Defence, advanced manufacturing, battery storage driving logistics demand
Brad Gries, head of the Americas at LaSalle Investment Management, said the logistics sector is evolving as similar demand-side trends shape both the European and US markets, albeit for different reasons.
Speaking to Real Asset INSIGHT live at Expo Real 2025, Gries said there were “some similarities in terms of how the European market is operating relative to how the Americas markets are operating, but also some unique differences as well.”
He added: “It was very clear to me that there’s an evolution happening across the logistics market, both from an investor perspective as well as from a user-occupier perspective.”
According to Gries, the main difference between the two regions lies in the rise of defence-related investment in Europe.
“The big thing that’s different, especially from a user-demand standpoint, is defence spending in Europe and the increase in that over the foreseeable future relative to a more stable market in the Americas,” he said.
However, he added that several trends are common to both markets. “Many of the other same trends are happening in terms of advanced manufacturing, battery storage. We have a big chip manufacturing, semiconductor manufacturing in the US that’s helping drive demand across various markets.”
Turning to the Americas, Gries said market fundamentals are improving. “We’re seeing fundamentals improve, supply pipelines have tapered off, demand is stable but a little bit more muted than it was at the peak of the market. So I think that fundamentals will improve. I expect yields and pricing to remain relatively stable.”
He added that more investors are returning to the market. “We have more capital returning into the market, but we’ve also got a lot more opportunities as sellers start to bring more opportunities to the market. So I think that will stay relatively balanced, and that assumes the relatively stable long-term interest rates over the foreseeable future,” he said.
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