MARKETBEAT

INDUSTRIAL SNAPSHOT
THE NETHERLANDS

Q4 2014

A Cushman & Wakefield Research Publication

OVERVIEW

The Dutch industrial market remains in

good shape, and the rising levels of exports
and industrial output continued to
encourage higher activity levels in the
logistics segment. Gains were apparent for
both take-up and investment, and this has triggered a rise in
prime headline rents and a hardening of yields across key
locations in The Netherlands.

MARKET OUTLOOK
Prime Rents:

Rising demand should promote further rental

uplift in select logistics hotspots.

Prime Yields:

Yields may harden further due to the

improving investment market conditions.

Supply:

The shortage of prime space will remain the

primary hurdle to activity.

Demand:

Strong demand is anticipated on the back of

the expanding economy.

PRIME INDUSTRIAL RENTS DECEMBER 2014

OCCUPIER FOCUS

Logistics take-up grew considerably over the quarter. The overall

national figure was just shy of the 1.5 million sq.m mark in Q4,
representing an improvement of more than two fold on the same
period in 2013. Occupational demand either expansion or
relocation driven continues to be focused on modern premises.
Furthermore, the market has seen a number of new entrants
posting additional requirements to occupy space. However, as
high-quality schemes are in very short supply built-to-suit remains
a favoured occupier strategy particularly linked to the relatively
low construction costs. This is expected to remain commonplace
as 2015 progresses. Nippon Express for example, are developing
a 70,000 sq.m distribution park at Maasvlakte in Rotterdam.

LOGISTICS LOCATIONS

The scarcity of modern supply will remain an issue for the

foreseeable future as only few developers are willing to take the
risk of building speculatively. Montea, Heembouw and Wayland
Development have done so and will jointly develop 120,000 sq.m
of speculative logistics space at Logistiekpark A12 in
Waddinxveen.

Amsterdam

INVESTMENT FOCUS

OUTLOOK

The favourable economic outlook will continue to fuel

occupational and investment activity, albeit the highs of 2014 may
not be matched in 2015. Nonetheless, the combination of robust
demand and tight supply of quality space will continue to keep
rents under upward pressure. Investment activity is expected to
remain strong, albeit sustained high activity levels will require for
the development market to pick up.
Cushman & Wakefield LLP
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www.cushmanwakefield.com/research

US$
SQ.FT/YR
6.75

Schiphol

88.0

9.89

0.6

0.7

Rotterdam

60.0

6.75

3.4

0.0

Eindhoven

60.0

6.75

4.3

0.0

Venlo

49.0

5.51

2.1

-0.4

Tilburg

50.0

5.62

4.2

-1.2

Nijmegen

50.0

5.62

0.0

0.0

Amsterdam

GROWTH %
1YR 5YR CAGR
4.3
0.0

PRIME INDUSTRIAL YIELDS DECEMBER 2014

LOGISTICS LOCATIONS
(FIGURES ARE GROSS, %)

CURRENT
QUARTER
7.50

LAST
QUARTER
7.70

LAST
YEAR
7.80

HIGH
8.50

10 YEAR
LOW
6.25

Schiphol

7.40

7.60

7.70

8.50

6.00

Rotterdam

7.40

7.60

7.80

8.50

6.25

Eindhoven

7.60

7.80

8.00

8.50

6.50

Venlo

7.40

7.60

7.75

8.50

6.40

Tilburg

7.40

7.60

7.75

8.50

6.50

Nijmegen

7.60

7.80

8.00

9.00

6.50

With respect to the yield data provided, in light of the lack of recent comparable market evidence in many areas of
Europe and the changing nature of the market and the costs implicit in any transaction, such as financing, these are very
much a guide only to indicate the approximate trend and direction of prime initial yield levels and should not be used
as a comparable for any particular property or transaction without regard to the specifics of the property.

Yields

RECENT PERFORMANCE
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%

15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
Dec-04

Dec-06

Yield - Prime
Rental Growth - Prime

Dec-08

Dec-10

Dec-12

Rental growth (y/y)

Investor interest in the industrial and logistics market has picked

up in Q4 and with 337 million exchanging hands, this makes it
one of the best performing quarters on recent record. The
largest single asset deal in The Netherlands was done in
December 2014, whereby DHG sold a 107,000 sq.m distribution
centre for 75 million to DCAM. In addition, the 2014 annual
volume of 1.27 billion remains unmatched and surpasses the
pre-crisis peak by 5%. Prime yields have consequently sharpened
by 20bps across the board.

SQ.M/YR
60.0

Dec-14

Yield - Country Average

Rental Growth - Country Average

Source: Cushman & Wakefield

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