The European logistics real estate market is currently experiencing a phase in which favourable market conditions and long-term growth drivers complement each other perfectly. Despite challenging macroeconomic conditions, the segment continues to be characterised by stable demand.

The fundamental drivers of the logistics market will remain strong in 2026. The continued growth of e-commerce, the expansion of urban logistics, the growing importance of the last mile and the increasing regionalisation of global supply chains are leading to a structural increase in space requirements. 

Companies are shortening transport routes and shifting value creation closer to their sales markets, which is further increasing demand for modern distribution, storage, and transhipment space. Properties with good transport links and flexible layouts are becoming increasingly important strategically. City logistics space that enables fast and efficient delivery to the last mile is particularly in demand.

At the same time, sustainability has become a key value driver. ESG-compliant buildings – especially energy-efficient properties with photovoltaics, heat pumps and modern building technology – lower operating costs, reduce CO₂ emissions and strengthen long-term competitiveness. Practical examples show how strongly these factors can influence property value: the installation of large-scale PV systems on logistics roofs creates immediate added value for users and owners alike and improves the carbon footprint of the portfolio.

One emerging region that investors should keep an eye on in 2026 is Italy – specifically a triangle in the north around Milan, Bologna, and Verona. The market offers attractive initial yields and steady rental growth. In Milan and Rome, net initial yields of around 5.5 to 5.7 per cent can currently be achieved. 

This puts both markets above the average prime level in the eurozone, which currently stands between 4.5 and 5 per cent. The rental level, which is still moderate by European standards, makes the Italian logistics market attractive for users. At the same time, investors can benefit from rent increases. Prime rents for logistics space in Italy have increased by around 5 per cent per year since the beginning of 2021.

Overall, 2026 looks set to be an attractive window of opportunity for the European logistics market: falling prices in the investment market are meeting structurally growing demand and a shortage of high-quality space in the core regions. This combination creates an attractive environment for long-term investors. 

Careful selection of locations and properties and the consistent integration of ESG criteria are crucial for success in order to secure stable returns and leverage value potential.