Warehouse Market in Sweden 2020

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Demand For Spaces in Smaller Cities Close to Metropolitan Areas

eCommerce market in Sweden is expected to show an annual growth rate (CAGR 2019-2023) of 6.8%, resulting in a market volume of US$13,407m by 2023 (Statista report). Growth in e-commerce and warehouse automation generates increased demand for modern, large warehouses. E-commerce actors are choosing to establish themselves in smaller cities close to the metropolitan regions of Stockholm, Gothenburg and Malmö where demand is strong.

Sweden has a low population density and high labour costs, which impacts efficiency and makes last mile logistics more challenging. Since capital expenditures in properties and automation can ramp up quickly more companies will opt to use co-warehousing in rural areas by using platforms such as Waredock.

New Development Projects

In bigger cities like Stockholm and Göteborg flexible logistics facilities are being built speculatively without tenants. At the same time vacancy rates have stayed low and the increased need for modern logistics space fuels further speculative construction.

In 2018 approximately 565 000 sqm of modern logistics properties were completed in Sweden, which is an increase by about 10 per cent over the previous peak in 2017.

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