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Summer 2009
European Warehousing Markets
- According to the European Commission, GDP is forecast to contract by 4% in the EU in 2009. The downturn is projected to be broad based, with export-oriented countries more affected by the collapse in global manufacturing. Exports are set to contract particularly sharply this year by 12.6%
- Due to the sharp drop in global trade flows and significant difficulties in major European manufacturing companies, occupier demand reduced significantly in most European markets.
- Weaker demand means more vacancies on the market. However, developer activity reduced significantly as a result of the market uncertainty and the lack of finance. Most of the development in the pipeline is purposed build.
- On average, prime rents declined by 6% and secondary rents by 7%. Nearly all countries covered in the report recorded negative or stable prime rental growth with the exception of Poland and Portugal.
- Warehousing rents historically relatively stable declined less markedly than the activity slow down. This difference indicates strong pressure on landlords that concretised through significant amount of incentives required by tenants.
- Overall investment volumes are decreasing and the share of investments dedicated to the warehousing sector is down in most countries.
- Prime yields moved out by 94 basis points on average from 0bp recorded in Vienna to 200bps in Dublin.
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CONTACT
Eri Mitsostergiou +30 210 6996311
emitso@savills.com
Patrycja Malicka +48 22 330 06 64
pmalicka@savills.pl
Damian Niedzielski +48 22 330 06 66
dniedzielski@savills.pl
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