Europe

INDUSTRIAL & LOGISTICS INVESTMENT: A PORT IN THE STORM ?

July 2009

The profile of investment in industrial and logistics property in Europe has changed markedly in recent years. The level of investment activity almost trebled between 2003-2007 and, despite a contraction in 2008, still accounted for 10% of European real estate investment, compared with around 7% in the three years 2005-07. The sector has long offered investors the advantages of a relatively high and stable income return, and hence less dependence on the more variable growth elements of performance. The pattern of investment in Europe has also become more geographically diverse in recent years.
Along with beneficial changes in the structure of the occupier base, the sector has become more appealing to a range of investors. With significant value reduction having occurred over the past year, and funds raised in the past two to three years not yet fully spent, the potential level of investment interest in the sector is increasingly strong.

Author(s): several

Source: CB Richard Ellis

Published: 21.07.2009