EMEA industrial and logistics market proves resilient

The European Industrial & Logistics (I&L) sector is proving resilient amidst ongoing global market fluctuations, which are increasingly seen as a permanent feature of the economic landscape. 

EMEA logistic hubs - Colliers

Improved demand from occupiers and renewed investor confidence are driving increased market activity, according to the latest research from Colliers.
While overall transaction volumes in EMEA reached €18.2 bn in the first half of 2025 (24% below the five-year average), this figure doesn't tell the whole story. There's been a rise in indirect investment, including recapitalizing existing ventures and institutional acquisitions of platforms and portfolios. Investors are moving away from distressed assets towards stable, income-generating "core" and "core-plus" properties.
Cross-border investors remain key, particularly in large logistics deals, favouring established, income-producing hubs. Sale-and-leaseback arrangements are also gaining traction, allowing owner-occupiers to free up capital while offering investors long-term stable income.
The source of investment capital is diversifying. While U.S. capital previously dominated, its activity has decreased. Canadian and APAC investors are now increasing their allocations to EMEA, leading to a more varied and liquid capital base that could support future yield compression and trading.
Western Europe continues to be the primary investment destination for I&L, with the UK (33%), Germany (16%), France (11%), and the Netherlands (7%) collectively accounting for two-thirds of total investment over the past year.
After a significant adjustment in 2022, I&L capital values remained stable through 2023. They began to rise in the second half of 2024, driven by increasing rents and yield compression. Over the last year, the I&L capital value index grew by 6.4%, with a more modest 2.3% increase in the past six months. By mid-2025, over half of tracked markets had stable prime I&L yields for at least six consecutive quarters, though some markets are seeing continued yield compression while others experience outward movement.
A significant shift is occurring within the European I&L sector due to Europe's renewed focus on defence and rearmament. This is expected to generate strong demand for specialized facilities such as advanced manufacturing plants, secure logistics hubs, data centres, and large-scale industrial outdoor storage.