03-10-2016 - Due to the lack of high quality industrial & logistics real estate as investment opportunities and the high demand for such objects, the gross initial yields in industrial & logistics hotspots have decreased even more.
In 2015 the take-up volume of industrial & logistics real estate was significantly higher than in 2014, which was partly due to the improved economic conditions. The first half of 2016 showed an improvement in comparison to the first half of 2015 (+5%, with a total volume of 1,57 sqm). Over a quarter of all transactions in 2015, and the first half of 2016, took place in the industrial & logistics sector. This is demonstrated in the Industrial & Logistics Market Barometer, which was recently published by Colliers International.
There are many new entrants into the real estate investment market in the industrial & logistics sector. However, the supply of good quality industrial & logistics real estate is declining and there is a clear shortage of high quality suitable products for investors. Yields in important industrial & logistics hotspots will decline further because investors pay higher sums to acquire high quality real estate as a result of scarcity. Last year’s figures also show that an increasing number of parties are willing to take hazardous steps.
You can download the Industrial & Logistics Market Barometer here