In 2026, the UK offers the deepest liquidity and tightest yields (5.00%–5.50%), Germany combines strong covenants with the lowest vacancy (4.75%–5.25%), and Poland delivers the widest yields in Europe at 6.25%–6.75%. Choose the UK for core institutional exposure, Germany for covenant and lease length, and Poland for income return and scale portfolio growth.
The UK remains the deepest and most transparent logistics market in Europe. Take-up has stabilised at 25–28 million sq ft annually after the post-pandemic peak, with prime headline rents at £16–£19 per sq ft in the Midlands golden triangle and £24–£28 per sq ft for Greater London last-mile stock. Vacancy sits around 6% nationally, but effectively sub-3% in prime sub-markets.
Prime cap rates: 5.00%–5.50%. Institutional buyer pool is the largest in Europe, which supports exit liquidity even in weaker markets.
Germany combines the strongest occupier covenants in Europe with disciplined new supply. Prime rents in Frankfurt, Munich, Hamburg and Berlin range from €7.50 to €9.50 per sqm per month. Vacancy is the lowest in Europe at roughly 3.5%, and standard leases run 10 years with CPI indexation.
Prime cap rates: 4.75%–5.25%. Ideal for long-hold capital that values covenant and inflation-linked income over headline yield.
Poland has become Europe's most important scale market for logistics development. Warsaw, Wrocław, Katowice and Poznań serve as the manufacturing and distribution backbone of Central Europe. Prime rents range from €4.50 to €6.00 per sqm per month, roughly 40% below German equivalents for comparable Grade A stock.
Prime cap rates: 6.25%–6.75%. The 100–150 basis point spread over Germany reflects perceived country risk rather than any material difference in occupier or building quality.
Poland has the highest prime logistics yields in Europe at 6.25%–6.75% in 2026, followed by the UK at 5.00%–5.50% and Germany at 4.75%–5.25%. The Polish premium reflects country risk, not asset quality.
Poland offers higher yields but shallower exit liquidity and slightly weaker covenants than the UK. The UK remains the safer choice for investors prioritising liquidity and exit certainty over headline income.
Very little at the Grade A level. Prime Polish, German and UK logistics buildings all deliver 10m+ clear heights, ESFR sprinklers, dock-to-floor ratios of 1:1,000 sqm and EPC A/B ratings. Older stock varies more.
Poland has posted the strongest prime rental growth of the three markets since 2023, averaging 6%–8% annually versus 3%–5% in the UK and 2%–4% in Germany. Growth is driven by wage inflation and land constraints.