BHM group Bets on Logistics Centers in Central and Southeastern Europe

Central and Southeastern Europe is becoming a key player on the global logistics and industrial map. BHM group, through its subsidiary BHM parks, has placed its bets on this region and is building modern logistics and production centers there. Why is this area attracting investors? A growing market, strategic location, and government support make Central and Southeastern Europe an ideal place for expansion.

Dynamic Development of Industry and E-commerce Boom

The dynamic development of industry and the e-commerce boom are transforming the face of Central and Southeastern Europe. BHM group, which manages six modern logistics and production centers in Slovenia, Croatia, Serbia, and Slovakia through its BHM parks subsidiary, sees enormous potential in this region. "It's not just about finding cheaper labor or lower operating costs here. This region is also becoming a strategic transportation hub," says Jan Chaloupka, Partner and Managing Director for Commercial Real Estate at BHM group. It is precisely this combination of factors that makes Central and Southeastern Europe an ideal destination for investments in logistics and manufacturing.

Growing Market and Strategic Location

Central and Southeastern Europe is increasingly becoming a crucial global logistics crossroads, connecting Western Europe with the Middle East and Asia. "Thanks to developing transport infrastructure and a favorable geographic location, our centers are an ideal solution for companies that need to efficiently distribute goods across Europe and beyond," explains Jan Chaloupka.

A prime example of the successful use of this strategic location is the German online retailer About You, which operates a central warehouse in one of BHM parks' centers in Dunajská Streda, Slovakia. From there, it serves the entire Central European region. "This is clear proof that our centers have a strategic location and meet the needs of global players," adds Chaloupka.

Dynamic Economic Development and Stable Demand

The Central and Southeastern European regions are undergoing dynamic economic development, creating room for further expansion. While markets in Western Europe are already relatively saturated, there is still enormous untapped potential here. "We see stable demand for high-quality logistics and production spaces, both from industrial enterprises and logistics firms, as well as online retailers," says Chaloupka.

The growth of logistics is driven not only by industrial production but also by the rising popularity of e-commerce. Online retailers need large warehouses in easily accessible locations to deliver goods to customers within days. "This is a trend that will only continue to grow," predicts Chaloupka.

Higher Returns and Support from Local Governments

Investments in this region yield higher returns compared to Western Europe. Construction and operating costs are lower here, and there is room for innovation and modern technologies. Another significant factor is the support from local governments, which welcome these projects. "Governments in the region offer tax incentives and streamline the permitting process. Logistics centers also increase employment and bring higher tax revenues to municipalities," explains Chaloupka.

Growing Demand for Quality Spaces

One of the trends strengthening the region's position is nearshoring. More and more companies, including Chinese firms, are relocating their production to countries like Serbia or Slovakia to avoid tariffs, reduce costs, and shorten supply chains. This trend is driven by growing logistical challenges, geopolitical instability, and rising production costs in Asia.

Thanks to its central location, developed industrial ecosystem, and available skilled workforce, this region is becoming a preferred destination for companies seeking more efficient and sustainable manufacturing solutions. This creates additional demand for modern logistics and production spaces, as confirmed by the experiences of companies like Yanfeng, which are successfully expanding here. "The Central and Southeastern European region has enormous potential, and we are committed to further developing it," concludes Chaloupka.

A Region Full of Opportunities

BHM group sees a clear strategic opportunity in logistics and production centers in Central and Southeastern Europe. The combination of a growing market, strategic location, government support, and an available workforce makes this region an ideal place for further expansion. With plans to expand its portfolio, BHM group is solidifying its position as a key player in this dynamically growing segment.