Summary

After years of rapid expansion, industrial real estate markets in the U.S. and Europe are facing a temporary slowdown in leasing, driven by macroeconomic uncertainty and tighter financial conditions. Yet underlying demand drivers remain intact, setting the stage for a strong rebound in modern logistics assets.

• Leasing activity has slowed, but tenant interest remains strong, with delays reflecting uncertainty rather than structural weakness.
• New development is declining sharply due to higher borrowing costs and construction inflation, reducing future supply risk.
• Class A logistics assets are expected to lead in the onset of the next cycle, supported by structural tailwinds and historical return outperformance over older stock in supply-constrained environments.