Retailer appetite has helped keep occupier demand, rents and values stable in the industrial market despite turmoil elsewhere, says Philip Dunne, European president of ProLogis.
A lack of speculative developments has also buoyed the market, though occupational activity has been driven by churn rather than expansion.
“Growth is coming from the retail sector, the e-tail sector and third party logistics companies”, he said. “That’s not to say over the next six months we’re not going to see the pace of demand slow.”
He said ProLogis was ahead of forecast business performance since its $14bn merger with AMB completed in June. “We’ve got some significant integration things to deal with in terms of bringing our systems together over the next 12 months,” he said. “But in terms of teams and business we’re fully integrated.”
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