Investment in European industrial real estate rose by 28 per cent in terms of volume last year.
This is according to JLL's European Industrial Markets Spring 2011 research report.
The research found that investment reached EUR8 billion last year, primarily due to improved market fundamentals and an increased level of confidence among investors.
However, investment in industrial real estate did not improve as much as investment in all direct European commercial real estate, which grew by 45 per cent.
Chris Staveley, director of JLL's EMEA Capital Markets team, commented: "Investors activity in 2010 was, to a certain degree, subdued by the lack of available prime industrial assets, which meant that improved market fundamental supported strong investor appetite and led to ongoing yield compression across Europe."
Of all the European countries, the UK was identified as the largest industrial investment market in 2010, with 35 per cent of the total volume of investment.
Meanwhile, Germany was the strongest country outside of the UK, while Norway also showed a strong level of growth.