Strong investor appetite and good resilience in the occupier market in 2019
Take-up
- All major countries recorded a slowdown in activity although take-up levels are still high
- Market fundamentals are healthy and prospects positive overall
- Supply is still insufficient to meet end user requirements even with new developments
- Rents increased for the second year in a row. Prime rents rose by 4.5% in 2019 across the 23 cities looked at across Europe
Investment
- Supply is too scarce to meet active demand entirely across all risk profiles
- Prime yields compressed further in Europe with Germany lowest at 3.7%
- The yield spread between offices and logistics is still attractive
- The fundamentals for logistics clearly remain favourable compared to other mainstream asset classes
