A wall of overseas capital is ready to be deployed into UK industrial and logistics assets in 2025 as the sector continues to outperform the wider commercial real estate market, according to Lambert Smith Hampton.

The property consultancy’s Keeping the Faith report identifies a groundswell of demand and says any knock to sentiment from global economic and geopolitical volatility — including US President Trump’s new tariffs — is likely to be short-lived. Sound fundamentals in the occupier markets and robust structural drivers will underpin the sector’s continuing outperformance, argue the report’s authors. Although supply is running ahead of demand, the market has returned to a healthier balance, equivalent to the pre-COVID-19 crisis position, they add.

2024 ended strongly, with an industrial and logistics investment volume of £2.7 billion (€3.2 billion) in the fourth quarter, driving the annual total to £8.2 billon (€9.6 billion), the fourth