The investment market for industrial and logistics properties recorded an aboveaverage transaction volume and was able to reach last year’s record result. In a long-time comparison, transaction volume was up 19% compared to the three-year average at around €1.9bn. As such, logistics assets managed to further increase their market share (22%) and claimed second place ahead of retail. The ongoing Covid-19 crisis continues to impact the logistics property market, again driving demand for logistics space at the start of the year. It is noteworthy that around two thirds (65%) of Q1 2021’s excellent result was generated by single-asset deals. The market is currently feeling the absence major high-volume portfolio deals and takeovers. Although this downward trend, which is due in part to travel restrictions, slowed down somewhat in Q1 2021, the share of foreign capital will remain below the long-time average throughout the year. The number of investors turning to logistics as an asset class or increasing their allocation to the sector in recent months has been growing exponentially. In light of the current supply bottleneck, this trend is intensifying competitive pressure and it is expected acquisition yields to drop further. Some larger transactions currently in the preparation phase will hit the market over the course of the year and will potentially push current gross prime yields down to the levels typically expected for office assets.