The Development of the Fast-Growing Swedish Logistics Property Market : A Study on the Demand and Supply Perspective of the Private and Public Sector

Sammanfattning: Logistics properties are defined as properties for short-term storage purposes where the goods are distributed further to consumers. Logistics properties are the fastest growing property segment in the Swedish property market based on the total transaction volume. At the same time, market reports highlight how changing market trends will affect the future growth of logistics properties. Hence, one significant challenge in the new development of logistics properties is a shortage of land access i.e., developable land in the logistical clusters of Sweden. Previous studies have mainly focused on industrial properties with a general perspective, and not only specific the sub-segment logistics properties. Furthermore, analyzes of the relationship between developable land and demand from a Swedish perspective are lacking. The aim is to investigate the key market factors affecting the future growth and demand of the Swedish logistics property market. In addition, the study includes an examination of the current and future supply of developable land from a private and public sector perspective. The study was based on data from a mix of quantitative and qualitative methods and actors from the public and private sectors were interviewed. The study also includes a survey of the public sector i.e., municipalities of Sweden. Furthermore, the main demand drivers, supply, and municipality perspectives were analyzed thematically connected to the theoretical framework, neoclassical demand and supply theory, and behavioral finance theory.  The results show that e-commerce, end-costumers raising delivery requirements, post Covid19 effects, and supply chain issues due to the Russian invasion of Ukraine are key factors driving the growth in the Swedish logistics property market. The results show that there is insufficient or very little available supply of developable land for logistics properties near bigger cities such as Stockholm and Gothenburg. However, the result also indicates that there will be an increase in future supply and developable land for logistics properties within five years. Hence, the highest values of planned square meters of land area in the municipalities near Gothenburg and the highways E20 and E4, between Gothenburg and Stockholm. The data indicate that the future development of logistics properties will be close to adequate traffic communications such as highways and interrail. Furthermore, highlighted attributes in the new development of logistics are buildings with more automation, height, and green building certificates where flexible buildings are significant.