European logistics achieve balance amidst rental growth and yield shifts

Catella Research's Q2 2025 European Logistics Market Overview indicates a balanced logistics real estate market with moderate rental growth and slightly declining yields. 

Catella logistics map

The increasing demand for space is attributed to nearshoring and reshoring trends driven by global trade conflicts and economic shifts, emphasizing shorter supply chains.
The average prime yield is 5.42%, with potential for slight further compression, especially in markets like France (Lyon, Marseille, Lille), Germany (Berlin, Munich), Poland (Warsaw, Wrocław), Hungary (Budapest), and Slovenia (Ljubljana). The highest net initial yields are in Ljubljana (8.75%) and Oulu (8.25%).
The average prime rent is €8.10/m2 per month. London (€27.50/m2), Zurich (€16.50/m2), and Oslo (€15.50/m2) have the highest rents, reflecting strong demand in metropolitan areas. Wrocław has the lowest prime rents at €4.50/m2.
Slovakia (75.5% exports, 75.8% imports) and Slovenia (63.0% exports, 62.0% imports) show the highest trade dependency. The UK has the lowest trade dependency (14.1% exports, 22.4% imports) but records the highest logistics rents and transaction volumes.
Lars Vandrei, head of Research at Catella Investment Management, explained: “Prime rents for logistics properties in Europe had already been climbing steadily for a long time before they surged with the outbreak of the war in Ukraine. Following the interest rate turnaround, investment activity cooled noticeably – yet at the same time logistics assets caught up with the office sector on the investment market and today rank among the key pillars of the commercial real estate industry.”
Marten Helms, senior fund manager Europe at CIM, commented: “Overall, we are seeing stabilisation in the markets. Given the unprecedented uncertainties in global trade, it is all the more important to monitor trade flows closely, identify regions with potential at an early stage, and at the same time maintain our commitment to sustainable assets. At present, we see an attractive window for counter-cyclical investments in the European logistics real estate markets.”