Choosing the right location for a warehouse in Europe is an important decision for businesses aiming to distribute goods across the continent. In this article we will examine the best locations for a pan-European warehouse, considering factors such as transportation infrastructure, proximity to markets, costs, and relevant regulations. The analysis draws on market reports and insights from leading logistics providers to provide a comprehensive overview of the European warehousing landscape.

Top Warehouse Locations in Europe

Several European countries stand out as prime locations for warehousing and distribution due to their strategic positioning, well-developed infrastructure, and access to key markets. These include:

Belgium and the Netherlands: These countries are considered gateways to Europe due to their strategic location along major trade routes and access to major ports like Rotterdam, Europe’s largest port. They consistently rank high in market reports for their logistical efficiency and access to markets. Venlo in the Netherlands and Antwerp-Brussels in Belgium are particularly attractive locations. Venlo scores highly across multiple categories, including infrastructure, labor, government, and real estate, making it a top contender for pan-European distribution.

Read our extensive guide on warehousing and fulfilment in the Netherlands – including a pricing overview.

Germany and France: These countries boast a central location in Europe, making them ideal hubs for distribution. They offer robust infrastructure, including extensive road and rail networks, and are home to major logistics providers. Key locations include the Rhine-Ruhr region in Germany and Paris in France. Notably, Paris scores as Europe’s top market for logistics centrality, further strengthening its position as a prime location, according to a recent LaSalle report.

Poland: Poland is an emerging market with growing potential for warehousing and distribution. Its strategic location in Central Europe provides access to both Western and Eastern European markets. Locations like Warsaw and Katowice are becoming increasingly important for pan-European distribution (Savills report). Poland is also considered a hub into Europe for the so-called ‘New Silk Road’.

Comparing European Regions for Warehousing

When comparing different regions in Europe for warehousing, several factors come into play:

Transportation Infrastructure: Europe has a well-developed transportation network, including roads, railways, and ports. However, the quality and accessibility of this infrastructure can vary between regions. Countries like Belgium, the Netherlands, and Germany are known for their excellent transportation infrastructure, with extensive road networks, efficient rail systems, and numerous ports. This well-connected infrastructure facilitates the smooth and efficient movement of goods across the continent.

Proximity to Markets: The geographic location of a warehouse determines its accessibility to major markets. Warehouses in central locations like Belgium, the Netherlands, Germany, and France have an advantage in terms of reaching a larger customer base. These countries serve as central hubs, allowing for efficient distribution to various European markets.

Labor Costs and Availability: Labor costs and the availability of skilled workers can vary significantly across Europe. Eastern European countries like Poland generally have lower labor costs compared to Western European countries. This cost advantage can be a significant factor for businesses looking to optimize their operational expenses.

Economic Networks: Access to economic networks and industrial clusters can influence the efficiency of supply chain operations. Regions with strong economic activity and a concentration of businesses offer advantages in terms of sourcing and distribution. For example, the Rhine-Ruhr region in Germany is a major industrial hub with a high concentration of manufacturing and logistics companies.

Regulatory Environment: Different regions in Europe have varying regulations related to warehousing, customs, and trade. It’s essential to consider these regulations when choosing a location. For instance, businesses need to be aware of VAT registration requirements and customs procedures when importing or exporting goods.

Air Transport: In addition to road and rail networks, air transport plays a crucial role in European logistics. Amsterdam Airport Schiphol in the Netherlands is the second largest in Europe for freight handling, providing efficient connections to international markets (ResearchGate study). This accessibility to air transport further enhances the logistical advantages of the Netherlands.

Growth of Warehouses in Eastern Europe: The number of new warehouses with modern facilities and technology has been growing rapidly in Eastern Europe, particularly near capital cities. This development presents new opportunities for businesses seeking cost-effective warehousing solutions in emerging markets.

Find the best hub based on your European target market

The optimal warehouse location can vary based on specific target regions and business specialties:

Target Regions

Western Europe. For businesses primarily targeting Western European markets, locations in Belgium, the Netherlands, and Germany offer excellent proximity and well-developed infrastructure.

Southern Europe. Locations in Spain, like Barcelona, provide strategic access to markets in Spain, France, and Italy.

Eastern Europe. For businesses looking to expand into Eastern European markets, Poland offers a strategic location and cost-effective solutions .

Northern Europe. While this region has higher warehousing costs, countries like Sweden offer advantages for businesses targeting Scandinavian markets and benefit from well-developed infrastructure and a stable economy.

Central Europe. Countries like the Czech Republic are gaining traction as potential warehouse locations, particularly for businesses seeking access to both Western and Eastern European markets .

United Kingdom & Ireland. Despite Brexit, the UK remains a significant market, and locations like the West Midlands offer strong logistics infrastructure and access to a large consumer base. While Ireland serves as an effective logistics hub for UK operations due to its proximity, shared language, and similar business culture, it’s less ideal for serving continental Europe since the required additional sea crossing leads to longer transit times and higher costs compared to central locations like Rotterdam, Antwerp, or Hamburg.

Specific types of warehousing per region

E-commerce businesses often benefit from locations with strong e-commerce infrastructure and fulfillment capabilities, such as those found in Germany, the UK, and the Netherlands.

Hazardous Materials: Companies dealing with hazardous materials require specialized facilities and expertise, with Germany and the Netherlands having a strong presence in this sector.

Temperature-Controlled Goods: For businesses requiring temperature-controlled storage, locations in Central and Eastern Europe are emerging as viable options due to the growth of modern facilities.

Factors to Consider When Choosing a Warehouse Location

Choosing a warehouse location in Europe involves evaluating various criteria:

Proximity to Customers and Suppliers: Locating a warehouse close to customers and suppliers reduces transportation costs and lead times, improving efficiency and customer satisfaction (Masson International). This proximity also facilitates better communication and collaboration within the supply chain.

Transportation Costs: Evaluate transportation costs associated with different locations, considering factors such as fuel costs, road tolls, and accessibility to different transportation modes. The availability of intermodal transportation options, such as combining road and rail transport, can also impact overall costs.

Infrastructure Quality: Assess the quality of road networks, access to highways, proximity to airports and railway stations, and the availability of intermodal transportation options. Efficient and well-maintained infrastructure is crucial for the smooth flow of goods and timely deliveries.

Labor Availability and Flexibility: Consider the availability of skilled labor, labor costs, and the flexibility of the workforce in different regions. A skilled and adaptable workforce is essential for efficient warehouse operations.

Environmental Factors: Evaluate the environmental impact of the warehouse location, considering factors such as weather conditions, risk of natural disasters, and access to renewable energy sources. Choosing a location with minimal environmental risks and opportunities for sustainable practices is becoming increasingly important.

Local Business Environment: Assess the overall business environment in the region, including factors such as taxes, regulations, and the availability of support services. A favorable business environment can contribute to the long-term success of warehouse operations.

Adequate Space and Customer Service: Ensure the warehouse location offers adequate space to accommodate current and future needs, and consider the availability of customer service support for efficient operations (read a case study on this).

Location Criteria for 3PLs and Shippers: Location criteria can differ between third-party logistics providers (3PLs) and shippers. Real estate costs and proximity to customers and suppliers are more important for 3PLs, while infrastructure quality and regulatory issues are more important for shippers. This difference highlights the need for businesses to prioritize their specific needs when choosing a location.

Average Warehousing Costs in Europe

Warehousing costs in Europe vary significantly depending on the location, size of the warehouse, and the type of services required. The most expensive areas for renting warehouses are generally in the United Kingdom, the Nordics and Germany.

The cost of warehousing in Europe can vary significantly depending on several factors, including location, size, and type of warehouse. However, based on recent data, the average cost of warehouse storage in Europe is estimated to be between €3 and €25 per square meter per month.

Here’s a table with estimated monthly costs in some European capitals:

Example: price differences between German regions

Within Germany, warehousing costs also vary by region. Munich has the highest prime rent for logistics real estate at 10.50 euros per square meter in 2023, while Leipzig has the lowest at 5.90 euros per square meter.

Remember to consider all cost factors, including rent, utilities, labor, and transportation, when evaluating the overall cost-effectiveness of different warehouse locations.

Types of Warehouses in Europe

Europe offers a variety of warehouse types to suit different business needs:

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