CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
logistics warehouse logistics warehouse

Logistics & Industrial Rents in Europe

H1 2023 

Rental growth continues, although is starting to show signs of slowing in some markets. Headline rental levels are expected to continue to grow, but occupier incentives are starting to become more considered.

Prime headline rents across Europe have seen exceptional growth over the past several years as a result of the very high levels of demand in an environment on constrained supply. This market imbalance was coupled with increases in build costs (with everything from concrete to steel to labour seeing significant shortages and cost uplifts) and land prices (on the back of developer demand to bring new product to market) albeit prices have been moderating in many markets over the past year. These combined factors have meant that rental levels have reached new record highs across many European markets.

Markets which have seen the highest levels of growth over the past five years include locations in the UK, Ireland, the Czech Republic, Hungary, Poland and Germany. 

Rental growth in the UK and Ireland started earlier than most continental European locations although these have accelerated rapidly in the past 18 months. 
In the UK, rents have grown strongly across the entire country with the uplifts particularly steep in London and major metropolitan areas including Manchester and Birmingham as well as key areas in the Midlands, the South East and North West. 

Across CEE countries, rental growth has been particularly strong, with some locations such as key cities and major industrial areas seeing rents nearly doubling in the past five years. 

However, rental growth has started to show signs of slowing: in the twelve months to Q2 2023, prime logistics rental growth averaged 13.8% across European markets, compared with 15.2% to Q4 2022. During the first half of 2023, prime logistics rental growth averaged 4.8% growth in the six months since Q4 2022, compared with 8.5% for the six-month period between Q2 2022 and Q4 2022.

Whilst slowing from the recent exceptionally high levels, the current rental growth of 13.8% for the year to Q2 2023 is still markedly above the pre-pandemic five-year average rental growth rate of 2.5% per annum.

Rental levels across European markets are either at or close to new record highs at end Q2 2023. Many locations have seen rents in the last twelve months increase by more than 10% and in some areas, particularly in the CEE, by significantly more. For example, in Poland, rental growth has accelerated significantly since the beginning of 2022 and, in the twelve months to Q2 2023, many locations have seen rents grow by more than 20%.

However, despite these recent uplifts in rental levels, many locations in CEE countries are still competitively priced relative to nearby markets in Western & Northern Europe. Many Southern European locations are also similarly competitive despite recently having experienced significant rental growth.

In many markets, we are also starting to see more conversations around tenant incentives albeit agreements still tend to be specific to each property and transaction. 

Landlords are also starting to be creative with tenant incentive packages and are in some cases including amortised fit-out as well as more traditional rent-free periods. Broadly, whilst headline rents are expected to continue to increase, landlords may start to offer tenants more by way of incentives as landlords look to secure income in an environment of slowing occupier demand. 

EUROPEAN LOGISTICS & INDUSTRIAL UPDATE
Download the full report.
Download

Contacts

Construction Insights summer 2024 webcard.jpg
Research • Construction

Construction Insights

The Construction Insights – Outlook 2024 report aims to provide insights into the key factors that influenced the US construction sector in 2024, empowering you to make informed decisions for your organization throughout the year 2024.
Tyler Paytas • 11/7/2024
GWS France Insights Logistics Real Estate In France Market Update webcard.jpg
MarketBeat

Logistics Real Estate in France: Market Update

In our Marketbeats and Flashs, we cover French logistics markets and sub-markets quarterly. We analyze KPIs and dimensions in the market.
Romain Nicolle • 11/7/2024
hanoi industrial
MarketBeat

Northern Key Economic Zone Industrial MarketBeat

In Q3 2024, two new industrial park (IP) projects were deployed in the Northern Key Economic Zone (NKEZ): Gia Binh II (Bac Ninh) and Luong Dien - Ngoc Lien (Hai Duong), providing about 274 hectares of IP land for lease to the market. 
Trang Bui • 10/25/2024
3q24-hcm-industrial
MarketBeat

Southern Key Economic Zone Industrial MarketBeat

In Q3 2024, Long An Province launched Prodezi Eco-Industrial Park, adding 280 ha of leasable land to the market.
10/25/2024
Greater China Logistics Market Report Q2 2024
Research • Supply Chain

Greater China Logistics Market Q2 2024

Overall logistics market demand was relatively active in Q2 2024, although new supply also rose q-o-q. Consequently, leasing pressure in the premium logistics warehouse market remained significant. In some city markets, the strategy of trading volume for price saw rents and vacancy rates both trending downwards. In the investment market, overall activity in the logistics sector picked up slightly compared to Q1.
 
Tony Su • 9/20/2024
SE Industrial Report
Article

Southeast Industrial Labor Report

Although demand has normalized across the Southeast, the surge in manufacturing coupled with historically healthy market fundamentals continues to emphasize the importance of skilled and affordable labor across the region.
Christa DiLalo • 5/6/2024
Sally Bruer
Sally Bruer

Head of EMEA Logistics & Industrial and Retail Research
London, United Kingdom


VCard herunterladen

Timothy Stuart Crighton - London
Tim Crighton

International Partner
London, United Kingdom


VCard herunterladen

Rob Hall - London
Rob Hall

Executive Account Director
London, United Kingdom


VCard herunterladen

Michael Carson
Michael Carson

Partner
Edinburgh, United Kingdom


VCard herunterladen

James Chapman
James Chapman

International Partner
London, United Kingdom


VCard herunterladen

Pierre Buchet
Pierre Buchet

International Partner
Neuilly-sur-Seine, France


VCard herunterladen

Related Insights

apac-logistics-and-industrial
Research

APAC Logistics & Industrial Hub

Through a consistent, client-focused approach, we provide real estate strategies for manufacturing, logistics and warehousing, helping clients maximize cost-saving opportunities and improve business success. 
7/1/2024
Nearshoring Opportunities for Real Estate in EMEA
Research

Nearshoring EMEA

Cushman & Wakefield’s EMEA Nearshoring report provides valuable insights into the advantages of nearshoring, the changing dynamics of global manufacturing, and the impact on various industries and locations. Download a free copy to find out more.
Sally Bruer • 6/6/2023
MRI-2022-Assets-Web-card-750x456px
Research

Global Manufacturing Risk Index

Following almost three years of managing risks and complexities during and following the global COVID-19 pandemic, manufacturing and production businesses now face new and emerging conditions as well as continuing to navigate longer-term challenges.
Sally Bruer • 11/30/2022

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.

Cushman & Wakefield verwendet Cookies, um den Datenverkehr zu analysieren und unseren Kunden das beste Erlebnis auf dieser Website zu bieten. Schließen Sie diesen Dialog und stimmen Sie zu oder besuchen Sie diese Seite, um mehr zu erfahren:
Cookie-Hinweis

MORE OPTIONS
Zustimmen und schließen
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS