The European logistics yield has fallen to 5.95% for the second quarter of 2018, according to new data from Cushman & Wakefield.
It is the first time it has fallen below 6% since Cushmans began tracking the three main property sectors in 1992, according to the firm’s DNA of Real Estate report.
The fall was triggered by downwards yield movements across all logistics markets in Germany, Italy and Sweden. A couple of UK locations also contributed to the yield drop.
About a third of the monitored office locations saw some yield compression, with the prime weighted average falling from 4.49% to 4.42%.
Lisa Graham, head of EMEA industrial and logistics research and insight at Cushman & Wakefield, said: “Logistics properties have increasingly become a desirable asset for real estate investors on the back of the growth for e-commerce and the streamlining of supply chains, and now account for a growing share of investment activity supporting a strong reduction in yields over this period. Yields in almost all monitored markets are at their 10-year low, although we believe there is still room for further downward movement in selected markets during the second half of the year.”
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