In conjunction with the broader real estate sector, the Swedish logistics market faced maintained challenging conditions during 2023. The total investment volume within the industrial/logistics segment surpassed SEK 24 billion for the year, with almost 44% being executed in Q4. Additionally, the deliveries of newly developed logistics space remained at considerably high levels, amounting to 1.2 million sqm, although a slight decrease compared to 2022. However, rents increased in 2023, but simultaneously the yield decompression continued throughout the year.
While 2024 is underway, the investment market has once again witnessed a comparatively subdued first quarter, with the industrial/logistics sector recording transaction volumes totalling SEK 4 billion. Conversely, development activities have persisted at robust levels, with projections indicating the completion of 1.3 million sqm of new logistics space until end of year. The proportion of speculative development remain on elevated levels, constituting about 35%, which have impacted the vacancy rates. However, despite an increasing surplus, certain tenant sectors are expected to continue to be able to absorb space moving forward.
The 2024 edition of the Logistics Sweden report offers an enhanced perspective on the Swedish logistics market. It provides an updated overview of the top logistics hubs, coupled with a detailed examination of the development pipeline and its impact on future vacancy rates. Additionally, the report highlights the importance of adequate infrastructure, and possible trend sightings regarding the absorption of newly developed logistics space by different tenant sectors.
The insights included in this report aim to explore the market as of the end of the first quarter of 2024. If you require more detailed data, please do not hesitate to contact us.
