Heading into 2026, the European industrial and logistics market is gaining strength and confidence. Occupier sentiment is picking up across key markets. The rebound isn’t dramatic but it’s real and if it continues we could see a stronger upswing in demand across core markets. 

The market is finding a steadier, more balanced footing and building a solid foundation for growth.
Near-shoring is one of the clearest drivers of demand. More Asian manufacturers are bringing parts of their supply chains to Europe, giving the market a reliable base of activity. It doesn’t solve every challenge, but it’s creating a stronger floor than we’ve seen in recent years. 

Defence activity is also gaining momentum, particularly in Germany, the UK and Sweden, and that looks set to stay an important factor in 2026. E-commerce is showing signs of life again. Amazon has been active with new enquiries across multiple countries, and historically when Amazon moves, the wider market tends to follow. That could give the recovery an extra boost and signal broader occupier activity is on the way.

Supply is shifting too, with new construction slowing and fewer projects completing. Even a modest increase in demand could start bringing vacancy rates down, especially for modern, ESG-compliant grade A assets. Landlords might not see headline rents jump immediately, but incentives are likely to come down first, giving well-positioned owners more leverage. 

The investment market is looking brighter as well. Sellers are becoming more realistic, financing is a bit more competitive and more deals are starting to close. Core capital is returning, mostly at smaller lot sizes for now, and that is likely to broaden as fresh valuation evidence emerges in early 2026.

The recovery isn’t uniform across Europe, but the overall direction is positive. The market is moving toward a more active, better-balanced year, with opportunities for landlords, investors and operators who are paying attention to how demand, supply and sector trends are evolving. 2026 looks set to be a year where steady growth and strategic positioning can really pay off.