State of play 2025

This article was published in our June 2025 magazine

Few would disagree that 2024 represented a mixed year for the European industrial and logistics (I&L) market. According to Savills, take-up reached 7.7m sq m in the last quarter of the year, a 26% increase from Q3 but 7% lower than Q4 2023. Total take-up for 2024 was 27.5 million sq m, down 7% from 2023. “Despite this quarterly improvement, it was the weakest final quarter since the pandemic began,” the company’s research team writes in their latest update.

However, take up varied significantly in different geographies. Portugal, Spain, and the Netherlands saw the largest annual increases in take-up, while the UK, Czech Republic, and Budapest experienced the steepest declines. Across the board, vacancy rates fell by 9 basis points to 6.06%, but the Netherlands and the UK saw rising vacancy rates.

The picture was somewhat better in the investment market. Again according to Savills’ research, in Q4 2024 investment volumes reached €12.0 billion, a 38% increase from Q3 and 18% higher than Q4 2023. “This brought the total investment for 2024 to €37.9 billion, up 14% from 2023, making it the fifth strongest year on record,” the latest research says. Most countries saw increases, with Ireland, Denmark and Sweden noteworthy exceptions.

But what about 2025? In March, CBRE published the latest iteration of its European Investor Intentions Survey, which canvassed the views of 781 Europe-based real estate investors and asked a range of questions regarding their appetite and preferred strategies for sectors and markets in 2025.

It found that the proportion of respondents that said I&L would be their main target asset class this year fell compared to 2024, from 34% in 2024 to 27% in 2025. However, CBRE said that this does not necessarily reflect badly on I&L. “This is due to an increase in appetite for the living, retail, and hotels sectors,” it says.

Investor appetite

“The living sector has become Europe’s largest asset class by investment volume, owing to strong fundamentals, stemming from a supply-demand imbalance. Retail and hotels, meanwhile, continue to see improved fundamentals, as a result of moderating inflation and a stronger consumer, coupled with a resurgence in global travel. While I&L has seen a decrease in its share, it remains the second most sought-after sector by a significant margin.”

Encouragingly, CBRE’s survey also revealed that investors expect occupier demand to increase. Last year, 33% answered in the affirmative, while the equivalent figure this year is 44%. Some 19% believe demand will fall, “though this figure is sharply down compared with the previous edition of the survey at 29%,” it says. “We believe that leasing activity will pick up this year, particularly towards the latter half of the year, as macroeconomic conditions improve. Investors will continue to focus on major markets.”

All of which should be good news for logistics developers, who can feel confident that there will be both occupiers and buyers for their products. CRE Media Europe talked to a range of companies on their views on the year ahead and it’s fair to say that the mood is one of cautious optimism:  optimistic due to the research already outlined; cautious due to the ever present threat of externalities, not least one Donald Trump.

Michael Hughes, CEO of Verdion, is typical. “Occupier demand continues to underpin everything,” he says. “This softened in 2024 compared to the previous year. However, in the past six months until the tariff announcements, there was a distinct improvement in market sentiment, characterised by a real uptick in occupational requirements fostering renewed optimism across the market.”

He adds: “More recently, it’s true to say that some decisions are slower as businesses with exposure to the US consider their position more carefully and uncertainty around the impact of future trade decisions is a challenge. There is still good demand for well-located, well-specified space. We remain confident about the scale and scope of opportunities ahead longer term: logistics will continue to be an important growth sector.” 

Strong demand

Amaury Gariel, managing director, Europe, at Scannell Properties, agrees. “During the last quarter of 2024 and beginning of 2025, we still observed weak tenant demand and a slowdown in decision making on lettings in the short term,” he says. “Nevertheless, there is a clear shift towards more decisive action for large build-to-suit projects, particularly from occupiers still looking to grow their European footprints, most notably from eCommerce and discount retailers.”

And yet, Gariel also strikes a note of caution, pointing out that it is next to impossible for supply chains to respond quickly to every decision and reversed decision emanating from Washington DC. “Choppy waters lie ahead again as nations across the globe grapple with their response to US trade tariff announcements and subsequent uncertainty,” he says.

“Global supply chains cannot be reconfigured instantly in response to such high-impact, long-term changes. Any fallout and repercussions will take time to unfold and will depend on the outcome of escalating tensions between China and the US and other international trade agreements put in place in the coming months.”

Indeed, some developers think that trying to predict the fallout from trade tensions at this stage is a tough call to make. “Geopolitical tensions and shifting trade policies place a burden on the logistics and real estate sectors,” says Tobias Kassner, head of research and ESG at GARBE. “Announcements of new tariffs by the U.S. government are targeting almost every country and sector, but the German automotive sector is among those particularly affected.”

He adds: “However, the impact on existing supply chains, the concrete effects on financing, operating costs, and planning reliability remain to be seen. The decisive factor will be how well Europe can come together. In any case, the strategic realignment of supply chains is gaining renewed importance.”

According to Richard Fell, head of European capital markets at Trammell Crow Company (TCC), the uncertainty could lead to a lack of decision making. “The market is rightly watching intently trying to understand how the current situation unfolds - no-one has a crystal ball, so at this moment it’ll likely manifest through slower transactions, more uncertainty and a ‘watch and see’ brief from many actors,” he says.

“Playing the second derivative argument, this will likely determine that there’s less speculative development. So picking prime locations and conservatively underwriting off the right land basis feels like a strong basis for generating opportunistic returns – but that needs to approached with very high discretion and focus on the most resilient locations.”

Possible upsides

That said, Gariel urges that in the long term, European logistics might - whisper it - benefit from a US/China trade war. “Any escalation of US tariffs on Chinese goods positions Europe as a strategic market opportunity for both Chinese and American e-commerce players,” he says. “Chinese platforms are accelerating their expansion into Europe as a market with lower tariffs and restrictions, while US e-commerce companies shall view Europe as a tariff-free hub to import and distribute Chinese-manufactured products.”

Trump’s lukewarm stance on NATO could also benefit the industry, Gariel adds. “At a more niche level, rising national defence budgets in countries like France, Germany, the UK and Italy are also expected to stimulate demand for logistics and light industrial space tied to military supply chains and equipment manufacturing,” he says. “These nations are key producers and will likely be at the forefront of this trend.”

Not all risks stem from the White House, though. Inevitably, Robert Dobrzycki, CEO and co-owner at Panattoni, does mention tariff, but he also points to wider geopolitical instability and disruption to supply chains, which have the potential to lead to an uptick in ‘nearshoring’. “The ongoing war in Ukraine and broader global tensions continue to create uncertainty for investment planning,” he says.

“While nearshoring presents an opportunity, it also demands massive investment in infrastructure, land development, and tailored industrial facilities. Companies need to shorten supply chains while ensuring resilience and quality — a challenge especially for countries with still-maturing industrial real estate markets like Poland.”

Sustainability remains critical

It isn’t all bad news. For instance, it is pretty clear that environmental, social and governance (ESG) strategies remain central to many developers’ strategies in 2025, no matter what is happening on the other side of the Atlantic. “ESG considerations continue to underpin our work,” says Hughes. “For a number of years, the environmental side in particular has been central to all funding, development and asset management decisions; a core part of our business rather than separate considerations.”

It’s a sentiment echoed by Serkan Aydemir, project director at ECE Work & Live. “ESG issues have become more and more important over the past few years and will continue to do so, particularly due to the increasing demand of investors and the increasing legislative regulations,” he says. [That] is why we have developed an ESG Code of Conduct for all our logistics real estate developments, which aims at creating projects that exceed legal standards and strike a balance between the needs of tenants, investors and the current and perspective legal requirements.”

ESG may not be going away, but it is changing, according to Emilia Debowska, head of sustainability, Europe, at Panattoni. “ESG issues are becoming more important – but we’re entering a phase of recalibration rather than retreat,” she says. “The European Union’s recent decision to delay the implementation of certain ESG-related regulations under the so-called Omnibus package reflects not a decline in ambition, but a pragmatic response to complexity, market readiness and feedback from businesses.”

While some may have interpreted the move as U-turn, but Debowska says that is wide of the mark. “Rather than weakening ESG, this pause allows space for better alignment, simplification and support in adapting to new standards,” she says. “Key ESG drivers – climate risk, energy transition, supply chain resilience and social accountability – remain at the heart of long-term value creation and investment strategies.

She adds: “What we are witnessing is not a step back, but a shift from broad declarations to measurable impact. ESG is maturing: moving from box-ticking compliance to strategic integration backed by reliable data, especially as frameworks like CSRD and ESRS continue to take shape. In short: ESG is not losing momentum – it’s being refined.”

The ongoing importance of ESG is leading some developers to look increasingly at retrofitting assets, rather than building afresh with all the embodied carbon that entails. “Our primary focus is on brownfield sites and refurbishing or redeveloping existing assets, where our technical teams can drive innovation from the additional complexity these opportunities entail,” Hughes says.

Retrofit first

“Given rebased yields and land values, and more stable construction costs, the market environment is supportive of refurbishment and redevelopment for a high-quality product in the right location. This is more important than ever with an accelerating wave of obsolescence in older logistics stock and flight to quality from occupiers and investors alike, seeking the best and space with strong ESG credentials.”

It’s clearly a popular approach. Scannell, for instance, recently completed three retrofit projects - and launched a new one in France - representing more than 100,000 sq m of warehouse space. In most cases, works included improving thermal insulation, implementing low-carbon heating and cooling systems, modernising docks and yards, and integrating photovoltaic systems.

“We consider retrofitting and repurposing of logistics buildings a core pillar of our sustainable development strategy in Europe,” says Gariel. “It is a logical and responsible response to the challenges of land scarcity, environmental protection and the growing demand for modern, efficient logistics space.”

Not only is it an environmentally friendly approach, it is also often pretty much a necessity, Gariel adds. “Retrofitting is especially relevant in mature European markets such as France, the Netherlands and Germany, where construction density is high, land is constrained, and planning regulations are stringent,” he says.

“Many existing logistics buildings—often built in the early 2000s—no longer meet today’s environmental standards and operational requirements. Rather than tearing them down, we aim to upgrade these assets to meet the highest certifications and performance levels. We believe this approach is not only more sustainable but also economically relevant.”

Overall, then, it is clear that developers are looking to the future with a positive frame of mind - albeit one tempered by unpredictability. “Global political and economic uncertainty will continue to provide the greatest tests: the impact of new administrations, especially the US, and the impact of new economic approaches impacting international trade will need close attention,” says Hughes.

“However, this is – overall – an environment where we can create value, drawing on longstanding sector expertise and experience in everything from site selection and concept design to day-to-day asset management.”

Ingo Steves, managing partner, logistics, at at Swiss Life Asset Management, adds: “The outlook for the logistics real estate market remains strong. Despite macroeconomic uncertainty, investor interest is returning as the sector continues to demonstrate resilience in comparison to other asset classes, with stable demand from occupiers seeking modern, ESG-compliant space, and solid fundamentals. Innovation, location quality and sustainability will be key drivers of success in the months ahead.”

Footprint

Germany, Poland, Italy, Denmark and United Kingdom

Key projects

Logistics Center Hamburg-Billbrook

According to ECE, the project was planned and realised in accordance with the highest ESG criteria and the ‘Efficiency House 40’ standard. It is targeting DGNB platinum certification, with sustainable features include PV systems on the roof, efficient heat pumps and a fossil-free heat supply.

Thalia Omnichannel Hub, Marl

This omni-channel hub for the Thalia bookstore chain provides for various uses and processes, ranging from goods picking to innovative production technologies.

GreenWorkPark, Grünheide

ECE says that this “ultra-modern business park” on 35 hectares of land focus will be on companies and institutes that “represent innovative and sustainable products and production processes”.

Footprint

Czech Republic, Romania, Germany, Hungary, Slovakia, Austria, Poland, Serbia, Bulgaria and the Netherlands.

Occupier base

CTP’s client base comprises approximately 1,500 tenants across a broad range of in-dustries, including manufacturing, high-tech/IT, automotive, e-commerce, retail, wholesale and third-party logistics.

Key projects

CTPark Amsterdam City

CTPark Amsterdam City is an ultra-modern last-mile logistics hub, spanning over 120,000 sq m and strategically located in the Port of Amsterdam. The park features emission-free logistics, BREEAM Ex-cellent certification, advanced automation technologies,and smart city distribution systems.

CTPark Bucharest West

CTP’s Clubhaus concept at CTPark Bucharest West in Romania provides a mix of leisure offerings for client employees and local communities, from restaurants, cafes and shops to spaces for exercise, sports and events, socialising and even medical facilities within landscaped areas.

CTPark Bremen-Hemelingen

At CTPark Bremen-Hemelingen in Germany, CTP transformed a former municipal landfill on the out-skirts of Bremen into a modern business and logistics park providing 28,700 sq m of new logistics space.

Footprint

Germany, Netherlands, Poland, UK, France, Spain, Italy, Austria, Slovakia, Czech Republic, Luxemburg and Romania.

Occupier base

Automotive, construction/DIY, offices (service), e-commerce, electronics, healthcare/pharmaceuticals, wholesale/retail, frozen logistics, CEP, food and beverages/fresh pro-duce, logistics/transport, manufacturing, data centre/telecommunications, textiles and more.

Key projects

Straubing

Construction is underway on GARBE’s project in the port of Straubing-Sand, which once complete will be one of the biggest timber logistics developments in Europe. The new building is being devel-oped by Garbe Industrial Real Estate GmbH and its joint venture partner Logicenters, Nrep’s devel-opment and management platform for logistics properties. Completion of the 27,000 sq m logistics hall is scheduled for the third quarter of 2025.

Duisburg

Garbe Industrial Real Estate GmbH has started redevelopment work on its site in Duisburg’s Meider-ich district. The 56,000 sq m brownfield site, which was acquired around two years ago, is located on the so-called ‘Zeus site’, which was used by the steel industry until the end of the 20th century.

Footprint

Germany, Nordics, France and Benelux

Occupier base

Logistics and transportation, retail/e-commerce, manufacturing, food and beverage and automotive, among others.

Total GLA 

755.000 sq m (pipeline and completed projects)

Key projects

DeltaPort 1, Wesel 

Swiss Life’s first ever development, DeltaPort 1 is one of the largest logistics properties in North Rhine-Westphalia in a prime location in the Ruhr area, aiming not only for a BREEAM excellent certification but also receiving the Logix Award 2023 and the immobilienmanager-Award 2024.

Düsseldorf Ost, Wülfrath  

This property totalling more than 50,000 sq m of rental space in five hall units is a “prime example of productive cooperation between developer and local authority resulting in sustainable added values for everyone involved”, according to Swiss Life.

Nuremberg West 1, Burgbernheim  

This state-of-the-art logistics property will offer more than 66,000 sq m of rental space in seven units. The approximately 3,133 sqm of office and social space are complemented by employee-friendly indoor and outdoor recreation areas.

Footprint

France, Germany, Italy, Spain and UK

Occupier base 

E-commerce, 3PL, parcel distribution, retail, food retail, IT wholesale, FMCG, pharmaceuticals and automotive

Total GLA 

485,056 sq m 

Key projects

LogistikPark, Diemelstadt 

Recently let to ID Logistics, the 68,000 m2 LogistikPark Diemelstadt is one of the largest single units to be let in recent months in Germany. The future stocking range is set to include up to 1.9 million small and medium-sized items and ID Logistics is planning to employ 300 people at the site.

Port of Strasbourg 

Retrofit works on the facility will focus on new initiatives designed to reduce the building’s energy consumption by around 20-25%, including the installation of LEDs for more efficient lighting, the implementation of a building management system to optimise the efficiency of electrical and heating installations, and improvements to the building’s insulation to reduce heat loss.

TN2 Gateway, Tunbridge Wells 

TN2 Gateway is the only logistics park in the Kent area capable of providing a range of ‘mid-box’ size buildings. The 46,500 m2 project is on track to achieve BREEAM Outstanding and EPC A+ ratings, according to Scannell.

Footprint

Poland, Czechia, Slovakia, Hungary, Germany, Netherlands, Denmark, Austria, Italy, Spain, France, Portugal, UK, Sweden, Luxembourg and Belgium

Occupier base 

E-commerce, logistics, e-mobility, transportation, data centres, automobile manufacturing, household goods, cosmetics, food products, clothing and electronic equipment, among others.

Total GLA 

24m sq m 

Key projects

Panattoni Park Heerlen 

According to Panattoni, not only is the building environmentally friendly due to being gas-free, it also utilises the vast roof area to generate renewable electricity. The roof has been transformed into a solar power plant, capable of providing the distribution centre, as well as 2,000 households, with green electricity.

Panattoni Park Poznań A2 

Panattoni Park Poznań A2 aimed to set new standards for sustainability in industrial real estate by achieving exemplary environmental performance, operational efficiency and user wellbeing. The 82,000 sq m facility was constructed without PVC and designed explicitly to support occupier H&M’s e-commerce logistics operations.

Belvedere Wharf, London 

This new development is net zero carbon in design and construction with a goal to achieve whole-life net zero carbon by collaborating with tenants. The units are energy efficient and use renewable energy from a Solar PV array on the roof. A minimal payment will be made in line with HM Treasury Green Book carbon pricing to off-set the residual carbon.

Footprint

England, France, Germany and Netherlands

Occupier base 

All sectors 

Total GLA 

1.4m sq m 

Footprint

Spain and Portugal

Occupier base 

Fashion, e-commerce, logistics distribution

Total GLA 

1,899,778.44 sq m

Key projects

Marchamalo 1 

According to Montepino, Marchamalo 1 is a logistics property with 182,000 sqm of GLA intended for e-commerce. Its level of automation allows the dispatch of more than half a million packages daily.

Illescas 2A 

This is a project with a double environmental certification level: Leed Platinum and Bream Outstanding, the highest rating level in both certifiers.

Guadalajara 1 

This is a food project that integrates three buildings with different types of logistics activity and integrates different levels of automation and robotisation.

Footprint

Germany, Denmark, Sweden, Netherlands and UK

Occupier base 

Multi-sector, including 3PL, retailers, e-commerce, food, pharma, beverage, furniture, manufacturing and production, automotive and bicycle.

Total GLA 

1.95m sq m

Key projects

Verdion PremierPark Ludwigsfelde – Germany  

The 150,000 sq m former brownfield site provides market-leading urban logistics space in a landscaped environment within the Berlin submarket of Ludwigsfelde, close to the city’s ring road and 35 minutes from its centre. It is the largest asset in Verdion European Logistics Fund 1.

Verdion Park Backa Gothenburg 

Verdion’s second development in Gothenburg, Sweden’s logistics capital, is a 44,000 sq m property acquired in June 2024. The company is now redeveloping the brownfield site for urban logistics, speculatively developing 17,100 sq m of warehousing that will be ready for occupation in Q1 2026.

Footprint

UK, France, Germany and Spain

Occupier base 

3PLs, manufacturers, online retailers, omni-channel retailers, bricks and mortar retailers, post and parcel delivery companies

Total GLA 

681,256 sqm of logistics development including in process and controlled pipeline logistics projects

Key projects

Kerpen, Cologne 

Kerpen is a 28,000 sq m logistics facility located 23km west of Cologne on the A4 autobahn. “We’ve designed the scheme to be as versatile as possible, catering for single or multiple occupation across each of the two-buildings, whilst developing to meet the highest green credentials,” according to a spokesperson.

Heywood, Manchester  

This is a 44,000 sq m logistics facility located minutes from the M62 where TCC is about to commence vertical construction of three facilities: one big-box of 35,000 sq m and two smaller units of around 4,500 sq m. The company is targeting BREEAM excellent, EPC A and net zero carbon accreditation.