Eres : Digital Library : Works

Paper eres2006_264:
DEMAND FOR INDUSTRIAL PROPERTY IN THE EUROPEAN MARKET OVER THE NEXT DECADE - COMPARING THE UK & GERMANY

id eres2006_264
authors Mahler, Kilian; Bob Thompson
year 2006
title DEMAND FOR INDUSTRIAL PROPERTY IN THE EUROPEAN MARKET OVER THE NEXT DECADE - COMPARING THE UK & GERMANY
source Book of Abstracts: 13th Annual European Real Estate Society Conference in Weimar, Germany
summary In the early 1980s there was a sea change in the attitude of the UK government towards manufacturing industry. Subsidies were withdrawn, interest rates were allowed to rise to rates consistent with the inflationary environment and rigid labour laws were dismantled to allow greater flexibility in the hiring and firing of staff. From a property perspective the result was a rapid reduction in the volume of industrial floorspace in occupation and a substantial decline in real industrial returns. Traditional manufacturing regions were the worse hit and, in some cases, have yet to recover. This economic shock also accelerated some long-term changes: tenure of industrial property changed rapidly from predominantly owner-occupied to leasehold; specialist warehousing became the growth segment of the industrial property market and much functionally obsolete industrial property saw a change of use. In Germany, despite some reform, labour laws remain relatively inflexible, some manufacturing industry continues to attract subsidy and industry in Germany is becoming progressively less competitive. As far as industrial real estate in Germany is concerned, owner occupation remains the dominant form of occupation and logistics property provides the engine that drives the market. In the 1980’s it was competition from the “tiger” economies of Korea and Taiwan that defined the industrial trading environment. This decade will see even more vigorous competition from China, India and, closer to home, the central European economies. This paper looks at the next decade comparing industrial property markets in the UK and Germany using different scenarios to assess the potential impact of these factors on future markets in these countries for occupiers and investors in industrial property.
keywords industrial; logistics
series ERES:conference
type normal paper
discussion No discussions. Post discussion ...
ratings
session 8-F
last changed 2008/11/01 09:47
HOMELOGIN (you are user _anon_152825 from group guest) Powered by SciX Open Publishing Services 1.002