Clarion Partners Europe: Micro-allocation in European logistics

The European logistics sector is currently caught between the re-emergence of core capital and a series of events that threaten to delay a long-awaited market rebound. 

Rory Buck

At MIPIM 2026, Rory Buck, Managing Director at Clarion Partners Europe, sat down with CRE Media Europe to discuss the current investment landscape.

Only a week ago, it was a tale of cautious optimism, with yields stabilising and core capital beginning to resurface. However, the recent conflict in the Gulf has introduced a fresh layer of uncertainty.

"Generally, the market doesn't like uncertainty. People tend to delay decision-making if they can. So I would think that will have some slowing effect on the investment market."

In response to this volatile climate, Clarion Partners Europe is employing a dual-track strategy. The first focus is on long-term, durable income—securing high-quality real estate with strong tenant covenants to ensure resilient cash flow.

Simultaneously, the firm is pivoting toward development, a move that might seem counterintuitive amid heightened risk. Buck, however, argues that the lack of construction over the past two years has created a looming supply vacuum.

"We want to position ourselves to take advantage of that potential lack of supply. It’s about managing your portfolio today to be resilient to geopolitical shocks, while thinking long-term about the underlying fundamentals."

Buck suggests that traditional "safe bets" such as Germany or the Netherlands now require more granular, site-specific analysis.

While there are valid concerns regarding manufacturing competitiveness in Germany due to rising energy prices, specific German micro-markets remain decoupled from those risks.

Despite being known for tight supply, certain areas of Southeast Netherlands have seen a surge in land availability and development, leading to potential short-term rental pressure.

"It’s less about macro allocation and more about micro allocation... take any market, and you’ve got to analyse what the good long-term motivations are and where there could be some pressure on rents."

Reflecting on the atmosphere at this MIPIM, Buck describes a market that is tired of waiting. "People are frustrated with the ease of the recovery, and [geopolitical events] just compound that frustration."

Branislav Pekic