Record rental growth in European logistics sector – C&W
08:00
Rents in the European logistics property market grew by an average 2.3% y/y in 2018, which marks the strongest annual rate of growth in over a decade, according to the latest report by Cushman & Wakefield. In the CEE region, the figure was 1.9% with further rental growth expected in the near future.
Logistics yields saw a strong downward pressure last year, decreasing to an average 5.71% across Europe. “This trend continues in the CEE region, albeit at a slower rate. Average industrial yields in the region currently stand at 6.77% and are likely to harden further,” said Jakub Budych, senior consultant, capital markets, at Cushman & Wakefield Poland.
Rental growth and yield compression reflect the fine performance of the sector in 2018, added Nigel Almond, head of data analytics at C&W. “Logistics property, in general, is under-supplied in many markets and this applies to both leasing and capital markets. We can expect further rental growth in 2019, but we anticipate yield compression to be slower,” he said.
