European logistics leasing activity up 20.5% year-on-year
According to Savills latest research, total leasing activity across Europe’s logistics market reached 14.01 million sq m in H1 2026, a 20.5% increase on H1 2025.
Italy (+56.9% year-on-year) and Spain (+62.8% year-on-year) were among the standout performers while France rebounded sharply in Q2, with take-up rising 154% quarter-on-quarter.
The international real estate advisor says that businesses are prioritising supply-chain resilience over pure cost efficiency, creating demand for nearshoring, friendshoring, defence-related manufacturing, and improved logistics networks. Occupiers are also consolidating portfolios into fewer, larger, and more efficient facilities. This means take-up can stay resilient even when net absorption is more modest, because the market is increasingly driven by strategic network decisions rather than simple expansion.
Sam Quellyn-Roberts, director in Savills EMEA industrial & logistics occupational markets team, says: “Recent geopolitical disruptions in the Middle East have further strengthened these trends. Rising fuel, energy, freight, and insurance costs have increased operational uncertainty, causing some manufacturers, retailers, and third-party logistics providers to delay expansion plans, consolidate facilities, or prefer shorter and more flexible leasing agreements. Meanwhile, supply chain disruptions and longer shipping lead times are prompting occupiers to hold more inventory within Europe, diversify sourcing strategies, and shift from ‘just-in-time’ to ‘just-in-case’ supply chains.”
European industrial and logistics investment volumes reached €18.7bn in H1 2026, comfortably ahead of the three-year H1 average, says Savills. Higher-for-longer interest rates, geopolitical uncertainty, and financing pressure continue to influence investor behaviour, with capital favouring higher entry yields, secure income, and assets with clear occupational purpose.
George Coleman, director, UK & EMEA Logistics, Savills, says: “After a subdued first quarter, driven by investor uncertainty surrounding the geopolitical escalation in the Middle East, we have seen investors return to the market in Q2. The improving occupier landscape is providing conviction in select markets and stimulating decision making. Transactions are taking longer but capital is deploying into income-focused strategies and resilient multi-let estates, and the core market is selectively active.”