Global investment in the industrial and logistics sector in Q3 2024 rose 4.3% year-on-year to $46.6bn, according to new data from Savills.
Activity in the quarter was up 2.1% on Q2 2024 and marked the second consecutive quarter of growth. Global I&L investment turnover activity stood at $133.4bn in the year to the end of September.
Total capital raised by global logistics funds in the year-to-date reached $69.5bn at the end of Q3 as investors remained willing and able to underwrite new deals.
Savills reports that prime benchmark yields are beginning to harden across core US markets as well as in some European markets, including London, Madrid and Île-de-France.
EMEA I&L investment turnover rose 32% year-on-year to $10.6bn to the end of Q3 2024, with 67% of investment backed by cross-border investors – the highest proportion since 2017.
Oliver Salmon, director – global capital markets, at Savills World Research, said: “The macroeconomic backdrop is relatively positive for the I&L sector, underpinned by solid trade growth and a recovery in consumer spending. While occupational demand in some markets remains muted, sentiment among tenants is definitely improving, especially in EMEA, as evidenced by our autumn 2024 European Logistics Census, with the balance of respondents expecting to be in expansion mode for the next 12 months. Investors retain strong conviction in the long-term fundamentals of the sector, and we continue to see major deals complete. The list of top I&L buyers over last 18 months has been a ‘who’s who’ of real estate capital markets.”
Rasheed Hassan, head of global cross border investment at Savills, added: “Q3 has built on the green shoots of activity seen in Q2 as more I&L vendors have come forward and lot sizes have quickly increased. Although the pace of recovery varies between regions, the increase in investor scale has brought with it a base level of portfolio and M&A activity, with at least one I&L transaction in each global region breaching the billion dollar threshold in Q3. 2025 is set to bring with it hardening yields in the sector and a further uptick in activity.”
