Europe’s logistics markets keep firing on all cylinders Executive Summary • Record quarter for take-up of logistics space • Occupier demand driven by search for economies of scale and supply chain optimisation • Construction pipeline remains robust, but is not leading to a widening market • Rental growth has strengthened but remains modest and patchy • Yields in Central and Southern Europe have moved in considerably
•CRE Investment activity in Europe was €62 billion in Q3 2015, slightly down on Q2, but 18% up on the same quarter last year. •Compared to Q3 2014 Germany and France showed the biggest increases, up by €5.6 billion and €3.4 billion respectively. Norway also saw strong growth in investment. The total for Q3 2015, at €3.1 billion, was more than double the level in Q3 2014. •Investment by Collective Investment Vehicles was what drove the market forward. They accounted for over 40% of total activity, with consequent falls in the share taken by direct institutional buyers and private investors.
- Prime office yields fall below 2007 level - This report is designed to provide our clients with an immediate view on prime rents and yields across major markets and sectors in the region as at the end of the quarter. In 2015, prime European hotel yields - split up by operating type - have been included in this publication for the first time.
•Total investment in retail property in Europe in Q3 2015 was €17.3 billion, a 45% increase on Q3 2014. Germany made the biggest contributions to the year-on-year increase, overtaking the UK to become the largest retail market in Europe. •Cross-border investment made up 41% of total retail activity, slightly below that seen in previous quarters and in other CRE sectors. •Funds and other collective vehicles were the largest purchaser group, accounting for 45% of all European retail investment in Q3 2015.