DTZ: Relocation process being driven from older to new premises

An increasing number of companies considering relocation of their logistics and industrial activities are seeking new, modern premises to benefit from favorable lease conditions.

Low demand, increasing vacancy rate and decreasing rents are the main characteristics of the second quarter of the year, according to the latest Logistics Market Update presented by DTZ.

Relocations represented 20% of take-up in the second quarter. Total take-up in Q2 2009 reached 86,200 m2, marking a 22% increase compared to the first quarter of 2009, but a 64% decrease year on year

According to DTZ, 180,000 m² of new supply was delivered from April till June, which increased the vacancy rate to almost 17%. 'Due to a halt in speculative development the vacancy rate is expected to decrease as demand will be surpassing new supply,' commented Martin Sumera from DTZ. Relocation of tenants into new premises is, and will be, the main feature of the industrial property market, he added. The new projects offer the same or better financial and technical conditions compared to the older premises.

Total stock of modern logistics and industrial space amounted to 3.5 million m² at end June.