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European logistics market in 2022

Catella has released its annual forecast for the European logistics market, which shows that rents continue to rise across the continent, especially for ‘last mile’ properties.

The firm’s analysis covers a total of 112 regions in Europe and shows that the current European prime rent averages €5.81/sqm, ranging from €3.75/sqm in Zaragoza to €16.40/sqm in London. 

Catella stated: ‘Since our last market overview in October 2021, prime rents for logistics have risen by an average of almost 3% across all 112 markets surveyed. The increases were particularly significant in Eindhoven (+18%), Brussels (+9%), Strasbourg (+10%), Bologna (+10%) and Prague (+8%). 

‘Due to the sustained investor interest in the logistics segment, yield compression can be observed across all markets. The European average yield is now 4.7% which is 30 basis points lower compared to the analysis six months ago. 

‘The lowest net initial yields can be found in the German ‘A’ locations (3.00-3.40%) as well as in Paris (3.20%) and London (3.00%). It seems to be only a matter of time before the prime yield in the top locations falls below the 3% mark.’ 

Catella added that there was record total investment in European logistics last year of €60bn, with almost €20bn of that going into UK logistics properties.

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