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RESEARCH EUROPEAN LOGISTICS MARKET Property Report Q4 2015 Real Estate for a changing world
R E S E A R C H
EUROPEAN LOGISTICS MARKETProperty Report Q4 2015
Real Estatefor a changing world
2
PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
EXECUTIVE SUMMARYEuropean logistics gained momentum in 2015 and a number of markets are close to their record levels for transaction volumes. Low interest rates and favourable financing conditions have also stimulated investment. Prime yields contracted significantly reflecting stronger demand in letting & sales and limited prime availability.
The logistics occupier market is picking-up• Take-up increased by 28% in Europe (22 cities) but the lack of
prime supply is still affecting the market.• Germany reached its highest volume of transactions in 2015
at 5.2 million sqm followed by France (3.1m sqm) and the UK (3m sqm).
• E-commerce remains a significant market driver.• Design and build prevails as a strong alternative to limited
speculative developments.• Prime rents evolved only marginally despite market growth.
Strong investors’ demand and yield contraction• The investment market for logistics and industrial premises
reached €26.7bn in 2015 • The UK dropped 33% to €9.7bn in industrial and logistics
investment in 2015. The market represents more than one third of the European volumes.
• Germany broke yet again another record and prime yields dropped by 100bp in the 6 major regional markets.
• Spain and the Netherlands have been catching-up thanks to strong economic improvement, thus stimulating investors’ interest.
• Prime yields contracted between 50 and 100 bp in most European markets.
Vincent Robion – February 2016
CONTACTS
EUROPEAN LOGISTICS COVERAGE
Logan SMITH Head of Logistics [email protected]
FRANCEChristophe Prioux [email protected]
GERMANYOliver Wissel [email protected]
UNITED KINGDOMJonjo [email protected]
SPAINThierry Bougeard [email protected]
Jean-Bernard [email protected]
NETHERLANDSThomas [email protected]
POLAND / CEEKatarzyna Pyś-Fabiań[email protected]
IRELANDBrian [email protected]
OTHER LOCATIONS
Austria Baltic countriesGreece FinlandHungary NorwayRussiaSerbiaSweden SwitzerlandTurkey USA
Please contact Florence [email protected]
RESEARCH
Christophe PineauGlobal Head of Research [email protected]
Vincent RobionHead of European Logistics Research [email protected]
3
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Imports(year-on-year change)
%
Source: Oxford Economics, BNP Paribas
-32
-24
-16
-8
0
8
16
24
FranceGermanyUK Spain Netherlands
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 15*16*17*14
1.5%1.8%
13
GDP and employment growth in the EU 15
%
-5
-4
-3
-2
-1
0
1
2
3
4
5
GDP
* ForecastSource: Oxford Economics, BNP Paribas
Employment
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Exports (year-on-year change)
%
Source: Oxford Economics, BNP Paribas
FranceGermany NetherlandsSpainUK
-24
-16
-8
0
8
16
24
32
03 04 05 06 07 08 09 10 11 12 13 16* 17*15*14
Distributive trade and manufacturing outputin the EU 15
%
-16
-12
-8
-4
0
4
8
12
* ForecastSource: Oxford Economics, BNP Paribas
Manufacturing Wholesale and Retail TradeTransportation & Storage
PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
The Eurozone has remained remarkably resilient to the slowdown in the emerging markets, the fall in global trade and the ongoing tensions in the financial markets. This resilience is down to a number of beneficial factors including continued fall in energy costs, particularly oil prices, and weaker EUR driven by a prolonged accommodative monetary policy stance by the ECB.
These tailwinds are mainly supporting growth in the non-core part of the region’s economy. Although the full figures for 2015 were yet to be released at the time of writing, we believe that growth has been polarised. Strong performance in the UK (+2.9%) has given impetus to the European economic performance. In the Eurozone (+1.5%) growth has been driven by the recovering economies of Spain (+3.1%), Ireland (+6.1%), Netherlands (+2.1%) and Portugal (+1.5%), where consumer spending holds a greater weight in economic activity. Continued weakness in emerging markets and now the intensified financial uncertainty in these regions, means that growth in the export oriented economies of Germany (+1.4%), France (+1.2%) and Italy (0.8%) remained soft; that weighs on growth in Europe.
In 2016, the effect of these tailwinds will fade somewhat, while the slowdown in global growth is likely to weigh on the bloc’s export performance. However both monetary and fiscal conditions will remain conducive to growth. The aggregate inflation rate will remain non-threatening and with the fall in energy cost, suggests that it is unlikely to return to the 2.0% target over the next two years. Monetary policy is likely to remain characterised by no movement in the main refinancing operations rate (the core lending rate) currently at 0.05% by the European Central Bank. There is further potential for a decline in the deposit rate (-0.3%) to encourage lending and hence business activity. On balance we expect Eurozone growth to remain broadly stable around its current pace of 1.6% in 2016, with a slight improvement in 2017 to 1.8%. We believe the risk to this view is finely balanced, with the potential for external demand from emerging markets, particularly China, to be weaker than we assume.
RESILIENT ALBEIT LOW ENERGY GROWTH
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4
000 sqm
Take-up - Warehouses over 5,000 sqm2014 2015
0
200
400
600
800
1,000
1,200
Grea
ter P
aris
Birm
ingh
amM
anch
este
rLo
ndon
& S
outh
Eas
t
Barc
elon
a
Fran
kfur
t
Mad
rid
Lyon
Leed
s
Ham
burg
Lille
Berl
in
Mar
seill
e
Rott
erda
m
Düss
eldo
rf
Leip
zig
Mun
ich
Bris
tol
Colo
gne
New
cast
le
Lisb
onAm
ster
dam
PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
Take-up increased by 28% in the panel of 22 European cities regularly recorded from 2014 to 2015. Indeed, the gradual economic improvement has had positive impact on consumption and domestic demand, which in turn stimulated the market for distribution warehouses.
E-commerce continues to increase in Europe (+15% a year since 2010). Activities that were normally done in shops are now undertaken in logistics warehouses. As a consequence E-commerce businesses need more space than traditional retailers and demand for warehouses from the retail and distribution sector has become predominant in the largest markets. It accounted for more than half of the total volume of transactions signed over the past twelve months in France (61%) and the UK (57%). In Germany, it accounted 28%, superseded by the industrial sector, a traditionally strong demand source.
Supply dried out during the crisis and despite an economic revival, high grade supply declined to its lowest level during 2015. While some speculative developments have taken place in countries including the UK, Poland, the Netherlands and Spain, demand for new high grade warehouses remained stronger than availability in most markets. As a result, design and build solutions continued to be a strong alternative, particularly for large units.
Prime rents only evolved marginally in the main European markets despite the chronic lack of prime new warehouses. One of the main reasons lies in the low margins achieved in the logistics industry, which in turn constrain tenants who can’t afford higher rents.
Germany remains the largest single occupier market in Europe. The volume of transactions reached its highest level ever recorded in 2015 at 5.2 million sqm. Take-up was boosted by strong manufacturer demand, especially in the automotive industry. As the market continues to thrive, built to suit solutions are increasingly popular to meet end user requirements for higher quality warehouses. This trend largely results from the limited supply of large-unit premises, most sought out by German end users.
The UK volume of transactions increased to nearly 3 million sqm in 2015, up 5% on 2014. The lack of new supply is still affecting the market, stimulating design and build solutions: 61% of deals over 25,000 sqm were designed and built. Speculative developments are underway and are expected to ease the market to some extent, but not sufficiently to keep pace with tenant demand. In this context, prime rents are settled at €95 per sqm (£6.5 per sqft) in the Midlands and are seeing upwards pressure in the other regions.
The French market recorded its highest level since 2008. The volume of transactions increased by 17% in 2015 to 3.1 million sqm, whilst the availability of new grade A warehouses dropped to a 10-year low. Retailers accounted for more than half of the demand taken up in 2015, in response to the recovery in consumption and encouraging prospects in 2017. Greater Paris is confirming its leading position in the European occupier market, just in front of Birmingham in the UK.
Following several years of poor activity, Spain returned to growth recording 995,000 sqm in 2015. In the Netherlands the volume of transactions reached 1.6 million sqm, twice the volumes recorded in 2014. Both countries came out of recession at the end of 2014 and were left with rock bottom levels of new grade A supply. With the return of business confidence and strong GDP growth in 2015, speculative developments are underway.
In Poland, the warehousing market gained momentum in 2015 with strong demand in a healthy economic environment. The vacancy rate fell to 5.7% but developers have a strong pipeline of projects under construction. As a result of substantial increase in supply due for delivery by the end of 2016 some regions such as upper and lower Silesia as well as Szczecin may record a downward pressure on rents.
THE OCCUPIER MARKET GAINED MOMENTUM IN 2015
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5
0
20
40
60
80
100
120
140
160
180
200220
240
260
€/sqm/year
Prime rents - Warehouses over 5,000 sqmPrime Rent Secondary Rent
Lond
on &
Sou
th E
ast
Oslo
Hels
inki
Birm
ingh
amSt
ockh
olm
Man
ches
ter
Amst
erda
m
Bris
tol
Mun
ich
New
cast
leLe
eds
Fran
kfur
tVi
enna
Barc
elon
aHa
mbu
rgIs
tanb
ulM
adrid
Düss
eldo
rfCo
logn
eW
arsa
wRo
tter
dam
Talli
nnBe
rlin
Grea
ter P
aris
Buda
pest
Leip
zig
Rom
eVi
lniu
sPr
ague
Mila
n
Riga
85
69
5695
46
46
84
55
45
54
60
65
76
55
68
108
67
46 48
45
81
52
46
45
40
235
46
66
85
44
50
81
43
81
128
41
51
48
52
58
81
95
58
45
72
52
60
48
54
Edinburgh
DublinManchester
Birmingham
Lille
Paris
Lyon
Marseille
Barcelona
Madrid
Lisbon
Milan
Warsaw
Berlin
Hamburg
Cologne
Düsseldorf
FrankfurtMunich
EdinburghGlasgow
Bristol
Newcastle
Amsterdam(Schiphol)Amsterdam(Schiphol)
Glasgow
DublinManchester
Birmingham
LondonHeathrowLondon
HeathrowBristol
Newcastle
Lille
GreaterParis
Lyon
Marseille Rome
Barcelona
Madrid
Lisbon
Milan
Warsaw
KatowiceKatowice
Lodz
Krakow
Poznan
Berlin
Hamburg
RotterdamRotterdam
Cologne
Düsseldorf
Frankfurt
Leipzig
Munich
IstanbulIstanbul
Helsinki
OsloStockholm
Vienna
Tallinn
Vilnius
Riga
Bordeaux
Toulouse
Nantes
Budapest
LeedsLeeds
Prague
Le HavreLe Havre
Gdansk
Bucharest
BrusselsAirport
BrusselsAirport
AntwerpAntwerp
BratislavaBratislavaBratislava
Athens
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Rents in €/sqm/year
≥ 70
50 - 69
<50
PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
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NET PRIME RENTS IN Q4 2015 - WAREHOUSES OVER 5,000 SQM
6
United Kingdom
German
yFra
nce
Norway
Sweden
Industrial* investment volume Western Europe
€ bn
0
2
4
6
8
10
12
* Industrial premises and warehouses
2015 2010-2015 average
20082007 2009 2010 2011 2012 2014 20152013
Industrial* investment volume in Europe
€ bn
0
2
4
6
8
10
12
14
*Industrial premises and warehouses
Average 2007-2015
Belgium
Finlan
dSpain
Netherl
ands
Portuga
lIta
ly
DenmarkIre
land
Austria
Industrial* investment volume Western Europe
€ bn
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
* Industrial premises and warehouses
2015 2010-2015 average
Commercial real estate investment volume in 2015 Western Europe*
Of�ces
Retail
Industrial
Hotels
Other
11%
44%10%
25%
8%
* Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Norway, Portugal, Spain, Sweden, Netherlands, UK
PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
Industrial and logistics investment in Europe remained buoyant amounting €26.7bn during 2015. Despite a 13% decrease compared to 2014, some of the largest markets have been nearing their best volumes ever. With low interest rates and still favourable financing conditions, the environment remains attractive. Five markets including the UK, Germany, the Netherlands, Sweden and France represented together three quarters of the total European industrial investment. The UK alone accounted for some 36% of industrial and logistics investments in Europe with €9.7bn achieved in 2015. Despite a significant drop over 2014, it is still the second best volume ever recorded. Strong competition among investors and little availability on prime products led to a decline in prime yields.Germany achieved yet again another record year (€4.65bn), increasing by a further 10% in 2015. The strong interest in logistics complexes shown by investors was reflected by an across-the-board fall in prime yields in all the major markets. Yields in the seven locations fell by an average of 100 basis points compared with the end of 2014. Munich remains the most expensive market, with a net prime yield of 5.20 %.In France, the volume of industrial and logistics investments reached €2.2bn thanks to a strong fourth quarter. Portfolio transfers accounted for more than 60% of total industrial and logistics investments. The market
was somewhat hampered by a lack of prime assets. Combined with strong demand and still low cost of borrowing, prime yields fell below the threshold of 6% in 2015.After a buoyant year in 2014, industrial investment in the Nordic countries stabilized in 2015 to €5.5bn. Norway led the way with nearly €2.5bn invested in 2015 (+38% on 2014).In the CEE markets, the volume of industrial investment declined by 37% to just €1bn in 2015. This fall is attributable to the fact that the majority of portfolios changed hands in 2013 and 2014. Poland accounted for nearly half of the CEE total (€457m), enjoying healthy occupier market conditions and improved economic situation. The upturn in investment recorded at the end of 2014 was confirmed during 2015 in Spain (€466m) and the Netherlands (€1.5bn), releasing opportunities in both countries after several years at standstill. Prime yields contracted in all the main European markets reflecting stronger demand in the letting markets and limited prime availability. Apart from Portugal and Spain, prime yields are nearing new lows in most European countries losing between 50 and 100 bp since 2014. They dropped, well below 5% in the UK and in the main German hubs (5.2% in Munich). They reached 5.8% in Amsterdam, 5.8% in Paris and 5.5% in Poland.
YIELD DROPPED BETWEEN 50 TO 100 BP IN MOST EUROPEAN MARKETS DURING 2015
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3
5
7
9
11
%
Net prime yields - warehouses over 5,000 sqmQ4 2014Q4 2015
UK
Germ
any
Nor
way
Pola
nd
Fran
ce
Net
herl
ands
Swed
en
Italy
Irela
nd
Belg
ium
Czec
h Re
publ
ic
Aust
ria
Finl
and
Spai
n
Port
ugal
Turk
ey
Slov
akia
Rom
ania
Range since 2007
Yields
< 6%
6% - 7%
7% - 8%
> 8%
6.50%
5.80%
7.25%
5.40%4.75%
7.00%
7.50%
4.75%
6.75%
8.75%
9.00%
5.25%
6.50%
5.25%
5.25%
5.80%
5.25%
7.00%
7.50%
6.00% 7.50%
7.75%
5.75%
5.90%
6.35%
7.25%
7.00%
4.75%
6.85%
7.00%
5.00%
6.35%
6.50%
5.20%
7.50%
5.85%
5.25%
6.50%
8.75%
6.50%
6.50%
6.00%
5.90%
8.50%
7.30%
6.80%
8.50%
6.00%
6.50%London
Heathrow
Edinburgh
DublinManchester
Birmingham
Lille
Paris
Lyon
Marseille
Barcelona
Madrid
Lisbon
Milan
Warsaw
Berlin
Hamburg
Amsterdam
Cologne
Düsseldorf
FrankfurtMunich
Edinburgh
Newcastle
Glasgow
Bristol
Newcastle
DublinManchester
Glasgow
Birmingham
Lille
GreaterParis
Lyon
Marseille Rome
Barcelona
Madrid
Lisbon
Milan
Bucharest
Warsaw
Berlin
Leipzig
Hamburg
Amsterdam
Cologne
Düsseldorf
FrankfurtMunich
RotterdamRotterdam
Bristol
Helsinki
IstanbulIstanbul
StockholmOslo
Vienna
Tallinn
Vilnius
Riga
KatowiceKatowiceKrakow
Lodz
Poznan
LondonHeathrow
Toulouse
Nantes
Budapest
Bordeaux
LeedsLeeds
Le HavreLe HavreLe HavreLe Havre BrusselsAirport
BrusselsAirport
AntwerpAntwerp
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PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
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NET PRIME YIELDS IN Q4 2015 - WAREHOUSES OVER 5,000 SQM
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PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
OCCUPIER LOGISTICS MARKET - WAREHOUSES OVER 5,000 SQM
REAL ESTATE INVESTMENT MARKET IN EUROPE
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City
Take-up (000 m²)Rents (€/sqm/year)
Prime Secondary
2015 2014 Variation y-o-y (%) Q4 2015 Q4 2014 Q4 2015
Greater Paris 1,097 889 23% 55 55 48
Birmingham 969 1,057 -8% 95 95 70
Manchester 617 438 41% 85 84 66
London & South East 571 512 11% 235 235 117
Barcelona 504 321 57% 69 65 na
Frankfurt 464 308 51% 76 76 64
Madrid 420 291 44% 66 72 na
Lyon 399 366 9% 46 46 42
Leeds 396 256 55% 81 77 59
Hamburg 371 252 47% 68 68 55
Lille 367 210 75% 46 44 42
Berlin 350 172 103% 56 56 50
Marseille 309 154 100% 44 44 41
Rotterdam 257 51 403% 58 57 43
Düsseldorf 253 218 16% 65 65 59
Leipzig 191 174 10% 52 52 43
Munich 143 163 -12% 81 78 70
Bristol 136 115 18% 84 84 62
Cologne 91 225 -60% 60 60 54
Newcastle 82 91 -10% 81 77 51
Lisbon 72 24 199% 45 45 na
Amsterdam 69 82 -16% 85 85 74
Country
Commercial real estate investment (€ million) Industrial & logistics investment (€ million)
2015 2014 Variation y-o-y (%) 2015 2014 Variation
y-o-y (%)
UK 86,648 82,669 5% 9,692 14,374 -33%
Germany 56,264 40,154 40% 4,649 4,233 10%
France 29,011 28,015 4% 2,536 1,668 52%
Sweden 11,142 12,349 -10% 1,944 1,936 0%
Spain 10,537 6,975 51% 466 576 -19%
Norway 10,413 7,289 43% 2,494 1,809 38%
Netherlands 8,364 6,930 21% 1,486 804 85%
Italy 8,179 5,221 57% 339 428 -21%
CEE countries* 8,139 6,492 25% 1,003 1,600 -37%
Finland 5,460 4,079 34% 865 1,588 -46%
Belgium 3,877 3,087 26% 186 271 -31%
Ireland 3,612 4,597 -21% 64 232 -73%
Austria 3,575 2,930 22% 45 60 -25%
Portugal 3,270 774 322% 248 120 106%
Poland 4,009 3,017 33% 457 699 -35%
*Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia
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PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
NET PRIME YIELDS - WAREHOUSES OVER 5,000 SQM
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CityNet prime yields
Q4 2015 Q4 2014 Bp variation
Amsterdam 5.90% 6.20% -30
Barcelona 7.25% 7.80% -55
Berlin 5.40% 6.40% -100
Birmingham 4.75% 5.00% -25
Bordeaux 7.00% 7.10% -10
Bratislava 7.50% 8.50% -100
Bristol 4.75% 6.00% -125
Brussels 6.75% 7.25% -50
Bucharest 8.75% 10.00% -125
Budapest 9.00% 9.00% 0
Cologne 5.25% 6.40% -115
Dublin 6.50% 7.00% -50
Düsseldorf 5.25% 6.40% -115
Frankfurt 5.25% 6.30% -105
Greater Paris 5.80% 6.85% -105
Hamburg 5.25% 6.30% -105
Helsinki 7.00% 7.10% -10
Istanbul 7.50% 7.25% 25
Katowice 6.00% 7.25% -125
Krakow 7.50% 7.50% 0
Leeds 5.75% 6.00% -25
Leipzig 5.90% 6.70% -80
Lille 6.35% 6.85% -50
Lisbon 7.25% 7.50% -25
Lodz 7.00% 7.25% -25
London & South East 4.75% 4.75% 0
Lyon 6.85% 6.85% 0
Madrid 7.00% 7.80% -80
Manchester 5.00% 5.25% -25
Marseille 6.40% 6.85% -45
Milan 6.50% 8.00% -150
Munich 5.20% 6.20% -100
Newcastle 5.85% 6.25% -40
Oslo 5.25% 6.25% -100
Poznan 6.50% 7.25% -75
Prague 6.75% 7.00% -25
Riga 8.75% 8.75% 0
Rome 6.50% 8.00% -150
Rotterdam 6.50% 6.70% -20
Stockholm 5.90% 6.25% -35
Tallinn 8.50% 8.50% 0
Vienna 6.80% 7.15% -35
Vilnius 8.50% 8.75% -25
Warsaw 6.00% 7.15% -115
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PROPERTY REPORT - EUROPEAN LOGISTICS MARKET - FEBRUARY 2016
GLOSSARY
Design & Build: construction of a bespoke building for an occupier.• Owner-occupier development: construction of a building for an occupier
who has signed a bill of sale on a property still to be built. • Lease turnkey: construction of a building for an occupier who has signed a
lease on a property still to be built.
Distributive trade: it is measuring the volume of material goods to consumers distributed through retailing and wholesale trade.
Light industrial buildings: individual buildings intended for production or small-scale distribution and able to accommodate all the company departments under one roof.
Logistics: the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, and related information from the point of origin to the point of consumption. Includes inbound, outbound, internal, and external movements.
New supply: all building restructuring that adds to the existing stock. These are analysed according to progress. • Completed new supply: buildings on which construction work is finished. • Under construction: buildings on which construction has effectively begun.
Prior demolition work is not taken into account. • Planning permission granted: authorisation to build obtained, generally
booked after settlement of third party claims. • Planning permission submitted: planning permission requested, being
processed. • Projects: identified intention of a building operation for which no request
has been filed.
Portfolio: group of several assets located in different places.
Rent: common annual headline rent, expressed per square metre per year, and excluding taxes and charges. Prime rent: represents the top open-market rent at the survey date for a real estate unit: • Over 5,000 m² suitable for logistics uses• Of the highest quality and specification • In the best location in a market Secondary rent: represents a market rent at the survey date for a real estate unit: • Over 5,000 m² suitable for logistics uses • Of good quality and specification • In a good location in a market
Second hand premises: premises that have been previously occupied by an occupier or vacant for more than five years.
Speculative / Non speculative operation: • Speculative: construction launched without prior rental or sale to the
occupier. • Non-speculative: construction launched after partial or complete sale or
rental to an occupier.
Supply chain: all the elements in the process of supplying a product to a customer. The chain begins with the sourcing of raw materials and ends with the delivery of finished merchandise to the end-user. It embraces vendors, manufacturing facilities, logistics service providers, distribution centres, distributors, wholesalers, other intermediaries, etc.
Supply chain management: Encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.
Transaction (Take-up): rental or sale to an occupier of a real estate asset, sealed by the signature of a lease or deed, including turnkey and owner-occupier operations. The transaction is only taken into account once any existing conditional clauses have been lifted. • Pre-let refers to take-up that was either in the planning or construction
stage • All deals (including pre-lets) are recorded in the period in which they are
signed • Contract renewals are not included • Sales and leasebacks are not included as there had been no change in
occupation
Vacant Space: all completed buildings actively seeking rental or sale to occupiers.
Warehouses: buildings intended for storage, distribution or packaging.
Yield: • Net yield: ratio between net income (excl. operating costs) and the
acquisition price including all acquisition costs. • Initial yield: ratio between the net rent before taxes and charges on the date
of sale and the selling price (all costs included). • Prime yield: net lowest yield obtained for the acquisition of a unit:
- of standard size, - of the highest quality and specification, - in the best location in each market.
BNP Paribas Real Estate Disclaimer clause
BNP Paribas Real Estate cannot be held responsible if, despite its best efforts, the information contained in the present report turns out to be inaccurate or incomplete. This report is released by BNP Paribas Real Estate and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it may not be copied or reproduced without prior permission from BNP Paribas Real Estate. Should you no longer wish to receive this report, or wish to modify the conditions of reception of this report, please send an e-mail to: [email protected]
Definitions from A to Z…
The numerical data used by BNP Paribas Real Estate for its statistics feature all the information at the group’s disposal when compiling them. These statistics may change according to new information brought to our knowledge that is often confidential to begin with.
Non contractual document - Research department – February 2016BNP Paribas Real Estate: Simplified joint stock company with capital of € 383.071.696 - 692 012 180 RCS Nanterre - Code NAF 7010 Z - CE identification number FR 666 920 121 80
Headquarters: 167, Quai de la Bataille de Stalingrad - 92867 Issy Les Moulineaux Cedex - BNP Paribas Real Estate is part of the BNP Paribas Banking Group
EUROPE
FRANCE92867 Issy-les-Moulineaux Tel.: +33 1 55 65 20 04
GERMANY60311 Frankfurt Tel.: +49 69 2 98 99 0
BELGIUM 1040 BrusselsTel.: +32 2 290 59 59
SPAIN 28004 Madrid Tel.: +34 91 454 96 00
HUNGARYH-1123 Budapest Tel.: +36 1 487 5501
IRELANDDublin 4 Tel.: +353 1 66 11 233
ITALY20143 Milan Tel.: +39 02 58 33 141
JERSEYSt Helier, Jersey JE4 8RD Tel.: +44 (0)1 534 629 001
LUXEMBOURG1855 Luxembourg Tél.: +352 34 94 84 Investment Management Tel.: +352 26 26 06 06
NETHERLANDS 1071 JP - Amsterdam Tel.: +31 20 305 97 20
POLAND00-854 Warsaw Tel.: +48 22 653 44 00
CZECH REPUBLIC 186 00 Prague 8 Tel.: +420 224 835 000
ROMANIABucharest 010031 Tel.: +40 21 312 7000
UNITED KINGDOM London EC2V 8HR Tel.: +44 20 7338 4000
MIDDLE EAST / ASIA
ABOU DHABIP.O. Box 2742 Abu DhabiTel.: +971 44 248 277
DUBAIP.O. Box 7233 Dubaï Tel.: +971 44 248 277
HONG KONGCenter - 8 Finance StreetHong Kong Tel.: +852 2909 2806
ALGERIA *
AUSTRIA
CYPRUS
IVORY COAST *
ESTONIA
USA
FINLAND
GREECE
HUNGARY ***
LATVIA
LITHUANIA
MOROCCO
NORWAY
RUSSIA
SERBIA
SLOVAKIA **
SWEDEN
SWITZERLAND
TUNISIA *
TURKEY
UKRAINE
www.realestate.bnpparibas.com
ContactsAlliancesFlorence HesseTel.: +33 (0)1 47 59 17 38 [email protected]
ResearchChristophe Pineau Tel.: +33 (0)1 47 59 24 77 [email protected]
@BNPPRE
* Coverage via our alliance in Morocco ** Covering Transaction, Valuation & Consulting*** In Transaction, Consulting & Valuation
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