Rental levels in many prime industrial property markets in EMEA will remain stable over the next 12 months, but markets in the east could see some growth, according to the latest research from Colliers International.
Rental levels in many prime industrial property markets in EMEA will remain stable over the next 12 months, but markets in the east could see some growth, according to the latest research from Colliers International.
A thin development pipeline and lack of quality 21st century space are helping to keep prime rents steady, despite the uncertain economic outlook and soft demand levels.
Erik Barnekow, head of Industrial & Logistics, EMEA at Colliers International said: 'It is the strategic locations in the emerging industrial markets of Central and Eastern Europe, the Baltics and Turkey where we could see some uplift in prime rents. We believe that hubs such as Prague, Warsaw, Bratislava, Istanbul and St Petersburg could experience an increase over the next year.
'In Western Europe, it is those locations with limited availability of space, such as London Heathrow, Antwerp and Brussels which are best placed to also see a rise in rental values.'
The Colliers report does, however, state that with no obvious solution emerging for Europe’s troubled peripheral economies, there may well be further declines in prime rents in Athens, Lisbon and Madrid.
On the investment side, Colliers predicts that industrial prime yields across most of the markets monitored, will remain largely unchanged, with a marginal compression of prime yields is expected in some Western European markets, notably Frankfurt and Vienna.
Click on the link below to read: 'CEE industrial markets anticipate rental growth'
