Logistics Census 2025: Optimistic Investors, Cautious Occupiers

Source: https://realassetinsight.com/2025/09/10/logistics-census-25-investors-positive-occupiers-cautious/  

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Logistics Census 2025: Investors Regain Optimism, Occupiers Exercise Strategic Caution

The European logistics market is entering a phase of realignment — balancing investor confidence with occupier prudence.

This is the main conclusion of the European Logistics Real Estate Census 2025, prepared by Savills, Brookfield Properties, and Analytiqa, which serves as a key barometer for the logistics real estate sector.

In an economic environment defined by interest rate adjustments, declining construction costs, and more tempered consumer demand, the report highlights a market transitioning toward balance and stability.

A Gradual Return of Confidence

After two years of volatility and uncertainty, overall market sentiment is visibly improving.

According to the survey, investors and developers are significantly more optimistic than in 2024, anticipating a rebound in investment activity and a stabilization of logistics asset values.

“Investors are positive again, and occupier sentiment is beginning to improve, although it has not yet translated into concrete demand,” explains Kevin Mofid, Head of EMEA Logistics Research at Savills.

This renewed confidence is underpinned by several structural factors:

• Stabilizing interest rates and a gradual reduction in the cost of capital
• Corrections in land and construction values, restoring feasibility to speculative projects
• Consistent demand for modern, sustainable, ESG-compliant infrastructure

2025 Survey Key Data

This year’s European Logistics Census attracted a record 715 respondents, including institutional investors, developers, logistics operators, and major retailers active across Europe.

Main findings include:

• 36% of developers plan speculative construction — up 12 percentage points from 2024
• €18 billion in investment volume during H1 2025 — only 8% lower year-on-year, showing signs of consolidation
• 46% of investors view the market as more favorable than last year
• 56% anticipate an increase in transaction volumes within the next 12 months
• 57% of occupiers have reduced expansion plans, though 41% expect demand to rise in 2026
• Only 4% of companies have completely halted development projects — an indicator of caution, not retreat

Operational Prudence and Maturing Decision-Making

While investor confidence returns, occupiers (industrial/logistics tenants) remain cautious.

Companies are focusing on optimizing existing supply chains rather than expanding aggressively, with decision-making cycles lengthening.

• Total leased space in H1: 11.9 million sqm (−6% vs. pre-pandemic average)
• Vacancy rate: 6.73% (up from a historic low of 3.2%)
• Average lease length: increasing, with stronger emphasis on flexibility and energy efficienc

Regional contrasts are evident:

• In Western Europe, mature markets such as Germany, France, the Netherlands, and Italy maintain vacancy levels below 3%
• In Central and Eastern Europe — including Poland, Czechia, and Romania — modern stock growth has led to a slight adjustment in occupancy, a natural consequence of the 2022–2024 development boom

Growth Drivers: Nearshoring, Sustainability, and Digitalization

A defining factor reshaping Europe’s logistics landscape is nearshoring — the relocation of production and distribution closer to end markets.

This trend particularly benefits Central and Eastern European countries, including Romania, due to:

• Proximity to Western Europe
• Competitive labor costs
• Ongoing infrastructure upgrades (A0 ring road, TEN-T corridors, new intermodal terminals)

Meanwhile, ESG criteria have become decisive. Occupiers are seeking energy-efficient facilities with photovoltaic panels, BREEAM or LEED certifications, and low-carbon solutions.

As a result, next-generation logistics buildings — flexible, sustainable, and digitally enabled — are emerging as preferred assets for both investors and tenants.

Western Europe: The Pillar of Stability

Western European countries continue to attract the largest investment volumes and set market benchmarks.

Germany, the Netherlands, France, and Italy lead investor preferences, followed by emerging markets such as Portugal and Czechia, which benefit from production relocations.

Romania is increasingly seen as a strategic regional logistics hub, especially along the Bucharest–Ploiești–Brașov corridor and in the Cluj–Turda–Târgu Mureș region, driven by e-commerce growth and 3PL operator expansion.

Conclusion: A New Cycle of Stability

The Logistics Census 2025 portrays a European logistics market that is mature, resilient, and selective.

Investors are cautiously optimistic, focusing on stable yields and the intrinsic value of high-quality assets.

Occupiers are strategically prudent, adapting to real economic dynamics while prioritizing efficiency and sustainability.

In the medium term, the sector’s fundamentals remain robust:

• Ongoing supply chain digitalization
• Growth of online commerce
• Increasing need for modern, green logistics infrastructure

Overall, logistics remains one of the most resilient and dynamic segments of the European real estate market — a cornerstone of the modern economy.