Logistics real estate: product shortage raises appeal of smaller properties
The market for logistics real estate has been picked clean – so say logistics brokers after evaluating the transactions of the first half of the year. Year on year, transaction volume fell by almost 22% to around €2.5bn, according to Colliers International, and by as much as 34% to €2.3bn according to CBRE. JLL’s calculation comes to €2.8bn, holding at the previous year’s level, and cites the sale of the new Hermes logistics center in Ansbach, Franconia for around €120mn as the largest single transaction. “Supply is scarce, particularly for portfolios over €100mn,” says Kai Oulds, Head of Logistics Investment at CBRE. As a result, focus has shifted to properties under €15mn which had previously been uninteresting for many investors. Hubert Reck, Head of Industrial & Logistics Investment Germany at Colliers, predicts that the market share of industrial real estate, which already accounts for almost one third, will continue to rise. According to CBRE and JLL, the prime yield has dipped under 4% for the first time and is lower than a year ago by 55 and 35 basis points, respectively.
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