A paradigm shift in geopolitics has fractured the global trading system. In the logistics context, this means potentially additional sources of demand as governments increase domestic defence spending and manufacturing firms bring production closer to home to minimise disruption to supply chains.
Although cyclical-driven occupier demand may soften in the short term as the Middle East conflict weighs on economic growth, the structural dynamics that underpin logistics remain intact. Technology and urbanisation continue to underpin growth in ecommerce, supporting logistic tenant demand in key urban centres and selected logistics hubs across Europe. There is also the added tailwind of additional competition for best-in-class stock, as occupiers expand their portfolios to predictably service their end markets and preserve market share.
In addition to the broad-based effects of nearshoring, the occupier mix is also likely to expand considerably as a renewed emphasis on domes
