EQT Real Estate: High-yield dynamics and development focus

At EXPO REAL, Joerg Kreindl, partner and head of Leasing and Occupier Solutions at EQT Real Estate, sat down with CRE Media Europe to discuss the momentum behind EQT's logistics platform, shifting occupier trends across Europe, and the evolving sentiment within the commercial real estate market.

Joerg Kreindl

EQT remains actively acquisitive across major European markets, targeting both standing assets and strategic land plots for ground-up development.

While EQT maintains a presence across all core European territories, Kreindl highlighted four markets driving exceptional momentum in both tenant demand and investment liquidity.

Spain is currently one of the most dynamic markets in Europe for occupier demand and capital movement.

Italy follows closely with strong activity and expanding transaction volumes.

Despite macroeconomic headwinds, structural demand for modern, institutional-standard warehouse space in Germany remains high.

Poland is rebounding strongly with a sharp uptick in recent activity levels.

Occupier drivers

Online retail logistics demand has accelerated markedly over the past 12 to 15 months, while there is a noticeable influx of Chinese 3PL providers and e-commerce platforms establishing a footprint in Europe, according to Kreindl.

While EQT does not specifically target defence, tenants servicing the defence ecosystem are expanding their footprint and contributing to overall market take-up.

Additionally, ongoing supply chain reconfiguration continues to drive localised industrial demand.

Optimism meets pragmatism

Compared with previous years, Kreindl noted a clear shift in market psychology. A realistic acceptance of tighter capital markets and reduced debt availability has replaced past uncertainty.

This "new reality" is fostering a more pragmatic environment, allowing market participants to structure creative, rational partnerships that align with current cost-of-capital conditions.

Strategic development and portfolio expansion

With existing prime big-box inventory rapidly being absorbed, EQT expects to initiate new developments in select, supply-constrained locations.

The firm continues to evaluate larger portfolio acquisitions alongside granular, single-asset investments.

Branislav Pekic