Investment growth of 7% and logistics occupancy remains below its 5-year average

Investment in industrial and logistics assets increased by 7% in H1 2025 (versus H1 2024) while it rose by 4% in overall commercial real estate during the same period. “Yield correction is complete in most countries providing a more stable environment. In this context, demand remains dynamic” says Craig Maguire, Head of European Logistics at BNP Paribas Real Estate. After a slow start to the year for the biggest markets, activity picked up during Q2 compared with the previous quarter in Germany (+15%), the UK (+71%) and France (+15%). Industrial and logistics assets have a strong market share within commercial real estate investment, which has risen from 15% in 2017 to 26% in H1 2025.

• In the United Kingdom, Industrial and logistics investment posted steady y-o-y growth in H1. The market has been stimulated by the return of portfolios, which accounted for nearly half of all transactions. Multi-let deals are still the top target for buyers. Prime yields are now holding firm, which should help investment activity in 2025.
• In Germany, activity has been moderate since the beginning of the year. Prime yields remained stable at 4.25% in the main logistics locations. Improvement in overall economic performance is noticeable in Germany and enhances corporate sentiment.

• In France, Industrial & logistics is still performing well in France, with several portfolio changing hands for over € 100m. French and German players are back, showing interest in Core and Core+ assets with long leases located in established logistics areas. The logistics prime yield narrowed by 20 bps to 4.70% in Q2 2025.

• In the Netherlands, the limited development pipeline has resulted in lower investment. However, there is still appetite for logistics assets and several ongoing large deals are expected to boost investment in H2. The logistics prime yield remained stable at 4.75% in H1, with some yield contraction expected in H2.

• In Spain, investment in industrial & logistics assets was particularly dynamic in H1 2025. One of the biggest deals ever for a first quarter was signed in Q1 2025 at € 215m. After rising by 155 bps over the last two years, the prime logistics yield narrowed at the end of 2024 to stabilise at 4.85% in Q2 2025.

• In Poland, Investment picked up sharply in H1 2025, reflecting better market sentiment. Industrial & logistics remains a strong performer in Poland. The prime yield has been stable since the beginning of the year at 6.25%.

• In Italy, the investment volume attributable to industrial and logistics assets rose by 30*% in H1 2025 (vs H1 2024) to reach €800m. The market was boosted by the growth of portfolio transfers. The prime yield has remained stable at 5.50%.

Discover more about the occupancy per country, take ups and prime yields in Europe.