European logistics sector outperforms office and retail

The European logistics sector continues to perform well with strong rental growth and investor demand driving down yields by 2 bps during the II quarter of 2019. By comparison, Europe's office and retail sectors remained flat for the same period, according to Cushman & Wakefield’s latest report. The logistics sector saw prime rents grow 0.6 percent over the quarter while the year-on-year growth was 2.8 percent, its highest rate since March 2008. The strongest growth remains in Central Eastern Europe markets with rents 4.4 percent higher in Budapest and 2.7 percent up in Warsaw. The German city of Hamburg also posted strong growth with rents 3.4 percent higher over the quarter supported by a lack of stock and strong demand driven by a streamlining of distribution networks, wrote Cushman & Wakefield.