As geopolitical shifts and supply chain strategy reshape industrial real estate worldwide, Colliers experts from both sides of the Atlantic are tracking shared themes and regional nuances. In this cross-regional Q&A, three of Colliers’ industrial leaders share their perspectives on the evolving global landscape.

Edward Plumley, Co-Head of Industrial & Logistics for EMEA, offers a strategic view from Europe, particularly around reshoring and capital flows. Damian Harrington, Head of Research for Global Capital Markets and EMEA, brings a data-driven lens to investor sentiment and supply chain realignments. From the U.S., Stephanie Rodriguez, National Director of Industrial Services, provides on-the-ground insights from one of the most active industrial markets in the world.

Q: What industrial real estate trends are shaping the global conversation?

Edward Plumley (EMEA): Reshoring and nearshoring are driving decisions for occupiers who now prioritize resilient, domestic-facing supply chains. It’s a shift from “just-in-time” to “just-in-case” logistics, particularly in sectors like defense, electronics, Pharma, and critical components.

Stephanie Rodriguez (U.S.): Absolutely. In the U.S., we’re seeing similar motivations, with companies increasing inventory and investing closer to home to avoid disruptions. Occupiers are being more data-driven, cautious, and strategic about their footprint.

Damian Harrington (EMEA): We’re also seeing that occupiers are focused on rebuilding defense infrastructure, particularly in countries like Germany and Poland. Talking with developers and owners, they see most of their new inquiries from firms linked to defense or advanced manufacturing, so that’s a big growth area. There is also growth in enquiries coming from Chinese and South Korean producers and distributors, for example, as global trade pivots.

Q: Are rising tariffs influencing long-term industrial strategy?

Edward Plumley (EMEA): I think we’re looking at a long-term shift. The average U.S. tariff used to hover around 10% for many years; today, it’s closer to 22%. This increase is forcing companies to reevaluate supply chain models. Regions are being more pragmatic, looking at how to become more self-sustaining while still engaging in global trade. It’s not an end to globalization, but a realignment in strategy.

Stephanie Rodriguez (U.S.): That definitely tracks with what we’re seeing in the United States. Continued disruption — first the pandemic, now policy shifts — has made companies more cautious. There’s a growing recognition that resilience must be built into supply chains.

Q: Is the shift toward “just-in-case” inventory and regional supply chains here to stay?

Damian Harrington (EMEA): There’s definitely momentum towards shorter, regionalized supply chains, but it’s not one-size-fits-all. You can’t relocate heavy manufacturing from low-cost countries to high-income economies overnight — it’s just not economically viable when it comes to labor costs. For mission-critical sectors like semiconductors or pharmaceuticals, onshoring may make sense. But for large-scale consumer goods, the cost gap is still significant.

Stephanie Rodriguez (U.S.): Another challenge in the U.S. is labor availability. Even if companies want to onshore, the skilled workforce might not exist, or it’s already maxed out. Our unemployment is very low, so it’s not just about cost, it’s about availability. That’s why automation and tech-enabled operations are getting more attention.

Q: What are you hearing from investors on both sides?

Stephanie Rodriguez (U.S.): In the U.S., investor sentiment remains cautious. While capital is on the sidelines, there’s growing interest from private capital, which has now surpassed institutional investment. The gap continues to widen, and many private investors are reaching out weekly asking which markets to evaluate and why. Institutional players are more hesitant, particularly around the automotive sector. Still, demand is returning in certain markets like California’s Inland Empire.

Edward Plumley (EMEA): In EMEA, investors share those concerns. The automotive sector is under close scrutiny, and we saw a few large deals pause due to uncertainty. That said, our core fundamentals like low vacancy rates (just 5.2% when compared to the U.S. at 7.1%) and proximity to dense populations, continue to attract interest. Many investors are sticking to what they know best and favoring near-urban assets with a perceived income discount over speculative development and also outlying locations.

Q: How are interest rates and economic trends impacting the market?

Damian Harrington (EMEA): The Eurozone has largely re-based interest rates to a more sustainable norm. More recently, interest rates have been cut in the UK, Poland, Czechia and the Nordics, enabling financial spreads to widen, encouraging deal-making. With one more cut anticipated for the Eurozone this year, and a further two for the UK, we are in the last phase of interest rate rebalancing. This will help to calibrate buyer/seller pricing and further encourage transactions. Europe is offering a stable, safe-haven environment in a global context and is absorbing a greater share of global cross-border capital. It benefits from a large component of investment from U.S. capital and we expect this to continue. To date, around 30% of all cross-border investment into EMEA emanates from the U.S. (all sectors), rising to 44% for I&L. It’s interesting to see Blackstone’s latest European fund is leading the momentum in the global fund-raising sphere as of Q1 2025.

Stephanie Rodriguez (U.S.): In the U.S., the Fed recently held rates steady, but there’s speculation about a possible drop later this year. Rental growth has stabilized — around 3% nationally year-over-year — and investor interest is beginning to shift from short-term leases to mid-term WALT as confidence slowly returns.

Q: How are infrastructure and power shaping the market outlook?

Stephanie Rodriguez (U.S.): In the U.S., our power infrastructure is outdated. The issue isn’t power generation — it’s distribution. As demand for tech-enabled facilities like data centers and cold storage grows, power access has become a key decision driver. Much of our cold storage inventory is over 40 years old and in need of reinvestment, which many investors are actively pursuing.

Edward Plumley (EMEA): Power is a growing concern in Europe, too, as evidenced by the April blackouts in Spain and Portugal. Securing sufficient power for sites within five years in certain parts of Europe is a challenge as that is often too long a time frame for operators and data center providers for near-term planning. As automation and electrification become more central, access to affordable, reliable energy will define asset viability and enhance value as securing suitable and available labor increasingly comes under the microscope.

Q: Where do you see opportunity emerging in the industrial sector?

Stephanie Rodriguez (U.S.): The U.S. Gulf Coast is one to watch. It offers lower rents and labor costs, and if port activity continues shifting from the West to the East and Gulf Coasts, demand will follow. In markets with limited land availability, especially in dense urban areas, expect increased investment in last-mile and suburban distribution.

Edward Plumley (EMEA): In EMEA, we advise clients to look at infrastructure-adjacent locations — ports, airports, freight terminals, urban centers and key logistics corridors with strong economic fundamentals. Whilst not exhaustive, places like Hamburg, Amsterdam, Rotterdam, Barcelona, London and many parts of Poland and CEE are well-positioned to benefit from rerouted supply chains, especially as global shipping lanes shift.

Q: Any global trends that could significantly impact logistics and industrial planning in the next few years?

Edward Plumley (EMEA): Urbanization is the big one. According to a Maersk report, more than 56% of the global population resides in urban areas, approximately 4.4 billion people today. This figure is projected to double by 2050. For a sense of scale, in 1975, about 1.5 billion people lived in urban areas. This means that approximately 3 billion people have moved from rural areas and farmland into cities during this period. That will massively impact inventory strategies, transportation costs, and demand for urban industrial land in key logistics corridors.

Stephanie Rodriguez (U.S.): We’re also seeing a surge in demand from Asian-based 3PLs, which represented 27% of all 3PL demand last year — and it’s mirrored in Europe with increased activity from Chinese, Vietnamese, and South Korean retailers. They’re looking to establish distribution hubs to navigate evolving trade regulations.

Final Thoughts

Across both the U.S. and EMEA, the industrial sector is recalibrating to meet new realities.

Investors are looking beyond short-term market fluctuations and focusing on fundamentals such as location, infrastructure, labor, and power. Meanwhile, occupiers are redesigning supply chains with a more risk-aware mindset, often favoring proximity to end users and infrastructure rather than relying solely on low-cost, offshore production. Whether you are an occupier optimizing your network, an investor evaluating new markets, or a developer planning your next move, staying attuned to these local signals and global drivers will be essential. At Colliers, our experts are tracking these trends closely and helping clients translate global insights into actionable strategies.