High-yielding emerging logistics markets lure investors
Prime net yields of 6 percent or more in emerging logistics markets are attracting the attention of capital allocators.
GARBE Industrial Real Estate has found that a number of noncore locations across Europe produced significant returns in 2020, compared to established industrial markets in the Benelux region, the UK and Germany.
Particularly attractive investment opportunities have lately presented themselves in eastern Europe, Italy and the Nordics, according to GARBE. The manager’s new yield and rent map for European industrial markets, called GARBE PYRAMID, has found a number of high-yielding markets. These include Turin, Italy, which had a net prime yield of 6.4 percent last year and Aarhus, Denmark, which posted a 6 percent return. Other top-performing locations include Lodz, Poland, (6.4 percent); Bergen, Norway, (6.7 percent); Vilnius, Lithuania, (7.3 percent); Debrecen, Hungary, (7.8 percent); and Ljubljana, Slovenia, (8.7 percent).
“There is plenty