Press Release
Logistics occupiers intend to launch more space requirements over the next 12 months, finds CBRE research
July 17, 2025
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- Most respondents plan to launch more, or similar, new space requirements over the next 12 months
- The proportion of expansionary respondents over the next three years has normalised (46%) but still outweighs the proportion of those planning to shrink (12%)
- When choosing location, real estate cost is no longer the top priority
- Net-zero facilities are a higher priority than achieving green certification
New research from CBRE has found that the vast majority (96%) of logistics occupiers across Europe plan to launch more, or similar, new space requirements over the next 12 months than they did during the previous 12 months.
However, nuances exist when split by response date. A higher percentage of occupiers surveyed after 2 April, when new U.S. trade policies were introduced, indicated plans to launch more requirements, which could be a response mechanism to temporary supply chain disruptions.
When asked about their plans for the next three years (medium-term), occupiers are more cautious, with 46% of respondents intending to expand their footprint over this timeframe. This demand is led by third-party logistics providers and post and parcel firms, with the former a likely result of the continued outsourcing of supply chains. Despite accounting for a larger share of take-up in recent months, CBRE’s 2025 European Logistics Occupier Survey* found that manufacturing companies are the most cautious sector, with 19% of this cohort planning to rationalise portfolios.
Occupiers’ medium-term expansion plans have moderated, which is a natural response to the geopolitical uncertainty and macro challenges at play. However, our research shows us that the occupier community is resilient, and while difficult to justify bold expansion plans, they are finding ways to adapt to the current environment. Occupiers now have more choice than in the pandemic years, marking a window of opportunity to use their newfound negotiating power to renew leases or upgrade their warehouses.
When choosing both where to take space, and which space to take, occupiers have become more selective. Real estate cost has given way to broader, business strategy factors, in response to executive leaderships' desire to optimise portfolios and maximise business outcomes.
This occupier-friendly market translates to extended checklists when it comes to making location and building decisions. In CBRE’s 2025 survey, at least one third of respondents highlighted seven location selection factors, and five building selection factors, as crucial. This compares to five and four in 2024, and four and one in 2023, respectively.
At a location level, real estate cost is no longer the top priority, as it was in 2023. Labour availability and cost are front-of-mind for occupiers, followed by real estate availability. Real estate cost remains the top priority at a building level, with sustainability features and power supply becoming increasingly important.
Respondents’ willingness to pay for a net-zero ready facility is significantly higher (65%) than for green certified properties (47%), as half of occupier’s report having a net-zero property footprint target of 2030.
“Occupiers want to see physical advantages as opposed to achieving a certification,” concludes Deppisch. “Heat pumps and battery storage are but a few ESG considerations that directly translate to business benefit.”
*CBRE’s 2025 European Logistics Occupier Survey canvassed the views of more than 100 logistics occupiers in Europe, with a total footprint estimated between 85m and 95m sq m.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.co.uk.