Power availability and asset delivery the main issues for Europe’s logistics sector

Delivering the right assets occupiers want and the power they need is the biggest challenge for the industrial and logistics sector, experts agreed at a webinar organised by Real Asset Media to discuss the 2026 European Logistics Real Estate Census, produced by Savills, BGRE and Analytiqa.

“Demand is fine, but deliverable supply is the constraint”, said Chris Zeuner, Chief Investment Officer, P3 Logistics Parks. “The developers can deliver what customers need, but the problem is permitting, Many jurisdictions, for example, do not want buildings over 10 or 12 metres, which according to the survey are in demand.”

Build-to-suit is occupiers’ preference, but there is no forward funding available, so there is considerably less speculative development happening, and given the leasing momentum there is likely to be an impact on rents and more focus on existing assets.

“Occupiers want prime assets, and that demand is multi-faceted, as it encompasses location, visibility, ESG compliance, power availability and so on”, said William Prewer, Vice President Portfolio Management, BGRE. “But pricing has shifted, and that has opened up opportunities to enter established core locations, access product and upgrade assets. The future lies in repositioning assets, creating greener and better buildings to provide a long-term solution.”

Power is a crucial factor in all locations, panellists agreed. “It is becoming more of a focus, as occupiers need more power for their operations”, said Zeuner. “Automation is becoming a big business driver, as it leads to bigger investments in the asset, longer leases and the creation of long-term partnerships which make portfolio management easier.”

Long-term owners are investing in onsite power production because they see it as a value creator and an investment in the future.

“We are working hard on onsite power generation as power is more and more in demand, for EV charging and for automation”, said Abderrahim Ouadih, Real Estate Manager Europe, CEVA Logistics.  “Power availability is a real problem in many countries, but it is not an issue in France, which relies on nuclear power.”

It may not be a coincidence that France tops the rankings in the Savills Census as the most in-demand location in Europe. The top five countries for logistics are France, Germany, Italy, Spain and the Netherlands.

“The market is being led by the occupiers so the platforms that will do well are the ones where the occupiers want to be”, said Zeuner. “It is clear from the survey that the top markets are in Western Europe.”

Poland is at number 8 in the rankings and the wider CEE region is also following this positive trend, said Małgorzata Lińska-Bator, Director, Investment, Savills: “We have seen a 56% increase in demand in Q3 this year, and Poland is luring e-commerce companies from China as well as 3PL tenants looking for bigger spaces. Asian capital could really change the sector in CEE and in the rest of Europe as well.”