The occupier market broke a new record for transaction volumes in 2021 increasing by 29% in the six leading countries, with a number of regions posting new highs in take-up.
Yet construction rates for warehouses are lagging demand and speculative developments remain limited. The shortage of materials further exacerbates by creating delays in new development and access to land is a limiting factor. Tight demand and supply balance means rental pressures are building.
Industrial and logistics investment reached another record, but ongoing demand will be satisfied only to a limited extent. The shortage of product available in prime locations resulted in yield compression. Prime yields dropped across Europe during 2021 by 60 bps on average. Further yield compression is anticipated as competitive pricing remains.
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