Prime yields of large warehouses in Europe Q2 2020 and Q2 2021, by city

In real estate, yield is a measure of the rate of return and is calculated as the ratio of the annual income to the total investment cost. As a function of income and costs, many political and market factors can contribute to yield fluctuation. A general rule of thumb is that higher yields mean a riskier market.

Prime yields of warehouse space in European cities

Prime warehouse yields in Germany's biggest cities have been following a downward trend in the recent years and were the lowest in Europe as of the second quarter of both 2020 and 2021. With industrial and logistics investment volumes increasing between 2020 and 2021 despite the coronavirus (COVID-19) pandemic, Germany proved as one of the most attractive destinations for investors.

Investment in industrial and logistics real estate

In 2020, commercial real estate investment in Europe fell by 23 percent, with negative growth in almost all counties. In comparison, the industrial and logistics real estate sector grew in investment value by about ten billion euros in investment activity between 2020 and 2021. Besides Germany, three of the leading European countries saw investment growth: the UK, Sweden, and France.