European logistics vacancy rates hit new low
Rents soar as warehouses continue to be in high demand across continent
Average vacancy rates for logistics space across Europe have dropped to just under 2.3% - a new low. Take-up year to date remains robust, pushing up to 19.56m sq m in the third quarter of 2022.
However, the imbalance between supply and demand is putting pressure on rents with Amsterdam seeing a 25% increase in prime rents compared to the same quarter last year. Lyon in France, Bristol in the UK and Copenhagen in Denmark have seen increases of 13%, 12% and 8% respectively.
According to the chairman of EMEA Industrial and Logistics at CBRE, Simon Blake, high borrowing costs, increasing construction costs and higher exit yield are also having a negative impact on the supply response.
Rental growth, as well as indexation, is forcing higher occupational costs as well as making some developments unviable currently.