Logistics take-up in EMEA hit 124.9m sq ft in 2015, the highest level on record, according to analysis by CBRE.

Growth has been driven by rising private consumption, supply chain consolidation and an increase in the scale of logistics operations, the adviser said. 

The record figures come despite muted activity in the final quarter of last year, particularly in central and eastern Europe.

Nevertheless, a number of key cities reported year-on-year growth, including London, Paris, Antwerp, Madrid and Berlin.

Booming demand has seen availability falling across the EMEA region, with vacancy rates across Europe now at just 5-6%.

The only exception was seen in  the UK, where vacancy rates rose by 500,000 sq ft, an anomaly attributed to high levels of speculative development.

Strong rental growth was seen across the region, with an overall prime rent increase of 2.6% year-on-year and Dublin, London and Zurich seeing some of the strongest growth. 

Yields tightened over the year, particularly those in non-core markets which moved in considerably. EMEA capital values have risen by almost 12% year-on-year.

Investment in European industrial assets reached the second highest quarterly volume on record, hitting nearly €8bn in the fourth quarter. The UK accounted for 40% of European investment.

Amaury Gariel, managing director of EMEA industrial and logistics, said: “Looking ahead to 2016, we expect to see further market growth. 

“City delivery will be a major focus for logistics operators in 2016 as consumers expect shorter delivery times and urban transport constraints reach critical levels. 

“As investor demand for logistics assets remains substantial the lack of grade-A product will shift investment focus to secondary product and other types of assets such as multi let complexes, production facilities and even infrastructure.”