European Industrial & Logistics Sector Outlook 2024

NAVIGATING THE SLOWDOWN

TOWARDS STABILISATION

or other businesses, have expressed concerns about securing new business, prompting a hesitation in committing to new space. As a consequence, businesses are delaying new space requirements into the market, and when they do seek new space, the decision-making process is prolonged, elongating the deal completion process level.

After experiencing significant growth during and after the pandemic due to a spike in demand for space, European logistics occupier activity decelerated notably in 2023. Peaking at 46 million sqm on a rolling four-quarter basis in mid-2022, the total take-up volume has receded by nearly a third, settling at 31 million sqm. This brings it more closely in line with pre pandemic levels of 30 million sqm per year. The deceleration is partly attributed to businesses exercising caution amid economic uncertainty. Companies, whether directly serving consumers

LOGISTICS & INDUSTRIAL OCCUPIER TAKE-UP ROLLING FOUR QUARTER TOTAL

50

"

45

40

35

30

Companies, whether directly serving consumers or other businesses, have expressed concerns about securing new business, prompting a hesitation in committing to new space.

25

20

15

10

5

0

Q1 ‘15

Q1 ‘16

Q2 ‘16

Q3 ‘16

Q4 ‘16

Q1 ‘17

Q2 ‘17

Q3 ‘17

Q4 ‘17

Q1 ‘18

Q2 ‘18

Q3 ‘18

Q4 ‘18

Q1 ‘19

Q2 ‘19

Q3 ‘19

Q4 ‘19

Q1 ‘20

Q2 ‘20

Q3 ‘20

Q4 ‘20

Q1 ‘21

Q2 ‘21

Q3 ‘21

Q4 ‘21

Q1 ‘22

Q2 ‘22

Q3 ‘22

Q4 ‘22

Q1 ‘23

Q2 ‘23

Q3 ‘23

UK & IRELAND WESTERN & NORTHERN EUROPE SOUTHERN EUROPE CEE

Source: Cushman & Wakefield Research

4 LOGISTICS & INDUSTRIAL OUTLOOK 2024

THE TIDE IS TURNING SWIFTER | 5