For the first time since 2014, more was invested in logistics real estate than residential real estate in a quarter. Logistics real estate benefited from increased demand for e-commerce distribution centres in the first three months of this year.
The total volume for the first quarter of 2021 was 2.1 billion euros, figures from real estate consultant CBRE show. Of this, 37 per cent was invested in logistics property, 29 per cent in offices and 25 per cent in residential. The quarterly volume dropped significantly compared to the same period last year: a total of 44 per cent less was invested.
Zalando distribution centre sale
Volume for logistics real estate peaked due to the recent sale of the Zalando distribution centre in Bleiswijk. The largest fulfilment centre in the Netherlands covers over 140,000 square metres. It was recently sold to a foreign investor for €215 million, making it the largest single asset deal ever in logistics real estate, accounting for over a quarter of total logistics investment volume.
Logistics continues to perform well
Exactly how real estate investments will turn out next quarter remains to be seen, thinks Bart Verhelst, Executive Director Capital Markets at CBRE. "Logistics continues to perform well, but the residential and office sectors will remain quiet for the time being. We do notice that a large part of sales processes are being postponed until travel can resume. It is therefore expected that in the second half of this year, much of the backlog will be cleared."
Image: Zalando's distribution centre in Bleiswijk sold for a record amount earlier this year
