For decades, global supply chains were primarily designed around efficiency. Production was concentrated in the most cost-effective locations, inventories were minimized and logistics networks were optimized for speed and scale.
Recent geopolitical tensions, trade conflicts and supply chain disruptions have challenged this model. As companies rethink resilience, flexibility and security of supply, European logistics real estate is entering a new phase of growth.
The ongoing trend towards deglobalisation does not imply a reversal of international trade. Rather, companies are redesigning supply chains to reduce vulnerabilities and improve operational resilience. This includes diversifying suppliers, increasing inventory buffers and relocating selected production and distribution activities closer to end markets through nearshoring and reshoring strategies. These changes are creating new requirements for logistics infrastructure across Europe.
At the same time, logistics facilities are assuming a more strategic role within corporate operations. Warehouses are no longer simply storage locations. They have become critical nodes that enable companies to manage inventory, respond to changing demand patterns and ensure reliable product availability. Modern logistics assets increasingly require advanced automation, digital infrastructure, reliable power supply and strong ESG credentials. A significant share of Europe’s existing warehouse stock does not meet these requirements, creating an ongoing need for modern facilities.
The geography of this demand is far from random. Europe’s logistics market is structured around a network of major transport corridors that connect manufacturing centres, consumer markets, ports and distribution hubs.
The core European logistics corridor remains the backbone of continental goods flows. Stretching from the Benelux countries through Germany into Northern Italy, it links many of Europe’s largest population centres and industrial regions. Germany occupies a particularly important position due to its central location, extensive transport infrastructure and diversified economic base. Additional logistics corridors increasingly connect this core region with Northern and Eastern Europe, reflecting the ongoing evolution of European trade routes and supply chains. Switzerland also plays an important role as a transit hub connecting Northern and Southern Europe.
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