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The Future of Industrial Real Estate: Global Dynamics in 2025

As the global economy continues to navigate uncertainties, the industrial real estate sector is undergoing significant transformations spurred by new challenges and opportunities. The landscape of supply chains is shifting dramatically, compelling companies to reassess their strategies in light of evolving regional trends and global patterns. Understanding these dynamics has never been more crucial.

The latest report titled "Waypoint: Global Industrial Dynamics 2025" provides a comprehensive overview of industrial real estate markets across North America, the Asia-Pacific region, and Europe, the Middle East, and Africa. This report illustrates the fundamental forces shaping industry performance, from structural demand drivers to market recalibrations and innovative strategies.

Key Global Themes

A Softening Market, But No Retreat

The world's industrial land market is transitioning away from historical highs. Although leasing activity is slowing, this adjustment is taking place cautiously and is supported by long-term demand drivers despite short-term turbulence. Investors and tenants are beginning to evaluate what constitutes value in this evolving environment.

Redefining Value

Both tenants and investors are reevaluating the components of value. Factors like operational efficiency, connectivity, ESG compliance, energy availability, and access to labor are all intermingled with property costs, including rents. These aspects significantly influence supply chain design, location selection, and portfolio strategies.

Fluid Capital Flows

As capital markets adjust to rising interest rates, liquidity is becoming increasingly selective. Nonetheless, the long-term investor sentiment remains robust, particularly in core logistics markets and infill locations, where fundamentals continue to support future growth.

Regional Insights

North America

The markets in North and South America may be at different stages of their cycles, yet shared themes are emerging. Companies are reexamining their supply chains and exploring nearshoring opportunities. In major urban areas, there continues to be robust demand for infill and last-mile spaces.

Europe, Middle East, and Africa

In this region, diverse recoveries are seen due to shifts in tenant strategies, inflation, regulatory pressures, and sustainability requirements. While vacancy rates remain low in core hubs, certain submarkets are experiencing structural demand outpacing new supply. Investors continue to exhibit confidence in this sector, with increased capital targeting logistics and industrial assets in the area.

Asia-Pacific

APAC is a dynamic and diverse region where population growth, urbanization, e-commerce, and shifts in manufacturing are driving logistics demand. While tenants are adapting to rapidly changing consumer bases, investment appetites vary significantly across different markets.

Why Waypoint Matters

Waypoint serves as a critical juncture for making informed decisions about the best path forward. It provides the data and insights necessary for investors, tenants, and developers to make confident choices.

This report not only highlights the current state of the market but also aids in understanding the factors that will shape its future. Whether considering expansion into new regions, rebalancing portfolios, refining business strategies, or optimizing capital allocation, Waypoint offers the clarity and perspective required to make the next strategic move.

To delve deeper into the global patterns and regional strategies shaping the future of industrial real estate, be sure to download the full report.

Next Steps

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About Cushman & Wakefield

Cushman & Wakefield (C&W) is a leading global commercial real estate services firm listed on the New York Stock Exchange. With approximately 52,000 employees in about 400 offices across 60 countries, C&W is dedicated to providing core services including facility management, transaction brokerage, appraisal, tenant representation, leasing, and project management. Projected revenues for 2024 are expected to reach $9.4 billion. Thanks to its commitment to the philosophy of "Better Never Settles," the firm boasts an award-winning culture acknowledged by industry leaders. For more information, please visit Cushman & Wakefield's official website.