Logistics Real Estate Market Size, Share & Growth By 2034

Logistics Real Estate MARKET OVERVIEW

The global Logistics Real Estate market size was valued approximately USD 77.62 billion in 2025 and is expected to reach USD 153.87 billion by 2034, growing at a compound annual growth rate (CAGR) of 7.90% from 2025 to 2034.

Logistics Real Estate is real estate built for storing, managing, and shipping goods. Warehouses, distribution hubs, and fulfillment centers fall into this category, crucial for logistics and supply chains. E-commerce growth and complex global supply chains boost its demand. These properties are strategically near highways, ports, and airports for efficient distribution. Online shopping's rise and technological advancements set the stage for significant market expansion in the next decade.

IMPACT OF KEY GLOBAL EVENTS

“Geopolitical Tensions and Supply Chain Disruptions”

Geopolitical happenings like trade wars, shaky politics, and local clashes have rocked the logistics real estate market. These mess-ups cause supply chain jams, messing with the need for logistics spots and how well firms run. Firms are rethinking their supply chain plans, putting more stock in nearshoring and spreading out manufacturing to cut risks. This change boosts the want for well-placed logistics real estate, especially near big consumer markets. But, geopolitical unrest also brings uncertainty, making investors and developers wary. This can slow down big infrastructure projects and cramp market growth.

LATEST TREND

”Growing Demand for E-Commerce and Last-Mile Logistics”

The logistics real estate market is getting a big boost from e-commerce, which has skyrocketed lately, especially after COVID-19. Online shopping is up, making last-mile delivery hubs super important. These hubs get orders to consumers fast, needing warehouses in cities or packed areas. This shift means smaller, nimbler logistics spaces near big cities are in high demand, as quicker deliveries are a must. Plus, tech like automation, robotics, and AI are transforming these spaces, making them slicker and cheaper for firms.

Logistics Real Estate MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Small-scale, Medium-scale, and Large-scale.

Small-scale: These properties usually serve local businesses that need only a bit of storage and distribution. The demand for small logistics real estate stays steady but is quite specialized, mainly from regional firms or startups with simpler supply chains. The market for such small-scale logistics grows gradually, particularly in cities where space is tight.
Medium-scale: Medium-sized businesses that need more storage and operational freedom often choose medium-scale logistics properties. These places are often found in suburban or semi-urban areas, easy to reach from transportation hubs and affordable. The demand for these medium-scale facilities is on the rise, especially in areas with booming e-commerce and increasing industrial activity.
Large-scale: Large-scale logistics real estate, like huge distribution centers and fulfillment hubs, play a big role in the market. They help big businesses, including e-commerce giants, run smoothly. The reason for their growth is the fast spread of e-commerce, globalization, and the need for central, efficient logistics. The market for these places is set to expand a lot, especially in big cities and areas centered around transport.

By Application

Based on Application, the global market can be categorized into Warehousing, Distribution, Supply Chain Logistics, E-Commerce, and Others.

Warehousing: Warehousing is very important for holding goods before they move along in the supply chain. The demand for warehousing is always going up because both local and global supply chains need efficient storage. With automation and technology, warehouses today are much smarter. This makes storing and getting goods out much easier and better. In short, warehousing plays a key role in keeping the supply chain moving smoothly.
Distribution: Distribution centers are super important for getting goods from makers to buyers without any problems. These days, there's a bigger need for quick and reliable delivery systems, especially in e-commerce. This has made logistics real estate for distribution centers really popular. These centers are often near transportation hubs to make sure products get there quickly and smoothly. In short, distribution centers help keep the flow of goods moving fast and efficiently.
Supply Chain Logistics: This app is about moving goods through different parts of the supply chain, starting with raw materials and ending with finished products. For supply chain logistics, logistics real estate has multi-functional places for storing, handling, and transporting goods. As global supply chains get more complex, there's a big demand for flexible logistics spaces that can do many logistics tasks.
E-Commerce: E-commerce has grown really fast and changed logistics real estate a lot. Now, e-commerce firms need big, good warehouses and fulfillment centers to deal with all the stuff sold online. With more people shopping online, the part of the logistics real estate market for e-commerce is getting bigger and bigger. Swift and efficient logistics solutions are in high demand.
Others: This group includes other uses like cold storage, manufacturing logistics, and special storage for valuable or temperature-sensitive items. Though smaller than others, these specialized areas are expanding as the need for particular logistics grows, thanks to industries like pharma, food, and high-tech manufacturing.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”E-Commerce Growth and Global Trade Expansion”

The logistics real estate market is booming, mainly due to the fast growth of e-commerce and global trade. With shoppers moving online, businesses are investing in bigger, better fulfillment centers and warehouses. Big e-commerce firms need huge logistics properties in strategic spots to deliver quickly, boosting the market. Plus, as supply chains become more global, companies are setting up logistics hubs in key international markets to run things smoothly and cut shipping costs. All this is pushing the market to grow even more.

Restraining Factor

”High Capital Costs and Land Scarcity”

A major hurdle in the logistics real estate market is the steep capital investment required for developing and maintaining large logistics properties. Such ventures demand significant upfront costs, acting as a barrier for smaller investors or firms with limited funds. Additionally, prime land is scarce, particularly in urban centers and near transportation nodes. This shortage of suitable land drives real estate prices upwards and complicates the construction process. Consequently, some businesses struggle to expand their logistics networks due to these constraints.

Opportunity

”Technological Advancements and Automation”

In the logistics real estate world, advanced tech like automation, AI, and IoT brings big chances. Firms are using automated systems more to boost their work. This makes high-tech logistics spots in high demand. Warehouses with robots, auto sorters, and real-time tracking are now a must. This shift gives developers and investors a chance to create top-notch logistics spots that meet the new needs of supply chains and e-commerce.

Challenge

”Regulatory Compliance and Environmental Sustainability”

A big hurdle for logistics real estate is dealing with tough rules and being eco-friendly. Governments everywhere are toughening up on building, environment, and energy rules. Following these can hike costs and slow things down. Plus, the logistics sector must cut carbon. This makes developers go green, like getting eco-certifications and using renewable energy. Balancing rules, being green, and making money is a big test for logistics real estate players.

Logistics Real Estate MARKET REGIONAL INSIGHTS

North America

The North American logistics real estate market is strong and well-established. E-commerce's rapid rise, fast delivery demands, and smart supply chain management fuel it. The U.S. leads with major hubs in Chicago, Los Angeles, and Dallas, near ports, highways, and airports. Tech-driven warehouses and centers for robots are seeing big investments. Plus, nearshoring and reshoring trends boost local logistics needs. Despite being mature, the market still craves modern, big logistics spots as e-commerce keeps growing.

Europe

Europe's logistics real estate market is diverse and lively, with high demand, especially in Germany, the UK, France, and the Netherlands. Its solid transport networks, like trains, roads, and planes, make it perfect for logistics and storage. E-commerce has boosted the need for big, automated distribution hubs. Plus, Europe is going green, focusing on eco-friendly logistics, energy-saving buildings, and sustainable supply chains. Regulations, like tough environmental rules and land use laws, also shape the market, affecting how people develop and invest.

Asia

Asia's logistics real estate market is booming, thanks to e-commerce, urban living, and global trade. China, Japan, India, and South Korea see big jumps in warehouse, distribution, and fulfillment needs. China leads with its huge manufacturing and export power. India and Southeast Asia's online shopping rise drives demand for modern logistics to reach customers. Tech like automation and digital tools is changing Asia's logistics scene. Yet, the market grapples with infrastructure, tough rules, and land battles, especially in cities. Still, Asia's logistics real estate offers big growth chances, especially in newer economies.

KEY INDUSTRY PLAYERS

”Competitive Landscape of the Logistics Real Estate Market”

The logistics real estate market is a tough battleground, with top firms always innovating and growing to stay top. Big names like Prologis, Goodman Group, and Blackstone lead, using their big portfolios and global networks to meet the rising demand for modern logistics hubs. They invest in high-tech, automated warehouses for e-commerce and supply chain needs. Others, like GLP, CBRE, and JLL, offer vital services like property care, investment plans, and market know-how, boosting the market's competitiveness. Meanwhile, ESR, Mapletree, and Vanke are making big moves in new markets, growing their logistics holdings to cash in on e-commerce and international trade's rapid rise.

List of Top Logistics Real Estate Market Companies

Prologis
Goodman Group
Blackstone
GLP
CBRE
JLL
Cushman & Wakefield
Colliers International
Savills
DTRE
Vanke
Blogis Holding Ltd
Gazeley
Yupei Holdings
ESR
Mapletree
Boxway

KEY INDUSTRY DEVELOPMENTS

January 2025: Norway's Bank, teaming up with Goodman Group, made a big splash in the U.S. logistics world with a $1.07 billion investment. They snapped up a bunch of top-notch properties in key spots like Southern California, New Jersey, and Pennsylvania. These areas are hot for logistics, with little room for new buildings and existing ones worth a pretty penny.

November 2023: Blackstone let go of a six-property logistics bundle in Japan to GIC for a cool $800 million-plus. This deal stands out as one of Japan's biggest logistics sales ever.

September 2024: Blackstone's property arm struck a deal to buy PS Business Parks Inc. for $7.6 billion. This move added a heap of U.S. commercial real estate to its collection, including nearly 19.3 million square feet of industrial digs.

July 2022: GLP revealed a $5 billion refinancing plan to create China's biggest private logistics property income fund. This marks another big step in its logistics property collection.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The logistics real estate market is booming, thanks to e-commerce, supply chain efficiency demands, and tech advances in automation and smart warehouses. Faster delivery times and flexible supply chain solutions are top priorities for firms, driving up the need for modern, strategically placed logistics hubs. Big players in the market are now focusing on sustainability, adding green building practices and renewable energy to their logistics properties.

The logistics real estate market is poised for big growth, with Asia and Latin America emerging as key players. E-commerce rules the roost in global trade, boosting the need for modern logistics setups. Investors will zero in on last-mile delivery and large distribution hubs. As supply chains transform, firms will aim for speed and efficiency. The market will also embrace more sustainable, tech-savvy logistics properties. Faster, more reliable delivery will keep logistics real estate crucial to the global economy.