New research from logistics specialist Garbe Industrial Real Estate has found that prime rents for industrial space are growing in 16 out of 30 European markets, with Slovakia topping the list with a rental growth of almost 9%.
The research revealed that absolute logistics rents increased in more than half of the surveyed countries between the first half of 2020 and the first half of 2021.
After Slovakia, the fastest rental growth was reported in Austria, France and Germany. In terms of percentage growth, while rents rose by 9% in Slovakia, Garbe research found that prime rents increased by more than 4% in France (6.25 %), Austria (5.17%), Poland (4.76%), Belgium (4.26%), the Czech Republic (4.17%) and Germany (4.11%).
Tobias Kassner, head of research at Garbe said: 'Demand for logistics facilities keeps going up across Europe. For more than half of the 30 countries we looked at, we noted increases in prime rents for logistics units right through the pandemic.
'The trend is explained, on the one hand, by the sustained boom of online retailing, especially in smaller markets, and, on the other hand, by the intensified domestic trade in mainland Europe, with the centrally located countries benefiting more than others.
'From an investor’s point of view, there are now a number of interesting logistics markets in Europe that show economically and politically stable parameters, and where investments are a paying proposition because of the rising demand for space.
'Central European markets have a geographic advantage, while the more peripheral logistics markets thrive on economic growth and the catch-up effects in e-commerce.'
