JLL. European Logistics Market Update Q3 2023

Latest analysis of industrial and logistics market, including occupier demand, rents, investment market and yields across Europe.

Take up is slow but steady while upward pressure on prime rents continues as supply of suitable space remains limited across Europe.

Rising occupier activity during the quarter brought Q1-Q3 total take-up to 17.8 million sqm. While significantly below the record levels of 2021 and 2022, occupier activity remains on track with the five-year average. Notably, Q1-Q3 take-up was the third strongest historically, only surpassed by those of 2021 and 2022.

With occupational demand returning to lower, more sustainable levels and an uptick in speculative completions since the end of 2022, the average European vacancy rate stood at 4.3% at the end of Q3. Though the overall average market vacancy rate is higher, modern space remains limited in most markets which is contributing to continued robust prime rental growth.