The European logistics market enters a new phase defined by stabilisation rather than expansion. Following a period of rapid repricing driven by higher interest rates, tighter credit conditions, and a wave of new supply, fundamentals are gradually rebalancing across key markets. While demand has moderated from peak levels, it remains underpinned by structural drivers such as e-commerce penetration, supply chain resilience, and the ongoing need for modern, efficient distribution networks.

Geopolitical uncertainty continues to influence global trade flows, reinforcing the importance of regional supply chains and inventory buffers. This is supporting demand for well-located logistics assets, particularly in core urban and last-mile locations where flexibility and speed-to-market remain critical. At the same time, occupiers are becoming increasingly selective, prioritising high-quality, ESG-compliant space that can support long-term operational requirements.

On the investment side, sentiment is gradually improving as pricing stabilises and yield adjustments near completion. While capital deployment remains measured, constrained development pipelines and limited availability of prime stock are helping to underpin asset values in key markets. Looking ahead, markets with strong fundamentals – characterised by disciplined supply growth, robust occupier demand, and strategic connectivity – are well positioned to benefit from the next phase of recovery.