Long-Term Value Creation in Logistics – Domonkos Joó on Logicor’s Strategy and Vision

In our interview, Mr. Domonkos Joó (MRICS), Director of Asset Management at Logicor Hungary, discusses how the company is responding to these trends, how it is renewing its portfolio, and why long-term, responsible asset management has become a true strategic advantage today.

-    How would you describe Logicor’s core strategy and value proposition in the European logistics market?

-    Logicor is an owner, manager and developer of well-located logistics assets across Europe’s key markets. We focus on long-term value creation through active asset management, selective acquisitions and sustainable redevelopment. Our 19 million square metre portfolio across 16 countries supports more than 2,200 customers and continues to grow through careful, data-driven investment. In Hungary, we operate 145,000 square metres across seven parks situated predominantly along Budapest’s most important transport corridors, offering flexible, efficient and well-connected space for both national distribution and wider regional operations.

-    What emerging trends do you expect to shape the logistics and warehousing sector in the coming years?

-    Supply chain diversification and nearshoring into Central and Eastern Europe continue to strengthen market demand. Customers increasingly expect modern, energy-efficient buildings that reflect their operational and sustainability goals. ESG expectations are rising across the entire lifecycle of logistics assets, influencing both investment and development strategies. At the same time, automation and digitalisation are accelerating, prompting operators to modernise older stock and introduce smarter park-level systems that support better efficiency and transparency.

-    How is Logicor adapting its warehouse portfolio and services to the continued growth of e-commerce? 

-    E-commerce requires speed, flexibility and reliability, so we invest in refurbishment, increased dock capacity, improved traffic flow and modernised building systems. Many of our Hungarian assets already feature automated entry, LED lighting, ESFR sprinklers and redesigned yards to support high-intensity operations. Their proximity to the M0, M1 and M7 motorways provides excellent last-mile and regional distribution access.

-    We also benefit from sites that have become more central as Budapest has expanded. These locations offer exceptional access to end customers - a crucial advantage in e-commerce, where delivery speed often defines competitiveness.

-    What sustainability initiatives or investments is Logicor currently prioritizing across its operations?

-    Sustainability is a core part of Logicor’s business model. We focus on energy-efficient retrofits, LED upgrades and carbon-reduction initiatives supported by smart building systems that help reduce overall consumption. Wherever possible, we prioritise redevelopment over new construction to minimise embodied carbon. As real estate is a major source of global emissions, we are committed to responsible action and have publicly pledged to reduce our carbon footprint by 36%. Our sustainability upgrades include LED lighting, modern HVAC systems and the ability to add rooftop solar. All new developments target at least BREEAM Excellent and are designed to accommodate maximum photovoltaic capacity.  We are expanding our smart metering capabilities to enable more accurate monitoring of energy and gas use. We have also launched a Green Audit programme, with a pilot building already completed. A specialised external firm assesses each asset and its operations to identify the most effective sustainability improvements. In parallel, we are advancing electric vehicle infrastructure, including PV-powered charging points, and we continue to develop recreation areas within our parks to enhance employee wellbeing. For us, sustainability for us also includes community impact. Across Europe, we support education, charity initiatives and local partnerships, because responsible action benefits our customers and employees while creating lasting value for the communities where we operate.

-    From a leadership perspective, what are the biggest challenges you face in scaling and modernizing logistics facilities today? 

-    One challenge is balancing rising expectations for modern, ESG-ready facilities with volatile construction. Labor availability around major cities puts pressure on providing high-quality, well-located workplaces that support talent attraction. Modernising older buildings at scale adds further complexity, requiring careful planning to minimise disruption while ensuring that assets remain reliable and competitive in the long term.

-    Could you highlight a recent project or innovation that demonstrates Logicor’s strategic direction?

-    In Hungary, our entire portfolio consists of existing assets, many closer to 20 than 10 years old. Therefore, innovation begins with upgrading these buildings to today’s technical standards - roof replacements, insulation improvements and essential technical upgrades that secure long-term performance. These works may be less visible, but they are crucial for operational reliability and reflect our long-term-owner mindset. However, we also invest in visible, customer-focused projects and Budaörs is an excellent example of this approach. The new recreation and rest area - created for tenants of the Shark, Pharma and Camel parks - features outdoor shelters, seating areas, a garden pond, a fireplace zone and extensive new landscaping. It showcases our commitment to improving the everyday experience of people working in our parks. 

-    How do current macroeconomic conditions influence your planning and operations?

-    Higher interest rates and rising construction costs make selective investment essential, reinforcing our focus on refurbishment, asset quality and customer retention. At the same time, structural supply-chain shifts - from nearshoring to growth in automotive and battery manufacturing in Hungary - continue to support strong demand for strategically located logistics space. These long-term fundamentals help balance short-term volatility and create favourable conditions for stable growth.

-    What are Logicor’s key focus areas for future expansion - in terms of geography, technology, or service offering?

-    Geographically, we remain focused on high-conviction logistics hubs around Budapest and the country’s main regional distribution corridors. Our operational priorities include further digitalisation, enhanced park-level management systems and ongoing sustainability upgrades. We also aim to strengthen our customer offering through closer partnerships, flexible leasing solutions and continued investment in smart, adaptable logistics space that can meet evolving market needs. 

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