European logistics is now the largest single-sector allocation in most institutional real estate portfolios, ahead of offices for the first time. INREV's Investment Intentions surveys have consistently ranked industrial and logistics as the highest-conviction sector, with allocators targeting 25%–35% of new commitments to the space. Access is via non-listed funds, separate accounts, joint ventures and direct off-market acquisitions.
Two decades ago, European institutional real estate allocations were dominated by offices, retail and residential. Logistics was a niche within alternatives. That has inverted. Today logistics and industrial is the single largest sector allocation in most large European property portfolios, ahead of offices for the first time.
According to INREV's Investment Intentions Survey, industrial and logistics has been ranked the highest-conviction sector by European institutional investors every year for the past several years.
In absolute terms, tens of billions of euros of new institutional capital target European logistics each year. That weight of capital is one of the anchors under prime yields.
The geographic pattern is consistent: core capital targets Germany, the Netherlands, the UK and France; core-plus and value-add capital targets Poland, Czechia and Southern Europe. The strongest 2026 flows are into Poland and Southern Germany on the back of nearshoring, and into UK big-box on the back of post-repricing entry pricing.
For a deeper US-versus-Europe view, see the US industrial vs Europe comparison. For the underlying yield picture, see the European industrial yields outlook.
Private capital in the €5M–€30M ticket range can outrun institutional flows because it clears faster off-market and accepts smaller lot sizes. The window is real: sellers of sub-€30M assets often prefer a certain private buyer to a slower institutional process, and pricing on those trades regularly beats institutional benchmarks by 25–50 basis points.
Large European pension funds are typically allocating 25%–35% of new real estate commitments to industrial and logistics; insurance capital 20%–30%; and sovereign wealth 30%–40% of new European property capital. INREV's Investment Intentions survey has ranked logistics the highest-conviction sector every year for the past several years.
Open-ended non-listed core funds dominate by volume, followed by closed-ended value-add funds, separate accounts and club deals for larger tickets, joint ventures with local operators for development, and direct off-market single-asset acquisitions for private capital.
Core capital targets Germany, the Netherlands, the UK and France. Core-plus and value-add capital is deploying into Poland, Czechia and Southern Europe. Nearshoring is driving above-average flows into Poland and Southern Germany, and UK big-box is attracting core capital on post-repricing entry pricing.
Yes, especially in the €5M–€30M ticket range. Private capital typically clears faster off-market and accepts smaller lot sizes than institutional processes. Sellers frequently prefer certainty over headline price, and private buyers can outbid institutions on effective terms in that band.