Expo Real 2025 to mark resurgence in transactions - W.P. Carey

W. P. Carey's head of European investments, Christopher Mertlitz, anticipates that Expo Real 2025 will mark a resurgence in real estate transactions, following a period of market sluggishness. 

He notes that evolving trade dynamics and significant European infrastructure projects are redirecting capital, particularly into manufacturing and logistics real estate, creating both urgent needs and new opportunities.
Mertlitz observes a mixed macro landscape. Germany's key industrial sectors face long-term challenges in competitiveness, energy transition, and modernization. However, there are also positive shifts driving investment towards next-generation logistics, fuelled by infrastructure spending, reshoring of industries, and a renewed focus on capital efficiency. 
Growing tariff threats and trade tensions are pushing companies across Europe to prioritize supply chain resilience and local logistics. For export-oriented businesses, these changes demand financial flexibility. Since traditional debt is harder to obtain, sale-leaseback transactions are becoming a vital strategic alternative, not only for accessing liquidity but also for safeguarding operations in an unpredictable, increasingly protectionist environment.
Mertlitz points out: “We expect deal activity across Europe to accelerate into the second half of 2025. Liquidity constraints remain, but the appetite for flexible, non-dilutive capital is growing – particularly among mid-sized, family-owned firms and private equity sponsors. Corporate refinancing efforts are also contributing to deal flow, as businesses prioritise capital optimisation. This trend is prevalent across all of Europe, highlighting the cross-border appeal of sale-leaseback transactions.”
W. P. Carey's current deal pipeline includes logistics, food production, light manufacturing, retail, and other specialized assets, offering fast execution, deal certainty, and partnership with a capital provider that understands both the property and the tenant's business.
Key sectors to watch, according to Mertlitz, include industrial and warehouse properties, driven by resilient demand from supply chain reconfigurations and onshoring. Food production and processing facilities are also seeing strong activity, particularly for upgrades and modernization. Food retail formats continue to perform well due to stable consumer demand and operational resilience. 
Mertlitz concludes: “Sustainability is no longer optional and is on every investor’s radar. Amidst rapidly changing ESG regulations across Europe, companies are under pressure to retrofit and upgrade aging assets – sale-leasebacks can help here as a financing model.”