German industrial investment volume falls 28%

Investment volume in Germany’s logistics sector dropped 28 percent during 2018, according to Savills, which reports that despite the drop, the result was will higher higher than the 5-year running average. The biggest year for deals for industrial assets was 2017, when more than €9bn in deals were completed. Last year saw a 39 percent drop in overall transaction volume compared to 2017 for logistics-based deals, but rose 34 percent for industrial-focused properties and 54 percent for deals involving business parks. Prime yields hardened to just over 4 percent in 2018 for the industrial sector. “It is reasonable to assume that many institutional investors will be looking to increase the proportion of logistics property in their portfolios this year, suggesting that 2019 will also produce an above-average transaction volume,” writes Savills World Research in its fourth quarter report.