Road transport activity around logistics assets declined in the first 3Q

Road transport activity around logistics assets fell by ca -0.5% on average in the period until September compared to the same period last year. UK and Ireland and Benelux where the two regions that recorded the largest declines of -2.4% and -1.1% respectively.

We have tracked road transport movement within a 5km radius of more than 2,300 assets across Europe, and two-thirds show less activity compared to Jan-Sep ‘22.

Lower road transport on major distribution routes in the immediate area surrounding logistics assets is an argument that activity within I&L buildings is also lower, which can ultimately impact demand, expansion activities, re-letting prospects and ultimately asset values. Market data still shows that new leasing continues to remain healthy at pre-pandemic levels, but based on this unique dataset, some slowdown can be expected likely resulting also in diverging market performance as conditions change.

The chart below shows the change in road transport activity with each dot representing a single logistics asset by respective market region. It also illustrates the distribution of activity by region. Overall road transport activity in Europe declined, with the largest declines recorded in the United Kingdom-Ireland and Benelux regions. DACH is the only region with higher activity, with the median just above zero.

Countries included are: Benelux (NL, BE, LU), CEE (CZ, HU, LV, PL, RO, SR, SV), DACH (DE, AT, CH), Scandinavia (SE, FI, DK), Southern EU (ES, FR, IT, PT)

Data-driven decision making will only grow in importance and real-time geolocation specific metrics can help decision-makers gain a competitive advantage for strategic allocations and ongoing investment monitoring, as well as at the asset level to accurately and timely identify changing patterns and optimise their investment exposures.

In collaboration with Dirk Sosef

For further information, please contact info@kaniaadvisors.com.

About Kania Advisors

Kania Advisors is an independent research and advisory firm focused exclusively on institutional real assets allocations and investment programmes. We provide advice and solutions to improve outcomes in real assets investment programmes. We conduct detailed industry research and custom studies typically focused on quantitative analysis and provide insights which form a critical part of a client's decision process.