High borrowing rates are dampening the UK industrial logistics investment market, according to Colliers.
The agent says volumes reached £3.5 bn (€4.15 bn) for H1 2024, which is down 32% YoY, although in line with pre-covid levels going back 5 years when it averaged £3.6 bn.
While there remains a high conviction for the asset class, 10-year Gilt yields are 4.15%, which are ‘still some of the highest rates the market has experienced since 2008’.
According to the agent, the majority of value added and opportunistic capital is continuing to target opportunities that offer access to reversion in the reasonably short term driven by rental growth or repositioning.
Any such assets that are correctly priced receive strong interest.
