GARBE knows Europe – Country Scope Netherlands Logistics top market between tulips and windmills
Key Facts Logistics Real Estate Market Netherlands (2020):
37.6 million sqm logistics space inventory(2016-2020: +7.0 % Ø-annual growth; +9.9 m sqm)
3.0 million sqm of logistics space completed(2016-2020: +22.0 % Ø-annual growth; +1.6 m sqm)
Q2 2021: 7.70 EUR/sqm prime rent(2016-2020: +1.0 % Ø-annual growth; +0.30 EUR/sqm)
Q2 2021: 3.80 % Prime yield(2016-2020: -6.2 % Ø-annual growth; -1.10 %-points)
3.6 bn EUR investment volume(2016-2020: +13.8 % Ø-annual growth; +1.4 bn EUR)
Excess demand drives rents up and yields down
The Netherlands is one of the top logistics markets in Europe. However, despite a logistics space stock of almost 38 million sqm and an average vacancy rate of 3%, the supply of high-quality logistics space is scarce, especially in logistics hotspots. On the one hand, this ensures a further increase in prime rents. Since 2017 alone, the prime rent has risen by 38 % meaning 7.50 €/m². A rental price that is being called up for top properties in the regions around Amsterdam and Rotterdam. However, the strongest average annual rental growth since 2017 can be seen in the logistics regions of Eindhoven (+3.7%), Venlo (+3.4%) and Tilburg (+3.2%). On the other hand, the limited supply of space in the top regions increases the attractiveness of less established locations for occupiers and thus also for investors.
Meanwhile, investors’ increased appetite for logistics real estate in Covid-19 times also made itself clearly felt on the Dutch market, reinforcing the developments of recent years. At EUR 2.8 billion, the transaction volume was significantly below the previous year’s figure of EUR 3.2 billion. However, in view of the pandemic-related uncertainties and the current shortage of supply, this is an even more remarkable result. The strong demand led to rising purchase prices, which further fuelled the yield compression of recent years. Overall, prime yields fell by 1.60 percentage points since 2017 and stood at 3.40% in the first quarter of 2021. However, this does not detract from the growing popularity of Dutch logistics properties among investors. A detailed overview of the top rents and yields in the individual Dutch logistics markets in 2020 can be found on our GARBE Pyramid Map.
1. Germany Trade & Invest 2020, Economic Data Compact. Netherlands. November 2020.
2. Germany Trade & Invest 2020, Economic Data Compact. Netherlands. November 2020. Communication is listed in the statistics in the same class as transport.