At the end of 2025, the industrial and logistics real estate market in Germany achieved a transaction volume of 6.0 billion euros, according to Colliers. In the context of the investment market as a whole, the two types of use industry & logistics and office share first place with market shares of 24 percent each. Due to the long exclusivity processes, some transactions are delayed until 2026, so that the annual result for 2025 was below average with a decline of 19 percent compared to the previous year. The five-year average of 8.0 billion euros was also missed (-25 percent).
Christian Kah, Head of Industrial & Logistics Germany at Colliers: "The year 2025 was characterized by a steady increase in transaction activity and a high market presence of international investors. Overall, we have seen that 61 percent of the capital comes from abroad. Compared to the five-year average (52 percent), this is 9 percentage points higher. The anticipated year-end rally failed to materialize, although the fourth quarter showed the highest investment activity with a share of 34 percent of the total transaction volume. The ongoing global uncertainties, in particular due to geopolitical tensions, continued to lead to increased volatility on the capital markets and delayed the finalisation of numerous investment decisions. The resulting substantial deal pipeline for 2026, which is expected to continue the early-cycle recovery trend and forms the basis for a dynamic market phase in the current year, deserves positive mention."
Return of portfolio sales to mark the second half of the year
At the end of 2025, around 2.1 billion euros were invested in portfolio transactions. This corresponds to a share of 36 percent of the transaction volume and is only 3 percentage points below the five-year average (39 percent). The average portfolio size was just under EUR 100 million and comprised four properties. Large-volume portfolios of more than 300 million euros would be an exception in 2025. There were only two portfolio sales in this price segment (2024: 5 package sales over 300 million euros). While there were hardly any parcel sales in the first half of the year, there was a significant revival in transaction activity in this area from the middle of the year, with the result that around EUR 1.7 billion was allocated to portfolios in the second half of the year.
Overall, investor activity in 2025 was primarily concentrated in the single-asset sector, with a volume of 3.9 billion euros. International investors invested around EUR 1.8 billion here, which corresponds to a share of 47 percent of single-asset transactions and is slightly below the previous year's figure of EUR 2.0 billion. In the entire transaction market – i.e. including portfolio deals – international investors represented the dominant buyer group with a share of 61 percent. National investors intensified their presence in the single-asset segment and invested around EUR 2.1 billion in industrial and logistics real estate in 2025 (2024: EUR 1.6 billion).
One of the most significant transactions in the fourth quarter was Blackstone's portfolio of four logistics properties in core German markets, which was sold to GLP for just over 300 million euros. In addition, a Chinese e-commerce giant bought a portfolio of eight properties worth almost 220 million euros. The largest single transactions in the fourth quarter focused on the core markets of the top 8 regions. Of the five largest individual transactions, four were within the top 8 markets. Among other things, DWS Group acquired the fully let Panattoni Campus Berlin Zentrum for a double-digit million amount. The sellers were Panattoni and PGIM. In addition, two major transactions with a total volume of almost 90 million euros took place in the Munich region: the sale of a light industrial property in the southern surrounding area to an asset manager and the sale of a business park in Feldkirchen from Deka Immobilien to Sirius Real Estate.
"While large-volume individual transactions above the 100 million euro mark hardly took place in 2025, there are signs of an increase in corresponding investments in 2026. The market environment has stabilised to such an extent that large-volume deals can be successfully placed on the market again. International investors in particular are showing a pronounced willingness to acquire lighthouse properties for strategic portfolio optimisation. At the same time, the rental market is experiencing a progressive, slow recovery. Additional demand impulses from the defence industry and Asian e-commerce users will have a lasting positive impact on leasing activity in 2026. Both developments are likely to have a supportive effect on investor sentiment and transaction activity," explains Kah.
Prime yields remain stable
The gross prime yield for core logistics properties with an area of more than 3,000 square metres has been stable since the first quarter of 2024 and remains at 4.75 per cent.
"The positive development on the rental market is likely to intensify further in the coming quarters. Although the announced government investment programmes will only have a noticeable effect on the real estate market in the medium term, it is already becoming apparent that the logistics real estate sector in particular will benefit from them. We expect to see an increase in transaction activity in the area of special properties. These offer investors long-term and stable cash flows through long lease terms as well as attractive returns: Industrial Outdoor Spaces (IOS) spaces, temperature-controlled logistics properties and cross-dock properties are increasingly in demand in response to current market trends. For example, investments in infrastructure projects and defense companies will increase the demand for IOS space. The revival of demand from e-commerce companies will lead to increased parcel volumes, which will bring cross-dock real estate further into the focus of users. The user focus is primarily on companies from the construction, defense industry, Asian e-commerce and pharmaceutical industry segments. For 2026, we forecast an increasing transaction volume," Kah concludes.
