"Slower yield compression will produce stronger rental growth"
"Hand on heart, if somebody had told you ten years ago that property prices in Germany would at least double over the coming decade, would you have believed them? On 15 September 2008, investment bank Lehman Brothers filed for insolvency, marking the nadir of the global financial crisis. The crisis would lay the foundations for a perhaps unparalleled real estate boom, not least in Germany. Over the last ten years, purchases of residential and commercial property by institutional investors have totalled half a trillion euros (€120bn for residential property and €380bn for commercial property). Such inflows of capital are unprecedented in the German real estate market. This surge in demand has driven prices to an extent that nobody would have truly expected. Capital values have doubled across practically all property sectors during this period, reaching new record levels across the board."
"Six months ago, we wrote in this report: “Conditions for the German logistics and industrial market appear almost sensationally positive and there is little to indicate that the environment will deteriorate.” Now, intensifying trade disputes between the USA and both China and Europe may well bring about such a deterioration in the environment. The leading indicators have already worsened, particularly for Germany. While all indicators remain in the green zone, the euphoria has evaporated."
"Where next for industrial and logistics?"
"Latest SPECS indicators show pressure on logistics build costs"
"Whilst supply has increased, this is skewed by the sizeable Lidl RDC, as otherwise supply has been reduced by the recent purchase of Vertex and letting of Colossus 1. Meanwhile no new build and very little other facilities of scale and quality have entered the market meaning that the Scottish Region is in much need of speculative development"
"It is pleasing to see large scale speculative development return to the region after a prolonged absence which will encourage grade A take-up and further rental growth"
"There are a number of sizeable requirements across the region being discussed and we anticipate significant activity in the second half of the year"
"With constrained existing unit supply and a strong development pipeline we expect quoting rents to exceed £6 in the next 12 months"
"After a relatively sluggish first quarter, we are beginning to see take-up in line with the long term average. With a number of significant deals due to complete over summer, the region is set for another robust year"