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OVERVIEW
The Dutch logistics market continued to
perform well over the second quarter,
helped by the export sector which remains
the key driver of the economy. As a result,
demand for high-quality logistics space has
sustained. At the same time, the market faces a shortage of
available modern logistics space, which has prompted multiple
build-to-suit projects to break ground in the key logistics hot
spots around the country. Prime rents were unchanged in the
three months to June.
OCCUPIER FOCUS
Demand for good quality space remains high, and as this property
type is in short supply competition within the market has
sharpened, helping to lift leasing activity albeit only moderately.
Owner occupied deals were substantial in Q2, as these
transactions are increasingly seen as viable leasing options,
particularly within the logistics segment. The largest such deal
over the quarter was Khne & Nagels acquisition of a 56,000
sq.m scheme for occupation in Tiel, along with a number of large
scale deals (15,000-20,000 sq.m) concluding around the national
logistics hot spots. Overall market vacancy however, remains an
issue in the Netherlands, albeit it is mostly obsolete and lower-
quality stock which is unlikely to be let soon.
INVESTMENT FOCUS
Q2 saw high levels of activity in the industrial investment market,
boosted by several portfolio sales which set the quarterly total to
a new high at around 430 mn. Logistics space remained highly
sought after across the Netherlands, with Belgian investor
Warehouses De Pauw (WDP) the most active and involved in
various single asset acquisitions, including the newly built Action
distribution centre in Echt for 56 mn. The most prominent deal
of the quarter, however, was the 370,000 sq.m HBI portfolio,
acquired by Hansteen for 106 mn. Yields have despite the
strong quarter and following a moderate compression in Q1
remained unchanged across the Netherlands.
OUTLOOK
The industrial market is expected to progress in line with the
recovering economy and, more specifically, the export sector.
Demand is expected to strengthen, albeit facing a continued
supply shortage, and any construction around the country will
therefore be linked to custom build-to-suit or owner occupied
schemes. The gap between modern and older stock will widen
further, which may prompt some owners to reconsider their
buildings market position. Investment should remain robust,
feeding on high occupancy in the prime market segment. Yields,
however, are not likely to harden further in the near term.
MARKET OUTLOOK
Prime Rents: Prime rents are expected to remain stable in
the prime market segment.

Prime Yields: Good activity levels should see the risk
attached to industrial investments sustained.

Supply: Any rise in availability is only expected to be
for secondary industrial space.

Demand: High, albeit steady, demand is anticipated,
linked to the continued economic rebound.


PRIME INDUSTRIAL RENTS JUNE 2014
LOGISTICS LOCATIONS US$ GROWTH %
SQ.M/YR SQ.FT/YR 1YR 5YR CAGR
Amsterdam 57.5 7.31 0.0 -0.8
Schiphol 87.5 11.13 0.0 0.6
Rotterdam 58.0 7.38 0.0 -0.7
Eindhoven 57.5 7.31 0.0 -0.8
Venlo 48.0 6.11 0.0 -0.8
Tilburg 48.0 6.11 0.0 -2.0
Nijmegen 50.0 6.36 0.0 0.0

PRIME INDUSTRIAL YIELDS JUNE 2014
LOGISTICS LOCATIONS
(FIGURES ARE GROSS, %)
CURRENT LAST LAST 10 YEAR
QUARTER QUARTER YEAR HIGH LOW
Amsterdam 7.70 7.70 7.80 8.50 6.25
Schiphol 7.60 7.60 7.70 8.50 6.00
Rotterdam 7.60 7.60 7.80 9.00 6.25
Eindhoven 7.80 7.80 8.00 8.75 6.50
Venlo 7.60 7.60 7.75 8.50 6.40
Tilburg 7.60 7.60 7.75 8.75 6.50
Nijmegen 7.80 7.80 8.00 9.00 6.50
With respect to the yield data provided, in light of the lack of recent comparable market evidence in many areas of
Europe and the changing nature of the market and the costs implicit in any transaction, such as financing, these are very
much a guide only to indicate the approximate trend and direction of prime initial yield levels and should not be used
as a comparable for any particular property or transaction without regard to the specifics of the property.

RECENT PERFORMANCE

Source: Cushman & Wakefield
-5.0%
-2.5%
0.0%
2.5%
5.0%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14
AVERAGE PRIME YIELDS (left) RENTAL GROWTH (right)
THE NETHERLANDS








INDUSTRIAL SNAPSHOT



MARKETBEAT

A Cushman & Wakefield Research Publication

Q2 2014