News / From the associates

According to Hines’ analysis, the industrial-logistics sector is undergoing a period of profound transformation, driven by structural demand that extends beyond e-commerce alone to include the expansion of data centers, the growing importance of energy availability, and the strengthening of logistics networks. Globally, the sector has shifted from a “high-yield/low-growth” model to a “low-yield/high-growth” one, driven by increased intra-regional trade and companies’ need to make their supply chains more resilient. In this context, e-commerce remains a key driver: in Europe, the fact that online retail sales surpassed the 8–10% threshold in 2016 marked a significant acceleration in rents, which, after growing at a rate close to 0%, began to see much more sustained increases.

At the same time, so-called “Last Mile” facilities—small urban warehouses enabling rapid deliveries and denser networks—have emerged. In Europe, there is a broad, nearly continuous corridor of demand, driven by high concentrations of disposable income in areas with short travel times and by operators’ willingness to pay a premium for locations that reduce overall logistics costs. Changes in trade policies are also favoring trade within regional macro-blocks, contributing to greater demand for logistics hubs, 3PL space, large-scale build-to-suit facilities, and repurposed structures. The industrial sector is also merging with other sectors—retail, advanced manufacturing, and data centers—creating further opportunities for development and conversion, especially for assets with adequate energy capacity.

In Europe, a combination of new drivers—from increased intra-regional trade to rising spending on security and infrastructure, such as the €650 million German plan announced in 2025—is bolstering potential demand for industrial and warehousing space. European markets show very low vacancy rates: 14 of the 20 areas with the lowest availability between the United States and Europe are located on the continent. This favorable balance between supply and demand supports rents and valuations, with even more positive prospects in a scenario of structurally higher inflation, which historically has accelerated rental growth. According to Hines’ forecasts, under a “higher inflation for longer” regime, rent growth over the next five years could be at least double that of the base-case scenario, with Europe leading the way globally.