The past two years have seen very mixed fortunes in the institutional real estate market as participants have reeled from the impact of recession. There are now discernible signs of recovery and many reasons why 2011 should see a return to sustained investment as the equilibrium between supply and demand for warehouse space is re-established.

Last year, world trade rebounded much faster than anticipated. Nevertheless, European economic growth remained subdued, weighed down by limited credit availability, rising fuel and commodity prices, and weakened confidence in European banks and their regulators. Many European countries have adopted austerity programmes to reduce their deficits and national debts. However, these programmes are limited in scope and will be phased in gradually, intended to cushion the fiscal impact enough to keep the modest economic recoveries in these countries on track.

Above-trend GDP growth in emerging marke