CBRE has produced a benchmark index tracking investment performance of modern logistics warehouses across the UK.
The CBRE UK Logistics Index shows that the total return for UK logistics for the first half of 2016 was 4.4 per cent. Despite being down from 8.9 per cent in the second half of 2015, logistics outperformed the wider industrials sector and all UK property collectively, which saw returns of 3.6 per cent and 3.0 per cent respectively.
Andrew Marston, director in CBRE’s UK Research team said: “The first Index confirms why the logistics sector has been such a popular choice among investors in recent years. Regardless of whether we look at a holding period of one, three or five years, logistics real estate has consistently outperformed both all property and all industrials in terms of total returns, capital growth and rental value growth.”
Rental value growth in the six months to June 2016 was 2.2 per cent, unchanged from H2 2015. It is the second fastest rate of rental growth recorded on the Index, which has been backdated to the start of 2010.
The index is comprised of repeat valuations of large, modern warehouse stock built since 2000, valued by CBRE, and owned by some of the leading investors in the UK logistics sector.