Europe’s commercial real estate markets maintained their trend of slowed rental growth and yield development across most markets in Q3 2020 according to Cushman & Wakefield’s latest DNA of Real Estate.

Silvia Jodlowski, senior analyst at Cushman & Wakefield commented:“As the global coronavirus pandemic continues, its impacts can be seen on Europe’s commercial real estate market, with retail rents dipping further into negative territory and office rents also showing a very marginal fall over the quarter. In contrast, the logistics sector continues to shine with rents continuing to grow and yields continuing to compress as investors remain attractive to the positive fundamentals the sector shows.”

The logistics sector managed to retain a degree of resilience also in Q3 2020. Supported by limited supply and strong occupier and investor demand, the sector continues to be the best performing mainstream market with continuous rental growth and yield compression in most areas.

European prime rents increased on average by 0.6% in Q3 2020, helping to maintain annual growth at a respectable 2.1%. Berlin posted the strongest growth with rents rising 12% over the quarter, with Rotterdam posting an equally strong 7.1%.