Prologis, Inc., the global leader in industrial real estate, today published a research paper that speaks to the growth of the e-commerce sector in Europe and how it will affect the region’s broader economy.
A key discovery is that growth in e-commerce over the last three years has translated into 5million square metres of new e-fulfilment space and is driving job growth in key logistics hotspots. The research shows how complementary industries, such as logistics real estate that serve as a backbone to e-commerce, will continue to benefit.
The paper, titled “European E-Commerce, E-Fulfilment and Job Creation”, reviews e-fulfilment strategies and customer location preference based on a deep analysis of individual leases. This analysis shows that for every €1 billion in new e-commerce sales, 77,000square metres of new logistics real estate space was needed to fulfil those orders.
Looking ahead, the implications that follow include:
•Job growth: 200,000 new jobs will be needed to staff new e-commerce facilities over the next five years; this translates to 100 jobs per day.
•Multiplier effects: The e-commerce industry will need an additional 15 million square metres of logistics space during the next five years as online sales and shipping volumes grow significantly.
•Location: Facilities in Europe’s largest e-commerce markets, such as the U.K., Germany and France, as well as growth pockets like Poland, Czech Republic and the Netherlands, are the current hotspots.
“In the past three years, e-commerce leases accounted for 15 percent of total leasing volume and we expect this ratio to rise further as more companies expand their e-fulfilment capabilities,” said Chris Caton, senior vice president, Prologis Research. “Most growth is expected to occur in Europe’s three largest e-commerce markets, the U.K., Germany and France, which could account for approximately 10 million square metres alone.”
Prologis is the leading provider of industrial real estate in Europe, with approximately 16.2 million square metres of logistics and distribution space in 14 countries across the region as of June 30, 2015. (source: Prologis)
