Investment market: Industrial property is becoming more popular

07/01/2019

More than €6.8bn were invested in German industrial and logistics property last year, Colliers International reports. The 2017 record (€8.7bn), however, was not reached, partly because there were fewer portfolio deals. Industrial assets accounted for an impressive 42 % of investments; two of the three largest transactions – the Optimus-Prime portfolio and the Laetitia portfolio – were of this asset class. Industrial property has become more and more popular with investors because of their higher risk spread compared to logistics halls and higher rental income, due to their locations within large economic and metropolitan centers, and advantages with regard to building law (wider range of utilization options), the brokerage explains. Just over half of the investments in industrial and logistics real estate were made by German investors; in 2017 that proportion was only 35 %. Gross top rents for prime properties with at least ten years remaining lease terms declined by 15 basis points to 4.5 %.


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