The market in Europe is currently relatively immature, and user demand is dominated by third party logistics (3PLs ) but we expect these trends to generate a growing contribution from parcel courier companies. Evidence from both Europe and the US indicates rental levels 40-50% above conventional warehouse rents. The relatively small scale of the sector and of individual assets, coupled with low site coverage, has so far constrained the emergence of a sizeable institutional investment market, but the anticipated growth in the user market will increasingly support this. Evidence from other more mature markets indicates that early-mover investors will benefit from a yield re-rating as sufficient liquidity emerges to allow portfolio funding and trading, and pricing for this type of asset converges with that for conventional warehouses.
Source : CBRE