Europe’s defence sector is on the brink of significant real estate expansion. This is one of the key findings from Cushman & Wakefield’s latest research report, Strategic Sector Signals. The study reveals that rising defence investments across Europe are structurally increasing demand for industrial and logistics space — a trend impacting both established clusters and emerging regions. In the Netherlands, this shift is already visible, from the new defence distribution centre in Soesterberg to the development of public-private initiatives such as DefPort.
The report shows that of the new defence production facilities announced or opened since early 2024, 54% were developed as extensions of existing sites, 16% were established in repurposed buildings, and 26% were built as entirely new facilities. Many of these investments are concentrated in established clusters across Western Europe — including France, the UK, Germany, Italy, Spain and Sweden. At the same time, countries in Central and Eastern Europe, such as Poland and Romania, are emerging as new defence hubs following Russia’s invasion of Ukraine. Beyond production, demand for logistics space is also rising, particularly along key transport corridors and seaports.
Annelou de Groot, CEO of Cushman & Wakefield Netherlands:
“After decades of contraction, defence is once again a strategic growth sector. This brings a substantial real estate challenge — from production and storage to training, housing and innovation campuses. For investors and developers, this creates opportunities that align economic, societal and security goals. Our specialised team combines global market insights with local expertise to guide clients through this transformation.”
To support clients in navigating the growing and complex real estate needs of the defence sector, Cushman & Wakefield launched a dedicated Defence & Strategy team this summer. This multidisciplinary team advises governments and market players on location strategy, redevelopment, sustainability and public-private partnerships.
Strategic sectors driving demand
In addition to defence, the report identifies strong demand growth across other strategic sectors:
- Clean Energy Technologies
Demand is surging, driven by the EU’s Net-Zero Industry Act (NZIA) and the UK’s Clean Energy Sector Plan. This is increasing the need for industrial space for solar panels, wind turbines and small modular reactors. Requirements range from owned, specialised production facilities to conventional leased sites for assembly and logistics. Location decisions are shaped by infrastructure, labour markets and clustering within existing manufacturing hubs. Germany leads the way, followed by the UK, Italy, France, Spain, and parts of the Nordics and Central and Eastern Europe.
- Critical Materials
Demand for raw materials such as nickel, lithium and rare earth elements is rising rapidly. New mining and refining facilities are typically developed as owned assets, while recycling activities offer opportunities for conventional leased industrial space near production clusters. The EU’s Critical Raw Materials Act (CRMA) and the UK’s Critical Minerals Strategy aim to reduce import dependency.
- Life Sciences
This sector remains a top priority for both the EU and the UK, with a focus on research, production and resilient supply chains. Real estate needs include GMP-certified production facilities (mostly owned) and GDP-certified distribution centres (often leased). Investments will concentrate in existing clusters and near strategic logistics hubs.
Together, these sectors - alongside defence - are strengthening Europe’s economic resilience and technological sovereignty. They are also driving sustained demand for industrial and logistics real estate.
Jos Hesselink, Research Lead at Cushman & Wakefield Netherlands:
“The convergence of defence, clean energy, critical materials and life sciences underscores the pivotal role of industrial and logistics real estate in Europe’s economic and societal resilience. For the Netherlands, with its strong infrastructure and knowledge clusters, the opportunities are clear.”
Download the full report here:
Strategic Sector Signals – Cushman & Wakefield
