Industrial and Logistics real estate

Industrial and Logistics real estate
Dutch Market Report 2015
industrial.nl
Dutch market for Industrial and Logistics real estate - Report 2015
THE DUTCH MARKET FOR
INDUSTRIAL AND LOGISTICS REAL ESTATE
Take-up of industrial space according to building type in sq m
2,000,000
1,750,000
1,250,000
1,000,000
750,000
500,000
250,000
existing buildings
2014
2013
2012
2011
2010
2009
2008
2007
0
2006
Take-up in the Dutch industrial and logistics real estate
market, that is to say buildings with more than 5,000 sq m
of lettable space, slightly went down in 2014. Data which
are carefully kept by INDUSTRIAL real estate partners reveal
that last year 1.18 million sq m were let and sold, almost 8%
down compared to 2013. This drop particularly involved
second-hand industrial buildings; in the new development
category take-up levels were rather steady. But even though
last year’s total take-up levels did go down, the general
mood has been positive nevertheless as the number of lease
and sale transactions remained almost the same compared
to 2013. One significant detail is that in calculating these
levels, companies that meet their own accommodation
requirements – the ‘owner-occupied buildings’ – as well as
companies extending their leases, have not been taken into
consideration.
1,500,000
new developments
Take-up of industrial space by branch 2014
4% 3%
17%
commodities
light industrial
logistics
production
76%
2,000,000
1,750,000
1,500,000
1,250,000
1,000,000
750,000
500,000
250,000
purchase
lease
Take-up of industrial space by size category 2014
5,000-10,000
10,000-15,000
35%
37%
15,000-20,000
20,000 and more
10%
industrial.nl
18%
2014
2013
2012
2011
2010
2009
2008
0
2007
Even though last year’s market made a positive impression
in general, geographically speaking some unmistakable
differences in market dynamics presented themselves. For
instance, transaction volumes were disappointing in Almere
and also in the region above the North Sea Canal, however
take-up of industrial space in the Amsterdam-Schiphol region
made quite a strong recovery, also following the rental of
several distribution centres. In North Brabant the disposal
of large-scale industrial spaces remains at good levels, yet
take-up of industrial and logistics real estate has dropped
in Limburg.
Take-up of industrial space by type of ownership in sq m
2006
In 2014 the demand for large-scale industrial space was
primary focussed on the logistics real estate market. In
this segment most companies preferred renting rather
than buying their accommodation. Judging by the amount
of transactions finalised, companies were particularly
interested in buildings with between 5,000 and 10,000 sq
m of lettable space and also in larger buildings with more
than 20,000 sq m of space.
Dutch market for Industrial and Logistics real estate - Report 2015
1,000,000
800,000
600,000
400,000
200,000
existing buildings
2014
2013
2012
2011
2010
2009
2008
0
2007
The year 2014 was dominated by considerable demand for
logistics real estate. In the so-called open market, the amount
of buildings rented or sold remained the same compared
to last year. Approximately 900,000 sq m in total have
welcomed new users. Many newly constructed distribution
centres were taken up, however existing buildings were also
given serious attention. As in previous years, in 2014 the
amount of transactions realised was highest in the southern
Netherlands as the west and centre of the province of North
Brabant claimed much of this demand.
Take-up of logistics space according to building type in sq m
2006
THE OCCUPATIONAL MARKET FOR
LOGISTICS REAL ESTATE
new developments
Take-up of logistics space by region in sq m
300,000
200,000
150,000
100,000
50,000
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Supply of logistics space according to building type in sq m
2,500,000
2,000,000
1,500,000
1,000,000
500,000
existing buildings
2014
2013
2012
2011
2010
2009
2008
2007
0
2006
new developments
Supply of logistics space as percentage of stocks
12
11
10
9
8
7
6
5
2014
2013
2012
2011
2010
2009
2008
4
2007
Even though demand for logistics real estate maintained a
good position last year, the number of distribution centres
available for immediate occupation continued to climb
nevertheless. Rising availability followed almost entirely
due to speculative construction of distribution centres in
places like Venlo, Utrecht and Schiphol. Interestingly, in
addition to the immediately available supply, the number
of plans to build sustainable distribution centres has grown
as well. Even though more newly developed buildings were
available for lease last year, the majority of the spaces on
offer were old and quite often less marketable. In addition
to municipalities with many vacant distribution centres for
rent, vacancy was hardly an issue in places like Bergen op
Zoom, Eindhoven, Moerdijk, Venlo and Waalwijk.
250,000
2006
Last year Limburg witnessed a modest decrease in logistics
real estate take-up, however INDUSTRIAL real estate
partners is expecting this region to attract quite a deal of
attention this year, a development that will serve Venlo in
particular. This region is an interesting business location for
international companies who sell their products online and
who want their distribution centres to be in the proximity of
the Cologne Bonn Airport.
Dutch market for Industrial and Logistics real estate - Report 2015
THE INVESTMENT MARKET FOR
INDUSTRIAL AND LOGISTICS REAL ESTATE
Investments in logistics space according to building type
1,000
600
400
200
existing buildings
new developments
2014
2013
2012
2011
2010
2009
2008
2007
2006
0
values x million €
Investments in logistics space by nationality
1,000
800
600
400
200
foreign investors
dutch investors
2014
2013
2012
2011
2010
2009
2008
0
2007
Most buyers were American, Russian and Belgian investors.
Investors were not only interested in build-to-suit projects,
they also paid serious attention to buildings that existed
already. The majority of the acquisitions realised last year
involved buildings with relatively substantial investment
volumes. Distribution centres worth less than € 5 million
were hardly disposed of. One of the consequences of
investors’ major demand for logistics real estate was that
the gross initial yield of first-class distribution centres went
down to less than 7 percent in some cases.
800
2006
Real estate in the Netherlands continued to attract investors
in 2014 as low return on government loans and the large
availability of funds made many investors embrace it. The
logistics real estate market benefited from this development.
Trusting that the available data on acquisitions and
sales are correct, last year there was approximately
€ 835 million invested in distribution centres. As a result,
investment volumes were very close to those of 2007, a
record year in terms of logistics real estate investments. Last
year investors clearly preferred distribution centres in North
Brabant and Limburg, as well as Utrecht and Amsterdam Schiphol.
values x million €
Investments in logistics space by region
350
300
250
200
150
100
50
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In 2014 investors also seriously considered light industrial
buildings, as different large-scale complexes exchanged
owners causing the gross initial yield to range from 9% to
13%. Remarkably, most investors who were interested in
this market segment were British.
values x million €
DHG sold 107,000 sq m logistics facility in the Port of Amsterdam to Delin Capital for € 75 million.
industrial.nl
Dutch market for Industrial and Logistics real estate - Report 2015
TOP 10 TRANSACTIONS LOGISTICS REAL ESTATE
Size
Location
Occupier
Lessor
Type of building
1
55,000 sq m
Moerdijk
OWIM
SPF Existing building
2
49,700 sq m
Tilburg
Tesla
DOKVAST
New development
3
40,000 sq m
Nieuwegein
Albert Heijn
Borghese
New development
4
40,000 sq m
Oosterhout (Gld)
Nabuurs
Goodman
New development
5
32,800 sq m
Tiel
Kuehne + Nagel
WDP
New development
6
32,600 sq m
Breda
Broekman Logistiek
Greenery
Existing building
7
25,800 sq m
Oss
Vos Logistics
Montea
New development
8
25,000 sq m
Tilburg
Coolblue
Prologis
New development
9
23,700 sq m
Bergen op Zoom
Forever21 Fashion
ProDelta
New development
10
22,500 sq m
Maasbree
Seacon Logistics
Built to Build
New development
Nieuwegein
Tilburg
Borghese develops 40,000 sq m for Albert Heijn / ND Logistics
DOKVAST develops 49,700 sq m for Tesla
TOP 10 INVESTMENTS INDUSTRIAL AND LOGISTICS REAL ESTATE
Size
Location
Building type
Buyer
Vendor
Price
1
242,000sq m
several locations
Logistics
ProLogis
Schroder Real estate
€ 170 million
2
370,000sq m
several locations
Light industrial
Hansteen
BGP Investment Sarl
€ 106 million
3
107,000sq m
Amsterdam
Logistics
Delin Capital
David Hart Group
€ 75 million
4
130,000sq m
several locations
Light industrial
Mstar
Rockspring
€ 71 million
5
175,000sq m
several locations
Light industrial
Rockspring
AXA REIM
€ 67 million
6
73,000sq m
Echt
Logistics
WDP
Action
€ 57 million
7
63,000sq m
Tiel
Logistics
WDP
Van de Ven
€ 50 million
8
102,000sq m
several locations
Light industrial
MBay Light Industrial
Internos
€ 43 million
9
44,000sq m
Waddinxveen
Logistics
Delin Capital
Distripark A12
€ 38 million
10
54,000sq m
several locations
Logistics
LogiCor
CBRE Global Investors
€ 34 million
This report has been produced in close cooperation with Bak Property Research
industrial.nl
Dutch market for Industrial and Logistics real estate - Report 2015
About INDUSTRIAL real estate partners
INDUSTRIAL real estate partners is an independent real estate consultancy
company with a strong focus on industrial and logistics real esate throughout
the Netherlands.
They particularly focus on agency, investments, strategic real estate advice
and developments. From their offices in Amsterdam Airport, Rotterdam
Airport and Tilburg they cover the important logistics regions.
Our services
• Leasing
• Buying and selling
• Strategic real estate advice
• Sale-and-leasebacks
• Real estate portfolio consulting
By combining their national scope, expertise and skills, they are committed
to provide the best possible services to owners, occupiers, (re)developers
and authorities.
Jasper Kiestra
Maurits Kortleven Bart Schraven
• Real estate investments
Amsterdam
T. +31 (0)88 989 98 98
Rotterdam
industrial@industrial.nl
Tilburg
industrial.nl
Marcel Hoekstra
Rob Mutsaerts
DUTCH LAND PRICES & RENT LEVELS 2014/2015
land prices
rent levels
1
Schiphol Airport
250- 325
75-90
2
Amsterdam Port
215 * -
40 - 65
3
Almere
110- 165
30-60
4
Utrecht
230- 300
30-65
5
Arnhem/Nijmegen
150- 170
25-60
6
Bleiswijk/Waddinxveen
150- 230
40-65
7
Rotterdam Port
175 * -
40 - 65
8
Moerdijk
120- 145
30-55
9
Roosendaal/Bergen op Zoom
100 - 150
35 - 50
10
Tilburg/Waalwijk
120- 150
45-55
11
Eindhoven
155- 200
40-50
12
Venlo/Venray
115- 130
30-50
13
Maastricht/Heerlen
75- 100
30-50
250 *
265 *
land prices in € per sq m / rent levels warehouse space in € per sq m per year / * = for 50 year leasehold
1
33
2
4
6
55
7
8
9
10
11
12
13
Despite careful preparation and monitoring of this report and the information it contains, INDUSTRIAL real estate partners cannot guarantee its completeness, accuracy or actuality.
INDUSTRIAL real estate partners accepts no liability for any direct or indirect damage of whatever nature arising from or in any way related to the use of this report or the potential unavailability thereof.