European Industrial & Logistics Capital Markets Q1 2016
1
11% share* Germany United Kingdom France European prime logistics yield * excluding Moscow Markets recording yield levels below their historic peak (achieved in 2007) Amsterdam Berlin Düsseldorf Frankfurt Hamburg Lyon Munich Paris Rotterdam Stockholm 5.9%* * share on total commercial real estate volumes European Industrial & Logistics Capital Markets >€100 million 1 single asset 8 portfolio deals >€100 million largest portfolio traded for >€500 74% traded in core markets (DE, FR, UK) JLL quarterly Industrial & Logistics analysis illustrates the current market condition and examines how it will evolve in the future. All figures are in sq m / €, based on logistics units >5,000 sq m www.jll.eu COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them. For more information, contact: Alexandra Tornow EMEA Industrial & Logistics Research [email protected] Philip Marsden Head of EMEA Industrial & Logistics Capital Markets [email protected] Tom Waite Director - Capital Markets [email protected] Nick Jones Director - Capital Markets [email protected] 73% YoY in volume terms in portfolio transactions of capital invested in Q1 2016 sourced outside of Europe or globally YoY in volume terms 53% share 238% 27% of international capital was invested in Europe’s traditional core markets 63% 80% on 5yr Q1 average + 181% YoY 60bps QoQ stable YoY in volume terms 33% 17% 13% Industrial and Logistics assets account for 11% of all European transactions… Only four markets – Amsterdam (10 bps), Lyon (20 bps), Paris (10 bps) and Rotterdam (10 bps) – recorded further yield compression over the quarter. Q1 2016 marks strongest start to a year on record FY 2016 outlook Q1 2016 €5.1 bn + 29% 5 year Q1 average + 52% of total Q1 volumes invested in core markets DE, FR, UK 64% of global Q1 industrial transaction volumes 31% 25 20 15 10 5 2012 2011 2007 2008 2009 2010 2014 2015 2013 Q1 | 2016 +6% Global 6% share* Portfolio transactions made up 39% of total international capital invested in Q1 2016 including the largest Q1 2016 portfolio transaction of over € 500 million Strongest start to a year for portfolio transactions International investors continue to target Europe Yields broadly stable after eleven quarters of compression Industrial & Logistics volumes continue to shine ...with the region recording the 2nd strongest YoY growth for logistics and industrial assets globally after the strongly emerging Asian markets … albeit further mild yield compression is expected throughout the remainder of the year -15% US Europe +29% +33% Asia Pacific …whilst large single asset deals are now held down by a growing scarcity of available product “Following a significant yield compression over the last 2-3 years and with some markets recording historic peaks, we feel the market is now at a point where yields will start to bottom out.” Nick Jones, Director, JLL EMEA Capital Markets € Billion 0 2006 2016
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Transcript of European Industrial & Logistics Capital Markets Q1 2016
11% share*
Germany United KingdomFrance
European prime logistics yield* excluding Moscow
Markets recording yield levels below their historic peak (achieved in 2007)
AmsterdamBerlinDüsseldorfFrankfurtHamburgLyonMunichParisRotterdamStockholm
5.9%*
* share on total commercial real estate volumes
European Industrial & Logistics Capital Markets
>€100 million
1 single asset
8 portfolio deals
>€100 million
largest portfolio traded for
>€500
74% traded in core markets (DE, FR, UK)
JLL quarterly Industrial & Logistics analysis illustrates the current market condition and examines how it will evolve in the future.All figures are in sq m / €, based on logistics units >5,000 sq mwww.jll.eu
COPYRIGHT © JONES LANG LASALLE IP, INC. 2016. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.
For more information, contact:
Alexandra TornowEMEA Industrial & Logistics Research [email protected]
Philip MarsdenHead of EMEA Industrial & Logistics Capital Markets [email protected]
Tom WaiteDirector - Capital [email protected]
Nick JonesDirector - Capital [email protected]
73%YoY in volume terms
in portfolio transactions
of capital invested in Q1 2016 sourced outside of Europe or globally
YoY in volume terms
53%share
238%
27%
of international capital was invested in Europe’s traditional core markets
63%
80%
on 5yr Q1 average
+181%
YoY60bps
QoQstable
YoY in volume terms
33% 17% 13%
Industrial and Logistics assets account for 11% of all European transactions…
Only four markets – Amsterdam (10 bps), Lyon (20 bps), Paris (10 bps) and Rotterdam (10 bps) – recorded further yield compression over the quarter.
Q1 2016 marks strongest start to a year on record
FY 2016 outlook
Q1 2016€5.1 bn
+29%5 year Q1 average
+52%of total Q1 volumes invested in core markets DE, FR, UK
64%of global Q1 industrial transaction volumes
31%
25
20
15
10
5
201220112007 2008 2009 2010 2014 20152013
Q1 | 2016
+6%
Global
6% share*
Portfolio transactions made up 39% of total international capital invested in Q1 2016 including the largest Q1 2016 portfolio transaction of over
€500 million
Strongest start to a year for portfolio transactions
International investors continue to target Europe
Yields broadly stable after eleven quarters of compression
Industrial & Logistics volumes continue to shine
...with the region recording the 2nd strongest YoY growth for logistics and industrial assets globally after the strongly emerging Asian markets
… albeit further mild yield compression is expected throughout the remainder of the year
-15%
USEurope
+29%+33%
Asia Pacific
…whilst large single asset deals are now held down by a growing scarcity of available product
“Following a significant yield compression over the last 2-3 years and with some markets recording historic peaks, we feel the market is now at a point where yields will start to bottom out.”
Nick Jones, Director, JLL EMEA Capital Markets
€ Bi
llion
0
2006 2016
