• Investor and developer confidence strengthens as 41% of occupiers anticipate expanding warehouse space in the next year, an increase of 12 percentage points compared to last year
• Occupiers prioritise mid-box units, yet only 25% of developers are speculatively building this size, focusing instead on larger big-box units over 10,000 sq m
• More than 8 in 10 occupiers identify ESG regulation and AI as game-changing trends, with AI adoption surging by 25% year-on-year

Brookfield Properties, Savills and Analytiqa have launched the fifth annual European Real Estate Logistics Census, highlighting how developers and investors are stepping up activity in anticipation of a rebound, while occupiers remain measured in their growth strategies. The survey of 715 investors, developers and occupiers across Europe reveals:

Confidence grows as occupiers rebound

Investor sentiment continues to improve, with 46% believing market conditions are more favourable than a year ago and 56% expecting investment volumes to rise in the next 12 months. Developers are also stepping up activity, with 36% planning to speculatively build more space, a 12-point increase from last year. This confidence reflects cautious optimism from occupiers, 41% of whom expect their warehouse space requirements to grow in the coming year, even as 57% have scaled back expansion plans.

Developers seek opportunity in Western Europe

Western Europe continues to drive growth, with occupiers planning to expand most actively in continental Europe and particularly in Germany and France. Two-thirds of occupiers are targeting mid-box units between 5,000 and 9,999 sq m. Developers, however, are concentrating more on larger big-box footprints, signalling a divergence between occupier requirements today and the spaces being prioritised for future delivery.

ESG and AI reshape strategies

Occupiers are actively seeking more efficient and resilient facilities. ESG regulation is now viewed as the single most significant structural shift, with 88% of occupiers rating it a game-changing trend. At the same time, momentum behind AI is accelerating rapidly. A striking 82% of occupiers see AI as transformational, representing a 25% jump from last year. Over a third have already invested in predictive optimisation and analytics technologies, and nearly half plan further investment within the next two years.

Ben Segelman, European Head of Logistics and Data Centre Real Estate, Brookfield, said: “We are at a strategic inflection point in the logistics market. Investors are doubling down on long-term fundamentals and proactively creating the spaces they believe occupiers will need in the years to come. Occupiers remain cautious, recalibrating in response to macro and operational pressures, yet they are actively shaping strategies around ESG and AI to futureproof their portfolios. The next 12 to 18 months will be pivotal in aligning demand with the right kind of space.”

George Coleman, UK & EMEA Logistics, Savills, added: “This year’s Census, which achieved record response levels, underlines how structural shifts are shaping the next chapter of logistics real estate. ESG and AI are no longer emerging trends but central to occupier strategies, while investors and developers are positioning to deliver the space needed for this transformation. The sector continues to adapt with resilience and is building solid foundations for long term sustained growth.”

Read the full European Real Estate Logistics Census here: https://www.brookfieldproperties.com/en/our-businesses/logistics/europe/ 

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