​Following the various supply disruptions (COVID-19, war, Suez Canal), many players are redefining their supply chain by reconstituting their stocks. Others want to promote sustainable development by bringing their distribution centre closer to their market or simply open up to new markets. 

If, like them, you have decided to take the step of setting up in Luxembourg, or if you are already present, but looking for a warehouse, here are some keys to help you in your journey. 

1. What criteria should you take into consideration ? 

Before starting to look for a warehouse, the first step is to determine your needs. You have to consider the logistical aspects, as well as the 3 usual criteria for choosing real estate:

• Location : easy access for your employees, close to your offices, your factory or close to motorways, railways or airlines for easier distribution.
• Size : to determine your size requirements, you will need to take into account the elements inherent to your activity (more tips on this subject under point 4 implementation).
• The condition and equipment needed. Is a sprinkler system needed, air conditioning, dock(s), a certain level of warehouse security such as TAPA? Are offices and meeting rooms needed?

2. How to find a logistics warehouse ?

Your first reflex to find a warehouse to rent or to buy in Luxembourg will probably be to search on real estate websites or contact the Chamber of Commerce. Word of mouth is also an alternative if you are from the region.

You will quickly realise that Luxembourg has a shortage of available storage space. 

The few available spaces are generally quite old and no longer meet the safety standards, requiring refurbishment. If so, you will find that a large number of ads are already obsolete.

However, if you are looking for a surface area of more than 5000m2, you can contact the Ministry of the Economy, which will be able to help you in your search. The same applies if you want to buy a plot of land for the construction of a logistics warehouse.

3. Where are the logistics warehouse located in Luxembourg ? 

Luxembourg has developed 2 business parks specifically dedicated to logistics:

• Eurohub South located in Bettembourg and directly connected to rail transport
• Eurohub centre, located in Contern for air transport

In addition, around forty business parks are scattered throughout the country :

Bettembourg, Betzdorf, Biwer, Clervaux, Contern, Dieckirch, Differdange, Dudelange, Echternach, Erpeldange-Sur-Sûre, Esch-sur-Alzette, Esch-sur-Sûre, Grevemacher, Heffingen, Bascharage, Lac de la Haute Sûre, Luxembourg, Mamer, Mersch, Mertert, Mondercange, Mondorf les Bains, Niederanven, Parc-Hosingen, Pétange, Rambrouch, Redange, Rosport-Mompach, Sanem, Schengen, Schifflange, Schuttrange, Steinfort, Strassen, Troisvierges, Wiltz and Wincrange.

 Please note that just because a building is located in a business park, it does not necessarily mean that it will be able to house your business, so be sure to check its use.

Other ‘historic’ warehouses may be located in other areas, but these are less suitable for logistics activities, for example in terms of access or too close to residential areas.

4. What about the layout of your logistics warehouse?

In order for your investment or rent payment not to be a waste of money, the location of your warehouse must be optimised. This element is too often underestimated and needs to be budgeted one hand, and on the other hand to be given time to think about it in order to organise it properly.  

We invite you to carefully analyse the storage method(s) that will suit your business. To do this, ask yourself the following questions : 

• What type of goods and how are they stored ? In bulk, on EURO pallets, industrial pallets or other ?
• How many different references do you have ?
• What stock rules do you apply ? FIFO / LIFO ?
• Different storage methods exist depending on the products stored. Which one will you use ? Block storage on the floor, dynamic racking, single or double deep rack storage, etc. What are the constraints of this method, ceiling height, rack length ?
• What type of machines / robots will you need and what are the constraints ?
• Do not forget to find out about the rules and standards in force in order to meet safety requirements. You will need to provide emergency exits, a load room for the machines, common facilities for the staff, a waste sorting area, etc.
• Your order picking and receiving process should not be overlooked. How much space will you need? Ensuring a smooth flow to maintain efficiency and productivity for all incoming and outgoing goods is crucial.

In summary, a good initial layout will allow you to optimise space, gain in performance and guarantee a level of security.

5. For what budget ?

In terms of budget, it is difficult to give a price per square metre without knowing its exact location, size and characteristics. In general, prices vary according to several factors, including :

• Location : warehouses located in industrial areas or close to main roads may be more expensive than those located in less central areas.
• The size of the space will influence the price
• The condition of the warehouse: a warehouse in good condition will generally be more expensive than one that needs refurbishment.
• Equipment : a warehouse with security systems, air conditioning or loading bays will be more expensive than one without.

Currently the few warehouses available are in the range of €8 to €16 per square metre per month.

6. Is logistics outsourcing an alternative ?

Knowing that the Luxembourg market is complex with a weak and little varied offer, unless you have an opportunity to build your warehouse which will be a long term solution but not immediate and less flexible, you will have to adapt to the market offer which is not necessarily THE ideal solution.

This compromise is even less attractive if the warehouse is not adapted. A space which is too small will hinder business expansion, while a space beyond the needs will be a greater financial burden than necessary to bear while waiting for a possible expansion. Especially since renting a warehouse is a long-term commitment, with leases generally being for 9 years.

Why not opt for outsourcing all or part of your logistics ? It offers flexibility both in terms of storage and the length of the commitment. It is often less expensive and simpler with a good partner. 

Vous souhaitez externaliser
tout ou partie de votre logistique ?