High demand for logistics space is still outpacing a record supply in the Swedish market last year and vacancy rates are at very low levels. Looking into 2023 there is strong appetite of occupiers for modern sustainable warehousing.
What is the market size of the warehousing & storage in Sweden in 2023?
The market size, measured by revenue, of the Warehousing & Storage in Sweden is €258.6m in 2023. Market size growth in 2023 is projected to be 2.6% (Source: www.ibisworld.com)
Warehousing market compared to other countries in Europe
According to IBISWorld warehousing & storage industry in Sweden is valued at €258.6m and is ranked 15th in Europe in 2023 (of 25 total EU countries).
| RANK | COUNTRY | INDUSTRY REVENUE |
|---|---|---|
| 1 | Germany | €25.0bn |
| 2 | France | €13.3bn |
| 3 | Spain | €4.3bn |
| 4 | Italy | €3.6bn |
| 5 | Netherlands | €3.0bn |
| 6 | Belgium | €2.1bn |
| 7 | Czechia | €2.0bn |
| 8 | Poland | €1.1bn |
| 9 | Ireland | €893.4m |
| 10 | Portugal | €702.7m |
| 11 | Slovakia | €500.5m |
| 12 | Hungary | €403.5m |
| 13 | Austria | €315.2m |
| 14 | Romania | €277.6m |
| 15 | Sweden | €258.6m |
| 16 | Finland | €249.9m |
| 17 | Denmark | €244.7m |
| 18 | Greece | €143.5m |
| 19 | Estonia | €104.3m |
| 20 | Lithuania | €69.0m |
| 21 | Latvia | €58.6m |
| 22 | Bulgaria | €42.9m |
| 23 | Croatia | €40.2m |
| 24 | Slovenia | €33.0m |
| 25 | Cyprus | €12.8m |
Industrial real estate prime headline rents in Sweden
The highest prime rents for industrial and logistic properties in Sweden as of 2022 autumn was in Stockholm. Prime rents for logistic and distribution facilities reached eight euros per square meter per month, and prime rent for warehouses reached 10.3 euros per square meter per month. Prime headline rents are calculated for units of standard size and highest quality (Grade A) in the best location of the market
New Development Projects
In 2022 Panatton completed the biggest zoned land deal ever done in the Swedish market with the circa €300m acquisition of seven sites totalling 121.3 ha in the region of Stockholm and Skane. The vendor is Kilenkrysset, a Swedish family-owned real estate owner and developer. The land has the zoning permits and potential to develop 661,450m² of logistics gross lettable area (GLA), for an estimated total investment of more than circa €1bn.
Panattoni plans to speculatively develop 19 warehouses on seven greenfield sites. Sixteen of these will be built in the Mälardalen region in Strangnas, Nykvarn and Enköping west of Stockholm, all next to the E18 and E20 motorway. Two developments will be located at Rosersberg, 30 km north of central Stockholm on the E20 motorway. One development will be located in Staffanstorp 6 km east of Malmö close to E6 motorway.
The prime development land Panattoni acquired from Kilenkrysset sits in the heart of Sweden’s Golden Triangle concentration of warehousing and distribution hubs in the southern regions framed by the cities of Stockholm, Gothenburg and Malmo. The Golden Triangle accounts for 80% of the country’s business and population, its most important ports, largest airports and main transport routes.
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.
Waredock in Sweden
Waredock offers fulfillment and warehousing in Sweden in different regions – in metropolitan Stockholm area as well as Gothenburg. Our vision at Waredock is a geographically dispersed fulfillment and warehouse infrastructure that is enabled by data insights across the supply chain. We are working with 3PL companies, property owners, businesses small and large in a range of industries. We help businesses get greater coverage in more markets. Our network includes every warehouse type, with the certifications and designations to store any specialized product. And, we’ll provide picking, kitting, shipment consolidation, and more. Get started today!
