The prime yield started to decompress at 3.15% in the Netherlands and stabilized at 3.6% in Venlo and 4% in Rotterdam. Prime yields edged up in Q3 2022, with exception of Romania (tightening) and Portugal (no change). Frankfurt am Main, 5 June 2023. H1 2021 European logistics investment volumes are already 64% of the record full-year 2020, and the UK accounted for 37% of overall deal volumes, above the five-year average of 30%. Despite disposable incomes declining, consumer spending growth, which is expected to slow, will remain positive, falling from 3.6% in 2022 to 0.3% in 2023 before growing by 2.6% over the following two years. Statista. Taking London as an example, where vacancy has remained close to 2% for the last decade and occupier demand has risen sharply due to ever-increasing growth in online retail, shows that since 2010, rents have increased by 58%. We may also use information recorded by these cookies to see how well these adverts are performing. Whilst growth was strongest in Romania (175%), Ireland (107%), and Hungary (52%) over the period. Across Europe, prime rents grew by 10.7% between Q3 2021 and Q3 2022. Take-up rates of warehousing facilities in leading European cities, Rental costs of warehouses in leading European cities, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Quarterly smartphone market share worldwide by vendor 2009-2023, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. We are still seeing some British companies seeking to mitigate the effects of Brexit, as UK exporters now have to pay additional import tariffs on goods exported from Asia to Europe via the UK, driving logistics demand in mainland Europe. While negative economic sentiment has risen significantly as the year progressed, it is worth considering the overall economic outlook as it stands. Development appetite remains positive across all locations, and we are seeing secondary assets trade more freely now, including those with vacant possession. Savills forecasts European prime office and logistics yields to reach a record low this year 25 May 2021 On average prime European CBD office yields moved in slightly in Q1 2021 by 4 bps yoy to 3.58%. The ideal entry-level account for individual users. Our latest edition of Impacts, themed reconnect, explores how real estate is fundamental in helping people and businesses to connect and thrive. Savills | European Logistics Outlook - September 2021 While leasing activity has shown signs of slowing, the historically low levels of available space are likely to continue to support rental growth in the short term. Specifically it affects the choice of building in the between location and availability. Insight & Opinion Spotlight: European Logistics Outlook - December 2022 Publication Spotlight: European Logistics Outlook 05 December 2022 Article Contacts & Related Research Historically low vacancy rates are insulating rental growth against a cool-down in the occupier market and wider economy Contents A chill in Europe's economy Registered office: 33 Margaret Street, London, W1G 0JD. The staycation concept has extended to holiday clusters between European countries. As a Premium user you get access to background information and details about the release of this statistic. No location in Europe has fallen below the 3% mark and will continue to do so for the foreseeable future.- The continued strong demand for logistics properties is also reflected in the transaction volume within the individual countries. While they are not vital for the website to run, they allow us to remember important information and your preferences such as previous location searches. The problem for occupiers, however, is supply. H1 set another half-year historical record level of investment, even with a slower Q2. Logistics is more attractive on that basis than most European office and retail markets. Eurozone unemployment sits at 7.7% in June 2021, which has risen by 120 bps since end-2019 and remains supported by furlough schemes across the majority of European markets. The World Trade Organisation expects world trade to lose momentum in H2 2022 and remain muted into 2023 in response to the various shocks affecting the global economy. Our integrity, honesty and professionalism is what gives our clients, colleagues, investors and business partners the confidence to work with us. One big shift we have observed is that landlords are no longer willing to sign beyond a five-year contract as continental rents are more frequently index-linked and landlords are anticipating that rents will increase far above that of CPI. However, the sector remains a key target for real estate investors, with pricing expected to stabilise in the second half of 2023, we expect investment activity to pick up. Slowing trade may reduce occupational demand in the logistics sector as fewer goods move through the economy. With debt-financed buyers priced out of the market, cash buyers may be able to pursue opportunities where they present themselves, but with yields rising in Q3, we would expect those who can adopt a wait-and-see approach in the short term. Compression now seems to have resumed in most markets though. Kevin Mofid, Head of European Logistics Research, examines the trajectory for rents and yields in Europe. Some 36% of consumer transactions were settled using physical money last year, according to a Swiss . Whilst speculative development is taking place across the continent, many developers are struggling to source concrete, timber, steel, and cladding, which are the key components of any new warehouse. Porter | 67,015 followers on LinkedIn. Office yields edged out +61bps over 2022, with half of this (+31bps) evident in Q4 2022. Annual growth in prime rents was highest in Paris (38%) and Prague (36%). T-Mobile US said it isn't in talks to include its wireless plans in Amazon.com's Prime service after a Bloomberg report said Amazon is holding talks . 31 May 2023, All content copyright document.write(new Date().getFullYear()); Savills. Catella is a leading specialist in property investments and fund management, with operations in 12 countries. Prime yields compressed by 65% on average in Europe in 2021. 31 May 2023, All content copyright document.write(new Date().getFullYear()); Savills. Investment flows into industrial assets continue to reflect the strong performance in the occupational market in recent years. While activity was reduced in Q2, it nonetheless remained strong with nearly 1.2 million sqm taken up. As such, we have analysed the gross value added (GVA) by the manufacturing sectors of key European markets. Particularly in Germany, obtaining planning permission is becoming stricter to the extent that it becomes difficult to develop logistics on brownfield sites. However, rising development costs are likely to temper appetite for development and further support yield compression for standing stock. As a result, we expect prime yields to compress by 30 bps by 2026 to reflect the resilience of the best assets. At a Glance - European Capital Markets - Q4 2021 The average European logistics vacancy rate in Q3 2022 was circa 3%. Although many markets have penetration rates below 15% and most of these markets recorded year-on-year growth in penetration rates, as their online markets evolve and logistics operators continue to develop their distribution networks across the region. Savills offers a wide range of specialist services from financial and investment advice to valuation, planning and property management. Vacancy rates are still low, particularly in Barcelona at around 2.5% and 6% in Madrid. Use Ask Statista Research Service, Prime rent costs for warehouses in the Netherlands 2014-2022, by city, Primary rent costs for warehouses in the logistics market in Germany 2014-2022, Average annual cost of industrial rent per square meter in Europe Q1 2022, by country, Primary rent for warehouses in the logistics market in the UK 2014-2022, by city, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. Registered number: 2122174. Key expectations for the European logistics market in 2023 Despite inflationary pressures and economic headwinds, occupier market fundamentals remain strong, with positive rental growth expectations underpinned by a continued demand-supply imbalance. It would be no surprise, therefore, if the current forecasts from Capital Economics of 1.8% rental growth per year, as a European average are easily exceeded. In response to the Covid-19 pandemic, Savills Office FiT provides clients with practical, strategic and design-led advice and insights from our global experts. Obtaining planning permission for new developments in constrained markets such as Germany and Netherlands has also increased time frames. In France, the market kept a strong dynamics in H1. Through many monarchs and several economic cycles, we've become the international adviser of choice across every aspect of property. In April 2021, it secured INR 150 Cr (around $20.12 Mn at then exchange rates) from RattanIndia Group to expand its footprint in India and the South Asian market. Rising Inflation on EU Logistics | Clarion Partners Research In the UK, take up for H1 2021 was 82% above the long-term average, driven by demand for units between 10,00020,000 sq m from online retailers taking smaller parcel delivery style units. Europe: prime yields of large warehouses 2022 | Statista Rent-free periods on a five-year lease are generally only around two months, whilst fit-out contributions from landlords have been withdrawn due to the market dynamics. "Prime Yields of Industrial and Logistics Real Estate in Europe as of 1st Quarter 2022, by Country or Region. Indeed, as the cost of living rises, it is increasingly likely we will see disruption to trade in the form of strike action stemming from labour disputes. European logistics take-up reached 18.7m sq m in H1 2021, 63% above the half-year average. More electric charging points will need to be installed in order to meet the EUs climate neutrality target by 2050 and ensure retailers can meet the rising demand for online delivery. We are observing rising demand for last-mile and food delivery space across larger conurbations from quick commerce companies like Gorillas, Picnic and Flink with fast access to a wide consumer base. Regional Investment Advisory EMEA Omnichannel Group, Commercial Investment Savills plc is focused on climate-related risks and working together with its clients, suppliers and the local communities to deliver a more sustainable future. Munich, 03.11.2022 - Even the logistics asset class, which has performed above average in recent years, is feeling the effects of volatile capital market movements. As a Premium user you get access to the detailed source references and background information about this statistic. Oxford Economics forecasts for 2023 show negative or slowing growth in most indicators but expect a recovery in the European economy beginning in 2024. However, the lessons occupiers have learned from the last two years are likely to coalesce in a structural shift in the market. Switzerland's formerly cash-obsessed citizens are falling out of love with physical money. ", Cushman & Wakefield, Prime yields of industrial and logistics real estate in Europe as of 1st quarter 2022, by country or region Statista, https://www.statista.com/statistics/858167/prime-industrial-yields-by-european-country/ (last visited June 06, 2023), Prime yields of industrial and logistics real estate in Europe as of 1st quarter 2022, by country or region [Graph], Cushman & Wakefield, May 12, 2022. Our daily mission is to anticipate economic, social and environmental changes to integrate the real estate of today into the city of the tomorrow. Competition between occupiers for high quality buildings remains sharp, implying some prospects for rental increases in prime locations. While activity was reduced in Q2, it nonetheless remained strong with nearly 1.2 million sqm taken up. Tenants are no longer being offered renewal options as landlords test the market for the anticipated 45% pa rental growth. Prime industrial and logistics yields in European countries 2022 - Statista The drivers of low supply and high demand in the occupational market show no sign of changing in the medium term, which in turn will allow investors to underwrite their acquisitions with increasing rental growth assumptions. Updated share price information for Savills Plc from London Stock Exchange. Show sources information Currently, we would like to give you an overview of Q3 2022 and the expectations for the logistics markets in Europe - as always in a comparative overview, with a total of 115 regions. Ho Jayega Big, Small, Business or Personal- All goods . We may also use information recorded by these cookies to see how well these adverts are performing. A lower standard deviation from the mean suggests global supply chain pressure may be normalising. However, the ECB has been slower than the Bank of England in terms of rate rises and some EU markets are further behind in their repricing journey. Though these cookies cannot be switched off, you can set your browser to block or alert you about these cookies, but please be aware that this will stop some parts of the Savills website from functioning as intended. Net prime yield by city for warehouses 2022 | Statista Information on upcoming and previous Annual General Meetings. Although logistics has traditionally only accounted for 1012% of the investment market, the weight of capital targeting the sector has accounted for 21% of total investment so far this year. EUROPEAN LOGISTICS MARKET IN H1 2022 | BNP Paribas Real Estate The latest UK and international property market news and opinions, plus helpful guides and top tips from our renowned industry experts. Insight & Opinion is our hub for residential, commercial and rural articles and research from experts offering industry-leading advice and analysis. As soon as this statistic is updated, you will immediately be notified via e-mail. PDF SPOTLIGHT Savills Research Outlook Resize. Growth in online retail will likely face stronger headwinds in 2023, with consumption growth forecast to slow and retail sales expected to decline. In the UK, the industrial and logistics investment market showed some signs of slowing down, challenged by increased scarcity of stock and economic uncertainties.
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