Logistics property rents have risen throughout the pandemic in half of the countries of Europe according to research from Garbe Industrial Real Estate.
Between H1 2020 and H1 2021, rents increased in a total of 16 national markets, the firm found. Slovakia registered the greatest increase in prime rents per square metre (+€0.40), followed by Austria, France and Germany (each with growth of +€0.30).
Slovakia also led in percentage terms (8.89%). The increase in prime rents exceeded 4% in seven countries, also including France (6.25%), Austria (5.17%), Poland (4.76%), Belgium (4.26%), the Czech Republic (4.17%) and Germany (4.11%).
” For more than half of the 30 countries we looked at, we noted increases in prime rents for logistics units right through the pandemic,” explained Tobias Kassner, head of research at Garbe Industrial Real Estate.
The sustained boom in online retailing, was part of the explanation, especially in smaller markets, Kassner said.
But there was also intensified domestic trade in mainland Europe, and more centrally located countries benefited more than others.
“From an investor’s point of view, there are now a number of interesting logistics markets in Europe that show economically and politically stable parameters, and where investments are a paying proposition because of the rising demand for space,” Kassner said
“Central European markets have a geographic advantage, while the more peripheral logistics markets thrive on economic growth and the catch-up effects in e-commerce.”