In this quarter’s EMEA Industrial & Logistics review, we highlight the following key areas:
- ECONOMY: The ongoing trade war between the US and China has impacted sentiment in Europe. In H1 2019, GDP growth slowed down to 0.2% q/q in Q2, from 0.4% q/q in Q1.
- MANUFACTURING: The industrial woes in Germany are dampening the outlook, and the IHS Markit manufacturing PMI reached 46.5 in July 2019 for the eurozone as a whole - the sharpest decline since December 2012.
- TAKE-UP: Weak industrial sentiment is impacting take-up, but market fundamentals remain strong. The 12-month rolling take-up average for EMEA as a whole may have declined by 5% (y/y) by end of Q2 2019, but this was not widespread as take-up growth expanded across a number of markets.
- VACANCY: The pace of vacancy declines is moderating across EMEA. Vacancy rates fell in 45% of markets surveyed in H1 2019 (vs 55% in H2 2018). The fastest H/H declines in vacancy rates were registered in Eastern European markets.
- OCCUPIER CONDITIONS: In a clear sign that market fundamentals remain strong, 54% of cities surveyed reported landlord favourable conditions.
- RENTAL PERFORMANCE: The city-warehouse sector continued to have more traction than logistics space. City-warehouse prime rents grew in 37% of locations monitored during the first half of 2019, compared to only 24% of logistics and distribution markets.
This report also includes a macroeconomic overview, market supply and demand, rents and occupier conditions, country markets updates before finishing with our forecast.