Business Trends

EMEA Logistics Investments Rise, by JLL

File Type: Free Content, Article
Release Date: June 2014
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Logistics and industrial assets in Europe, the Middle East and Africa (EMEA) recorded the highest first-quarter investment volume in the last decade during the first quarter of 2014, €4.9 billion, 25 percent ahead of first-quarter 2013, according to JLL. The sector’s share of the commercial real estate market also expanded, rising to 13 percent in the first quarter of 2014 from 10 percent in 2013 as a whole.

While investment volumes were up across all subregions, most activity remained focused on traditional core markets, including the United Kingdom, Germany and Sweden. The UK remains the most liquid market with almost one-third of total volumes, up 46 percent from the first quarter of 2013.

Germany had a record-setting first quarter in 2014 with €1.3 billion of investment activity, up a whopping 140 percent from a year ago. Sweden experienced the third-highest volume, close to €500 million, driven by a single €200 million investment. France, traditionally Europe’s third-largest core market, “saw investment declining compared to an exceptionally strong Q1 2013 to €230 million (-60%).”

“Nevertheless,” JLL concludes, “strong competition for assets and portfolios together with further growing confidence means that the sector is attracting a broader spectrum of investors including those from the Middle East and Asia. Furthermore, investors are increasingly seeking opportunities further up the risk curve.”