Take-up
Take-up rose by 10% in the leading European markets. Demand strengthened in the UK, Spain Germany, Poland and Italy, whilst take-up dropped in France and the Netherlands.
The market was mainly driven by 3PLs, representing nearly 50% of total take-up over the past twelve months in the main countries in Europe. Rents rose by 2.7% in Q1 2026.
Prime rents
Prime rents rose by 2.7% during Q1 2026 (y-o-y) in a panel of 45 markets covering 21 countries.
Inflation and high construction costs were strong contributors to rental growth between 2020 and 2023.
In Q1 2026, some cities continue to see rents expand but overall, the market slowdown over the past two years resulted in limited rental growth in most markets.
Investment
Overall, the Middle East crisis and its share of uncertainties has cooled investors’ confidence.
Long-term government bond yields increased on average by 25bps in Europe during Q1.
Stable overall in Europe, prime logistics yield movement ahead will depend on the ECB’s decisions on its policy rates and its impact on 10-year government bonds
Prime Yields
Logistics prime yield expansion over the past two years had ceased with moderating inflationary pressure and long-term government bond yields hitting a ceiling.
During Q1 2026 long-term government bond yields increased on average by 25bps in Europe. With higher bond yields and moderate rental
growth, price adjustments have been recorded in France, Germany and the UK.