Finland Industrial & Logistics Snapshot Q4 2022

‒ In the fourth quarter of 2022, I&L investment volumes decreased by 65% (y-o-y) to €159 million. 72% of transactions were cross-border indicating that international investors were still active, while 16% of investments took place in the Helsinki Metropolitan Area.

‒ There is continued high activity in the I&L Investment market, particularly in the Greater Helsinki area. Increased financing costs and greater uncertainty have caused a change in the pricing environment for the I&L sector, and the prime yield surged by 65 bps to 4.75% in the fourth quarter. There is further decompression expected as investors are carefully analysing the impact of pricing before committing capital to the market.

‒ Two notable deals in the fourth quarter were Allianz's purchase of DHL Logistic centre in Sipoo and Onvest Development Oy’s acquisition of production facility construction project from SSA Rakennus in Vantaa.