European logistics real estate is one of the most institutionally traded property sectors in the world, with prime yields between 4.75% and 6.50% across the UK, Germany, Poland and the Netherlands. Investors typically enter through direct asset acquisition, forward-funding or joint ventures on ticket sizes of €3M to €80M. The winning strategy in 2026 combines a defined market, a clear risk-return band, off-market sourcing and disciplined underwriting on effective rent and covenant strength.
European logistics has outperformed almost every other real estate sector over the last decade. Structural demand from e-commerce, nearshoring of manufacturing, and the redesign of global supply chains have pushed vacancy in prime sub-markets below 4%. That scarcity, combined with rent indexation across most continental leases, produces a rare combination of yield, income growth and liquidity.
For cross-border investors, the sector is also unusually transparent. Building specifications, lease structures and covenant quality can be benchmarked against a well-populated comparable set in the UK, Germany, the Netherlands, Poland and northern Italy.
Returns depend on the risk bucket you choose. As of mid-2026, indicative net initial yields (cap rates) are:
Total return for a five-year hold typically lands between 9% and 14% IRR unlevered, or 14% to 19% with senior debt at 55% LTV. The spread over core-plus office remains 200–300 basis points wider even after two years of yield compression reversal.
Choose a market that matches your capital's risk profile and hold period. As a rough guide:
Most first-time European investors start with one core UK or German asset, then diversify into Poland or the Netherlands for yield accretion.
Publicly marketed logistics stock in Europe is priced efficiently and often heavily contested. Off-market sourcing is where the value sits. Practical routes include:
Roughly 60% of TROV ESTATE mandates close off-market, which protects pricing, tenant relationships and closing certainty for both sides.
Every one of these can move IRR by 100+ basis points. Serious investors underwrite them independently before signing a term sheet.
Deal structures typically fall into three buckets: direct asset acquisition through a local SPV, forward funding of a speculative or pre-let development, and joint ventures with a local sponsor. For €3M–€40M ticket sizes, direct acquisition through a Luxembourg or Dutch holding company is the most common route for cross-border capital.
If you want to see live off-market European logistics opportunities, request access to the TROV ESTATE deal room. All assets are underwritten, structured and matched to your mandate before introduction.
Direct single-asset acquisitions typically start at €3M for last-mile stock and €10M–€15M for institutional big-box product. Portfolio and forward-funding structures usually begin at €25M.
Poland offers the widest prime yields in Europe at 6.25%–6.75%, compared with 4.75%–5.25% in Germany and 5.00%–5.50% in the UK. That premium reflects perceived country risk rather than asset quality, which is often equivalent.
From signed heads of terms to legal completion, expect 8–14 weeks for a single asset and 16–24 weeks for a portfolio. Off-market processes are usually 30–40% faster than publicly marketed sales.
Not strictly, but a local operating partner or specialist industrial advisor materially improves sourcing, underwriting and asset management. Most successful cross-border investors combine central capital allocation with local execution.
Yes. Vacancy remains structurally low, rents continue to grow ahead of CPI in most sub-markets, and the spread over office and retail yields is still historically wide. The main risk is entering the wrong sub-market at the wrong basis, not the sector itself.