"The long-term prospects that open up for the industry are unique if Greece succeeds in becoming a transport hub in SE Europe and a connection point between Western Europe and Asia" says the company and points out that "the stable position of the port of Piraeus, the expectations from the ports of Thessaloniki, Alexandroupoli and Volos, the upgrading of railway transport and new investments, such as the Thriasio Freight Center, the Gonou camp and Piraeus (COSCO), give the Logistics sector excellent prospects for future development".
In Greece, storage services as a whole are estimated to have covered approximately 61% of the total value of 3PL services provided in 2020. In particular, non-refrigerated storage services covered a share of 48% and refrigerated storage received 13%. Distribution services followed with a 33% share in the same period. If we exclude transshipments, storage services together with distribution services occupy a total of 94% of the total logistics services provided to third parties. (ICAP Studies 2022). A significant number of companies are active in the sector, the leading ones being Sarmed, Goldair, Veinoglou, Golden Cargo, PAEGAE, Diakinisis, etc. Large international groups such as DHL and GEFCO are also active in the market.
These companies are either (inter)transportation companies that also provide logistics services, or pure 3PL companies. The logistics network in Greece has developed around seven distinct regional centers in Thriasio Pedio, East Attica, North Attica, Piraeus, Oinophyta, Sindos and Kalochori with Attica accounting for approximately 60%-70% of the total area.
As Geoaxis also points out, the Triasian field occupies the lion's share of the new developments in contrast to the other areas (Elefsina, Mesogeia, Oinophyta, Thessaloniki) where the majority of the building stock is quite old. Gone are the days when storage buildings were the simplest, fastest and cheapest constructions. The logic of one type fits all has been overcome as more and more emphasis is placed on automation and digitization systems. At the dawn of 2023, construction costs are difficult to predict in the medium term, as materials (supply and cost), financing and inflation are factors of uncertainty.
According to Geoaxis today, every new logistics area of more than 15,000 sq.m. can be rented immediately as there is pent-up demand and non-existent supply. The market imbalance is leading to increases in values and a decrease in yields in the range of 7.0% for good quality properties, depending on location and construction characteristics. Those companies positioned at the beginning of this bull cycle secured even lower priced markets, with near double-digit annual returns. "Yields in Greece are among the most competitive at the European level as a typical yield in Great Britain, France or Germany for prime real estate is currently around 3.0% - 3.5%, with increasing trends for 2023 . The future prospects and the high performance both in relation to other sectors of Real Estate, as well as to other investment products (see shares, bonds, deposits) leads institutional and non-investors to the ever greater placement in warehouse/logistics buildings" says the company. A major problem of the market is that there is no product for rent as the newly built warehouses were either built by the users themselves, or the lease contracts were closed before the project was even completed. We are of the opinion that today, at the beginning of 2023, a newly built warehouse in a focal point can register a rent of more than 5.25 euro/sq.m/month," he says.
