COVID-19 pandemic accelerating new trends in the logistics sector

Online retail sales require more logistics space than brick-and-mortar stores.

Industrial and logistics premises have also been erected outside the most popular region of western Slovakia, like this one near Košice.Industrial and logistics premises have also been erected outside the most popular region of western Slovakia, like this one near Košice. (Source: TASR)

While Slovakia’s small and open economy was one of the most hit by the COVID-19 pandemic within the European Union, the local industrial and logistics segment was not as negatively affected as other real estate fields. The novel coronavirus crisis has brought a demand for short-term rentals, the development of e-commerce and acceleration in implementing new processes and innovations.

“The coronavirus crisis has impacted the industrial and logistics segment less than other segments of the real estate market in Slovakia,” Michal Cerulík, head of the industrial agency at CBRE Slovakia, told The Slovak Spectator. “Despite the fact that all four carmakers operating in Slovakia halted their operation in April, the market remained relatively active.”

Some statistics

The investment volume transacted in H1 2020 in Slovakia reached €432 million and spread out among 10 transactions. In general, the dominance of the office and industrial segments continued in the first half of the year followed by the retail segment, according to CBRE.

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“Prime logistics and office segments remain the most preferred fields among investors, with price levels still appearing immune to the COVID-19 pandemic,” reads the CBRE’s Property Investment Market View, adding they have noticed that demand from the side of investors exceeds the current supply in the industrial and logistics segment.

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