Guide to Finding the Perfect Warehousing Location in Europe

Key Features Driving Location Decisions:

• Transportation Infrastructure: A robust transportation network is paramount. Prioritize regions with seamless road and rail connectivity, efficient port access (e.g., Rotterdam, Europe's largest), and proximity to major air freight hubs (e.g., Schiphol). The Benelux and Germany particularly excel in this regard. (Sources: Savills Research, Prologis/Eyefortransport, NordicHQ)
• Market Proximity: Minimize transport costs and lead times by locating near your target customers. Central locations in Western Europe, particularly the Rhine-Alpine corridor, provide excellent access to major consumer markets. (Sources: Prologis/Eyefortransport, NordicHQ, LaSalle PoDs)
• Labor Dynamics: Analyze both cost and availability. Eastern European countries like Poland offer a cost advantage with lower wages, while Western Europe boasts a highly skilled workforce. (Sources: Savills Research, Panattoni Europe insights, Prologis/Eyefortransport, NordicHQ)
• Economic Networks: Integrate seamlessly into established industry clusters. Locations like the Rhine-Ruhr region benefit from a high concentration of manufacturing and logistics companies, fostering collaboration and efficiency. (Source: Prologis/Eyefortransport, LaSalle PoDs)
• Regulatory Landscape: Navigate region-specific regulations related to warehousing, customs, VAT, and trade. Thorough due diligence is crucial for smooth operations. (Source: Prologis/Eyefortransport, NordicHQ)
• Real Estate Considerations: Balance cost with functionality. Evaluate rental rates, land availability, and the presence of modern, efficient facilities. While prime locations often command premium pricing, their strategic advantages can justify the investment. (Sources: Prologis/Eyefortransport, LaSalle PoDs, NordicHQ, Savills research)
• Technological Advancement: Embrace the future of logistics. Prioritize locations that support automation, robotics, AI integration, and the use of data analytics for enhanced efficiency and cost optimization. (Source: Savills IM, Tritax EuroBox insights)
• Sustainability Considerations: Align your operations with ESG goals. Assess access to renewable energy, opportunities for green building certifications, and the potential for implementing sustainable practices within your warehousing operations. (Sources: Savills Research, Savills Occupier Survey)

Region-Specific Advantages:

• Western Europe: Prime locations like Venlo, Antwerp-Brussels, and Rotterdam offer unparalleled access to Western European markets, advanced infrastructure, and a highly skilled workforce. Ideal for e-commerce fulfillment, high-value goods, and time-sensitive deliveries.
• Southern Europe: Strategic access to Southern European markets. Consider locations like Barcelona for its multimodal transportation options and access to both Spanish and wider European consumer markets. (Sources: Savills Research, LaSalle PoDs)
• Eastern Europe: Cost-effective solutions and emerging markets. Locations like Poland and the Czech Republic provide lower labor costs and access to both Western and Eastern European markets. Ideal for manufacturing, distribution, and businesses looking to optimize operational expenses. Take advantage of government incentives in certain areas.
• Northern Europe: Well-developed infrastructure and strong e-commerce capabilities. Sweden offers a stable economic environment and serves as a gateway to Scandinavian markets. Consider emerging regional logistics hubs outside established locations for potential cost savings.
• UK & Ireland: The UK offers significant opportunities, especially near major urban centers. Assess the potential impact of Brexit on your specific supply chains. Ireland offers advantages for serving the UK market. (Source: Savills IM)

Case Studies:

• Mattel: Demonstrates the value of centralizing European distribution for cost optimization and improved efficiency.
• Amazon: Exemplifies the increasing importance of urban logistics, last-mile delivery solutions, and flexible warehousing strategies for meeting rapidly evolving consumer demands.
• Logistics Corridors in Poland: Shows that focusing on key corridors like the Warsaw-Berlin, Katowice or A2/A4 offers benefits due to infrastructure, demand drivers, and potential for capital growth.

The LaSalle Paths of Distribution (PoDs) Score:

The LaSalle PoDs score provides a granular, data-driven approach to evaluating European logistics locations. This model considers factors like transportation costs, market proximity, labor availability, and road network density to identify optimal locations for distribution. Key takeaways include:

• Paris emerges as a top-ranked location due to its central location within France, robust infrastructure, and large consumer base.
• Northern Italy exhibits strong potential, with Milan offering a compelling combination of infrastructure advantages and a large population.
• Regional Polish markets, particularly Lodz and the Katowice-Krakow corridor, are emerging as key hubs, benefiting from strategic locations along major freight routes and a growing consumer base.

Conclusion:

Choosing the perfect warehousing location in Europe requires a strategic approach. Leverage the insights and resources provided in this guide, conduct thorough due diligence, and consider seeking expert advice to align your decision with your business objectives and maximize your success in the European market.