GARBE PYRAMID MAP: Skyrocketing Rents in Europe Underline the Resilience of the Asset Class of Logistics Real Estate

Demand for logistics real estate is not slowing in Europe, driving significant upward price growth. This development is further fuelled by increased construction and financing costs in the new-build segment.

Overall, 70 percent of the examined European markets registered substantial growth since the end of the second half of 2021, whereas 30 percent saw no change in rent levels. The remarkable thing being: No region reported negative rental growth. These are some of the findings GARBE Research presented in its latest GARBE PYRAMID MAP, the 2022 mid-year update of the company’s yield and rent map for the 122 most important logistics real estate submarkets in 23 European countries.

Especially Manchester (0.80 euros/sqm/month), Newcastle (0.70 euros/sqm/month), London-Heathrow, Cologne and Prague (0.60 euros/sqm/month each) reported a particularly brisk rental uplift during the first half of 2022. “Since the end of the second half of 2021, rents in the examined 122 European logistics regions increased by an average of 20 cents/sqm,” said Tobias Kassner, Head of Research and member of the Management Board at GARBE.

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