Urban logistics in Europe must catch up with e-commerce growth
The continuing increase in e-commerce over the coming years will require more space to be given over to "urban logistics" – the facilities needed to handle goods ordered by customers for delivery. A report by commercial property company Cushman & Wakefield projects a 69% increase in the volume of parcels being delivered in Europe by 2021, with the space required to handle them doubling in cities such as Madrid and Barcelona. London will need an increase in space of 42%, according to the projections. London is the most mature e-commerce market in Europe, the report said.

Major European cities will need a “huge increase” in urban logistics space to cope with the expected growth in e-commerce-driven parcel volumes over the next few years, according to a new report from property company Cushman & Wakefield. The Urban Logistics report, published yesterday (18 October), forecasts a 69% increase in parcel volume in Europe by 2021.

According to Cushman & Wakefield: “In terms of population and buying power, London is the largest and most mature eCommerce market in Europe with a current urban logistics space requirement of 870,000 sq m. This total is expected to exceed 1.2 million sq m in 2021, an increase of 42%.”

In the Spanish cities of Madrid and Barcelona, the report forecast that the space requirement will more than double.

Commenting on the report, Lisa Graham, Head of EMEA Logistics Research & Insight, Cushman & Wakefield, said: “As more of us do our shopping online, it’s vital that our large cities have the capability to handle the increase in parcel capacity across Europe. Our Urban Space Model shows that substantial growth is expected across the board. The fact that a 42% rise in the UK is the smallest increase speaks volumes for the direction the market is heading.

“Looking ahead, it will be crucial for online retailers and parcel companies to use urban logistics space in order to meet rising customers’ expectations in terms of speed and reliability of delivery, while at the same time reducing costs in order to justify higher rents.”