The global economic outlook remains positive for the European economy even if the Greek and more recently Chinese situation remain a concern for the future. With the end of the recession in Italy, all the European countries are now back on track with the CEE region and the UK forecast to lead the way of the recovery over the next five years.
With 8.3 million sq m of industrial and logistics space transacted in Europe in H1 2015, occupier activity and leasing increased by 9% in one year. This is a remarkable performance given that 2014 was already a record year. Germany was the driver of this activity with 2.9 million sq m leased in H1 2015, a 19% increase year-on-year. The CEE submarket (including Ukraine) also performed well with almost 2 million sq m transacted up to July this year. Poland is now the third most active European industrial market surpassing France with 1.3 million sq m let in H1 2015.
Facing a lack of Grade A supply, corporates are reshaping their supply chain in an environment turned upside down by the e-retail boost. In recent months we have seen several occupiers looking at built-to-suit (BTS) solutions. The growing imbalance between strong demand and a supply shortage put upward pressure on rents, at least for the Grade A buildings. Cost-wise, we expect rental values to grow firmly in the UK and Ireland and at a more moderate pace in France and Germany.
Source : DTZ