Modern logistics today means creating sustainable, flexible and efficient spaces that evolve with technology and occupier needs. Europe’s logistics market is entering a period of recalibration. After a decade of rapid expansion, development pipelines are moderating as financing conditions remain less accommodative due to elevated interest rates, and occupiers take a more measured approach.
Vacancy rates have edged up, and speculative development has fallen sharply, with the Savills Logistics Development Pipeline Index dropping 24 percent between the first quarter of 2023 and the first quarter of 2025. Yet, as highlighted in a recent Affinius Capital white paper, this slowdown is cyclical rather than structural. Long-term drivers such as e-commerce growth, supply chain digitalisation, nearshoring and consolidation into more modern premises remain firmly in place. Rather than signalling retreat, this moment marks a shift in emphasis from building more space to building better space that lasts.
Why the European logistics market is recalibrating
The European logistics sector continues to evolve as occupiers balance cost, efficiency and sustainability. While total take-up has moderated, the underlying fundamentals remain strong. Occupiers are increasingly selective. Decisions now go beyond square footage or headline rent to consider how a building supports operational efficiency, resilience, and workforce wellbeing. Modern facilities are expected to be adaptable, energy-efficient, and designed for evolving fulfilment models. Sustainability features have moved from optional to essential, with CBRE reporting that a growing proportion of occupiers expect rent discounts for buildings without green certification.
These rising expectations are redefining standards across the sector and shaping how developers plan future logistics real estate. Grade A vacancy rates remain well below overall market averages, reinforcing the flight to quality highlighted in recent analysis.
Designing for adaptability and longevity
True long-term value begins with thoughtful design. Certifications such as BREEAM and LEED play a role, but durability and adaptability depend on fundamentals such as site planning, building orientation, material choices, and operational circulation.
These elements determine how well a facility can accommodate future technologies and workflows and how smoothly it operates day to day. The ability to integrate automation, optimise energy use, and adapt to changing storage and distribution models is becoming a defining feature of successful logistics spaces.
Strategic development in key locations
Mountpark, a wholly-owned subsidiary of Affinius Capital, develops across Europe, focusing on prime locations and practical design. Projects aim to meet market expectations without excess, prioritising flexibility, efficiency, and ease of use. This is not about chasing trends or building to today’s minimum standards; it is about creating spaces that remain relevant and resilient over time.
Mountpark Hinckley illustrates this approach. Located in the UK, in the Midlands’ Golden Triangle, the development offers up to 1.46 million square feet of logistics space and benefits from proximity to major parcel hubs, including Europe’s largest automated parcel delivery facility. Current works include infrastructure delivery alongside Tesco’s new regional distribution centre, with additional demonstrate how modern developments are evolving to balance operational performance with environmental considerations. Similar principles underpin Mountpark’s projects across Europe, ensuring occupiers have access to spaces that adapt to changing technologies and workflows.
Building better space for the future
Recent market analysis reinforces the importance of this approach. While overall take-up has moderated, demand for grade A space remains strong, and vacancy rates for modern facilities sit well below the market average. With new supply tightening and tenant expectations rising, the most valuable logistics spaces as we enter 2026 will be those designed with foresight.
Buildings that perform from day one and adapt to change will likely define the next phase of growth. Long-term thinking today will likely enable stronger, more resilient supply chains tomorrow.
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Mountpark Realco Cooperatief NL UA and Mountpark Logistics EU GP NL BV (together “Mountpark”) are wholly owned by Affinius Capital Europe. Mountpark and its wholly owned subsidiaries provide asset management and development services to Mountpark EU and its subsidiaries.
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