The impact of the growing economy is clearly visible in the logistics market. Prime yields at both primary and secondary locations in The Netherlands show a declining trend. In the regions of Tilburg-Waalwijk, Venlo-Venray and Schiphol, prime yields fell to a sharp level of 5.3%. We expect further decreasing yields in the coming months.
Bart Oerlemans, senior consultant Capital Markets: "We see a division in the market due to the low gross initial yields. International parties continue to buy property at current yield levels. National players however are more interested in developing logistics real estate themselves in order to realize higher returns. This reduces the number of buyers of logistics real estate. In the long run, this may stop yields from declining further."
Rents for logistics real estate are currently stable and relatively low. The high amount of new developments and sites in cities like Tilburg, Waalwijk and Nieuwegein and the Schiphol region dampens rent levels.
Jim Orsel, Logistics & Industrial team: "Due to the high demand for distribution centers in the middle of the country, industrial area such as Lage Weide (Utrecht) and Het Klooster (Nieuwegein) are very popular. At Lage Weide, it mainly concerns redevelopment and at The Monastery we see a lot of new developments."
In the Schiphol region a possible over-supply is in the making, leading to declining rents. Also in Moerdijk, we expect a decrease in rent levels due to an increased supply in available sites. Supply will eventually surpass demand.