The European logistics real estate market continues to show dynamic development. Demand from tenants is increasingly focusing on properties characterised by higher quality and improved performance. This is according to the “European Logistics Survey 2026”, a study by Savills and BGRE (formerly Brookfield Properties). The survey is based on feedback from over 600 industry representatives and illuminates current trends and future expectations.
General sentiment within the logistics sector remains stably positive. 38 per cent of surveyed tenants stated that business conditions had improved over the past year, while only 8 per cent expect a future deterioration. Regarding space requirements, 47 per cent of companies plan to expand their warehouse space in the next one to three years. In parallel, 54 per cent intend to vacate at least one existing building, indicating a strategic portfolio optimisation rather than a pure expansion strategy.
Demanding Tenants and a “Flight to Quality”
Although decision-making processes for new spaces have lengthened, the underlying demand persists. Tenants are becoming increasingly discerning and are utilising lease renewals to modernise their portfolios and relocate to more productive sites. The results demonstrate a clear “flight to quality”, with almost half of users preferring new-build or bespoke spaces. 19 per cent of respondents consider existing properties.
Crucial factors in selecting prime logistics spaces include electricity availability, building fit-out, access to skilled labour, and the adaptability of the property. Power supply, in particular, is gaining significance: 89 per cent of users anticipate increasing demand, and more than a quarter already report insufficient capacities in their current properties.
Market Stability and Selective Demand
Jan-Niklas Rotberg, Managing Director and Head of Agency Germany at Savills, summarises that the market is slowing down but not weakening. He emphasises that leasing activities continue to be supported by structural factors such as supply chain resilience, nearshoring, and the need for more efficient distribution networks. This has kept take-up robust even in a more challenging economic environment. Modern, well-located, and adequately powered buildings continue to generate strong demand, while older or less functional properties are losing relevance.
Ben Segelman, Head of Europe Industrial & Logistics at BGRE, adds that demand for logistics space across Europe remains stable but is acting significantly more selectively. Users are no longer just looking for space, but for properties that support complex, technology-driven operations and ensure long-term efficiency. This leads to a continued preference for quality, with properties boasting the right performance, fit-out, and connectivity being better positioned. For investors and developers, the opportunity lies in providing properties that meet these precise requirements. The study also points to a mismatch between rising user demands and development projects, as demand for highly specialised, often large-format buildings is highest, yet developers are increasingly focusing on smaller and medium-sized projects.
- —Great Britain, Spain, and Germany lead the ranking for investors.
- —France, Germany, Italy, the Netherlands, and Spain are top markets for users.
