Nearshoring — the relocation of manufacturing and supply chain nodes closer to end markets — is generating durable new demand for European industrial real estate, particularly in Poland, Czechia, Hungary and the German border regions. Manufacturing take-up rose sharply between 2023 and 2025 and is expected to remain elevated through 2027, supporting rental growth in Central European sub-markets that had lagged Western Europe for a decade.
Nearshoring is the relocation of manufacturing and supply chain activity closer to end markets, reversing two decades of Asia-centric globalisation. In a European context, that means moving production from China and South-East Asia to Central and Southern European hubs, or from long-haul global supply chains to shorter regional ones.
According to Cushman & Wakefield's European Industrial research, manufacturing occupier take-up across Central and Eastern Europe rose meaningfully between 2022 and 2025 and continues to represent a growing share of total industrial demand.
Nearshoring demand splits into three property types. First, purpose-built manufacturing facilities with heavy power connections, mezzanine loading and specialist floor slabs. Second, adjacent logistics warehousing for inbound components and outbound finished goods. Third, light industrial and Tier 2 supplier space clustered around anchor OEMs.
The investment implication is that Grade A logistics located near known OEM clusters carries an embedded pre-let optionality — Tier 2 and Tier 3 suppliers follow anchor manufacturers within 12–24 months of a new production line coming online.
For a market-by-market context on how these dynamics interact with yields, see the UK vs Poland vs Germany 2026 comparison and our European industrial yields outlook.
Nearshoring flows are policy-sensitive. Tariff regimes, EU industrial subsidies and energy price differentials all influence where new production lands. A single election or trade decision can accelerate or delay a five-year investment programme. The mitigant is diversification across two or three receiving markets rather than concentration in one.
Nearshoring is the relocation of manufacturing and supply chain activity closer to end markets, typically from Asia into Central Europe or from long-haul global supply chains into shorter regional ones. In real estate terms, it drives new demand for manufacturing space, logistics warehousing and Tier 2 supplier facilities.
Poland is the dominant beneficiary due to its deep labour market, EU membership and road access to Germany. Czechia, Hungary, Slovakia and Southern Germany also capture significant investment, particularly in automotive, battery and precision manufacturing.
Nearshoring supports durable rental growth in receiving markets by adding manufacturing take-up to already tight logistics vacancy. It is not a source of runaway rent spikes; instead, it underwrites a 2%–5% multi-year growth trajectory in Central European Tier 1 sub-markets.
Three types: purpose-built manufacturing plants with power and specialist slabs; adjacent Grade A logistics warehouses for inbound and outbound flows; and clusters of light industrial and Tier 2 supplier units within 30–60 km of anchor OEMs.