Time to view the European logistics market with caution
It may now be time to view the European logistics market with more caution as risks around supply, the sustainability of demand and the credit worthiness of some third-party logistics (3PL) tenants have become more pronounced.
The warning, delivered by DWS in its 2022 second quarter report on the sector, comes on the back of logistics rental growth and total returns comfortably outpacing those found in many other property sectors. European logistics take-up reached its highest recorded level during 2021, says the manager, taking vacancy rates to record lows and placing upward pressure on rental levels. Rental growth has been strongest in urban locations, averaging close to 4 percent each year over the last decade, compared to 3.1 percent for residential and 2.3 percent for office. Investment volumes in the sector reached another new high in 2021, with the sector accounting for some 20 percent of total European real