The European logistics sector continues to experience robust demand and will deliver the most favourable risk-adjusted returns among the four major property types, says Clarion Partners.

In a white paper on the sector, the manager has identified ecommerce, shifting supply chains and a lack of modern stock as the main drivers of logistics returns in the near to medium term.

The paper’s authors — Indraneel Karlekar, Clarion Partners’ managing director and global head of research and strategy, and Bruno Berretta, head of research at Clarion Partners Europe — say that although occupier demand has softened in the current economic climate, the European economy seems to be headed for a “soft landing”. Therefore, they say, cautious optimism is warranted on the outlook for demand over the next six to 12 months.

“After years of double-digit growth, rental growth has moderated lately amid a normalisation of demand and an uptick in vacancies,” says the repor