European logistics demand to grow over next 12 months

Research from CBRE indicates that an impressive 96% of logistics occupiers surveyed plan to seek as much or more space in the next year as they did in the previous year. 

Logistics - CBRE 

Notably, this trend intensified after the introduction of new U.S. trade policies, suggesting a potential reaction to temporary supply chain disruptions.
Looking further ahead, occupiers are more hesitant, with 46% anticipating expansion over the next three years, primarily driven by third-party logistics and post and parcel companies. Manufacturing firms, despite their recent increased market activity, are the most cautious, with 19% planning to reduce their real estate holdings.
This competitive environment means occupiers are considering a wider range of factors when choosing locations and buildings. Location selection criteria have expanded from five key factors in 2024 to seven in 2025, while building selection criteria have grown from four to five.
While real estate costs were a top priority in 2023, labor availability and cost are now the primary location considerations, followed by real estate availability. At the building level, real estate cost remains paramount, but sustainability features and power supply are gaining significance.
Occupiers are showing a strong preference for net-zero ready facilities (65% willingness to pay) over simply green-certified properties (47%), reflecting the widespread goal of achieving net-zero property footprints by 2030.
Dr. Carl Deppisch, head of European Industrial & Logistics, Occupier, commented: "Occupiers’ medium-term expansion plans have moderated, which is a natural response to the geopolitical uncertainty and macro challenges at play. However, our research shows us that the occupier community is resilient, and while difficult to justify bold expansion plans, they are finding ways to adapt to the current environment. Occupiers now have more choice than in the pandemic years, marking a window of opportunity to use their newfound negotiating power to renew leases or upgrade their warehouses. Occupiers want to see physical advantages as opposed to achieving a certification. Heat pumps and battery storage are but a few ESG considerations that directly translate to business benefit."
Jack Cox, head of European Industrial & Logistics, added: "When choosing both where to take space, and which space to take, occupiers have become more selective. Real estate cost has given way to broader, business strategy factors, in response to executive leaderships' desire to optimize portfolios and maximize business outcomes."