Outlook

increase in initial yields is an obvious next step

In short: both headwinds and tailwinds are blowing in the logistics sector.

The logistics property shortage and limited opportunities for new construction are fuelling the logistics sector, while current macroeconomic conditions are creating headwinds.

Price corrections are ultimately to be expected.

The bond-yield spread is narrowing, creating upward pressure on initial yields in all property sectors.

Meanwhile, the prime BAR for logistics has also risen from 3.40% in May 2022 to the current 3.80%. Due to robust occupier demand, the logistics sector still remains an attractive real estate asset class. However, a further rise in initial yields is a likely prospect given the uncertainties prevailing in the market.

Sources Macrobond; Investing.com; Savills Data, Intelligence & Strategy

Savills World Research We provide bespoke services for landowners, developers, occupiers and investors across the lifecycle of residential, commercial or mixed-use projects. We add value by providing our clients with research-backed advice and consultancy through our market-leading global research team

Niek Poppelaars

Co-Head Logistics & Industrial

+31 6 2788 2408

niek.poppelaars@savills.nl

Douglas van Oers

Co-Head Logistics & Industrial

+31 6 1568 4970

douglas.vanoers@savills.nl

Abe Jongbloed

Head of Property Management

+31 6 1868 6028

abe.jongbloed@savills.nl

Martijn Onderstal

Head of Valuation

+31 6 1509 0363

martijn.onderstal@savills.nl

Jordy Kleemans

Head of Data, Intelligence & Strategy

+31 6 1108 3654

jordy.kleemans@savills.nl

Emma Beuker

Analyst Market Intelligence

+31 6 2135 6443

emma.beuker@savills.nl

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