Asset classes
Logistics: clear height beats yield
Access, alternative use, roof load for PV: why building parameters co-determine the buyer universe in the most sought-after segment.
The headline is deliberately pointed: yield, location and lease remain central valuation drivers. In processes we accompany, however, assets more often fail on building parameters than on yield expectations — and that is precisely the point underestimated in preparation.
Which factors interact
Relevant factors usually include location and transport links, access and manoeuvring areas, clear height, floor load, plot layout and expansion potential, alternative use, lease and tenant covenant, energy and ESG profile, and the buyer's return requirement. No single factor is generally more important than the others.
Building parameters do, however, act as a filter: an asset materially below market standard on height, doors or floor load loses part of the institutional buyer universe regardless of the lease. A highly specialised facility for a single occupier moves economically towards an operator asset and is valued accordingly.
- Document clear height, doors and floor load early — they co-determine the addressable buyer universe
- Have roof structure reviewed for PV; it has become price-relevant in many processes
- Expansion land on the plot can support the exit
What has changed in the leases
Occupiers negotiate indexation and extension options more intensively. Full indexation without a cap is not a given in every segment, and buyers model the effect of a cap across the term.
Maintenance allocation is being negotiated again as well. Roof and structure with the owner is common, but the boundary to building services is often vaguely drafted — a point for legal review.
On the financing side
Logistics assets with stable tenants continue to be financed; leverage and terms depend on the asset, lease, tenant covenant and lender. For speculative new builds, lenders regularly require additional elements such as junior capital or pre-letting conditions.
In short
Building parameters determine who can bid at all; location, lease and covenant determine at what price. Both belong in the preparation.
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