27. September 2016

Glossary

The posted new logistics facilities include all new-built logistics and transshipment properties, normally for the period under examination, 2012 through 2016, and in some cases for 2017, too. Expressly not covered by the term are redeveloped. Neither are manufacturing plants or other commercial properties covered by the term.

27. September 2016

Glossary

Representing a transaction-based ratio, the net initial yield (NIY) reflects the annualised current passing rent minus non-recoverable property expenses, divided by the property valuation plus the incidental acquisition costs typical in the respective market. The NIY is one of the essential measurable variables for the investment market. It describes the typical price level of a logistics region. The lower the posted figure, the more attractive and pricey the location. The reported prime yield rates refer to properties let on long-term leases (e.g. of 10 years), sound property standards (alternative use options), and warehouse areas of more than 10,000 sqm. They represent stabilised yield figures that ignore outliers and thus fail to reflect the absolute peak figures of a given market.

27. September 2016

Glossary

Mechanised delivery sites, known in Germany by the acronym “MechZB,” are used predominantly in the CEP industry (Deutsche Post DHL Group). In these small-scale logistics facilities, consignments are automatically sorted and prepared for their last-mile delivery.

27. September 2016

Glossary

The “loan-to-value” ratio for which the acronym stands puts the amount borrowed for a given property in relation to its fair market value.

27. September 2016

Glossary

The “loan-to-cost” ratio for which the acronym stands puts the amount borrowed for a given property in relation to its total investment costs.

27. September 2016

Glossary

The Monte Carlo simulation represents a stochastic model used for forward projections to obtain a forecast value. Simply put, this statistical method generates a limited number of random figures that remains within the parameters or values defined by the person conducting the test. Taking the predefined parameters into account, the simulation produces a large number of results (in this case 1,000). The modelling calculates the probability of occurrence for each result within the range of samples. The range of values itself has a probability of occurrence of 100%. The variables defined for the simulation of this survey include property prices, incidental acquisition costs, construction costs and financing charges.

27. September 2016

Glossary

bulwiengesa applies a drilldown to the logistics real estate take-up in Germany that distinguished between these sectors: Freight/transport logistics CEP service providers Retail logistics Beverage/food logistics Industrial logistics Automotive logistics Construction and construction suppliers IT/computing/data technology Chemicals/pharmaceuticals logistics E‑commerce Fashion/textile logistics Consumer goods Household goods Miscellaneous

27. September 2016

Glossary

This term refers to the order preparation process that consists of collecting goods or items to fulfil existing orders from the inventory in stock. The person handling this job is called the order picker.

27. September 2016

Glossary

bulwiengesa has identified 28 connected areas in Germany with demonstrable real estate economic activity in the logistics sector. It is the first time that statistical-demographic and economic fundamentals were used to define such regions.

27. September 2016

Glossary

The next paradigmatic shift after Industry 3.0 (computer-controlled manufacturing processes) involves the networking of humans, machines and products into cyber-physical systems, the Internet of things and cloud computing, among other phenomena.