Property investors and speculators spent £6.14bn on UK warehouses in 2014, as investor interest in European warehousing surpassed the boom-time levels. The figures come according to the recently published Colliers International EMEA Industrial & Logistics Snapshot 2015.
UK logistics property claimed more than one-third of all property investment in the in European industrial and warehouse real estate scene, and more than twice the amount invested in German floorspace. Total investment across the continent totalled £16.3bn.
This is the highest figure since 2007, at the peak of the last economic boom.
Tim Davies, Colliers International Head of EMEA Industrial, commented: “The market is very much on the rebound, especially within the UK which is leading the EMEA sector. Rental growth was markedly strong in Britain as it was in Sweden, particularly in Stockholm.
“Generally, all major markets throughout Europe are looking very positive and secondary stock is following suit, too. Most notably, we finally saw the resuscitation of the market in Spain and Ireland thanks to several significant deals.
“Ireland showed exceptional rental growth of 22.8% in Dublin, albeit that this market has been more severely hit compared to other EMEA markets.
“Across the board, though, the Industrial and Logistics sector is heavily undersupplied meaning we can expect to see both rental income and capital values continue to increase. What we can also expect to see throughout 2015 is more speculative development.”
In 2014, speculative development made a return throughout the UK, Poland, Czech Republic and Sweden.
Within the UK, take-up reached the highest volume since 2010 with retailers and logistics providers leading the activity. Large deals were agreed for several major household names including Waitrose and Eddie Stobart both of whom developed their own tailor-made properties; this further illustrates the short supply of prime property.