The Dutch Industry & Logistics Real Estate Sector offering includes buildings and spaces with strong tenants: Investors in this sector enjoy secure returns of between 5% – 10% annually with potential for significant capital appreciation; and return on investment up to 16% per annum (if using bank finance).
Our Industry Property Investment Strategy is to focus on very strong tenants, to source industry investments that are located in well located areas with an optimal infrastructure, demonstrating continuing and sustained demand that will generate a reliable and steady income stream for the investor. Of course we offer our industry investments as comprehensive ‘turnkey investments’ where the administration of the property is handled by our experienced Property Management Department with no direct investor involvement required in the areas of accounting or tax as our specialised partners will deal with these issues on the investors’ behalf.
Industrial Real Estate Market Netherlands 2016
During the second quarter demand for logistics space remained high across The Netherlands with a focus on the logistics hot spots of the country. Logistics take-up in particular was high, and on par with the activity recorded in Q1.
Demand for light-industrial space is rising as a result of the gains made by the SME sector. Investor appetite was once again strong, although supply is extremely limited and thus reducing the number of transactions.
There was little change in the underlying demand patterns since Q1, whereby the growing export and e-commerce sectors continued to stimulate the industrial market and saw new requirements activated. In total, around 816,000 sq. m space were leased across The Netherlands over the second quarter. The bulk of occupier demand remains focused on modern logistics space in the prime logistics hot spots. However, this is putting additional pressure on the already tight supply levels and as a result, occupiers are forced to consider locating or relocating to slightly older buildings inside the established, core locations, or to make a move towards other emerging locations in the country where better quality stock is beginning to emerge. Furthermore, the build-to-suit route to the market remains an attractive option since construction costs are still quite favourable.
Trading volumes in the Dutch industrial sector remained robust in Q2, with levels reaching €471 million, representing a 17% increase on last year. Although, the investment market remains buoyant, scarcity of prime investment product forces investors to look outside of the established markets and modern product placing the secondary markets higher up on the investor radar.
The outlook for the logistics sector is positive, although the implications following the outcome of Brexit may cast a cloud over the Dutch industrial market in the longer term. Short term, the competition to invest in the sector will remain fierce and see yields compress while rents will see relative stability.