European logistics has moved into a more sophisticated phase in 2026. Location is no longer the only variable — power is. As global e-commerce penetration approaches 20%, the ability to support advanced robotics, AI-driven sorting and electrified truck fleets has become a top-three factor in site selection. Facilities that can deliver on that power envelope command rental premiums up to 15% over standard warehouse stock.
The Defence Effect
A new driver in the sector is what we see across deal flow as the Defence Effect. European defence commitments, frequently targeting 2.5% to 3.5% of GDP, are revitalising industrial corridors across the continent. The result is a new demand class: high-security, climate-controlled warehouses for electronics and specialised storage for manufacturing inputs. Germany, Poland and the UK are the primary beneficiaries, with defence-related logistics demand projected to generate over 1.5 million sqm of new requirement in the coming years.
Tight supply, strong rent growth
Prologis and Knight Frank both report vacancy below 5% across core European logistics hubs. Construction costs and financing constraints have kept the speculative pipeline at historic lows, and that scarcity is driving double-digit rent growth in certain markets — particularly Italy and Spain where modern stock is thinnest. In the Big Three logistics markets — Germany, the UK and the Netherlands — low vacancy is serving as a valuation floor even through selective investment environments.
The energy-hub evolution
Large warehouses are increasingly functioning as energy hubs, using extensive roof areas for solar generation and on-site battery storage. The asset is no longer just a box — it is a grid-connected, energy-producing platform. In 2026, the value proposition of an industrial asset is as much about its energy capacity and grid connectivity as about its floor area.
Our read is that European logistics in 2026 rewards specialist, power-ready, energy-efficient stock. The commodity box warehouse is not the trade. The trade is the asset that supports automation, decarbonisation, and defence-adjacent occupiers at once.