Over the past decade, the industrial and logistics sector has undergone a profound transformation. In 2015, it accounted for just 4% of total investment in Italy. Fast forward to 2021-2023, and that share had surged to over 26%, exceeding €7 billion in total. Finally, in 2024 investment volumes continued to rise slightly, reaching €1.75 billion and securing a 17% market share.

This rapid expansion has brought increased complexity. No longer limited to warehouses and distribution centers, the sector now includes a wide range of properties and assets with diverse construction and technical characteristics, locations, and tenant profiles.

Trends and Market Evolution

In the first half of 2024, industrial assets accounted for 55% of total investment in the I&L market. While logistics properties ultimately dominated the year due to large portfolio transactions, the industrial sub-sector grew significantly, capturing 19% of total volumes compared to a 13% share back in 2023.

For the industrial sub-sector, the key drivers are the activities conducted within the property and the standing of the tenant. What is being produced? Is the asset essential to tenant’s operations? To attract investors’ interest, lease agreements must be long-term, and tenants must be financially solid. For this sub-sector, location itself is less relevant, what matters most is labour and raw materials availability nearby. For standard logistics assets instead, where storage is the primary function, location plays a crucial role, particularly in terms of proximity to key infrastructure and road networks.

New Market Demands: From Last-Mile to Self-Storage

In the case of retail goods storing and distribution, cold warehouses are essential, and even frozen warehouses could be necessary. This applies not only to perishable food products, but to frozen goods and pharmaceuticals as well. Over the coming months, demand for these types of assets—particularly those serving grocery, pharmaceutical, beauty, and wellness businesses—is expected to grow steadily. Buildings dedicated to storage and distribution are changing as our consumption is also changing. 

Last-mile logistics hubs, typically smaller in scale, need to be located near densely populated urban areas to optimise delivery efficiency. Consequently, the most sought-after locations are in high-density metropolitan regions.

As urbanisation and housing prices increase, apartment sizes are shrinking—driving demand for self-storage solutions. Many of these asset are repurposed from stranded properties, strategically located along major roadways yet close to urban centers. Unlike traditional I&L assets, self-storage buildings are often multi-story and require strong load-bearing capacities to accommodate heavy storage needs.

Beyond traditional logistics and industrial assets, new asset classes are gaining traction. Industrial Outdoor Storage (IOS) and airport parking facilities are expected to see increased investment in the coming years, appealing to investors seeking alternative opportunities.

Meanwhile, cash & carry, offering direct product pickup for companies, continues to play a role in the sector. Data centers are rapidly expanding as well: according to Osservatorio Data Center of Politecnico di Milano, investment in this sub-sector is expected to exceed €10 billion between 2025 and 2026.

Where Is the Market Heading? Opportunities and Future Outlook

Investor appetite for I&L sector remains strong. The sector is evolving, becoming more diversified and sophisticated. Looking ahead, we anticipate a return of domestic capital in a market traditionally dominated by international investors, alongside continued interest from European institutional players. Yield compression will bring core capital back to the market, targeting grade-A assets in prime locations with high-profile tenants.

Further information:

Contact Carlo Walder