The Shift Toward Off Market Acquisitions in Europe

Europe’s real estate landscape is changing in quiet but powerful ways. The days when the best industrial and logistics assets were openly marketed, heavily brokered, and hotly bid on are giving way to a new reality: off-market acquisitions.

In this evolving environment, investors, corporates, and developers are increasingly choosing private, relationship-driven transactions over crowded public processes. The shift is particularly visible in logistics and industrial real estate, where long-term megatrends – e-commerce expansion, reshoring of supply chains, and sustainability imperatives have created a demand–supply imbalance.

The Netherlands is a vivid case in point, but the movement extends across Europe. From the logistics corridors of Netherlands and Germany to secondary hubs in France, Spain, Poland and the Nordics, the most attractive opportunities often never reach the open market. Instead, they are quietly negotiated, structured, and secured off-market.

Why Off-Market Now?

The rise of off-market acquisitions across Europe stems from a combination of structural and cyclical factors:

• Competition for assets has intensified :Institutional investors, global funds, and corporates are chasing a limited pool of modern logistics space. Public tenders increasingly end in overpricing or failed bids.

• Speed and discretion matter: Corporates cannot afford to wait months for a formal auction. Off-market transactions allow quicker, bilateral deal-making with greater confidentiality.

• Flexibility in structuring : Whether it is a sale-and-leaseback for a corporate occupier, forward-funding for a development, or phased acquisition of a logistics portfolio, tailor-made solutions are easier to achieve off-market.

These advantages are pushing market participants to prioritise relationships and intelligence networks over open calls for bids.

Europe’s Key Hubs and Hotspots

The trend toward off-market acquisitions is unfolding across the continent, but some markets stand out more prominently than others:

• Netherlands : Anchored by Rotterdam, Europe’s largest seaport and Schiphol Airport, the Netherlands is a logistics powerhouse. Limited land supply, coupled with strong global investor interest, means that many prime opportunities never make it to public auction. Off-market sale-and-leasebacks and forward-funded developments are becoming the preferred routes into this tightly held market.

• Germany : With its central position and vast consumer base, Germany remains a magnet for logistics investment. Quiet portfolio deals are especially common in and around Hamburg, Frankfurt, and Munich, where last-mile facilities are in high demand.

• Poland & Central Europe : E-commerce growth and competitive operating costs continue to attract investors and developers. Forward funding arranged off-market has become a key way to secure assets in Warsaw, Wrocław, and Prague before they enter the open market.

• France : Paris and Lyon remain the dominant logistics hubs, but secondary cities are where discreet acquisitions are reshaping supply dynamics. Investors often use direct negotiations to secure regional facilities without triggering bidding wars.

• Southern Europe : Spain and Italy are experiencing rising demand for warehouses linked to reshoring strategies. Given the opacity of these markets, off-market transactions often provide the cleanest entry points for international investors.

• Nordics : In Sweden, Denmark, and Finland, sustainability-focused investors are quietly targeting energy-efficient warehouses. Off-market transactions allow both developers and occupiers to negotiate green commitments from the outset.

Across these regions, scarcity of land, competition for quality stock, and local market nuances are pushing the best opportunities into private channels rather than open auctions.

Stakeholder Benefits

Off-market acquisitions are emerging as a powerful investment solution, creating distinct advantages for every stakeholder in the logistics real estate ecosystem.

• For investors, off-market acquisitions provide direct access to assets that might otherwise be locked away. They gain more control over timing, due diligence, and terms with critical advantages in a high-stakes market.

• For corporates,the ability to unlock capital through sale-and-leasebacks while maintaining operational control is invaluable. Tailored lease structures – length, rent, renewal options can be negotiated directly to match business needs.

• For developers, partnering with investors off-market through forward funding ensures early capital commitments. This not only reduces risk but also allows developers to integrate sustainability and technology features from the outset.

The Risks to Manage

Of course, moving off-market is not without challenges. Limited transparency can mean information asymmetry, while navigating diverse regulatory environments across Europe requires expertise. Furthermore, execution risk is heightened without the structured processes of public auctions.

The most successful market participants address these risks by:

1. Building trusted, long-term partnerships rather than one-off connections.
2. Investing in data-driven sourcing tools to spot emerging opportunities
3. Combining local knowledge with pan-European capital strategies

Broader Market Forces Behind the Shift

The off-market trend cannot be seen in isolation. It is closely tied to several macro shifts:

• Reshoring and nearshoring : Supply chain resilience has become a boardroom priority. Corporates are demanding more logistics space closer to consumers, creating pressure in secondary and tertiary hubs.

• Sustainability mandates : The EU taxonomy and national environmental policies require significant upgrades to existing stock. Off-market deals allow these commitments to be built into the negotiations.

• Portfolio consolidation : Investors are looking to scale quickly by acquiring clusters of assets. These larger portfolio transactions are rarely advertised publicly.

• Technology adoption : AI and advanced analytics are increasingly being used to identify under utilised assets or corporates that may be open to sale-and-leasebacks well before these opportunities surface on-market.

Q&A: Off-Market in Practice