CEE to remain growth region for developer-led logistics: CBRE

Central and Eastern Europe (CEE) is likely to remain a growth region for developer-led logistics space in the medium-to-long term despite the challenging economic conditions, CB Richard Ellis has said in its inaugural CEE Logistics MarketView report.

CBRE said the region's strength included manufacturing, expansion of retail space across the region and improvements to infrastructure.

Recent changes to the region's logistics markets include lower demand, higher vacancy rates, reduced pipelines and lower volumes of logistics properties transacted. The report said this would drive many markets into periods of readjustment for the rest of 2009 and 2010 as vacant space is worked through before market expansion can resume.

CBRE said logistics markets are typically more responsive to current economic and market conditions than office or retail markets, though, which should help this adjustment process by curtailing development pipelines across the region. 'The challenge for decision-makers in the region’s logistics markets will be to minimize short term risk while taking actions that will prove beneficial in the longer term in this market environment,' the report said.