A Moderating Market, not a Retreat
Industrial markets globally are coming off a historic high. Although leasing activity has slowed, the adjustment has been measured and, despite short-term turbulence, is set to continue to be buoyed by long-term drivers of demand.
Redefining Value
Occupiers and investors alike are recalibrating what constitutes value. Functional efficiency, connectivity, ESG compliance, energy availability and labour access all go into the mix, alongside real estate costs including rent. This has implications for supply chain design, site selection, and portfolio strategy.
Capital Flows in Flux
As capital markets adjust to higher interest rates, liquidity has become more selective. Yet long-term investor confidence remains strong, especially in core logistics markets and infill locations where fundamentals continue to support future growth.
Global trade and consumption growth have become major drivers of logistics demand, and Southern Europe —with Spain at the forefront— is clearly benefiting from the nearshoring trend. The country’s competitive labour costs and geographic proximity to key European markets have positioned it as an attractive alternative for logistics and manufacturing activities.
While many European markets currently favour tenants, forecasts over the next three years suggest a gradual shift towards landlord-friendly conditions. Around 40% of EMEA markets are showing signs of stabilisation compared to previous years, reflecting a more balanced landscape.
Availability of space is expected to stabilise in 38% of EMEA locations, while 33% of respondents foresee an increase in supply and the remaining 29% anticipate a decrease. When it comes to rental levels, 60% of European markets expect growth in the next three years, mainly fuelled by rising demand for strategically located, modern logistics facilities.
Spain stands out as a mid-range market in terms of logistics rental prices, making it a cost-effective alternative to more expensive locations such as London, Geneva, or Zurich. From a labour cost perspective, Spain ranks among the most competitive markets in the EMEA region, alongside several Southern and Eastern European countries.
One notable challenge across Europe is electricity cost. The continent holds the highest electricity prices globally, and Spain falls into the mid-to-high range. This could influence location decisions, particularly for energy-intensive operations.
Lastly, the sectors driving demand for logistics space include retail distribution, general manufacturing, automotive and components, cold storage for pharmaceutical and food products, and e-commerce, which remains a dominant force in the market’s evolution.
A waypoint marks a critical moment in any journey—a chance to pause, assess, and determine the best path forward. In today’s complex industrial landscape, Waypoint offers just that: data and insights to help investors, occupiers, and developers make confident decisions.
This report goes beyond showing where markets are today—it helps you understand the forces shaping their future. Whether you're expanding into new regions, rebalancing your portfolio, refining your occupational strategies or deploying capital with greater precision, Waypoint equips you with the clarity and perspective needed to make your next move count.
Download the full report to explore global patterns and regional strategies shaping the future of industrial real estate.
Senior Director, Americas Head of Logistics & Industrial Research, Global Research
Iselin, United States