A powerful combination of global supply-chain risk, a shifting geopolitical backdrop and regulatory changes from the European Union have led to more Asian businesses with European customers nearshoring their production to Europe in recent years. This has ramped up demand for industrial and logistics space, providing investment opportunities for real estate investors in the process.

Nearshoring demand drivers

Nearshoring is a trend that has been rapidly gathering pace in recent years, spurred by COVID-induced lockdowns, the Suez Canal shipping blockage in 2021 and international political tensions. The trend is also expected to gain further momentum following the US presidential reelection of Donald Trump, with the new incoming government set to adopt more protectionist economic policies, which could be mirrored elsewhere and push more international businesses to produce goods in the regions where they will ultimately be sold. Together, these factors hav