Figures
Belgium Logistics MarketView H2 2024
SMEs keep momentum, while Skechers closes record logistics deal
February 7, 2025 6 Minute Read
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Take-up
Logistics demand in the form of take-up picked up significantly in the final months of the year after a lackluster first half. In the second half of 2024, 593,000 m² of new logistics deals closed, bringing the year total to 927,000 m². This is 30% lower than the year before, and the first time logistics take-up failed to break the 1 million m² mark since 2018.
Vacancy
The upward trend in logistics vacancies continued through the second half of the year to 4.48%. This sits just below 2015 levels but remains modest. The increase in vacancy is the result of several dynamics, including the demand for newer warehouses at the expense of older facilities and larger development pipeline.
Development
Favorable occupier dynamics have led to a steady pipeline of modern logistics space. However, the slip in demand, higher cost of capital, construction costs and difficult permitting procedures means developers are likely to favors Built-to-Suit projects over speculative developments. In the second half of 2024, some 370,000 m² of logistics warehouses was completed.
Rents
Rental values in logistics have mostly stabilised following a significant increase in recent years. Brussels (75 €/m²/year) and Charleroi (50 €/m²/year) experienced growth earlier in 2024, while E313 (55 €/m²/year), E17 (58 €/ m²/year) and Liège (65 €/m²/year) saw prime rents rise in the final quarter of the year. The reference prime rent for the A12/E19 axis remains at 68 €/m²/year.
Land Values
Land values have remained steady throughout 2024. Currently, the most expensive land is located in and north of Brussels, with prices ranging from 300 to 340 €/m². Along the A12-E19 axis, land for logistics development trades at values of 260 to 300 €/m². In contrast, the Charleroi-Mons market is substantially cheaper, with land prices closer to 60 €/m².
Investment
Belgium experienced record investment volume of €1.24 billion for logistics and semi-industrial warehouses in 2024. The logistics market in Belgium has maintained its liquidity and attractiveness as evidenced by the top four deals of the year involving foreign buyers from the United States and Europe, which is unique among the different asset classes.
The current prime yield for logistics is now estimated at 5.00%, up 150 bps from the cyclical low recorded in early 2022. For semi-industrial and warehouse space, prime yields are estimated at 5.75%. Prime yields were stable for the year.
Contact
Kim Verdonck
Executive Director – Head of Research, Marketing & IT Development
