Industrial Real Estate outlook

Real Estate

Kolytics

Kolytics' report analyses European and US industrial real estate, examining demand drivers, supply imbalances, valuations and company-specific comparisons. They highlight the structural demand drivers supporting the long-term outlook for industrial real estate, with the Covid-era supply surge now behind us. However, they caution that macro and geopolitical uncertainty could weigh on near-term performance. Following the post-Covid e-commerce and trade boom, valuations have corrected - more sharply in public markets, particularly Europe - creating selective opportunities in the REIT space. Companies covered include Catena, First Industrial, Prologis, Rexford Industrial, Sagax, Segro, Tritax Big Box and Warehouses De Pauw.

- 21 March, 2025

UK Industrial REITS: Urban winners

Real Estate

Green Street Advisors

A flurry of inner London transactions in the past four months all points to increasing capital values - marking to where assets could trade today (rather than a valuer’s snail pace recognition of change) results in notable increases to spot NAVs. Buyers are pricing in significant, yet realistic, levels of rent growth (25%+) over the medium-term. As such, one eye should be kept on capital values per square foot, which remains at palatable levels when considering alternative uses such as residential, suburban office or even grocery-led retail. Key recommendation changes include upgrading Segro to Buy.

- 18 February, 2022