Europe | Logistics

Property Report - H1 2016

The occupier market is slowing down, back to average levels - September 2016

European logistics has been particularly resilient despite some signs of economic slowdown and uncertainties around the Brexit referendum vote.

Germany has reached yet another mid-year record volume of transactions and the UK maintained a strong level of investment well above its 5-year average. After a strong compression throughout Europe in 2015, prime yields have stabilised at their lowest levels.

The occupier market is slowing down, back to average levels

• Take-up declined by 22% in Europe (22 cities) compared to the outstanding results recorded in 2015. The activity remained strong in most countries.

• Germany broke yet again another record level of transaction in H1 2016.

• Design and build solutions are a strong alternative to the low availability of large units.

• Few changes in prime rents.

Sustained investor demand and yield stabilisation

• The investment market for logistics and industrial premises reached €10.8bn in H1 2016.

• The UK dropped 13% to €3.85bn in industrial and logistics investment in H1 2016. The market represents more than one third of the European volumes.

• Germany increased by 18% in H1 2016 and prime yields stabilised.

• Spain and the Netherlands maintained strong activity following an outstanding year 2015.

• After major compression last year, prime yields have stabilised in most European markets.


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Richard Malle
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