In 2015 the take up of industrial and logistics space in Europe increased by 7 per cent. The figures, taken from a new report by Cushman and Wakefield, show that a record 18million sq m of was occupied in Europe last year.
According to the report, occupier activity was highest in Germany, where 6 million sq m of industrial and logistics space was taken up – an increase of 17 per cent. CEE saw 4.7 million sq m let in 2015, and Poland competes with France and the UK for the second position with 2.5 million sq m. let last year.
“A growing imbalance between demand and supply is becoming more apparent in many European markets,” said Magali Marton, author of the report and head of EMEA research. “Retailers and industrial companies are reshaping their supply chain in favour of built-to-suit solutions in a market where there is a clear lack of supply.”
The commercial property consultancy said that despite rising geopolitical risks, the prospects for the European industrial market for 2016 are positive. It added that ‘disappointing results’ in the manufacturing sector at the end of last year have been balanced by strong demand from consumers across Europe.
“Prime rents in Europe are expected to grow at an average rate of 1.6 per cent per annum up to 2020, outperforming those expected for offices and retail over the same period,” said Rob Hall, senior director, industrial and logistics EMEA. Dublin is forecast to improve the most, with expected rental growth of 5.3 per cent per annum up to 2020. Having been resilient during the crisis, rents are forecast to remain quite strong in the UK, especially in regional markets such as Birmingham and Leeds.”