- Rental growth prospects remain attractive to investors. Consequently, capital markets recorded strong volumes across Europe despite the slowdown at the end of 2022 as prices adjusted.
The logistics market is holding up well despite the economic slowdown
There was enough economic growth in 2022 to underpin occupier markets while take-up declined in some countries but not everywhere. Demand for space increased from tenants seeking efficiency gains. Structural changes in consumer spending patterns continue to support e-commerce penetration, perpetuating the need for logistics space. Construction times and availability of land dictate the market balance in areas where the vacancy rate is well below the European average of 4%. New developments are still insufficient to meet demand, yet few speculative developments are being launched.
comments Craig Maguire, Head of European Logistics at BNP Paribas Real Estate.
Industrial and logistics investment recorded its second highest level ever although the market is clearly slowing
After 5 years of outstanding investment volumes, the market continues to attract buyers. However, the investment market is challenged by increasing scarcity of stock, plus big changes in the macroeconomic and financial backdrop over 2022.
says Craig Maguire.