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Including German logistics and industrial property in investment portfolios will remain an attractive strategy for investors in 2016. One reason for this is that demand for space continues to rise. This is attributable firstly to the sustained economic growth and secondly to the rise of online retail, which is also contributing to structural growth in the importance of retail logistics. The growth of the logistics market driven by e-commerce and the associated positive outlook for the future is causing more and more investors to consider this asset class. This, in turn, will further intensify competition among bidders for available product.
In view of the intensive competition, investors will have to be even more creative in exploiting their product going forward. Indeed, the insufficient supply is one likely cause of the decline in transaction volume in the top seven logistics regions in the first quarter of the current year (-49% compared with Q1 15). Overall, however, the asset class showed an increase of 6%.
Source : Savills
