Schiphol, 28 February 2023 – The continued strong demand for logistics buildings from both occupiers and investors was slowed down in 2022 by lack of supply and higher interest rates
This is the conclusion of the latest research report by INDUSTRIAL real estate partners, “LOGISTICS REAL ESTATE, Dutch Market Report 2023”. The agency firm, with 3 offices in the Netherlands the only real estate advisor specialized exclusively in logistics and industrial real estate, annually registers all occupier and investment transaction from 5,000 square meters, in co-operation with Bak Property Research.
The total take-up by occupiers in 2022 was 3.4 million m², 18% less than in 2021. Despite healthy demand, take-up has decreased due to a shortage in supply. Lack of new-build locations led to a decline in the take-up of new buildings, while take-up of existing buildings increased.
In the logistics real estate investment market, rising interest rates led to a slowdown towards the end of the year. A total of € 4.7 billion was invested, a decrease of 8% compared to 2021. As with the take-up by occupiers, investment transactions took place where there was supply.
In addition, demand has shifted slightly from core to value-add. As a result, a shift in the investment market from new-build to existing and from the traditional hotspots to the east of the country in particular, has taken place her as well. Prime yields reached a record 3.3% in the first half of 2022. The market is now looking for a new balance for core investments. Meanwhile, the demand for value-add continues..
The complete report can be downloaded via this link.