Research
Quarterly Market Update Industrial & Logistics – Belgium Q1 2024
Promising signs with solid project pipelines & international investor confidence
May 29, 2024
Contributors:
- Caroline Housen
- Mathieu Opsomer
- Kristof Buelens
Despite a slow start, both logistics and semi-industrial segments in Belgium show promising signs with solid project pipelines and international investor confidence.
Logistics Occupier’s Market:
- The logistics segment experienced a slow start in Q1 2024, with a 26% decrease in rented area or acquired for own use compared to Q1 2023.
- Despite the decrease in activity, the vacancy rate remains low along the major logistics axis and in Belgium overall.
- Cautious approach by developers: over 84% of the projects were launched non-speculatively.
- Prime rents in logistics are under upward pressure.
Semi-Industrial Occupier’s Market:
- The semi-industrial market also had a slow start in comparison to Q1 2023 albeit average deal size remained stable.
- Solid Pipeline in Antwerp, Flemish Brabant, West Flanders, and Walloon Brabant.
- Prime rents remained stable in Brussels and its periphery, with an upward outlook.
Investment Market:
- The logistics investment market started positively in 2024, with Q1 realizing almost the entire annual logistics investment volume of 2023.
- Growing focus on the ESG agenda, aiming to achieve decarbonization goals and increase energy efficiency in logistics and industrial properties.
- Prime Yields should remain at similar levels throughout 2024.
