Spotlight: European Logistics Outlook – Q2 2025
"Tariff uncertainty hits both leasing demand and investment volumes in Q2"
Logistics
Tagged Articles
Scaling defence capacity is a complex and multifaceted challenge
"Defence supply chains across the UK and Europe are complex, spanning major contractors, specialist component suppliers, and emerging tech firms. In this section, PA explores the complexity of the scaling and productivity challenges that such supply chains face"
Forecasting employment growth
"Looking ahead, if we assume that employment keeps pace with the increase in expenditure, we can calculate estimated employment growth based on the increase in defence spending as a percentage of GDP"
Impact on the industrial and logistics sector
"Employment growth is set to drive significant expansions in industrial and logistics demand"
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Japan Logistics - September 2025
"The logistics sector has been resilient despite the large supply seen in recent years and is positioned for a brighter outlook as supply begins to ease. Investment sentiment remains strong, with high-value transactions making headlines over the fi rst half of 2025. The anticipated slowing in new supply after 2025 will give the logistics market further momentum for absorption. Additionally, logistics operators have been incorporating new technologies to enhance operational effi ciency to address labour shortages, further strengthening the sector’s resilience over the longer-term outlook."
The strategic context
"The defence landscape across the UK and Europe is being reshaped, particularly by the ongoing conflict in Ukraine – which has seen intensive consumption of munitions, the innovative use of uncrewed platforms and other software-enabled capabilities – and the prospect of further geopolitical volatility in Europe and further afield. In this section, PA examines the policy background"
The infrastructure demands of modern defence
"Sam Quellyn Roberts, Director of EMEA Industrial & Logistics – Occupier Markets, discusses the complex needs of modern defence occupiers and the difficulty in fulfilling these requirements"
Key takeaways
"The impact of rising defence spending will have far-reaching consequences on UK and European property markets"
Defining the channels of logistics demand
"With the SDR representing the largest sustained increase in defence spending since the Cold War, Savills has been considering the implications for the industrial and logistics sector. In the following sections, Savills seeks to build on the insights from PA and quantify the impact"
Employment implications
"The MOD spent £52.8 billion and £54.2 billion on defence in 2022/23 and 2023/24, respectively. Of that, close to £30 billion was on the procurement of equipment and services"
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