Recovery is under way across Europe's major logistics and industrial markets, according to new research from property adviser King Sturge. The firm's latest European Logistics and Industrial Markets report provides an assessment of relevant macro economic trends and logistics and supply chain management dynamics, and includes commentary and analysis of 13 country markets. Based on this, the report concludes that improving macro economics and changes in logistics and supply chain management will support occupier demand for logistics facilities over the medium-term. Occupier markets are recovering with demand levels increasing and availability falling.

Prime logistics assets offer investors good defensive attributes in the short-term and are underpinned by robust fundaments in the long-term. Industrial estates which are well located in strong industrial areas also offer good performance potential and occupier demand for logistics is being driven by positive macro economics and changes in supply chain management

Across Europe, occupier demand for logistics and industrial premises started to recover last year after its collapse in 2009, following the sharp decline in manufacturing output and world trade in the wake of the credit crunch.

The upturn is demand is being driven by a revival in real economic activity. In particular, global GDP growth has picked up, world trade growth has gathered momentum and manufacturing output has turned around. Europe, Germany, in particular, has experienced a strong rebound in economic activity, led by exports from its large manufacturing sector.

Whilst European domestic demand remains more subdued, the economic recovery has continued into 2011. Business confidence across Europe is also increasing, particularly in the export-orientated sectors and forecasts suggest a steady improvement in real economic activity across Europe. In addition, changes in the way companies organise their logistics and supply chains will continue to be an important driver of property demand.

King Sturge Research Partner Jon Sleeman said: 'Companies are continually reassessing their supply chains to improve their performance and reduce costs, and the development of efficient warehouse networks is a key component of this.'

The 11 markets covered by the report are: Belgium, Bulgaria, Croatia, the Czech Republic, France, Germany, Hungary, Poland, Romania, Serbia, the Slovak Republic, Turkey and the UK.