REPORT: THE OCCUPATIONAL MARKET FOR LOGISTICS REAL ESTATE The logistics real estate market in the Netherlands is looking back on a positive year when it comes to distribution centres and large-scale storage units. On the so-called open letting market – excluding owner-occupier developments – approximately 1.38 million sq m were taken up in 2016, up 7 percent compared to the preceding year. However this favourable growth in demand was still less substantial compared to 2015, the year in which demand for logistics real estate went up by more than 30 percent. To the extent that companies addressed the open market in the previous year, just like they did in other years, they were interested in renting rather than purchasing buildings. Interestingly though, the new-construction share in total demand for distribution centres increased to approximately 50 percent. And again, most lease transactions took place in Southern part of the Netherlands, nearly 500,000 sq m being taken up in West and Central Brabant alone. Also interesting is the fact that logistics real estate take up volumes climbed in the Utrecht region, especially in Nieuwegein. In the Rotterdam region, however, transaction volumes dropped, mainly due to limited supply. As a result of healthy demand for logistics real estate, the number of distribution centres and storage units available for immediate occupation in the Netherlands dropped further last year. By yearend 2016, approximately 2.36 million sq m (measured in spaces exceeding 5,000 sq m) were available for rent or sale versus 2.66 million sq m in 2015. Also in terms of total stock, vacancy rates had dropped. Despite diminishing vacancy levels, the number of newly built premises still available did rise. It is because at some locations distribution centres were constructed at developer’s own risk and expense. This was the case in Born, Dordrecht, Schiphol and Vianen, amongst others. Because of this new developments, the availability of first-class logistics buildings – also known as Grade A – increased further last year. Take-up of logistics space according to building type in sq m 300,000 600,000 900,000 1,200,000 1,500,000 0 existing buildings new developments Take-up of logistics space by region in sq m 100 200 300 400 500 0 Supply of logistics space according to building type in sq m 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 0 existing buildings new developments Supply of logistics space as percentage of stocks 10 11 12 4 5 6 7 8 9 Logistiekvastgoed 2017 - 17 West - en Midden Brabant Oost Brabant Limburg Other regions AmsterdamSchiphol Almere Rotterdam Haaglanden Arnhem Nijmegen Utrecht 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2016 2016 2015 2014 2016 2015 2013 2012 2011 2010 2008 2009

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