Download - European Logistics Market Fundamentals Q3 2015

2.9%

0.6%YoY

QoQ

on 5 yr average50%

JLL quarterly Logistics and Industrial analysis illustrates the current market condition and examines how it will evolve in the future.www.joneslanglasalle.eu

For more information Alexandra TornowEMEA Logistics & Industrial [email protected]

Guy GueirardHead of EMEA Logistics & [email protected]

COPYRIGHT © JONES LANG LASALLE IP, INC. 2015. 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.

2015 expected to be a record year with occupational demand approaching 16 million sq m across Europe

Strongest Q1-Q3 year result on record over the last 10 years

Robust development activity continued in Q1-Q3 2015

Slowing rental growth across Europe in Q3 as the majority of markets saw stable rental environments – UK and southern periphery recovery laggards show strongest YoY rental growth

Demand for e-fulfilment space rises strongest YoY albeit on a small scale, manufacturing companies remain more active this year compared to their 5yr historic average

CEE markets still leading YoY growth in Q1-Q3 2015 – Russia recovery boosted by surging Q3 activity

Occupational activity stabilised in Q3

European Logistics Market FundamentalsQ3 2015

Occupational demand is becoming more balanced by occupier group

Development activity continues at a steady pace

Rental growth remains marginal

Top performersPrime rental growth (QoQ)

Dublin

London

Manchester

*ecxluding Moscow

8.1 million sq m

under construction

7% QoQ

8% YoY*

35% on 5yr average

*10% up if excluding Russia

*17% excluding Russia

But speculative development remains limited

… and still significantly below... the 70+% speculative share... recorded in the 2006/2007

Third Party Logistics Retail Companies E-CommerceManufacturing

CEE

50%Russia Southern Europe

33% 32%

sq m taken-up in Q3 2015

QoQ2%

16 millionsq m

4.4 million take-up Q1-Q3 2015

YoY24% on 5 year average26%12.4 million

33% 30% 25% 8% 4% Other

Strongest growing occupier groups in Q1-Q3 2015

E-commerce driven take-up

87%YoY

Manufacturing companies take-up

77% YoY

YoY11%2.0 million

sq m QoQ5%Completed Q3 2015 Completed Q1-Q3 2015

6.3 million sq m

22%*

non-speculative

Q3 logistics rents*