China Cosco deal breathes life into industrial property
Demand for industrial real estate has picked after a multi year lull with an ongoing investment program in the port of Piraeus by China’s Cosco improving prospects in the sector, according to broker Cushman Wakefield Proprius.
In a quarterly report, Cushman Wakefield Proprius says that supply levels are high but there is a major shortage of large warehouses that meet buyer requirements in terms of quality and size.
“After several years of virtually no demand for land, activity has started to pick up, with buyers focusing on large pieces of land ready for construction in specific prime areas,” says the report.
“The increase of e-commerce and the positive outlook for this sector will be a key driver of demand going forward, leading to changes in distribution models and new opportunities.”.
A decision by Cosco to further boost the port’s container traffic by 2018 is helping turn Greece into a transhipment hub for trade between eastern Europe and Asia, adds the report, but warns that this will depend on infrastructure projects in the area.