SIOR: Navigating market resilience and cautious optimism

As the European real estate industry heads to Munich for EXPO REAL 2026, the backdrop remains one of geopolitical and economic uncertainty.

Matthew Leguen de Lacroix

That said, 2026 has also been a year of growing resilience, which is expected to continue into 2027, Matthew Leguen de Lacroix, head of Business Development EMEA at the Society of Industrial and Office Realtors (SIOR), told CRE Media Europe.

According to him, energy security, digital grids, and streamlined logistics networks are increasingly inseparable from modern asset value, even as decarbonization and tech integration continue to redefine occupier demands.

European office and industrial sectors

Insights from a recent Spring 2026 partnership study between SIOR’s European chapter and the University of the Built Environment (UBE) reveal cautious optimism underpinned by a sweeping "quality reset." Performance is increasingly dependent on ESG compliance, data transparency, and professional capability.

Current demand in the European office sector is concentrated on well-located, high-quality buildings. Limited new supply in many major markets is supporting prime rents, while older and less competitive properties continue to face challenges.

Industrial and logistics are showing stronger momentum, bolstered by improving occupier demand and limited new supply. Modern, efficient and well-located facilities remain in high demand, with power availability, sustainability and automation increasingly important considerations.

Looking ahead

While the market has not returned to the conditions of the previous cycle, according to Leguen de Lacroix, it has moved beyond uncertainty and is showing increasing resilience. It is cautiously constructive, with a commitment to sustain and build activity, albeit gradually.

As SIOR looks to grow its network across Europe, key markets including Germany, the Netherlands and the UK will be areas of focus. “We expect office recovery will continue and remain concentrated on prime assets, while being influenced by supply and demand in regional markets. Industrial and logistics, on the other hand, should benefit from constrained supply and demand for modern facilities as across both sectors, the divide between prime assets and secondary stock will continue to widen,” he added.

Finally, AI and automation will certainly be one to watch. The SIOR Europe/UBE survey found uneven AI adoption and caution due to credibility and governance concerns.

Overall, Leguen de Lacroix expects conversations at EXPO REAL to explore where opportunities can be harnessed, and challenges overcome to sustain and build momentum.

Branislav Pekic