Stockholm is the economic, cultural and political capital of Sweden. It has a metropolitan area population of 2.5 million, about 25 percent of Sweden’s total. Prosperous, densely populated and vibrant, Stockholm is one of the fastest-growing cities in Europe.

Stockholm has an active technology and startup scene. Behind Silicon Valley, it is the second-largest producer of “unicorns,” startups valued at greater than $1 billion. As the economic center of Sweden, Stockholm accounts for 29 percent of the country’s exports and 42.5 percent of its imports. This high level of trade makes Stockholm a center for national and international logistics and distribution.

The extensive ports of Stockholm, which include Nynäshamn and Kapellskär, handled 9.7 million tons of freight in 2016. Stockholm Arlanda Airport is the busiest air cargo port of Sweden, where a total of 300,000 tons of cargo is handled annually. A network of rail, motorway and shipping lanes makes Stockholm an important node for logistics and distribution.

Stockholm is in the midst of a large archipelago. The combination of geography and planning restrictions are obstacles for the construction and development of industrial properties and warehouses. As a result, vacancy rates for logistics real estate facilities are at record lows.

Because Stockholm is a major and fast-growing population center with excellent infrastructure and airport and harbor facilities, it is an important area for logistics real estate. This is amplified by strong economic growth that causes existing industrial areas to be pushed outward. Replacement facilities drive demand for industrial real estate. And, last but not least, e-commerce is increasing in the Nordics. Consumer demand for shorter delivery times will drive increased demand for warehouses in and around Stockholm.

Prologis operates industrial properties and warehouses in the Stockholm area, a fast-growing market for logistics.