Clarion Partners has been a leading real estate investment manager for more than 40 years, using the judgment of our experienced professionals as well as our proprietary research to design real estate investment solutions that create value and have the potential to deliver superior returns. We are distinguished by a performancedriven approach, long-term organisational stability, and a mandate of accountability to our clients.
With $73.6bn in total assets under management for approximately 500 institutional investors around the world, Clarion offers a broad range of equity and debt strategies across the risk/return spectrum – from core/core-plus to value-add/opportunistic. The firm, which is headquartered in New York, has over 350 employees and maintains a presence in strategic markets across the United States and Europe. Our strength lies in a well-established network of experienced professionals who bring a deep knowledge of local markets to every investment decision.
As a subsidiary of Clarion Partners, Clarion Partners Europe (CPE) operates out of offices across Europe, including London, Jersey, Frankfurt, Madrid, Amsterdam and Paris. CPE is supported by Clarion Partners’ scale, infrastructure, expertise, and proprietary research, while operating separately with its own management and investment teams and remaining a truly European business focused exclusively on European logistics assets.
With a nearly two-decade track record acquiring, managing, and developing high-quality logistics real estate concentrated around Europe’s largest and strongest markets, CPE is a partner of choice for businesses of all shapes and sizes requiring industrial space to meet rapidly evolving customer and consumer demand.
Sector forecasts
LOGISTICS: Capitalising on the New European Logistics Cycle
The European logistics market is entering a new phase. Following the extraordinary surge in occupier demand during the pandemic, activity has normalised and vacancy rates have edged higher. Yet beneath this cyclical moderation, the sector’s long-term appeal remains intact. Logistics continues to benefit from powerful structural drivers that underpin both income resilience and growth — a rare combination in today’s real asset universe. Three key themes are set to define this next cycle.
Reduced Pipeline
Market fundamentals remain sound, supported by relatively low vacancies and a shrinking development pipeline. As of 3Q 2025, European vacancy stood at 5.5%, with core markets such as Germany and the Netherlands still particularly tight, highlighting the depth of demand in established locations. Crucially, active development suggests that most markets are nearing peak vacancy levels, implying limited supply-side pressure ahead. Speculative construction now accounts for only around 1% of total stock in core markets, while overall logistics stock expanded by just 4% year-on-year in June — the slowest pace in over a decade. This moderation in new supply provides a constructive backdrop for rental stability and renewed growth.
Flight to Quality
Occupier demand continues to concentrate on modern, high-specification assets that combine operational efficiency with sustainability. Roughly three quarters of 2024 take-up was in newly built space, reflecting a clear preference for properties offering advanced automation, greater clear heights, and superior energy performance. According to CBRE, 65% of occupiers are willing to pay a premium for net-zero ready facilities. Grade A vacancy in core markets remains below 3%, underscoring the scarcity of best-in-class space and supporting rental growth for modern portfolios.
Return of E-Commerce
After two years of relative inactivity, e-commerce occupiers have made a welcome return to the leasing market. Online sales in major economies such as France and the UK have rebounded to near pandemic-era highs, while Southern Europe offers further upside as digital adoption deepens. Even under a conservative 5% annual growth scenario, Clarion estimates incremental demand could reach 1.3 million sq m per year across Europe’s six largest markets — equivalent to about 10% of historical average absorption. Alongside this, structural forces such as nearshoring, reshoring, and supply-chain modernisation continue to reinforce long-term demand
Liquid Capital Markets
Capital markets have stabilised, supported by improved debt liquidity, firm asset values, and enduring investor appetite. Transaction volumes remain robust, with €8.6 billion transacted in 3Q and €26 billion year-to-date — ahead of pre-pandemic averages. Germany, the Netherlands, and Spain each recorded near-record volumes, while pricing metrics indicate stability: prime yields were unchanged in CBRE’s October yield sheet and Green Street’s industrial index rose 0.8% in 3Q. Investor appetite for logistics remains among the strongest across all real estate sectors.
Outlook
European logistics remains underpinned by strong fundamentals and a resilient rental growth profile. With asset values stabilising, liquidity improving, and occupier demand recovering, this is an opportune moment to re-engage with the sector. Investors should focus on modern, future-ready facilities that combine sustainability with operational excellence. As supply chains become more technology-driven, portfolios aligned with these evolving requirements will be best placed to capture a recovery and deliver superior long-term performance.
This material does not constitute investment advice, nor does it constitute an offer of any product or service from Clarion Partners LLC or Clarion Partners Europe and should not be viewed as a current or past recommendation to buy or sell any securities. Investment in real estate involves significant risk, including the risk of loss. Investors should consider their investment objectives and risk tolerance before investing.
Investment principles & strategy
Experience has taught us that attractive investment opportunities can be identified at every phase of the real estate cycle. Clarion Partners invests in high-quality assets across key property types in major markets throughout the US and specifically targets logistics facilities across Europe. We carefully screen each acquisition using in-depth research and rigorous due diligence, focusing on properties that compete effectively over time and are located in markets with consistent capital market liquidity.
Strategic corporate development
Clarion Partners offers investment options in both commingled fund and separate account formats for institutional investors. Clients can select from a broad range of debt and equity investment options to build their real estate portfolios, including diversified core portfolios, sector-specific accounts, core, core-plus and value-add products as well as opportunistic vehicles. Going forward, we will continue to build our business by offering our clients real estate solutions that have been tailored to support their objectives and that capitalise on current market opportunities.
Performance verification
Certain funds in the US private equity sector measure their performance against NCREIF Property Index, the most widely used benchmark for private equity real estate institutional investments, as well as the NCREIF ODCE Fund Index. Investments in other real estate sectors measure performance against benchmarks specific to their sector and strategy.
COMPLIANCE STATEMENT
Statements regarding forecasts and projections rely on a number of economic and financial variables and are inherently speculative. Forecasts relating to market conditions, returns and other performance indicators are not guaranteed and are subject to change without notice. There can be no assurance that market conditions will perform according to any forecast. Past performance is not a guarantee of future performance. Information contained in this report, including information supporting forecasts and projections, has been obtained or derived from independent third-party sources believed to be reliable but Clarion cannot guarantee the accuracy or completeness of such information. This is not an offer to sell, or solicitation of an offer to buy, securities. This information is intended for use by qualified recipients only.
