High investor demand brings down logistics real estate yields in Germany and Austria

Over the next five years, additional logistics space demand of around 4 million square meters (43 million square feet) is expected in Germany and Austria, attributed solely to booming online retail. Real estate investors are aware of the development. Due to the pandemic, the development of rents in 2021 is not very dynamic and depends heavily on the respective use class of warehouse, logistics and production. Together with IndustrialPort, Catella has analyzed 25 logistics regions in Germany and five regions in Austria, which offer above-average opportunities for investors.

Prof. Dr. Thomas Beyerle, head of research, Catell Group, explains: “Investors are aware of the development in the logistics real estate market. This can also be confirmed by looking at the thematic logistics map for Germany and Austria. Logistics properties have once again experienced an enormous increase in demand, which is accompanied by a corresponding price rally and a sustained yield compression.”