Netherlands Light Industrial Market Dynamics, Q2 2024
Summary and analysis of The Netherlands current light industrial real estate market conditions.
- Sven Bertens
- Floor Beeren
- Jerrel King
- Evan Henneberry
- Tilly Spierings
Despite a weaker second quarter, YTD take-up volumes are still more or less in line with volumes reached in H1 2023, indicating stable market conditions. The market continues to see a solid performance with relatively smaller assets below 500 sq. m.
Vacancy has moved out slightly from 1.8% in Q1 to 1.9% this quarter. The market for industrial space remains tight, which is especially the case for the prime segment due to limited new developments. Occupier demand for Grade A buildings remains high.
Lack of prime space impacts transaction dynamics and the development of prime rental prices. High scarcity puts continued pressure on overall market rents and there is still potential for rental growth, albeit at a more modest level compared to previous years. Rents are expected to continue their current course of slow to moderate growth for the remainder of the year.
