Prime yields of European logistics real estate declined by 7.1% on average

The prime yield of the European logistics market declined by an average of around 7.1 percent compared to the prior-year period, whereas rents rose conversely by a modest 2.2 percent. These are some of the findings GARBE Research presented in GARBE PYRAMID 2022, the latest update of the company’s yield and rent map for the 122 most important submarkets for logistics real estate in Europe.

Prime net initial yields were particularly quick to harden in the Netherlands and Germany. In Rotterdam, for instance, they dropped from 4.0 to 3.3 percent within a year. This implies a change by 17.5 percent. It coincides with a rent growth by 6.9 percent during the same period, with rents rising from €5.80 to €6.20 per-square meter. Much the same can be said for Amsterdam and Venlo as well as for Berlin, Bremen and Frankfurt.

“In addition to Germany, the Netherlands are another highly sought-after logistics market with a dynamic yield performance,” says Jan Dietri