs in
the Netherlands are above the European average,
companies evaluate the total benefts and effciency
of a location.
Within Central & Eastern Europe, Poland and Romania achieved the highest score within the real estate
requirement. Poland is frst for both real estate costs
and availability of modern land and warehouses.
Romania has a particular high score for the requirement real estate costs but ranked ffth out of eight for
availability of modern land and warehouses.
Venlo led the way overall in 2013, due to high scores
for the availability of land and modern warehouses.
Interestingly, the vacancy rate in Venlo has plummeted since reaching its cyclical high in 2010 and
dropped by 800BPS to 9.2% by the end of June 2013,
which is currently below the Pan-European average
of 9.7%4.
Central Germany and Antwerp-Brussels scored both
high in the location driver availability of land and
modern warehouses. They are middle ranking for
real estate costs. Locations in Poland, like Warsaw
and Krakow, scored relatively high for both requirements. Within Poland favorable locations are more
spread and so no Polish location made it in the top 5.
Central Germany and Antwerp-Brussels both scored
highly for the availability of land and modern
warehouses but were middle ranking for real
estate costs
Pan-Regional Romania and Bucharest in 2018 owe
their score to the high marks for the location driver
real estate costs; this is where Venlo lost popularity as a location in 2018, which implies that the
respondents foresee that rents will increase and the
availability of land will shrink in Venlo.
INFRASTRUCTURE
Importance as a requirement
Infrastructure criteria scored 3.43. There are four
segments within this category. The category
proximity to economic networks and strategic
transportation access is the most important of all 13
surveyed requirements. The criteria transportation
costs is the ninth out of 13 most important location drivers. Respondents view other criteria like
proximity to customers and closeness to economic
networks and strategic transportation access as more
important requirements for their location decision
than transportation costs.
Figure 20
Top 10 locations
1. The Netherlands 151
2. Germany 118
3. Belgium 113
4. Poland 106
5. Romania 75
6. Other E. Europe 64
7. United Kingdom 64
8. Spain 49
9. Czech Republic 45
10. France 41
Country Score
Figure 21
Top 5 locations
1. Venlo 61
2. Pan-Regional Romania 49
3. Antwerp-Brussels 36
4. Liège 36
5. Central Germany 35
Location Score
1. Proximity to customers and suppliers: 3.62
2. Labor & Government: 3.55
3. Real Estate: 3.50
4. Infrastructure: 3.43
– Proximity to economic networks and strategic
transportation access: 4.06
– Proximity and quality of road access: 3.73
– Transportation costs: 3.35
– Proximity to different types of modality: 2.60
Figure 22
Ranking of key requirements
4) As of Q1 2013
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EUROPE’S MOST DESIRABLE LOGISTICS LOCATIONS | JULY 2013
PROLOGIS RESEARCH
Pier 1, Bay 1, San Francisco, CA 94111 United States | M +1 415 394 9000 | www.prologis.com
White Paper Contributors
Dirk Sosef, Director Research & Strategy Europe
Ali Nassiri, VP Head of Research & Strategy Europe
About Prologis
Prologis, Inc., is the leading owner, operator and developer of industrial real estate,
focused on global and regional markets across the Americas, Europe and Asia. As
of March 31, 2013, Prologis owned or had investments in, on a consolidated basis
or through unconsolidated joint ventures, properties and development projects
expected to total approximately 559 million square feet (51.9 million square
metres) in 21 countries. The company leases modern distribution facilities to more
than 4,500 customers, including manufacturers, retailers, transportation companies,
third-party logistics providers and other enterprises.
Forward-Looking Statements
Copyright © 2013 by Prologis, Inc. All rights reserved.
This material should not be construed as an offer to sell or the solicitation of an offer to buy any security. We are not soliciting any action based on this material. It is for the general
information of customers of Prologis.
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Figure 24
Top 5 locations
1. Venlo 76
2. Rotterdam 67
3. Antwerp-Brussels 55
4. Rhein Ruhr 54
5. Düsseldorf 51
Location Score
Scores within Infrastructure requirement
Germany is the preferred country in terms of
infrastructure, ahead of the Netherlands, Belgium
and France.
Germany scored the highest in three out of four
infrastructure requirements. It was ranked second
for proximity to different types of modality behind
the Netherlands. Interestingly, when looking at
the 15 most favored countries, a large number of
Central & Eastern European countries like Poland
(8th), Romania (10th), Hungary (11th) and Czech
Republic (12th) are ahead of countries such as Italy
and Austria. Not surprisingly, Central & Eastern
European countries scored specifcally high in
terms of transportation costs.
Figure 23
Top 10 locations
1. Germany 251
2. The Netherlands 239
3. Belgium 139
4. France 48
5. Other E. Europe 47
6. United Kingdom 42
7. Spain 37
8. Poland 34
9. Turkey 24
10. Romania 17
Country Score
Venlo scored the highest in three of the four criteria:
road access, proximity to economic networks and
transportation costs. This underwrites its function as
an EDC location. These locations rely on excellent
infrastructure conditions, good access to a major
hinterland and a good proximity to major gateways
like seaports.
Rotterdam polled outside the top fve in the location driver transportation costs and proximity and
quality of road access, but was such a clear winner
in modality availability, scoring more than twice as
many votes Antwerp-Brussels making it number
two overall.
Venlo scored the highest marks in 3 of the 4 requirements but Rhein-Ruhr is the most favorable location
for proximity to economic networks and strategic
transportation access