Land scarcity near major Dutch cities is becoming a serious challenge for governments, developers, and occupiers—especially for businesses involved in last-mile logistics and local services. These “caring businesses” are essential for maintaining urban life, yet they’re increasingly pushed out by housing development and the repurposing of commercial areas. As urban populations grow and land becomes more valuable, new spatial strategies are urgently needed. One promising solution is the development of multi-story logistics and industrial facilities that combine functions efficiently within a limited footprint. CBRE reports about it.
Urban Growth Versus Business Space
Cities like Amsterdam are experiencing rapid population growth—three to four times higher than the rest of the Netherlands by 2040. For example, Amsterdam plans to add 150,000 new homes for 250,000 residents within its existing boundaries by 2050. This densification pressures business parks, which are being repurposed for housing. At the same time, demand for local delivery, repair, and light manufacturing services is increasing.
However, this rising demand clashes with the decreasing availability of affordable commercial property. The city’s historical infrastructure and upcoming zero-emission regulations make logistics more complex. Urban space is under pressure, and the need for innovative, space-saving logistics solutions is growing.
Paris as a Leading Example
Paris faces similar challenges but has taken bold steps. Due to high population density (over 21,000 people/km²) and complex infrastructure, Paris has pioneered the development of multi-story logistics and light industrial buildings. These facilities allow small trucks and vans access to multiple levels, with some offering rooftop parking and underground hubs.
The Paris Air2 project in Gennevilliers is a standout example of housing companies like IKEA and Leroy Merlin. Across the Paris region, over 500,000 m² of new multi-story logistics space is under development on top of an existing stock of 815,000 m². Light industrial developments—such as those in La Chapelle and Saint-Quentin-en-Yvelines—show that businesses can operate efficiently on upper floors, particularly those with less frequent and lighter goods movements.
Dutch Market Slowly Embracing Change
In the Netherlands, 92% of logistics occupiers recognize multi-story distribution centers as a viable solution. Yet more than half have never considered leasing such units, mainly due to the current availability of single-floor options, the poor location of multi-story alternatives, and concerns about accessibility to upper levels.
Many businesses prefer ground-floor units, citing challenges like complex vertical transport, limited outdoor space, and lower load-bearing capacity on upper floors. Construction costs are also a factor—multi-storey buildings are roughly 65% more expensive per square metre than single-storey equivalents. As long as single-floor options are available in prime locations, occupiers will unlikely pay premium rents for higher floors.
Still, attitudes are shifting. Occupiers are becoming more open to the idea, especially as urban complexity increases and space becomes scarcer. Light industrial operators—less burdened by heavy logistics—are particularly suited for upper-floor operations.
Moving Toward Mixed-Use Urban Hubs
Dutch municipalities are already advocating for mixed-use development and densification. However, a clear legal and regulatory framework is needed to unlock the potential of multi-story concepts. Developers and investors hesitate to commit to innovative, space-efficient buildings without zoning updates and supportive policies.
The Paris example shows what’s possible. While cities like Amsterdam and Paris differ in layout and density, their shared challenges—urban growth, congestion, and land scarcity—make it worthwhile to adopt similar strategies. Dutch cities must act now to integrate logistics, light industry, housing, and offices within limited space. With bold policy, smart planning, and public-private cooperation, multi-story logistics could be a key enabler of sustainable, livable urban growth.
Source: CBRE