European logistics real estate take-up volumes are expected to hit a new record of 27 million m2 in 2021, up by as much as 14% on last year's activity, according to new research by independent real estate consultancy firm Buck Consultants International.
Due to fast growing e-commerce and higher inventory levels of producers the total take-up in Europe amounted to 23.6 mln m2 last year, down by only 3% compared to 2019, a record year.
Rents are expected to be stable or to show a limited increase while yields are expected to continue to fall, with Central and Eastern Europe continuing to provide very attractive yields.
Mega distribution centers
Compared with 2020, the report - which is based on a survey among Europe’s most important logistics real estate developers and investors - highlights very positive expectations for the establishment of new mega distribution centers in 2021. More than half of the experts interviewed (70%) believes that the establishment of new mega distribution centers will show (strong) growth; 30% of the respondents expect that the establishment of new mega distribution centers will be more or less stable in 2021. Favorite countries for the establishment of new mega distribution centers are Germany, the Netherlands and Poland.
Similarly, last-mile logistics is also expected to grow, with roughly 80% of the respondents expecting a growth of 10 to 25%, and another 20% forecasting strong growth of more than 25%.
