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Description of the semi-industrial and
logistics property markets in Belgium,
the Netherlands, France,
the Czech Republic and Romania
1. Belgium
General overview
The international economic crisis has been felt strongly on the Belgian market since the second half of 2008. Top yields rose from around 6.30% in mid-2008 to 7,75% at the end of 2009. The rents were relatively stable and therefore the increases in yield are a direct consequence of value decreases of some 20% since mid-2008.
Take-up recorded in 2009 was around 850.000 m², which in the light of the current economic crisis is a strong achievement. The investment market was subdued but still held up relatively well compared to other sectors such as the office market.
Growth
All yields have clearly risen in the first half of 2009: from 6,3% in mid-2008 and 6,75% at the start of 2009 to 7,75% in mid-2009 for the top locations. In the second half of 2009 these top yields stabilised at around 7,75%. In secondary locations, such as Liège and Limburg, they went from 6,75% to 7% in mid-2008 to 8,25% at the end of 2009. Compared to the start of 2009 rents remained unchanged almost everywhere.
Property yields are the result of the relation between the yearly rents realised in the market and the value of the properties through comparable and recent transactions. Given an unchanged yearly rent, an increase in yield is purely a consequence of a decrease in property value.
Demand
Demand in Belgium, certainly where logistics activities are concerned, is highly dependent on the goods demand in the surrounding countries. This demand is decreasing, which has been clearly felt since the second half of 2008. Moreover, the entire market – and specifically the SME market – is suffering from the credit shortage.
Despite these crisis conditions, the published rental take-up in 2009 was approximately 850.000 m², which is in line with preceding years. Notable transactions included:
- Dow Corning bought 17 ha land in Feluy (Hainaut) for a 35.000 m² distribution centre;
- The Van Moer group added an expansion of 32.000 m² in the Port of Antwerp;
- Vandenborre rented 28.000 m² on the former Michelin site in Sint-Pieters-Leeuw (Flemish Brabant);
- Terumo Europe rented 17.290 m² in the Hermespark from WDP in Genk (Limburg);
- Ansell Healthcare rented 10.800 m² at Essers in Genk (Limburg);
- Scania Parts bought 9 ha land to expand its EDC in Opglabbeek (Limburg).
Belgium is and remains a top European logistics location. Outside of the classic Brussels-Antwerp-Ghent triangle, which continues to account for the largest part of the take-up, other well-situated regions such as Liège, Limburg and Hainaut are also doing very well.
Supply
Supply in the Brussels-Antwerp corridor is and remains limited, which allows secondary regions such as Limburg, Hainaut and Liège – where supply is indeed sufficient – to become more significant for large distribution centres. In the current general economic market circumstances, additional speculative developments are not on the agenda, the more so as the relatively low rents insufficiently cover development and construction costs. Supply is therefore expected to be relatively stable or trend down in the coming years.
Investment market
The industrial property transactions carried out in 2009 amounted to some EUR 146 million for the full year, which constitutes around 12% of the entire professional property investment market. In 2009, the general investment market for professional property backtracked to around one third of the level of 2008, as few office investments were recorded. In the semi-industrial market a few important transactions were nonetheless carried out:
- Fortis Insurance bought the 71.000 m² Carrefour DC Blauwesteen in Kontich with a value of around EUR 46 million from Redevco;
- BPA (Patrick Bouwen) invested some EUR 16 million for 29.200 m² on the ex-Michelin site in Sint-Pieters-Leeuw;
- Foxaco (De la Roche group) bought 12.314 m² in Kortenberg from Antalis for around EUR 16 million.
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