Take-up of European logistics space reached 33.3 million m2 in 2021, setting a new record for the sector, according to new research from advisor CBRE.
The figure represented an increase of 24% compared to 2020, which saw take-up totalling 26.89 million m2.
Net absorption levels also reached a new high in 2021 at 23.2 million m2, demonstrating an increase of 26% from the 18.4 million m2 achieved in 2020. According to CBRE, new buildings are quickly being absorbed by occupiers with completions struggling to keep pace.
The ongoing supply and demand imbalance has affected vacancy rates across the region, with the average vacancy rate falling to just 3% in Q4 2021, compared to 4.15% in Q4 2020. At a country level, Belgium, the UK and Germany saw the lowest vacancy rates in Q4 2021 with 0.8%, 1.6% and 2.2% respectively.
This has fuelled logistics rental growth, with average prime rents for the region increasing more than 7% year-on-year when compared to 2020. Prague, London, the Midlands and Brussels saw the largest increases in Europe at 22%, 21%, 20% and 13% respectively.
Mark Cartlich, senior director, EMEA Industrial & Logistics said: 'The logistics sector has taken centre stage over the past two years, benefiting from long-term shifts in shopping patterns, with further e-commerce growth anticipated. Rents are rising and yields are compressing, trends we expect to see continuing throughout 2022 as the gap between supply and demand continues.'
