Crisis hits Belgian logistics market

Prospects for the Belgian logistics market have deteriorated in the wake of the financial crisis, according to a report by Jones Lang LaSalle. In the first months of 2012, the logistics market in Belgium recorded just one transaction in excess of 20,000 m² compared to several during the same period last year. The deal involved a built-to-suit project on Brucargo (Zaventem) that will be occupied by DHL Global Forwarding (23,000 m2).

After dropping dramatically in Q1, take-up regained momentum in Q2, but the total volume in the first half of the year came to just 177,000 m2, 43% under the five-year average of 309,000 m². Demand remains subdued due to the negative economic outlook and take-up forecasts for the year-end are below the five-year and 10-year average.

Meanwhile Belgium’s semi-industrial market has proved to be more resilient and dynamic in the wake of the global financial crisis than the logistics market. Volume taken up in H1 2012 amounted to just under 500,000 m2, which was an improvement on the strong market performance in the first six months of 2011 and 88% in excess of the 10-year average for the first half of the year.

The key driver is the increasing proportion of owner-occupier deals, illustrating strategic decisions by small and medium-sized businesses to invest in their own business.

Total investment volume in industrial property in H1 2012 fell to EUR 66.2 mln, 44% under the volume achieved in the same period last year, and 45% below the 10-year average for the first year half. In 2011, the sector generated in excess of the five-year average of EUR 271.5 mln.