Our Q4 2021 European Logistics report has just been released.
Key findings include:
- Take-up hit another record in 2021 in the six leading European countries. Market fundamentals are healthy with vacancy rates below 5% in most countries. The lack of new developments combined with the strong activity in the e-commerce sector are the two main factors that contribute to rental growth in prime sectors.
- The industrial & logistics market is yet again breaking a new record volume of investment (+55% in 2021), gaining market share against other assets. Supported by strong occupier fundamentals, yields are still compressing in most markets.
- A normalisation in growth is expected in Europe, with household spending underpinned by cheap financing conditions, a further improvement in the labour market and faster wage growth. Stronger supply chain disruptions and inflationary pressures may have a negative impact on 2022.
- There are great differences between countries. Changing shopping habits resulting in increasing online sales is a structural demand driver for warehousing space in Europe. As online shopping grows, so does reverse logistics, further space will be needed.
- As retailers are developing omni-channel solutions, the choice of location for last mile solutions but also regional solutions will prevail. The challenge will be land availability.
- Labour availability and cost are strategic in occupier decisions on where to locate, and also for developers assessing the cost and time within which they can deliver buildings.
To find out more, download the full report below.
