Categories
Uncategorized

Belgium Warehouse Rental Boom Continues

Despite the rising demand for storage space, the country still has relatively few empty warehouses. The country is also leading the way in Europe in terms of low vacancy rates. Available space has been leased within record time, and headline rents are now starting to rise. The average headline rent is now 45 euros per square meter, compared to 43 euros in 2017 and 41 euros in 2018. In Brussels, prime rent is 55 euro per square meter.

Demand for storage capacity

The new Belgian regulation for the storage of electricity has brought about significant flexibility in the electricity market and has facilitated long-term bookings for end-users. The new regulation also provides a solid basis for Fluxys’ capacity development plans. The new Belgian rules are designed to address the critical adequacy challenges that have plagued the country for years. The Belgian state has devised a capacity mechanism called the strategic reserve that allows the country to guarantee its own capacity in case of a power supply shortage.

In Belgium, 1% of the warehouse space is not in use, which is among the lowest in Europe. The demand for warehouses is growing so rapidly that the country is on track to add 600,000 square meters of new space this year. With an increase in online shopping, warehouse space is also becoming more sophisticated. This means that rents will continue to climb, but at a slower pace than they did in recent years. In addition to the economic boom in Belgium, this country’s availability of storage space will help businesses grow their online business.

Availability

Almost half a million square meters of warehouse space is available in Belgium, and just one percent of it is unoccupied. Despite the country’s boom, vacancies remain low. Only one percent of the country’s warehouse space is vacant today. This low vacancy rate has resulted in Belgium having the lowest vacancies in Europe, and empty space is rapidly being rented out. In recent years, Belgium has been losing large warehouses to the Netherlands, but with better regulations for night work, the Netherlands has returned some of its space to Belgium. Availability of Belgium warehouse rental space will remain high until 2022.

One of the most attractive factors about Belgium warehouse rental is its location. Located in the heart of Brussels, this warehouse is easily accessible by car, train, and metro. Its 620 square metres of space includes 20 parking spaces. Furthermore, it is also located within walking distance of Brussels’ city center. The availability of Belgium warehouse rental space is rising, but the price is still low compared to other countries. Moreover, Belgium has a lot of room for growth and development.

Costs

The logistics sector in Belgium is booming. Approximately 1% of warehouse space is unoccupied in the country. Warehouses are becoming larger, more sophisticated, and more diverse. In fact, the number of warehouses is increasing so rapidly that the average headline rent is approaching 55 euros per square meter. Prices in prime locations in the capital have increased dramatically since the COVID-19 pandemic hit the country. Furthermore, the e-commerce boom will push the demand for warehouse space higher still.

The cost of renting an industrial space in Belgium is lower than in its neighbouring countries. The top areas to rent a warehouse in Belgium are Meirstraat, Schuttershofstraat, and the Canal de Bruxelles. However, outside of these areas, rental prices are significantly lower. For a more accurate picture of how much your space will cost, consider these locations. This will help you decide whether it is the best option for your needs.

COVID-19 pandemic

As the logistics sector in Belgium grows, the country will add around 600,000 square metres of new warehouses this year. The number of warehouses will continue to grow as warehouses are becoming larger, smarter and more diverse. But this growth will also mean higher rents, as the country’s warehouse rental market is experiencing record-low vacancy rates. In fact, rents are on the rise, with a headline rate of 55 euros per square metre for prime location in Brussels. The demand for warehouses is escalating, despite the COVID-19 pandemic. Additionally, the growing e-commerce industry will increase the demand for warehouses.

After the outbreak of the COVID-19 pandemic, Belgian authorities ordered the closure of many businesses, including warehouses. As a result, there was much speculation about whether companies would still be required to pay rent during this period. Fortunately, this issue is not as limiting as it may appear. While COVID may have weakened the market in some ways, it has made the industry as a whole stronger.

Legal possibilities to make the rental of your warehouse subject to VAT

If you rent a Belgium warehouse, you may want to consider the possibility of making the rent subject to VAT. This option is only available to parties that explicitly take it. It must be done by both the lessor and the lessee, collectively. The Royal Decree will specify the conditions of exercising this option. The choice is effective for the duration of the lease. The parties can choose to opt for VAT at the time of the new lease or when renewing the existing lease. This option will replace the existing exception to the VAT treatment of warehouse rentals.

The new rules also apply to existing buildings that are primarily used for storage. The law has changed the rules regarding the taxation of storage facilities, including the place of supply. Under the new rules, storage space rentals are subject to VAT, even if the contract was made before the new rules were introduced. Under the new rules, existing storage space rental contracts will remain subject to VAT as long as they were entered into before 1 January 2019. In addition, new storage space rental agreements will be able to opt for VAT on the basis of these changes.