The balance of power in the global logistics and industrial real estate sector is tilting towards landlords, marking a “significant shift” with wide-reaching implications for occupiers, investors, and developers, according to a report from Cushman & Wakefield.
The change comes as global supply chains are reconfigured and cost pressures evolve, Chicago-based Cushman & Wakefield said in its “Waypoint 2025” report, which draws on insights from more than 120 markets worldwide.
The research reveals that the proportion of tenant-favorable markets is expected to fall sharply from 52% today to just 28% by 2028. This change is being driven by constrained supply, robust demand, and rising costs across key inputs such as rent, labor, construction materials, and electricity. At the same time, landlord-favorable markets are forecast to rise from 24% to 35%, signaling a more competitive leasing environment in the years ahead for occupiers.
“With the global logistics and industrial sector set to shift in favor of landlords, occupiers should move quickly to secure current assets or plan for new facilities, particularly in markets where vacancy rates may tighten,” Sally Bruer, Head of EMEA Logistics & Industrial and Retail Research, said in a release. “As markets move toward more landlord-favorable conditions, confidence in the delivery of new supply may grow, provided construction costs remain manageable.”
In the Americas, there is expected to be a significant shift away from the current tenant market conditions and towards neutral and landlord positions. The current tenor is that 72% of markets are more tenant-friendly, but this will reduce to just 23% in the next three years.
“We’re witnessing a rebalancing of global supply chains that is accelerating demand in key nearshoring markets like Mexico and the southeastern United States,” Jason Tolliver, Cushman’s President of Americas Logistics & Industrial, said. “This window of tenant-favorable conditions won’t last forever. For many occupiers, now is the time to act on mission-critical sites before the balance tips.”
The report also explores how cost pressures are reshaping location strategies. For example, labor costs vary significantly across regions, with average logistics and industrial wages in Switzerland nearly double the global average, while countries such as India and Vietnam remain far more cost-effective. These disparities are prompting companies to reassess their site selection criteria, taking into account not only wages but also energy reliability and the potential for automation, Cushman & Wakefield said.
