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Despite continued economic woes, occupier demand for modern logistics and industrial space remains strong. This, in combination with reducing choice, is driving occupiers towards built-to-suit agreements with less flexible lease conditions. Occupiers looking for cost reductions and those who are able to accommodate their operations within facilities of lower quality and/or outside the prime locations, can find opportunities in secondary stock. Alternatively, they can explore owner-occupier solutions in those markets which offer low land prices and construction costs. Opportunities are uneven across the EMEA region. CEE and MEA countries stand out as they offer occupiers more choice and softer cost profiles than Western European markets for both leasehold and freehold solutions.
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06 June 2013