MARKETBEAT - Brussels Industrial Market H2/2018

MARKETBEAT BELGIUM INDUSTRIAL H2 2018

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

0

CONTENTS

01 02 03 04 05 06 07 08

Executive summary

Economic overview

Belgian semi-industrial market

Belgian logistics market

Flanders

Brussels

Wallonia

Investment market

BELGIUM INDUSTRIAL H2 2018

MARKET OVERVIEW Semi-industrial

Industrial investment

•

Semi-industrial demand continues to confound expectations, having registered yet another record annual take-up of 1,008,000 sq m.

•

•

The number of deals was also at a record high of 744, surpassing the previous record of 681 in 2015.

Following a strong H2 increase, the total investment volume for the year amounts to EUR 315 million (EUR 238 million in logistics and EUR 77 million in the semiindustrial sector).

•

Two large deals carried out by international investors underline a long-standing overseas interest in Belgian logistics which is beginning turn into reality.

•

Having increased to EUR 60/sq m/year in early 2018, the prime rent has since remained stable and is located in the wider Brussels region.

Logistics •

•

•

•

A buoyant European market has not left Belgium behind. Indeed take-up shot up in H2 following a subdued first half to clock up 614,000 sq m. This brought the total for 2018 to 855,000 sq m.

The arrival in Liège of Cainiao (Alibaba’s logistics partner) represents a major coup for Belgium and provides some encouragement with regards to its ability to attract e-commerce occupiers.

In total, over 345,000 sq m of new logistics schemes were delivered over 2018. The pipeline for 2019 is currently more modest with 172,000 sq m expected to be delivered for the time being - nevertheless this figure will grow in the coming months.

The prime rent remains stable at EUR 58/sq m/year, located in the vicinity of Brussels Airport area. The average weighted rent has grown to EUR 39/sq m/year, aided by strong Grade A take-up

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

Figure 1 Take-up: Belgium semi-industrial and logistics, sq m 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 2014

2015

Logistics

2016

2017

2018

Semi-industrial

Source: Cushman & Wakefield

2

ECONOMIC OVERVIEW GDP growth on the downward in 2019.

Recent indicators suggest that the Belgian economy is stabilising in 2018, with an industrial production and private consumption remaining robust. But consumer confidence and business confidence are now falling as geopolitical instability is growing. As such, GDP growth is expected to witness a downside in 2019, around 1.4%, compared to 1.7% in 2017. In the longer term, the GDP growth is expected to stabilise at 1.5% on a yearly basis.

The evolution is forecasted to be different in Brussels in 2018 compared to the two other regions. Indeed, the Capital region is expected to witness a slight downward of its GDP growth while Flanders and Wallonia are expected to slightly increase (Figure 2). In the longer term, the path will be similar for the three regions of the country and globally in line with the evolution of the Eurozone.

Confidence indices at its lowest since 2017.

After having witnessed a continuous increase since 2013, consumer and business confidence indices have slightly decreased during 2018 (Figure 3).

Although domestic demand and production showed some resilience, the consumer confidence indicator is clearly no longer at its peak and is showing pronounced downward momentum. Furthermore, households expect the labour market situation to worsen and their financial situation to deteriorate.

Business confidence is also waning as risks to trade are mounting. In light of the escalation of the US-China trade conflict, it now seems almost unavoidable that the US will slap tariffs on European car imports, which could have an impact on the supply chains. Uncertainties on the Brexit are also negatively impacting the confidence indices.

Figure 2 GDP growth, in % 3% 2% 1% 0% -1% -2%

Brussels Source:

Flanders

Figure 3 Confidence indices 10 5 0 -5 -10 -15 -20 -25 -30

Consumer confidence Source:

The unemployment rate is at a record low 6% in Belgium.

However, it has remained relatively constant all over the year 2018. Despite this slight decrease, Belgium is still offering an important of vacant jobs as there are some mismatches between employers’ demand and the skills.

20%

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

Business confidence

Belgian National Bank

Figure 4 Unemployment rate, in %

Although on the decrease in the country’s three regions, important disparities are still observed, with the unemployment rate in Flanders below 5% while it should stand below 15% in Brussels before the end of the year.

Wallonia is between the two with a rate around 8.5% (Figure 4).

Eurozone

Oxford Economics

Unemployment rate at a record low 6% in Belgium.

It’s also to mention that a hard Brexit could negatively impact the labour market as more than 40,000 jobs are at risk in Belgium.

Wallonia

15% 10% 5% 0%

Brussels Source:

Flanders

Wallonia

Oxford Economics

3

ECONOMIC OVERVIEW Inflation at 2.05% in 2018.

Figure 5 Inflation, in %

Inflation reached 2.1% in 2017, above the Eurozone average. The situation remained relatively stable in 2018 with an inflation at 2.05%. 2019 should witness a slight decrease with an inflation forecasted around 1.5%.

3.0%

From 2020, evolutions in the Eurozone and Belgium should be similar, with an inflation expected to remain slightly below 2% between 2020 and 2022.

2.5% 2.0% 1.5% 1.0%

ECB policies remain supportive in 2019.

0.5%

Although the ECB ended its asset purchase programme, the policy will still remain accommodative for a long time.

We don’t expect interest rate hikes before the end of 2019 or the beginning of 2020. This, along with an acceleration of aggregate demand and rising capacity utilisation will support business investment.

0.0%

The 5-years and 10-years government bond yields are respectively at 0% and 0.71% at the end of 2018 and should remain at this low levels all along 2019, though the elections of May could still have an impact (Figure 6).

Belgium Source:

Eurozone

Oxford Economics

Figure 6 Belgian Government bond yields, in % 6%

Exports rebound expected in 2019.

Exports contracted very sharply by 14.9% over Q4 2018 due to production cuts in Germany, France, which together represent more than 30% of Belgian exports.

Nevertheless, the exports slowdown results from transitory factors and a rebound is expected for Q1 2019.

Domestic demand is driven by a continuously decreasing unemployment rate which reached an average of 5.5% for Q4 2018. Belgian households’ disposable incomes should be boosted and support private consumption and imports.

5% 4% 3% 2% 1% 0% -1%

OLO 5-years Source:

OLO 10-years

Oxford Economics

Figure 7 Imports and exports growth, Belgium 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

Exports

Imports

Source: Oxford Economics

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

4

BELGIAN SEMI-INDUSTRIAL MARKET Another landmark year.

Semi-industrial demand continues to confound expectations, having registered take-up of 688,000 sq m in H2 across the whole of Belgium. This takes the annual total to yet another record, with 1,008,000 sq m (Figure 8).

The number of deals was also at a record high of 744, surpassing the previous record of 681 in 2015.

Figure 8 Take-up: Belgium semi-industrial per region, 000s sq m (LHS) 1,200

1,000

1,000

800

800

Prime rent stable since early year increase.

400

400

200

200

Average deals ranged between 600- and 1,500 sq m and there were also a handful of exceptionally sized semiindustrial deals, mainly in Hainaut and West Flanders.

The proportion of purchased surfaces increased to 55%, mainly under the influence of large deals.

600

600

The strongest annual increases took place in Wallonia (49%) and Flanders (16%), while Brussels recorded an 11% decrease on 2017.

0

0

2014

2015

2016

Flanders Wallonia

2017

2018

Brussels (incl. Brabants) Deals (RHS)

Source: Cushman & Wakefield

Figure 9 Rents: Belgium, EUR/sq m/year

Having increased to EUR 60/sq m/year in early 2018, the prime rent has since remained stable and is located in the wider Brussels region.

65

After decreasing slightly throughout the year, average rents are currently at EUR 40/sq m/year (Figure 9).

50

60 55 45 40 35

30 25 2014

2015

2016

2017

2018

Semi-industrial prime Mobile weighted avg semi-industrial Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

5

BELGIAN LOGISTICS MARKET Large-scale demand applying to Belgium.

Belgium has not been left behind by the European dynamic growth trajectory impacting demand for logistics spaces. Indeed take-up shot up in H2 following a subdued first half to clock up 614,000 sq m. This brought the total for 2018 to 855,000 sq m, against a five-year average of 754,000 sq m (Figure 10). This level was capped off by a record quarter for take-up in Q4 with 455,000 sq m.

The market in 2018 was led by Flanders (545,000 sq m, +11%), followed by Wallonia (235,000 sq m, +178%), while Brussels registered an increase to 73,000 sq m in 2018.

The largest deal in H2 was the letting of 50,000 sq m by Barsan Global Logistics in Goodman’s Kersdonk Logistics Centre in Willebroek.

Despite the finalisation of some eagerly awaited large transactions, overall deals are decreasing in size as the market adapts to new occupier demands such as urban logistics, and high-bay warehousing. The average size of deals in H2 was 8,000- to 10,000 sq m.

The arrival in Liège of Cainiao, Alibaba’s logistics partner constitutes a major foray by Belgian logistics into the ecommerce segment, having lost out on international players to neighbouring countries in the past.

Nevertheless, Decathlon puts a dampener on this context by threatening to move its e-commerce warehousing activities out of Belgium due to conflicts over 24-hour work.

Figure 10 Take-up: Belgian logistics per region, 000s sq m (LHS), # deals (RHS) 1,200

120

1,000

100

800

80

600

60

400

40

200

20

0

0 2014

2015

2016

Flanders Wallonia Source: Cushman & Wakefield

2017

2018

Brussels (Incl. Brabants) Deals (RHS)

Figure 11 Take-up in 2018: Belgium logistics per occupier type and building grade, sq m 600,000 500,000

400,000 300,000 200,000 100,000

Grade A remain most in-demand type of sheds.

Grade A spaces continue to dominate occupiers’ preferences, to 58% of total take-up for the whole of 2018 (Figure 11).

0

Supply chain provider

Retail A

Other/unknown Manufacturing B

C

Source: Cushman & Wakefield

Thanks to deals such as the Barsan Global Logistics letting in Willebroek, supply chain providers are by far the most demanding type of occupiers with 557,000 sq m for the year.

Logistics occupiers have highly specific technical requirements and developers are happy to build turnkey schemes as long as land is available and tenants sign long-term agreements to occupy their new premises.

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

6

BELGIAN LOGISTICS MARKET More modest pipeline awaited for 2019.

In total, over 345,000 sq m of new logistics schemes were delivered over 2018, including 178,000 sq m in H2 (Figure 12).

The year’s largest delivery was Van Marcke’s new 83,000 sq m DC in Menen (West Flanders), followed by the likes of the EDC for Carglass Distribution North-West Europe in Genk (50,000 sq m).

Figure 12 New developments and pipeline, sq m 700,000 600,000 500,000 400,000 300,000 200,000

The pipeline for 2019 is currently more modest with 172,000 sq m expected to be delivered for the time being.

Due to the rapid speed at which logistics buildings can be delivered this figure will grow in the coming months.

100,000 0

Flanders

Stable prime rent.

Brussels

Wallonia

Pipeline

Source: Cushman & Wakefield

The prime rent remains stable at EUR 58/sq m/year, located in the vicinity of Brussels Airport area).

The average weighted rent has grown to EUR 39/sq m/year, aided by strong Grade A take-up (Figure 13).

Figure 13 Rents: Belgium, EUR/sq m/year 70 60 50 40

30 20 10

0 2014

2015

Logistics prime

2016

2017

2018

Mobile weighted average logistics

Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

7

FLANDERS Record year for semi-industrial take-up.

Demand for semi-industrial spaces in Flanders picked up quite substantially following a slow start to the year, with take-up eventually totalling 417,000 sq m in H2, capped off by a vintage quarter in Q4. This took the total level for 2018 to a new record of 594,000 sq m – for reference the five-year average amounts to 532,000 sq m (Figure 14).

Strong demand was present in every single district, and was led as usual by Antwerp which totalled 104,000 sq m, followed by 90,000 sq m in West Flanders.

Figure 14 Take-up: Flanders semi-industrial, sq m 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2014

The average size of deals ranged broadly around 1,300 sq m. The largest recorded transaction was a 23,000 sq m letting in Zwijnaarde.

Notable new developments announced in H2 include Resolve Real Estate’s Zilvererf Business Park which will house SMEs across 41 units from mid-2019 in Nazareth and De Bruwaan in Oudenaarde with units ranging from 280- to 2,500 sq m.

2015

2016

Antwerp Limburg East Flanders West Flanders

2017

2018

Kempen Mechelen-Willebroek Scheldeland 5Y Avg

Source: Cushman & Wakefield

Figure 15 Take-up: Flanders logistics, sq m

Logistics’ “bouncebackability”.

Logistics take-up rebounded significantly in H2 to amount to 423,000 sq m, bringing the 2018 total to 547,000 sq m, just within range of the five-year average (Figure 15).

In the middle of the Brussels-Antwerp axis, the popular Mechelen-Willebroek district’s owners were able to provide spaces for strong demand – the district led the market in H2 with 121,000 sq m, followed by Antwerp (78,000 sq m), Kempen (76,000 sq m) and Limburg (73,000 sq m). Indeed each of these districts recorded the largest deals in H2, led by a 50,000 sq m letting by Barsan Global Logistics in Goodman’s Kersdonk Logistics Centre in Willebroek.

Grade A buildings were the most popular with 46% of the take-up, although Grade C buildings followed closely with 41.5% of the take-up.

Several new projects have emerged in H2, such as Global Real Estate Group’s reconversion of the Expodroom sports arena in Bree into a 19,000 sq m shed or the new Aertssen DC in Logistiek Park Waasland in Beveren (29,000 sq m).

Globally stable rents.

The semi-industrial prime rent remains at EUR 55/sq m/year. The average rent has decreased to EUR 38/sq m/year in 2018.

Similarly the logistics prime rent remains stable at EUR 45/sq m/year, while average rents are also fairly stable at EUR 39/sq m/year (Figure 16).

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2014

2015

2016

Antwerp Limburg East Flanders

2017

2018

Kempen Mechelen-Willebroek Scheldeland

Source: Cushman & Wakefield

Figure 16 Rents: Flanders, EUR/sq m/year 65 60 55 50 45 40 35 30 25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 Semi-industrial Weighted avg semi-industrial Logistics Weighted avg logistics Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

8

Top occupier deals in Flanders, H2 2018

Submarket

Municipality

Surface (sq m)

Occupier

Transaction

Logistics

Mechelen-Willebroek

Willebroek

50,000

Barsan Global Logistics

Letting

Logistics

Antwerp

Beveren-Waas

29,000

Aertssen

Development

Logistics

East Flanders

Desteldonk

25,000

Groep H. Essers

Development

Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

9

BRUSSELS Strong/average semi-industrial year.

Semi-industrial take-up in H2 more than doubled to 110,000 sq m, taking the total for 2018 to 162,000 sq m, almost exactly the five-year average (Figure 17). Flemish Brabant was the leading district with 70,000 sq m in H2.

The average size of deals ranged between 500- and 1,000 sq m; the largest transaction in H2 was a 9,000 sq m purchase in Diegem.

Several new projects were announced in H2, amongst which Vlaamse Staak, an SME park to be developed in Opwijk featuring 12 units between 187 – and 417 sq m.

Figure 17 Take-up: Brussels semi-industrial, sq m 200,000 150,000 100,000 50,000 0 2014

2018 logistics take-up limited to Flemish Brabant.

Logistics activity was just within average in 2018 with a total of 73,000 sq m, including 20,000 sq m in H2 (Figure 18).

The entirety of the take-up in 2018 was confined to Flemish Brabant. In H2 this amounted to seven deals, the largest of which was a 6,000 sq m letting in Zaventem.

No take-up took place in Grade A spaces while Grade C buildings comprised 85% of take-up in H2.

With regards to projects, WDP has tightened its grip on Zellik by acquiring a 22,000 sq m site next to its Euro Pool System property which it will redevelop. The Belgian player has also purchased De Persgroep’s site (5 ha) in Asse which it will also redevelop in the future.

Additionally, a permit application for a project in Vilvoorde

by Goodman was turned down by authorities. The project (on 14 ha of land) was rumoured to have been meant for Zalando, in a new blow to the challenge of attracting global e-commerce occupiers.

Belgium’s highest semi-industrial prime rent.

The semi-industrial prime rent in Brussels increased to EUR 60/sq m/year in 2018 due to the tension between supply and demand for quality spaces. This is the highest level for the whole country. Average rents have fluctuated to end the year on EUR 48/sq m/year.

The logistics prime rent is still EUR 58/sq m/year, while the average rent has decreased to EUR 41/sq m/year due to the weight of Grade C deals (Figure 19).

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

2015

2016

Brussels Walloon Brabant

2017

2018

Flemish Brabant 5Y Avg

Source: Cushman & Wakefield

Figure 18 Take-up: Brussels logistics, sq m 120,000 100,000 80,000 60,000

40,000 20,000 0 2014

2015

2016

Brussels Walloon Brabant

2017

2018

Flemish Brabant 5Y Avg

Source: Cushman & Wakefield

Figure 19 Rents: Brussels, EUR/sq m/year 65 60 55 50 45 40 35 30 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 Semi-industrial Weighted avg semi-industrial Logistics Weighted avg logistics Source: Cushman & Wakefield 10

Top occupier deals in Brussels, H2 2018

Submarket

Municipality

Surface (sq m)

Occupier

Transaction

Semi-industrial

Flemish Brabant

Diegem

9,000

CO GE LO

Purchase

Logistics

Flemish Brabant

Zaventem

6,000

Ciblex

Letting

Semi-industrial

Walloon Brabant

Nivelles

6,000

Cinoco

Development(

Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

11

WALLONIA Record semi-industrial year.

Demand for semi-industrial spaces maintained its course with an even better H2 capped off by a record quarter in Q4; total H2 take-up amounted to 162,000 sq m (Figure 20). The result was a record year in 2018 with a total takeup of 252,000 sq m.

On average, deals in H2 varied within a 1,000- to 3,000 sq m bracket. The overall outstanding result was substantially aided by two purchases in the Hainaut district by selfstorage company Lock’O, namely 66,000 sq m in Roux and 24,000 sq m in Frameries.

Projects announced and/or delivered in H2 included Groupe Horizon’s Business Center Plenesses – 5,000 sq m of warehouses delivered in Q4 in Thimister-Clermont (Liège district) as well as BVI.BE’s EcoFloreffe in Floreffe (Namur), a 24,000 sq m business park which will be delivered late 2019.

Record logistics year.

Logistics demand has also yielded some even better results after a strong H1, the result in H2 is take-up totalling 171,000 sq m (Figure 21). In addition, 2018 is a record year for logistics in Wallonia with a total of 235,000 sq m (vs an average of 116,000 sq m).

This figure was of course positively impacted by the arrival of Cainiao (Alibaba’s logistics partner) at Liège Airport.

This represents a coup for Belgium and provides some encouragement with regards to its ability to attract ecommerce occupiers. Also at Liège Airport, AirBridgeCargo will let a pair of 10,500 sq m warehouses over two phases in the Flexport City project.

Grade A take-up represented 86% of take-up in H2.

Large deliveries in H2 included TML’s 20,000 sq m warehouse in Ghlin as well as the 15,000 sq m extension of Trafic’s DC in Heppignies.

Narrow prime-average spreads.

The semi-industrial prime- and average rents have been fairly stable at EUR 45- and EUR 42/sq m/year respectively.

The prime rent for logistics warehouses increased substantially to EUR 45/sq m/year in early 2018 and has remained stable since. Average rents have increased to EUR 41/sq m/year (Figure 22).

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

Figure 20 Take-up: Wallonia semi-industrial, sq m 300,000

250,000 200,000 150,000 100,000 50,000 0 2013 Ardennes

2014

2015

2016

Hainaut

Liège

Namur

2017 5Y Avg

Source: Cushman & Wakefield

Figure 21 Take-up: Wallonia logistics, sq m 250,000 200,000 150,000 100,000 50,000 0 2014 Ardennes

2015

2016

2017

Hainaut

Liège

Namur

2018 5Y Avg

Source: Cushman & Wakefield

Figure 22 Rents: Wallonia, EUR/sq m/year 65 60 55 50 45 40 35 30 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 Semi-industrial Weighted avg semi-industrial Logistics Weighted avg logistics Source: Cushman & Wakefield 12

Top occupier deals in Wallonia, H2 2018

Submarket

Municipality

Surface (sq m)

Occupier

Transaction

Semi-industrial

Hainaut

Roux

67,000

Lock’O

Purchase

Semi-industrial

Hainaut

Frameries

24,500

Lock’O

Purchase

Logistics

Hainaut

Fleurus

10,500

MB Service Logistique

Letting

Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

13

EUR 238 m Total invested volume in Belgian logistics in 2018.

INVESTMENT MARKET SEMI-INDUSTRIAL AND LOGISTICS INVESTMENT MARKET Strong end to the year thanks to international investors.

Figure 23 Annual invested volumes, EUR m

Industrial investments increased fivefold in H2 to total EUR 263 million after a slow start to 2018. The total volume for the year amounts to EUR 315 million (Figure 23).

350

35

300

30

250

25

This breaks down into EUR 238 million in logistics investments and EUR 77 million invested in the semiindustrial sector. This is despite a decrease in the number of transactions recorded (21 across both sectors).

200

20

150

15

100

10

50

5

With regards to logistics transactions, the largest in H2 was UK’s Tritax Eurobox’s EUR 83.4 million purchase of the SELP portfolio (assets in Rumst and Bornem) from Segro. This was also one of the largest logistics transactions ever recorded on Belgian soil, followed closely by CBREGI’s purchase of several assets in De Hulst park in Willebroek. This acquisition was carried out for an estimated total of EUR 70 million.

These two transactions also underline a long-standing interest in Belgian logistics which international investors are beginning turn into reality.

0

0 2014 Logistics

2015

2016

2017

Semi-industrial

2018 # deals (RHS)

Source: Cushman & Wakefield

Figure 24 Prime industrial yields 8.50% 8.00% 7.50%

Both semi-industrial and logistics prime yields have sharpened throughout 2018 with the former at 7.25% and the latter at 5.25% as international investors have demonstrated they are willing to pay more than local investors in certain cases (Figure 24).

We do not forecast further major yield compressions as far as logistics are concerned due to investors’ strict acquisition criteria.

7.00%

6.50% 6.00% 5.50% 5.00% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Yields sharpened throughout 2018.

Logistics

Semi-industrial

Source: Cushman & Wakefield

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

15

MARKET DEFINITIONS Building grade:

Grade A: newly developed or comprehensively refurbished to new standard, including sublet space in new/refurbished buildings not previously occupied.

Grade B: buildings of good specification, floor plate efficiency and image usually but not exclusively ten years or less.

Grade C: remaining poorer quality stock.

Industrial submarkets:

The Industrial submarkets (see maps) are delimited using zip code limits. The complete list of zip codes used is available on request.

Logistics buildings:

Buildings designed for logistics activities. These buildings vary considerably in size but are, in most cases, over 5,000 sq m. Some of the most important technical features of logistics buildings include: a free height generally over 8 metres; a minimum of one loading bay per 1,000 sq m; an office/warehouse ratio of about 5/95.

Semi-industrial buildings:

Buildings designed for light industrial activities or for SMEs requiring a workshop, a showroom or a small storage facility. These buildings vary considerably in size but are, in most cases, below 5,000 sq m. Some of the most important required technical features of semi-industrial buildings include: a free height generally below 7 metres; a maximum of one loading bay per 1,000 sq m; an office/warehouse ratio of about 20/80.

Prime rent:

Represents the highest rent that has been observed or reported on the market in the last six months preceding the survey date, excluding exceptional or irrelevant deals. When no relevant deal is observed, prime rent is defined as the rent that could be expected for an industrial unit (min. 500 sq m) commensurate with demand in each location, highest quality and specification in the best location in a market at the survey date. The rent is given as a base rent, i.e. no service charge or tax is included.

Cushman & Wakefield | Marketbeat Belgium Industrial H2 2018

16

CONTACT DETAILS

AUTHOR Shane O’Neill

Elisabeth Troni

Senior Research Analyst

Head of EMEA Research & Insight

+32 510 08 33 shane.oneill@cushwake.com

+44 203 296 2121 elisabeth troni@cushwake.com

Koen Nevens

Bart Vanderhoydonck

Antoine Brusselmans

Northern Region Leader

Head of Industrial Agency

Head of Office Agency

Head of Belgium & Luxembourg

+32 2 546 08 09

+32 2 546 08 86

+32 2 546 08 63

bart.vanderhoydonck@cushwake.com

antoine.brusselmans@cushwake.com

koen.nevens@cushwake.com

Marc-Antoine Buysschaert

Christophe Ackermans

Kris Peetermans

Head of Capital Markets Office

Head of Valuation & Advisory

Head of Valuation & Advisory

+32 2 546 08 75

+32 2 629 02 87

+32 2 546 08 76

marc-antoine.buysschaert@cushwake.com

christophe.ackermans@cushwake.com

kris.peetermans@cushwake.com

Disclaimer This report has been produced by Cushman & Wakefield for use by those with an interest in commercial property solely for information purposes. It is not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources which Cushman & Wakefield believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete. No warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and Cushman & Wakefield shall not be liable to any reader of this report or any third party in any way whatsoever. All expressions of opinion are subject to change. The data contained in this report is based upon that collected by Cushman & Wakefield. Our prior written consent is required before this report can be reproduced in whole or in part.

Š 2019 CONFIDENTIALITY CLAUSE This information is to be regarded as confidential to the party to whom it is addressed and is intended for the use of that party only.

Consequently and in accordance with current practice, no responsibility is accepted to any third party in respect of the whole or any part of its contents. Before any part of it is reproduced, or referred to, in any document, circular or statement, our written approval as to the form and context of such publication must be obtained.