Across Europe, markets have stabilized as the impact of COVID-19 on logistics real estate has begun to dissipate, with strong investor demand for the sector driving yield compression. The rent growth outlook has become more positive as markets have steadied and supply-side constraints have remained intact, driven by low levels of speculative development in most continental European countries. Land scarcity is also affecting rent growth. Prologis published its third-quarter global earnings announcement along with its European and Central European performance update.
Key takeaways regarding the European logistics market:
Operating performance of Prologis Europe as of September 30, 2020:
Capital deployment in Q3 2020:
Prologis in Central Europe (Poland, Czech Republic, Slovakia and Hungary), ended the third quarter of 2020 with a total portfolio of 4.27 million sqm. Occupancy stood at a stable 94.1% (compared with 95.9% in the same period of 2019). 470,267 sqm of leases were signed during the quarter and throughout 2020 Prologis CE signed deals covering 1,271,072 sqm, which is equivalent to the total 2019 leasing activity. Q3 2020 registered one development start totalling 11,079 sqm at Prologis Park Ruda-Śląska.
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