German logistics achieves second highest half-year result ever - Colliers

The first six months of 2018 have registered the second highest investment volumes on record for the Germant industrial and logistics sector, according to a new report from Colliers International. 

Investors poured a total of around €3.2 bn into this asset class in the first six months of 2018. Industrial and logistics assets remain one of the three most popular asset classes in Germany, claiming a 13% share of the total commercial real estate market.

'As expected, it proved impossible to exceed the outstanding results of the previous year (H1 2017: €5.4 bn), which can primarily be attributed to several large-volume portfolio deals,' said Hubert Reck, co-head of industrial & logistics investment at Colliers.

'Nevertheless, 2018 mid-year results significantly outperformed previous H1 results. Industrial and logistics investment volume is double the five-year average, for example, making it the second-highest result ever recorded.'

'The main problem continues to be insufficient supply. Development sites are particularly scarce in conurbations with construction costs increasing every year, which in turn has an impact on long-term rent trends. You also have the fact that municipalities prefer residential and office developments over pure logistics projects,' added Peter Kunz, co-head of industrial & logistics at Colliers.

Traditional logistics properties, which accounted for more than two-thirds of total investment volume, were not the only asset class to meet with investor interest. Industrial properties and business parks once again proved to be a coveted investment target as well, generating over €1 bn in the first half of the year and doubling their share in total investment volume.


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