Europe in motion: Logistics on the other side of the Atlantic joins the global recovery
The logistics recovery and expansion cycle strengthened and became more consistent around the world during the past year. Initially, the pattern of recovery was varied. Demand and rent expansions were led by structurally undersupplied markets in emerging economies such as Shanghai and São Paulo. In time, the U.S. recovery built momentum as well, improving notably during the past 18 months, which has led vacancies below historical averages and prompted reports of rent spikes across more markets. The ongoing healing in global financial markets is translating to strength for real estate capital markets. Cap rate declines continued during the past year, taking levels toward (or below) their prior cyclical lows in many markets, including in the largest markets in the United States, Japan and China.
Europe’s recovery had lagged, but built momentum during the past year. Relative to its glob