Savills forecasts another record year for Dutch logistics real estate

02 October 2017

According to the research report ‘Spotlight on logistics property market – the Netherlands’ published today by international real estate advisor Savills, the total investment volume in the Dutch logistics property market will exceed last year’s peak of €1.3 billion and reach €1.6 billion by the end of the year, as investor appetite remains high after a strong H1 of €776 million.

Recent purchases include CBRE GI buying an eight unit portfolio of 260,000 sq m from Somerset Capital Partners, Savills IM buying a two unit portfolio of approximately 140,000 sq m from Dudok Logistiek Vastgoed and the purchase by Real I.S. of approximately 50,000 sq m in Moerdijk, increasing the H1 investment volume by €400 million to approximately €1.1 to €1.2 billion to date.

Niek Poppelaars, associate director, Logistics & Industrial at Savills Netherlands, comments: “Noteworthy is the extraordinary high interest of foreign investors looking to invest in the Dutch logistics property market. In the first half of 2017 the share of cross-border investments grew to 82.9%. We expect foreign investors to be involved in the majority of the new developments, with the more risk-prone aiming at speculative developments.”

The increasing investor interest is furthermore keeping a downward pressure on yields, and Savills expects the first transaction at a yield level below 5% before year end. The lowest yields are seen in the Schiphol area and in Venlo, where factors like shortage of supply, excellent connections, availability of land and XXL opportunities, provide investors with the comfort to pay these kind of yields.

Douglas van Oers, associate director Logistics & Industrial at Savills Netherlands, adds: “The historic low yields have been convincing owner-occupiers to sell and lease back both their existing buildings and their new built-to-suit developments, therefore we see the market shift from owner-occupier to leasing. As much as 70% of recent developments are being leased. Historically, this percentage was approximately 50%.”

In addition to an investment volume peak, Savills also expects a record take-up level in the logistics sector this year. The ongoing strong occupier demand led to a take-up of over 1,700,000 sq m in H1 2017, whereof Noord-Brabant attracted almost 50% of the total national take-up, confirming the dominance of this province within the Netherlands logistics property market.

You can read the full research report here.

 
 

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Key Contacts

Douglas van Oers

Douglas van Oers

Associate Director
Agency

Savills Amsterdam

+31 (0)20 301 2058

 

Niek Poppelaars

Niek Poppelaars

Associate Director
Agency

Savills Amsterdam

+31 (0)20 301 2086