In the first half of 2016, European industrial and logistics capital markets saw significant activity with €9.4 billion in total transactions, primarily driven by international investors. Although prime yields continued to compress in several markets, the availability of product has declined, impacting large single asset deals. Despite these challenges, H1 2016 volumes surpassed previous years, marking a record for the period.

1. 10%share*
Germany
European prime logistics yield
* excluding Moscow
Markets recording yield levels below their historic peak (achieved in 2007)
Amsterdam
Berlin
Birmingham
Düsseldorf
Frankfurt
Hamburg
Leeds
Lyon
Manchester
Munich
Paris
Rotterdam
Stockholm
5.7%*
* share on total commercial real estate volumes
European Industrial & Logistics
Capital Markets
>€100million
3single asset
11portfolio deals
>€100million
in H1 2016
Largest Q2 portfolio
transaction not exceeding
€240million
71%traded in core markets
(DE, FR, UK) in H1 2016
61%
YoY in volume terms
in portfolio transactions
in H1 2016
of capital invested in H1
2016 sourced outside
of Europe or globally
YoY in volume terms
44%share
25%
30%
of international capital
was invested in Europe’s
traditional core markets
67%
13%
on 5-year H1 average
61%
YoY
50bps
QoQ
20bps
YoY in volume terms
in H1 2016
38%
France
13%
Following broad stability in Q1, prime yields compressed in a number of markets, mainly across
France, the Netherlands, Italy and Spain in Q2.
FY 2016
outlook
H1 2016
€9.4 bn
25
20
15
10
5
201220112007 2008 2009 2010 2014 20152013
Q2 | 2016
6%share*
Portfolio transactions made up 63%of
total international capital invested in H1 2016
including the largest portfolio transaction of over
€500million traded in Q1
International investors continue to target Europe in H1 2016
Industrial & logistics volumes continue to growth over H1 2016
… whilst growing scarcity of available product continues to impact activity of large single asset
deals in H1 2016 as well
“There remain some pockets of further yield compression throughout the reminder of the year,
in particular in those markets that have still not returned to their previous peak levels. However,
following significant yield compression over the last 2-3 years, and with some markets recording
historic peaks, yields are now anticipated to bottom out.”
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
alexandra.tornow@eu.jll.com
Philip Marsden
Head of EMEA Industrial & Logistics Capital Markets
philip.marsden@eu.jll.com
Tom Waite
Director - Capital Markets
tom.waite@eu.jll.com
Nick Jones
Director - Capital Markets
nick.jones@eu.jll.com
Nick Jones, Director, JLL EMEA Capital Markets
Declining average transaction size mainly driven by further slowing portfolio and large single
asset deals in Q2 2016 – impacting on overall volumes
€Billion
0
2006 2016
Portfolio transactions slowing in Q2 2016 as product availability
is further declining but half-year volumes still ahead YoY and
highest for H1 activity on record
Q2 sees prime yield compression after broad stability in the
previous quarter
+4%
average deal size in
H1 2016
increase in No. of
transactions in H1 YoY
increase in No. of
transactions in Q2 QoQ
+21%
on total 2015 average size;
driven by single asset
deal size
-8%€30mn
QoQ in Q2 2016
– the strongest first
quarter on record
-17%
YoY increase in
H1 2016
+9%
increase on 5 year
H1 average
+40%
Only 3 portfolios
€100million
Traded in Q2
United Kingdom
16%