Record levels in the European market for logistics premises

The European Industrial and Logistics market experienced record levels of investment in Q2 2015 with the total volume reaching EUR 6.1 billion. This is the result of a current study of CBRE.
Investors are concentrating their capital on north western Europe, and particular favour lies with the UK market which was accounting for 40 per cent of the total volume. Germany, Sweden, Finland, the Netherlands and Spain also reported strong quarterly figures. Investment volume in the German market was about EUR 1 billion in Q2 2015, having more than doubled on Q1 2015.
“Demand for modern, flexible logistics premises has grown above expectation, and is still on a high level. The main users are logistics providers, as well as retail companies profiting from the good economic figures and higher consumer spending as a result.“, comments Felix Zekely, Head of Agency & GWS, CBRE Austria.
Rental growth remained modest in the quarter, and was mainly concentrated in the UK and Ireland. From a yield perspective, markets that have traditionally seen higher yields such as France, Italy and Central Europe saw a contraction over the quarter. The weighted average yield for EMEA has now dropped below 7 per cent and in many markets previous lows have been reached or overtaken.
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