The European logistics market is transitioning into a more selective phase of the cycle, with occupier demand remaining resilient but increasingly focused on higher-quality, operationally capable assets, according to the 2026 European Logistics Survey produced by BGRE, formerly Brookfield Properties, and Savills.
Overall sentiment remains positive, with over a third (38%) of occupiers reporting improved business conditions over the past year and only 8% expecting deterioration. At the same time, 47% anticipate growing their warehouse footprint over the next one to three years, although 54% also expect to vacate at least one building, underlining a shift towards portfolio optimisation rather than pure expansion.
Drawing on responses from more than 600 industry participants, the report finds that while decision-making timelines have lengthened, underlying demand remains intact. Instead, occupiers are becoming more discerning, using lease events to upgrade portfolios, consolidate networks and move into more productive facilities. (....)