Even in logistics - the most desirable of asset classes in recent times - things are beginning to slow.
Latest research from global real estate advisor, CBRE, shows that investment into European industrial and logistics increased by 18% for the first nine months of the year when compared to the same period last year.
But Jack Cox, head of European industrial & logistics, said that despite the increase in investment volumes, activity has started to slow across the sector.
He said: ‘The high activity levels in Q1 have contributed greatly to the year-to-date figures and continued rental increases across Europe have helped to offset yield expansion in some markets. However, economic pressures are starting to affect sentiment and we are seeing investors approach with caution as we head into the final quarter.’
Third quarter investment volumes in Spain actually trebled, rose fourfold in Sweden and Portugal achieved a record quarter, added CBRE.
Some of the larger markets also saw increases, including France and Germany at 42% and 33% respectively.
Mark Cartlich, senior director and head of strategy, European industrial & logistics, observed: ‘The UK was the first market to show signs of a slowdown this quarter as it has seen the steepest increases in debt costs, but there were also weaker volumes in Italy, Norway, Denmark and Central Europe, so we would be wary of focusing too much on the year-to-date trends and rather draw focus on the current market backdrop.’