Colocation take-up 59% ahead at Q3. Strongest demand in Amsterdam with take-up already 54% higher than in all of 2013. Take-up in Frankfurt 90% higher than in 2013 New development drives data centre availability to reach a historic high.
Continued growth in Q3 2014 with further yield compression across all property sectors The most substantial changes occurred in the industrial and logistics sector Overall rental performance remains patchy, with almost as many locations falling as rising this quarter
All sectors see growth but industrial once again best performing asset class All sectors see growth, but the industrial sector saw the biggest increase, rising by 3.6% on Q2. Office values rose 1.1%, ahead of retail (0.6%). UK remains the strongest region, but the Nordics, France, and Southern Europe saw accelerating growth Investors are increasingly moving out along the risk curve, with the spread between first and third quartile yields narrowing for the first time.
At €50.8 billion, Q3 2014 continued to see a steady increase in the levels of CRE investment in Europe. Exceptional growth was recorded in both Spain and Ireland. Other ‘recovery markets’ of Italy, the Netherlands, and Portugal collectively exhibited healthy growth. Yield compression was particularly evident in the industrial sector this quarter – with a rise in investor demand also driving up its share of the overall market.
After a positive return in Q2, European take-up fell back by 6.9% in Q3 2014 reflecting fresh concerns over the strength of the economic recovery in Europe. With a few exceptions a sustained period of improving occupier demand has not yet emerged across European markets. The EU-28 vacancy rate recorded the sharpest quarterly drop since 2007, falling to 11.2%. The decline was driven by reductions in vacant space in key markets including London and Frankfurt. Prime rental growth continues to be confined to the strongest performing markets – namely London, Dublin and Oslo in Q3. In most EMEA markets occupier demand is yet to improve to a level which would generate prime rental growth. Office completions for 2014 are expected to increase by around 20% on the 2013 level and are forecast to reach a similar level in 2015. These levels are around 50% below the peak of development in 2007/08.