The German industrial and logistics investment market recorded a transaction volume of roughly €3bn, up 22% yoy and 3% over the 5 year average. Thanks to Q1 performance, which posted a new record of roughly €1.9bn, the market was able to stand its ground against the COVID 19 crisis and record yoy increases in transaction volume despite the fact that activity from April to June was rather sluggish. Important to remember is that the deal pipeline was already quite full at the start of the year and that, during the months of the crisis, most of the deals finalized were already in final negotiations and in some cases were signed following a delay. The asset class has been able to maintain its status on the overall commercial real estate market as one of Germany’s three most important asset classes along with the double digit market share (11%) that it has boasted over the past three years. In addition to the confidence that investors with experience in the sector continue to have in logistics assets, a growing number of investors with little to no previous experience with this type of property are beginning to show interest. As such, we expect the impact of this crisis to increase competitive pressure going forward, leading to further yield compression on the logistics real estate market. Average gross prime yields in Germany’s main investment hubs remain stable at 4.2%. Recently transactions with yields significantly below this level have been recorded involving new builds in excellent locations in established logistics regions and featuring strong covenant tenants.