Insights
Future flows
The expansion of defense sector manufacturers and the growing presence of Chinese companies are reshaping industrial and logistics occupancy patterns across Europe. Spain is emerging as one of the key beneficiaries of these trends, thanks to its strategic location, industrial capabilities, and role as a logistics gateway for Southern Europe.
Both trends represent structural shifts in demand, with the potential to drive sustained occupancy growth over the coming years. The increase in defense-related production and the localization of operations by Chinese companies closer to European consumers are creating new opportunities for landlords, developers, investors, and occupiers.
Why is this relevant now?
Over the past few years, the industrial and logistics market has been primarily driven by the growth of e-commerce, consumer demand, and the reconfiguration of supply chains. However, new sources of demand are emerging within the industrial and logistics sector, with the potential to generate sustained space requirements over the long term.
The Future Flows: Global Dynamics & European Industrial Real Estate report explores how the expansion of the European defence industry and the growing presence of Chinese companies in Europe are creating new opportunities for the Spanish industrial and logistics real estate market.
DEFENCE
Spain gains momentum in the expansion of the defence industry
The increase in defence spending across Europe is driving the expansion of industrial manufacturing capacity. Since early 2024, nearly 200 new investments and facility openings linked to the defence sector have been identified across Europe, 15 of which are located in Spain. The northern part of the country accounts for a significant share of this activity due to its industrial heritage and the presence of specialised advanced manufacturing ecosystems.
Download the report to learn moreWhat is changing?
Spanish activity forms part of the wider strengthening of European manufacturing capacity driven by increased public defence expenditure. More than half of the investments announced across Europe involve new facilities, while others focus on expanding or modernising existing production centres. The identified requirements are mainly concentrated in facilities ranging from 10,000 to 25,000 sq m, with an average size of around 20,000 sq m.
Where is the opportunity?
Although some projects require significant security measures and technical specifications, a substantial proportion of demand can be accommodated within conventional industrial assets adapted to new operational requirements.
CHINESE INVESTMENT AND EXPANSION
From exporting to investing and operating in Europe
Spain is becoming one of the leading European destinations for the expansion of Chinese companies involved in manufacturing, distribution and ecommerce. In Madrid, Alibaba has leased nearly 50,000 sq m of logistics space in less than one year. In Barcelona, Chinese companies have absorbed more than 65,000 sq m since 2021, driven by firms such as Aosom and by Alibaba’s recent market entry.
What is changing?
Chinese companies are evolving from an export-based model to one that incorporates manufacturing, warehousing and distribution capabilities within Europe. This shift reflects the need to move closer to end consumers, strengthen supply chain resilience and improve access to European markets. According to the report, 78% of surveyed Chinese companies cite access to new customers and markets as the primary reason for investing in Europe. Between 2024 and the first half of 2026, these companies have leased more than 2.5 million sq m of industrial and logistics space across Europe.
Where is the opportunity?
Spain ranks among the leading European destinations for these investments alongside Germany, the United Kingdom, France and Italy. The combination of logistics infrastructure, port connectivity and access to the European market is supporting the attraction of both distribution operations and industrial facilities. The ability to bring new operations online quickly will be a key factor, creating opportunities for owners and investors able to provide suitable spaces tailored to the requirements of these occupiers.
Turn trends into opportunities
The expansion of the defence industry and the arrival of Chinese companies are introducing new sources of demand into the Spanish industrial and logistics market. Understanding where these requirements will emerge, which asset types will be needed and how quickly they will evolve will be essential to capturing their growth potential.
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