Perspectives on the global industrial slowdown

The effects of the global economic slowdown have been reflected in poor performance from some of the world's leading industrial markets, according to recent reports by real estate consultancies Colliers International and King Sturge.

According to King Sturge's H1 review of the European logistics market, there was less speculative development of logistics space in the period and demand for new logistics space was noticeably lower in countries like Germany and Spain. In France and the Benelux countries, however, demand remained stable, the report said.

The US and Canadian warehouse markets, for their part, recorded worse H1 2008 results compared to preceding periods and a further decrease in leasing activity is to be expected in the US, said ColliersInternational's Global Industrial Real Estate Highlights - Midyear 2008 report.

The global slowdown has not been reflected in Poland, where the market has grown steadily so far this year, as research from both firms showed. "The latest economic slowdown seems not to have affected the Polish economy," said Tomasz Kasperowicz, director of the industrial and logistics department at Colliers International.

"The credit crunch has not influenced the industrial market in Poland, which is now growing steadily thanks mainly to high demand for industrial space. Market activity in 2008 should remain at a similar level to the previous year," he added.