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CB Richard Ellis’ Cross-Border Industrial and Logistics team has been appointed by DHL Exel Supply Chain (DESC), Europe’s largest global supplier of logistics services, to exclusively support their expansion programme across Europe, Middle East and Africa (EMEA). 

DESC is the recognised global leader in contract logistics operating from more than 800 strategic locations, totaling 11 million square meters of managed space in Europe alone.

This significant contract win reflects CBRE’s unique ability to deliver market-responsive knowledge in the current market. This position was strengthened by the strategic alignment earlier this year of the investment, leasing and development arms of CBRE’s Cross-Border Industrial and Logistics team, creating a fully integrated international service which fulfils the needs of clients as both investors and occupiers.

Speaking about the appointment, Guy Frampton, Head of EMEA Industrial and Logistics for CB Richard Ellis, said: “A cross-border and integrated approach is essential to successful real estate advice in the current market, in the industrial and logistics sector and indeed all property sectors. Our tenant representation model and comprehensive sector coverage throughout the region was critical to our successful appointment by DHL/Exel Supply Chain.”

Roger Mann, Senior Vice President, DHL Real Estate commented: “CBRE have a good understanding of our needs and an ability to deliver. We value the combination of their local knowledge and expertise and international coverage with strong central co-ordination. It is particularly pertinent in these challenging economic times.”

As in other sectors of the property market, weaker economic conditions are affecting occupier activity with many tenants reviewing their occupancy plans, and rents for existing buildings are under pressure in many locations. In marked contrast to this, rents for build-to-suit properties are tending to rise as the impact of higher yields are being felt on the development appraisal. Nevertheless, the counter-cyclical nature of the logistics market, where occupiers seek to reduce costs and re-engineer their supply chains, means that the industrial and logistics market has shown signs of relative stability compared with other real estate sectors.

The new engagement expands upon CBRE’s existing relationship with DESC. CBRE has advised DESC on a number of transactions which include the recent sale and leaseback of two major portfolios in the Czech Republic and France for a total of more than €180 million.

CBRE’s EMEA Industrial and Logistics team has been the recipient of the Industrial and Logistics agency Team of the Year Award at the European Property Awards for the past two years running.