The report provides an overview of the Swiss logistics landscape and the logistics real estate market, as well as highlighting the challenges faced by logistics companies in Switzerland and presenting the FTI (Foundation for Industrial Land) in Geneva.
Insight
26 August 2024
Switzerland Logistics Market 2024
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JLL has counted more than 1’200 buildings with logistics usages. The majority of commercial logistics buildings and spaces in Switzerland are used by their owners themselves. JLL has counted more than 300 logistics properties that are held for investment purposes and leased to tenants. The density of logistics buildings is the highest along the A1 motorway and around the large Zurich, Geneva, Basel and Lausanne metropolitan areas. A particularly large number of logistics properties are located within the Basel – Solothurn – Zurich triangle.
Five renowned Swiss companies were surveyed by JLL about the challenges they face regarding space searches, space requirements and trends. There is a discrepancy between what is being built and the technical requirements that are in demand. Requirements and offerings often do not align.
For average logistics space, rents usually range between CHF 85 and CHF 140 per m2 p.a. The vacancy rate at investment properties decreased from 7.7% to 5.1% between 2019 and 2023.
The FTI (Fondation pour les Terrains Industriels) assists companies in their search for suitable land and premises by offering tailored solutions that meet their unique requirements. The FTI owns approximately 26% of the land located in the Geneva industrial zones.
Although warehouse space is generally in high demand, there are still buildings whose structures and layouts only partially meet the specific requirements of logistics companies. Two case studies show subdividing such spaces into small self-storage units and the targeted marketing of them can reduce vacancies and increase rental income.