Cushman & Wakefield’s ‘Waypoint 2025’ report reveals a global transformation in logistics and industrial real estate, driven by rising costs, supply chain diversification, and changing market dynamics.
Cushman & Wakefield (NYSE: CWK) has published its inaugural global logistics and industrial outlook, ‘Waypoint 2025’, which highlights a significant shift in the sector as global supply chains are reconfigured, and cost pressures evolve. Drawing on insights from more than 120 markets worldwide, the report shows that in the near term, the balance of power is tilting towards landlords, with wide-reaching implications for occupiers, investors, and developers.
The research reveals that the proportion of tenant-favourable markets is expected to fall sharply to just under 30 % by 2028. This change is being driven by constrained supply, robust demand, and rising costs across key inputs such as rent, labour, construction materials, and electricity. At the same time, landlord-favourable markets are forecast to rise from 24% to 35%, signalling a more competitive leasing environment in the years ahead for occupiers.
Report author, Sally Bruer, Head of EMEA Logistics & Industrial and Retail Research, said:“With the global logistics and industrial sector set to shift in favour of landlords, occupiers should move quickly to secure current assets or plan for new facilities, particularly in markets where vacancy rates may tighten. As markets move toward more landlord-favourable conditions, confidence in the delivery of new supply may grow, provided construction costs remain manageable.”
Whilst 46% of markets are currently considered tenant-friendly, EMEA has the most landlord-favourable markets at 29%, largely driven by supply constraints. Around half of these markets expect a shift in tenor over the next three years with 40% (25% now) anticipating neutral conditions, suggesting a more balanced position than in recent years.
‘In Germany, the amount of space offered by users for subletting is increasing, which is having an impact on supply. The outlook for user markets in Germany remains stable. Rents remained stable last year, but are expected to rise slightly in the coming year,’ says Arnd Sternberg, Head of Logistics & Industrial Agency Germany at Cushman & Wakefield.
‘Waypoint 2025’ also explores how cost pressures are reshaping location strategies.
In this analysis, Germany belongs to the group of so-called high-wage countries, whose labour costs are 20% or more higher than the global average – with some significant differences. Other countries in the same category include Denmark, the UK, Ireland, Belgium, the Netherlands, Austria and Switzerland, with the latter having wage costs almost twice as high as the global average. In countries such as India and Vietnam, on the other hand, labour costs are well below average.
These differences are prompting companies to re-evaluate their choice of location, considering not only wages but also energy reliability and automation potential.
A global comparison of labour costs helps to identify the attractiveness of locations that have emerged as important production sites for exports to other markets. In particular, low labour costs in Asia-Pacific, Latin America, Central and Eastern Europe, and Southern Europe partly explain the motivation for investing in manufacturing and production at these locations. Interestingly, the transition to automation is often seen as a response to labour shortages and higher labour costs. However, even in lower-cost markets, automation is gradually increasing. This is partly due to lower entry costs for implementation, but also to faster market introduction and higher quality and accuracy in production.
Rents continue to rise for the most part
Although global rental growth has slowed since its 2022 peak, more than half of all markets are still expected to see rents rise through to 2027, driven by occupier demand and new supply in select regions. Only 13% of markets are expected to see rents fall over the three-year period. In APAC, 62% of all markets are expected to see rental growth, backed by strong occupier demand; this is also the case in the Americas. In EMEA, where 60% of markets are expected to see a rise in rental levels, new supply pushing asking rents higher is a key driver of rental growth.
Note to Editors
The full report, including regional breakdowns of rental levels, market conditions and vacancy projections, energy and labour cost comparisons, and analysis of demand drivers such as e-commerce and manufacturing, is available at Waypoint 2025.
‘Waypoint 2025’ is Cushman & Wakefield’s inaugural global logistics & industrial research report which includes results from a survey of Cushman & Wakefield logistics and industrial market-facing colleagues for 127 markets worldwide. The survey was conducted from 7-18th April 2025, after the Trump Administration announced the suspension of most higher tariff rates for 90 days, while maintaining the 10% levy on nearly all global imports.
In a market defined within this research as landlord-favourable, landlords have the stronger negotiating position, and in a market defined as tenant-favourable, tenants have the stronger negotiating position.
1Analysis of labour costs is based on data from Economic Research Institute for 11 different warehousing and production roles across each location, including operators, labourers, managers, supervisors, mechanics, and truck and forklift drivers.
