Manufacturers around the world are snapping up more European factories despite an economic downturn in the region, as geopolitical and supply chain concerns prompt businesses to bring their operations closer to their customers.
Businesses acquired or leased 9.6mn square feet of industrial space in the region in 2022, a 29 per cent increase over the previous year, according to Cushman & Wakefield. The commercial property broker’s analysis covers transactions in nine European countries, including the UK, France and Germany.
Tim Crighton, Cushman’s head of logistics and industrial in Europe, said he was recently seeing clients “nearshoring” by investing in European production so they are less dependent on China as well as other far-flung locations.