Despite a stabilisation in industrial production in Europe towards the end of last year, it is likely that conditions in the sector will continue to remain tough until a sustainable economic recovery takes place. However, the industrial and logistics market is being boosted by US investors and there is increasing demand for space from online retailers across Europe.
Key findings include:
Limited supply of quality space: The EMEA industrial and logistics market continues to be characterised by limited supply of quality space and hardly any speculative projects under construction. Core Western European markets continued to record relatively healthy demand levels, while in Eastern Europe, Russia and Poland dominated the market again.
US buyers boost the market: Industrial and logistics investment in EMEA totalled approximately €12 billion in 2012, 5 per cent down compared with the previous year and about 11 per cent of total CRE investment. With over €3.5 billion worth of industrial and logistics acquisitions, US investors were by far the largest group of cross-border buyers in Europe.
Demand from the e-tailers to expand: As online retail continues to grow, increasing demand from multi-channel retailers is expected, not only in the strongest online markets such as the UK and Germany but also in emerging markets such as Russia, where online sales are booming.
