JLL’s latest Industrial Market Dynamics provides updates on European leasing market as well as capital market dynamics
Insight
22 May 2026
European Industrial Market Dynamics Q1 2026
Categories:
- Europe’s occupational logistics markets demonstrate renewed confidence in Q1, with nine out of 13 posting YoY growth.
- Active logistics outsourcing, driven by long-term structural changes, fuelled robust expansion in the 3PL segment. Meanwhile, Chinese e-retailers dominate lease activity in the e-com segment, further expanding their localized European distribution networks.
- Continued declining construction activity in Q1 is further exacerbating supply constraints across core markets.
- Tightening modern supply in core markets drives continued rental growth for best-in-class sustainable assets. However, on a market-by-market basis, prime rents were stable in most markets in Q1.
- European industrial & logistics real estate investment totalling to over € 7.4 billion in Q1 represented a 13% YoY decline. While capital deployment remains selective amid a more volatile environment, investor sentiment remains cautiously positive.