Logistics Capital Markets

Rapid repricing helped the market to find its way back to moderate growth in some areas. Investment in industrial premises and logistics reached €42bn in 2024, +23% compared to last year. Industrial & logistics investment hit its lowest point in 2023 and returned to growth in 2024. This reflects an improvement in financial conditions. Further adjustments by central banks to key interest rates are expected in 2025 before they stabilise.

“Deals may take longer to conclude but demand is starting to pick up in most markets, with the return of large portfolio deals in the UK, France, Spain, Germany and the Netherlands. American and Asian investors are showing a lively interest in the European market, particularly Germany”, says Craig Maguire, Head of European Logistics at BNP Paribas Real Estate.

• In the United Kingdom, industrial and logistics investment in 2024 reached its 10-year average. The situation began to improve in mid-2024 with clear signs of disinflation. Prime yields are now holding firm at 4.5%.

• In Germany, industrial and logistics investment has been increasing steadily since the beginning of the year and confirmed its top position among asset categories, accounting for 27% of overall commercial real estate investment. The pricing adjustment process with the changed interest rate environment is complete and demand from foreign investors is strengthening. Prime yields remained stable at 4.25% in the main logistics locations.

• In France, investment in industrial and logistics has been performing well compared to retail and offices. Logistics investment increased significantly in 2024 boosted by the return of large portfolio transfers. The logistics prime yield stabilised at 4.90%.

• In the Netherlands, investment in industrial and logistics increased steadily in 2024. There was high demand for properties that offered reversion potential through unlocking steep rental increases. The logistics prime yield stood at 4.75% in 2024.

• In Spain, investment in industrial and logistics increased significantly in 2024. Development activity remains healthy with investors and developers seeking to acquire land to build new logistics platforms. After expanding by 155 bps over two years, the prime logistics yield contracted by 40bps in 2024 to 4.85%.

• In Poland, investment improved over H2, reflecting better market sentiment. Industrial and logistics remains the strongest performing asset category. The prime yield adjusted to 6.25% in Q4 2024.

Discover more about the volumes per country, take ups, and prime rents in Europe.