EMEA's 2020 Industrial & Logistics take-up was up +22.6% y/y, fuelled by increasing logistics demand from servicing online retail growth. Despite some localised record volumes, supply-demand imbalances continue to hinder take-up. Latent demand will continue to drive take-up until significant supply filters through.
EMEA's weighted vacancy remains incredibly tight, at 5.5% by year-end – only 10-bps higher (y/y) due to new stock deployment in H2 2020. Some 67% of markets expect vacancy to remain flat in the next twelve months. The remainder expect vacancy to contract. In-line with vacancy trends, we anticipate growth in our prime headline rental index will slow-down and start flattening off in 2021, although core logistics and distribution corridors will remain hotbeds for rental growth in 2021.
With such strong market fundamentals in place, landlord-favourable markets ended 2020 with a 53% majority and are forecast to expand to a 59% coverage by year-end 2021.
Finally, Brexit. With the UK and EU finally settling on a new free trade agreement, the elimination of potential high tariffs will enable trade flows to stabilise. Although freight distribution to Ireland has been diverted away from the UK land bridge into new routes via France, the higher cost of doing is likely to see the traditional UK land bridge route pick up in trade once the new bureaucracy and red-tape hurdles are overcome. There are no significant implications for European/UK logistics freight movement and activity around key continental hubs mid-longer term.
EMEA's weighted vacancy remains incredibly tight, at 5.5% by year-end – only 10-bps higher (y/y) due to new stock deployment in H2 2020. Some 67% of markets expect vacancy to remain flat in the next twelve months. The remainder expect vacancy to contract. In-line with vacancy trends, we anticipate growth in our prime headline rental index will slow-down and start flattening off in 2021, although core logistics and distribution corridors will remain hotbeds for rental growth in 2021.
With such strong market fundamentals in place, landlord-favourable markets ended 2020 with a 53% majority and are forecast to expand to a 59% coverage by year-end 2021.
Finally, Brexit. With the UK and EU finally settling on a new free trade agreement, the elimination of potential high tariffs will enable trade flows to stabilise. Although freight distribution to Ireland has been diverted away from the UK land bridge into new routes via France, the higher cost of doing is likely to see the traditional UK land bridge route pick up in trade once the new bureaucracy and red-tape hurdles are overcome. There are no significant implications for European/UK logistics freight movement and activity around key continental hubs mid-longer term.
