Half of the Countries in Europe Report Growth in Prime Logistics Rents
Hamburg, 9 July 2021. GARBE Research recently investigated the changes in prime rents for logistics real estate in 30 European countries. In a total of 16 national markets, absolute logistics rents increased between the first half-year of 2020 and the first half-year of 2021. The fastest growth in prime rents per square metre was registered in Slovakia (+0.40 euros), trailed by Austria, France and Germany (with +0.30 euros each). GARBE Research also analysed the percentage growth in prime rents. Again, Slovakia was clearly the star-performer with a rent hike by nearly nine percent (8.89 percent). In seven of the analysed countries, prime rents increased by more than four percent, these being, aside from Slovakia, France (6.25 percent), Austria (5.17 percent), Poland (4.76 percent), Belgium (4.26 percent), the Czech Republic (4.17 percent) and Germany (4.11 percent).
“Demand for logistics facilities keeps going up across Europe. For more than half of the 30 countries we looked at, we noted increases in prime rents for logistics units right through the pandemic. The trend is explained, on the one hand, by the sustained boom of online retailing, especially in smaller markets, and, on the other hand, by the intensified domestic trade in mainland Europe, with the centrally located countries benefiting more than others,” explained Tobias Kassner, Head of Research at GARBE Industrial Real Estate. “From an investor’s point of view, there are now a number of interesting logistics markets in Europe that show economically and politically stable parameters, and where investments are a paying proposition because of the rising demand for space. Central European markets have a geographic advantage, while the more peripheral logistics markets thrive on economic growth and the catch-up effects in e-commerce.”