Europe's Logistics Development is Driven by Build-to-Suit.

Build-to-suit and owner-occupied developments are driving development activity in Europe's main logistics markets to its greatest level since the downturn in 2008. properties for sale

According to a new analysis by Jones Lang LaSalle, more than one-third of the seven million square meters of new logistics space under construction in Europe is being built by owner-occupiers, with 55 percent of the development pipeline already pre-let.

The new construction plan runs counter to the speculative trend that occurred prior to 2008, when markets resulted in a rise in unsold inventory.

According to JLL's Philip Marsden, "speculative development accounts for around 10% of all development — slightly more than 700,000 square meters at the start of current quarter." "More than half of this space — roughly 400,000 square meters — is concentrated in the Moscow and St. Petersburg areas, where vacancy rates are near nil."

According to the analysis, the overall net effect on supply levels remains minimal.

"Over the previous three years, low completion volumes combined with strong demand have decreased readily available modern space to its lowest level in a decade," Mr. Marsden said.

According to JLL, the need for very large facilities is driving the market's owner-occupied and built-to-suit activities. This includes online businesses wishing to expand. Mega-buildings of 100,000 square meters or more are frequently seen in non-core distribution areas.

A nearly 100,000-square-meter e-fulfillment center for Amazon is currently under construction in Nord Pas-de-Calais (France), as are three distribution centers in Germany: 175,000 square meters for bookseller Koch Neff Volckmar (KNV) in Erfurt, 150,000 square meters for food retailer EDEKA in Lauenau near Hanover, and 75,000 square meters for Zalando in Mövenpick.

As the economy and market mood recover, developers are returning to speculative projects. However, in the near to medium term, the company does not expect a big rise in supply.

Patrizia spends $1.1 billion for office space in Germany.

The Ausberg-based real estate business Patrizia Immobilien AG is paying 800 million euros ($1.1 billion) for a collection of 36 German office buildings, in what is being called the country's largest commercial real estate deal of the year.

According to a press release, the office properties are located in the German state of Hesse and are leased to the federal government. The properties have a combined area of 450,000 square meters.

Patrizia Chief Operating Officer Klaus Schmitt told Bloomberg, "It's a perfect investment for safety-oriented investors looking for long-term, predictable income."

CA Immobilien, based in Austria, plans to concentrate on developing properties in Berlin, Munich, and Frankfurt, according to CEO Bruno Ettenauer.

Mr. Ettenauer stated, "The current market condition is favorable for selling the portfolio."

By the end of the year, the deal should be completed.