Colliers: EMEA logistics market enters new phase as demand improves

The EMEA industrial and logistics market is entering a new phase of rebalancing as occupier demand strengthens, development activity slows and vacancy rates stabilise, according to Colliers’ EMEA Industrial & Logistics Hubs Snapshot H1 2026.

Gross take-up rebounded from the lows recorded in 2024, while net absorption improved during the first half of 2026, signalling rising occupier confidence. At the same time, supply growth continues to moderate, with space under construction falling 16.5% year-on-year and completions down 15.1%, reducing the volume of new stock entering the market.

“This is increasingly a market defined by supply discipline rather than demand weakness,” said Edward Plumley, director, EMEA capital markets and co‑head of the industrial & logistics practice group at Colliers. He noted that capital continues to target logistics assets across Europe’s core hubs, but investors are competing for a limited pool of scalable opportunities, making market and asset selection more critical as pricing and rental trends diverge.

The regional vacancy rate remained stable at 5.8% for a fifth consecutive quarter, suggesting the market is approaching an inflection point. More locations now expect vacancy to decline over the coming year than anticipate further increases, with occupier conditions gradually shifting back in favour of landlords, particularly in supply‑constrained markets.

Prime logistics rents increased 3.6% year-on-year across the region in H1 2026. Although rental growth has moderated from previous peaks, constrained new supply and continued demand for modern, high‑quality space are supporting rental performance, with urban logistics assets among the strongest performing segments.

Investment activity remained resilient, with the industrial and logistics sector accounting for €12.3 billion of transactions in H1 2026, representing 15% of total EMEA real estate investment volumes. However, deal flow continues to be constrained by limited asset availability, while capital expenditure requirements, fit‑out costs and construction pricing remain key considerations for investors.

Faustino Musicco, head of capital markets Italy and co‑head of the industrial & logistics practice group at Colliers, said improving occupier fundamentals and a more constrained supply pipeline are reinforcing investor confidence. He highlighted strong demand for high‑quality assets across major European hubs, from the Benelux and Germany to Italy, Spain and Poland, where supply constraints and occupier demand are supporting long‑term rental growth.

Investors are becoming increasingly selective in their deployment strategies. Alongside continued demand for big‑box logistics and last‑mile facilities, interest is growing in industrial outdoor storage (IOS) and truck terminal assets, supported by limited supply and their strategic role within logistics networks. Pricing trends are also becoming more differentiated across Europe, with some markets seeing yield softening in Q2 2026 amid financing costs and geopolitical uncertainty, while others continue to record compression.