Executive Summary

The European economy continues to expand at a steady pace and although market volatility persists, the environment remains supportive of logistics real estate investment. According to a recent survey, the logistics sector ranks second (marginally behind residential) in terms of investor preferences in Europe over the next two years.1 The sector is supported by strong fundamentals and continued rental growth and therefore remains a natural preference for investors. Despite this, new logistics supply is struggling to keep up with the pace of occupier demand. Construction starts and the development pipeline continues to shrink due to barriers to entry and some developers pausing the development of new projects until the lending environment improves. With positive demand side dynamics and less supply coming online, we believe now is an opportune time to enter the logistics development market in Europe resulting in a good vintage for new investments.