Investment in European warehouse space skyrockets | 09 August
Investment in European warehouse space sky-rocketed in the first half of 2013, according to new research.
Figures gathered by Jones Lang LaSalle indicate that around six billion euros was spent on the acquisition of European warehouses during this period, which is the highest half-year total for the continent since 2007.
The figure represents a 57 per cent increase in money spent compared to H1 2012 and a 54 per cent increase compared to the five-year first-half average.
In an interview with worldpropertychannel.com, Jones Lang LaSalle researcher Alexandra Tomow suggested that this growth could have been even larger had the supply of prime warehouse space throughout Europe not been so poor.
“This has upheld pressure on pricing and in the second quarter led to the first European yield compressions after three consecutive quarters of no change. However, there is now gradually more investable stock coming onto the market as continued healthy occupier demand is leading to new development,” she said.
Warehouses in France, Germany and the UK accounted for 60 per cent of this extremely impressive total. According to ft.com, Jones Lang LaSalle researchers now expect more than 10 billion euros worth of warehouse investment to be completed in Europe this year.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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