European logistics market: good momentum again in the first half of the year
There is no surprise to see a slump in take-up compared to the historic volume achieved in 2017. The logistics occupational market is still strong though and above its 5-year average mark. Some countries like Spain, Germany and the Netherlands even managed to at least level their historical volumes of transactions.
The investment market adjusted down following the exceptional volumes achieved in 2017. Yet, investor interest is not fading: the market for industrial and logistics premises reached its second highest mid-year volume of investment.
Logistics take-up for warehouses over 5,000 sqm: -14% in H1 2018 vs H1 2017
•The market remains strong, above the 5-year average take-up.
•Retail and e-commerce are still strong market drivers in most countries.
•Supply remained tight and new developments remain in high demand.
•Rents increased by 3% in H1 2018 over 12 months.
Industrial and logistics investment: €14 billion, -21% in H1 2018 vs H1 2017
•Slow start to the year but still well above the 5-year average volume of investment.
•Prime yields are at their lowest level reflecting the lack of investment products.
•Given the strong demand for logistics assets and competitive pricing against other assets, further yield compression can be expected in some countries.