Stable market dynamics feed investor appetite
The logistics property market continues to profit from an upgrading and consolidation trend which has led to the relocation of distribution operations to modern, high-grade facilities and subsequently has pushed vacancy in this type of product down to tight levels.
A couple of highlights from CBRE's Industrial MarketView:
- Logistics demand is still driven by the upgrading and subsequent relocation of distribution operations;
- The letting market for high-grade distribution space remains tight, although the first signs of widening have appeared;
- Multi-let market dynamics have remained largely stable whereas yield levels have gone up;
- Stable market dynamics and attractive price levels have led to an increased investor appetite and a higher investment turnover.