From nearshoring to new markets: The forces redrawing Europe’s I&L map

It’s clear that European industrial and logistics real estate has not only proven its resilience in recent years but has emerged as one of the continent’s most dynamic and opportunity‑rich asset classes. After several years defined by disruption, the sector has reached a new stage of maturity. And importantly, it continues to evolve in ways that favour those with the agility, scale and long‑term vision to meet the needs of modern occupiers.

Maarten Otte is chief investment officer at CTP

At CTP, we see that momentum every day across our portfolio and our development pipeline. Demand for modern, energy‑efficient and strategically located premium quality space remains strong. Occupiers are upgrading their supply chains, rethinking footprint strategies, and positioning themselves closer to end‑customers. E‑commerce growth may be steadier today than during the early‑2020s boom, but it remains a structural force. More significantly, manufacturing and high‑tech production are coming back to Europe at pace, driven by nearshoring, geopolitical risk mitigation and the need for resilient, diversified supply chains. Our ready built factories are uniquely placed to serve this need.

The fundamentals speak for themselves: rents continue to rise across most key European cities, vacancy remains low and high‑quality space is scarce. Yes, macroeconomic uncertainty lingers—interest rates, energy prices and global political tensions remain present considerations—but the underlying drivers of demand are deep, broad‑based and long term. At CTP, we often say change creates opportunity. Those who listen closely to customers, build sustainably and stay ahead of the market’s direction will continue to outperform.

One of our most significant milestones of the past year illustrates this strategy in action: our entry into the Italian market. The €241 million acquisition of VLD, a development company with a prime landbank in key logistics corridors, marks the start of a major long‑term commitment to Italy. We plan to deliver 200,000 sqm of space this year alone, ramping up to 250,000 – 300,000 sq m over the coming years. In the next five years, we expect to deploy €1 billion in Italy as part of our broader ambition to reach 30 million sq m of GLA by 2030.

We believe Italy represents one of Europe’s most compelling industrial and logistics growth markets. The country is strategically positioned as a gateway between Europe, the Mediterranean and global trade routes. It offers a deep pool of skilled labour, has a long-standing manufacturing history and an increasingly active occupier base spanning manufacturers, FMCG and 3PL operators, as well as SMEs and multinationals expanding or re‑shoring production. Yet, despite this potential, Italy remains significantly undersupplied with Grade A logistics stock—around 0.5 sq m per capita, compared with more than 1 sq m in most Western European markets. This imbalance between demand and supply creates a long runway for growth. Italy’s combination of low vacancy, rising prime rents and attractive yields mirrors markets that are now among Europe’s strongest performers.

Looking more broadly across Europe, 2026 promises to be a year defined by structural demand drivers that align closely with our core strengths. The themes shaping the sector—nearshoring, e‑commerce, supply chain optimisation and sustainability—are now deeply embedded into corporate strategy. They are not cyclical trends; they are the new baseline.

We are seeing a marked rise in demand from high‑tech manufacturers and Asian corporates establishing or expanding European production hubs. These facilities require sophisticated, energy‑efficient, highly serviced spaces—exactly the ecosystem our CTParks platform is designed to deliver. For the sector, this represents an enormous opportunity. For us, it reinforces the importance of investing in our strategically located land bank fuelling future growth, anticipating future hotspots and delivering at scale and speed. It means doubling down on sustainability through practical, measurable initiatives that improve efficiency, lower emissions and support occupiers’ increasingly stringent ESG goals.

Our strategic priorities for 2026 reflect this moment of opportunity. We intend to deliver between 1.4 and 1.7 million sq m of new space, with 80–90% pre‑let at handover. Our integrated platform—combining development, construction, leasing and long‑term ownership—ensures we can support clients through every phase of their growth. What anchors all of this is partnership: staying close to clients, understanding their ambitions and constraints, and delivering solutions.