As the European economy experiences accelerating growth, the logistics sector is poised for significant changes. For logistics occupiers, planning is crucial to stay ahead of the curve and maximise opportunities throughout 2025.
The European economy is showing signs of recovery, with Eurozone GDP growth forecasted to rebound to 1.7% in 2025. The UK economy is also expected to grow by 2.0% in 2025. This positive economic outlook is likely to increase demand for industrial and logistics properties, as rising consumption drives the need for more storage and distribution facilities.
In the logistics sector the vacancy rate has stabilised, and new supply delivery continues to fall, indicating a tightening market. In September we commenced enabling works on Phase 1 of our second Dublin scheme, Mountpark Grange Castle West, and have very strong customer interest — a clear sign of both market confidence and demand for premium properties.
Our on-the-ground experience is reflected in Savills’ recent European Real Estate Logistics Census, which revealed several key trends shaping the demands of logistics occupiers. When asked what could be ‘game-changing’ for their logistics real estate looking forward, 69% of occupiers selected ‘more stringent ESG targets/regulations’, indicating the impact ESG related directives are having on the sector.
Navigating the ever-evolving landscape of ESG regulations has never been more complex for occupiers and developers. EU wide legislation such as the Energy Performance of Buildings Directive (EPBD), EU Taxonomy Regulation and Corporate Sustainability Reporting Directing all now impact the commercial property sector.
While these regulations have set a common framework across Europe, individual countries often also have their own national requirements or guidelines. For example, BiodiverCities is an established credential to hold in France, while in Poland we have recently applied for membership of the Polish Green Building Council. For us, it’s vital that we support our customers across Europe by meeting these localised variations, while also demonstrating best practice through our companywide commitment to responsible development and innovation.
We also consider the things that really matter to our clients, like the first mile. Mountpark Strykow and Mountpark Ferrybridge both have the capacity to deliver onsite private rail depots. This strategic advantage can significantly reduce transportation costs, ensuring connectivity, energy efficiency, and smoother logistics operations for occupiers. In the UK, the Government’s ambition for rail freight growth is reflected in national planning policy and the team is actively promoting a Strategic Rail Freight Interchange (SRFI) in Oxfordshire which would deliver 6.5 million sq ft of rail connected warehouse and logistics accommodation.
Savills’ report also underscored the growing power demands of occupiers, a trend linked to the increasing use of automation and AI technologies. Balancing these high energy needs with sustainability goals has become crucial for our sector.
At Mountpark, we are excited by innovations in energy creation that enable us to deliver sustainable properties to power-hungry occupiers. Mountpark Wroclaw is a great example of this. The logistics and distribution park is 100% green energy powered via its combination of renewable hydroelectric and wind power plants, plus photovoltaic installations.
Our focus remains firmly on solutions that not only reduce occupiers’ carbon footprints but also enhance operational efficiency. By integrating renewable energy sources and smart grid technologies into our developments, we are meeting clients’ commercial and environmental requirements.
Strategically planning for complex warehouse requirements is a necessity for today’s logistics operators. With the European economy on a firmer footing and the logistics sector stabilising, now is the time for savvy firms to secure their position and prepare for future growth. By prioritising market trends, effective cost management, and harmonising regional ESG compliance with corporate values, companies can position themselves to maintain a competitive edge as we approach 2025.
To view Mountpark’s current range of properties available as inventory or build-to-suit across Europe, please visit our portfolio.
