Summary
After a strong expansion phase, logistics real estate in Europe is seeing a temporary pause in leasing activity, driven by elevated uncertainty and tighter financial conditions. While activity has slowed, tenant demand remains resilient, with delays reflecting caution rather than weakness.
- Leasing has slowed, but tenant interest remains firm — delays are driven by uncertainty, not structural weakness.
- New development is pulling back sharply due to rising costs, easing future supply pressures.
- Modern quality logistics assets are set to lead the next cycle, supported by strong fundamentals and a shift away from outdated grade B stock towards modern, sustainable grade A facilities.