Supply chain and logistics

Belgium at the crossroads

Logistics is the lifeblood of a modern economy. Belgium, like other developed countries, now sees secure supply chains as vital to its national security. The pandemic taught us that, without a vibrant logistics network, modern economies die. This lesson has not been lost on international logistics investors and their platforms. They are surging into Belgium and pursuing the compelling opportunities offered by this asset class.

Logistics developments are increasingly situated around rail freight and waterway terminals, and not just alongside motorways or airports. These transported developments require precise and strategic advice on the relevant transport regulations and the necessary shared structures and the asset protection agreements with the infrastructure authorities.

Due to the intensive upfront capital outlay these buildings demand, lease terms in the logistics market tend to be longer than leases in other sectors. A long lease (>9 years) is often the norm, but linked to customer contracts and business flow by break rights and renewal options. Dealing provisions in logistics leases are also more generous than in other sectors, for example, allowing group sharing and relatively free underletting.

In Belgium, for everyday leases (including logistics ones) rent reviews have to be expressly negotiated in. Rent is, however, usually adjusted on an annual basis in line with a specific consumer price index (the so-called ‘health index’).