The ongoing geopolitical tensions and U.S. tariff policy have had a significant impact on the German logistics market in the first half of 2025. Although the recent agreement between the EU and the U.S. is considered a positive signal, it does not yet signal a return to the trade policy stability of previous years, according to an analysis by Savills. Short-term reactions to the announcement of new tariffs led to goods being
introduced prematurely in many places, causing inventory levels to rise. As a result, the actual medium- and long-term effects of trade uncertainty are currently being perceived in a distorted manner, a press release from August 4 states.
In the German logistics leasing market, according to the Savills survey, the space turnover increased slightly in the first half of 2025 compared to the previous year, but remained below the five-year average. Market uncertainty
has led many users to postpone leasing decisions. At the same time, landlords have become more willing to negotiate in order to secure long-term contracts, it states. If the recent tariff compromise proves to be viable, Savills expects catching-up effects.
Regardless, structural developments such as the diversification of supply chains or a possible shift of Chinese overcapacities to Europe could lead to additional demand for logistics space in the medium term.
In
the investment market, there is also a sense of caution according to Savills. The transaction volume for industrial and logistics properties amounted to around 2.1 billion euros in the first half of 2025 - about a third less than in the previous year and 41 percent below the ten-year average. Private equity funds were particularly active, investing around 1.5 billion euros. On the seller side, project developers and companies from the corporate
