Skip Ribbon Commands
Skip to main content

News Release

Prague

European logistics and industrial real estate investment volumes surge to record high in 2014


•    Annual revenue up 28% in 2014 compared to 2013
•    Q4 quarterly volumes up 92% compared to Q3 according to JLL
•    Czech Republic is one of the record breakers in Europe

EMEA, 18 March 2015 – Full year logistics and industrial investment volumes for 2014 reached a record €21.1 billion, marking a 28 percent increase on the €17.0 billion recorded in 2013 according to JLL. Volumes in the final quarter reached an exceptional €8.2 billion alone, setting a new quarterly record.

The two leading markets, the UK and Germany at €8.2 billion and €3.6 billion respectively, saw new national records last year, driven by a flurry of portfolio transactions.  Meanwhile, new annual records were also seen in the Czech Republic, Poland and Switzerland.

Dušan Šťastník, Associate Director at Capital Markets at JLL Czech Republic commented: “It has been an outstanding year for logistics and industrial investment across Europe. Both CEE and in particular the Czech Republic attracted a record amount of investment into the logistics and industrial segment, reflecting how the region has become one of the core European markets. The Czech Republic attracted more than €750 million into logistics, a number which puts the country ahead of much large countries such as Poland, Spain and Italy.”

Large size portfolio transactions remain a strong theme with the total volume traded exceeding €10 billion last year (up 25 percent year-on-year). Whilst almost 50 percent of portfolio assets traded were located in the UK and Germany, portfolio transactions accelerated across Central Europe to reach €1.4 billion (up from just €25 million in 2013) and grow more than fourfold to €510 million in the Southern periphery with investments in Italy, Spain and Portugal.

Alexandra Tornow, Head of EMEA Logistics & Industrial Research at JLL said:  “As we predicted, the downward pressure on prime logistics yields has continued throughout 2014 and into 2015. This is driven by the weight of money targeting the asset class, the attractiveness of the debt markets and increasing occupier demand.  New money continues to land in a number of key European markets and we expect this trend to continue through the course of this year. We see continued yield contraction through the course of this year, and furthermore a tightening in the spread between prime and secondary yields.