Methodology

Supply Chain Cost Simulation

By Raimund Paetzmann, Carl-Friedrich zu Knyphausen, and Lisa Graham · Logivalue GmbH · April 2026

Last updated: April 2026

In Brief

What It Is

Most logistics valuations compare buildings to other buildings. Supply chain cost simulation compares a building to what it does for the tenant's supply chain - and that changes what you know about its value.

Transport, labour, throughput, and automation requirements vary enormously between tenant types. A building that cuts a parcel carrier's last-mile costs by 8% is worth far more to that tenant than to a cold chain operator for whom location is irrelevant. By modelling these economics, we identify the use case that unlocks the highest rent - and the tenant most likely to stay.

How It Works

Step 1

Model the building

We assess location, specification, and operational capacity using 42 site variables - including labour market depth, motorway access, dock configuration, and power supply.

Step 2

Simulate occupier costs

For each tenant type, we calculate the total logistics cost of operating from that building: transport to customers, labour, throughput constraints, and automation requirements.

Step 3

Compare and rank

We rank 65 occupier profiles by willingness-to-pay for your specific building, identify the optimal use case, and quantify the rent uplift it delivers.

"Most logistics valuations compare the building to other buildings. We compare the building to what it does for the tenant's supply chain. That tells you what the tenant will actually pay - and whether they'll stay."

Carl-Friedrich zu Knyphausen, Managing Director, Logivalue

What You Get

For context on where this fits within Logivalue's broader approach, see our complete guide to logistics real estate valuation.

See what your building is really worth to the right tenant

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