European logistics take-up loses momentum

Europe’s deteriorating economy is affecting the region’s logistics market; according to BNP Paribas Real Estate in its Q2 2012 European logistics market survey. Weakened demand in most European countries points to a slowdown in the second half of 2012.

Germany remains the largest occupier market for warehouses over 5,000 m² in Europe, with nearly 1.9 mln 2 taken up during H1 2012 with Hamburg and Frankfurt the countrys’ largest logistics markets in the country.

Two major trends have affected the French market: The low volume of take-up for new grade A warehouses and a drop in GDP growth. In the UK, take-up reached 1.4 mln m2, increasing by 5% in H1 2012 compared to H1 last year. Across countries such as Romania and Poland, developers have been focusing almost exclusively on build-to-suit projects. In Slovakia, speculative developments are being considered but at a low level and the Dutch market has been stable but sluggish. In Spain, vacant space decreased but so did take-up, reflecting slow activity in new developments and the grim economic climate.