Fuel costs set to widen rent gap across logistics micro-locations

Rising diesel prices are likely to widen the rental gap between central and peripheral European logistics locations as distributors seek to minimise fuel costs, according to Daniel Mahoney, Europe head of strategy and research at LaSalle Investment Management.

Speaking to Real Asset INSIGHT from the International Investors Lounge at EXPO Real 2026, Mahoney outlined findings from the investment manager’s Paths of Distribution research for 2026, which assesses 146,000 micro-locations across Europe.

“We think the locations where distributors are going to minimise their energy costs are going to become more valuable,” he said. “That’s the key insight from this report.”

The latest research adds supply analysis to its assessment of demand. LaSalle has trained a neural network to classify aerial images and estimate supply across European locations.

Mahoney said diesel prices had risen nearly 50% since the start of the year, providing a test of how higher transport costs affect the relative appeal of different locations.

“Location is a key part of sustainability as well so being in these more central locations means burning less fuel.”

He also identified the highest-scoring location in LaSalle’s analysis.

“So the best hexagon of those 146,000 we score is just east of Paris in Val-de-Marne where three autoroutes come together between two major airports. That’s the spot.”