The correction in European logistics asset values that began in 2022 appears to have largely run its course, offering an attractive entry point for investors into the sector, says Clarion Partners.

In a white paper on the market, the manager says logistics asset values have rebased and some markets are starting to show early signs of yield compression, while market fundamentals remain solid.

With demand conditions stabilising, Clarion Partners believes 2025 is an “inflection year” offering a “potentially compelling entry point into a new cycle”. With a resent in values, it says occupier activity also appears poised for recovery in the favourable context of declining European interest rates as well as positive economic growth.

“In 2024, demand began to normalise from the pandemic-induced frenzy of 2021–2022, which brought forward occupier usage,” says the paper. “High interest rates and economic uncertainty have weighed on corporate decision-makin