If you are looking to invest in a logistics property in Belgium, you’ll want to read this article. It provides information on the availability of logistics real estate in Belgium, VAT requirements, and COVID-19 pandemic impact on the Belgian warehouse market. It also explains how you can get the most out of a Belgium small warehouse lease. We’ll discuss all these topics and more. Continue reading to find out how you can make the most of your new space!
Availability of logistics real estate in Belgium
The availability of logistics real estate in Belgium is at a record low, with less than one percent of available space. With warehouse rents rising at a record pace, it could soon get very expensive. In fact, the country is one of the lowest vacancy rates in Europe, with available space getting rented in record time. While the COVID-19 pandemic is affecting the number of large warehouses in Belgium, demand is expected to continue to grow as e-commerce and online sales increase.
The most prominent brokers in Belgium for logistic real estate are the WDP group and CEUSTERS. Their experience and expertise in the logistics sector will help you find the right location for your small warehouse and achieve its goals. They can provide you with a range of options that fit your needs, whether you are looking for a large-scale logistic complex or a single-floor warehouse. You may also consider investing in Belgium small warehouse real estate for reshoring production or establishing a small logistics company.
VAT requirements for a Belgian warehouse
The VAT requirements for a Belgian small warehouse have recently changed due to changes in the rules governing the place of supply. The rules also affect non-resident traders who use Belgium as their warehouse. In a nutshell, consignment stock is stock sent by a transferor to a warehouse where it is then sold to the final client. After making an intracommunity supply or importing goods, a consignor must register for Belgian VAT.
To claim a VAT refund, a foreign company must be the Importer of Record and Consignee on customs documents. In addition, the company must have an EU EORI number for customs clearance. This number must be on all shipping documents. A VAT refund reciprocity agreement is not necessary, but any overseas company can claim the VAT it pays when importing goods into Belgium. To be eligible for a VAT refund, a foreign company must sell goods within 30 days of their importation.
Speculative developments in the logistics sector after the GFC
After the GFC, Europe’s logistics sector has been grappling with supply constraints, lack of developable land and strict planning regimes. While speculative construction is up, the industry is still experiencing severe supply shortages in key markets. Pre-GFC construction consisted of 90% speculative development, whereas post-GFC construction comprises 80% built-to-suit developments. The lack of supply has caused leasing activity to accelerate in some markets, as online shopping has soaked up vacancy.
Impact of COVID-19 pandemic on demand for warehouses in Belgium
The logistical industry in Belgium is growing at an impressive rate, and more than 600,000 square meters of new warehouse space are due to be built this year. This rapid growth is fuelled by a combination of factors, including the COVID-19 pandemic, the growing e-commerce sector, and the demand for strategic storage space. With a surplus of warehouse space, prices are rising, and rents are in danger of hitting an all-time high – over 55 euros per square meter in prime Brussels.
The COVID-19 pandemic impacted all elements of the supply chain at the same time, which made it a distinct external shock from the financial crisis in 2008-2009. However, while all indicators declined at the same time, they bounced back within three months. This suggests that the demand for small warehouses in Belgium is deferred and temporary, and that the impact of COVID-19 is not yet fully felt in the Belgian supply chain.