Industrial and logistics real estate symbolizes national resilience

Gone are the days when tariffs were small, technical details negotiated in private. This year, tariffs have taken center stage in global headlines, influencing not only what nations import but also what they choose to produce domestically, reflecting a shift in global trade dynamics.

Industrial and logistics real estate now symbolizes national resilience. Factories and warehouses are at the intersection of geopolitics, supply chains, and national security. From defense manufacturing to battery and semiconductor production, industrial space has become crucial for economic sovereignty.

In Europe, the Russian invasion of Ukraine in 2022 triggered a wave of increased defense spending, with NATO countries targeting 3.5% of GDP for defense by 2035. New EU rules require that half of defense goods be produced within the bloc by 2030, but currently, only 22% is domestically sourced, driving demand for industrial capacity, much of which will come from repurposed facilities.

“54% of recent investments in defense manufacturing are expanding existing facilities,” says Sally Bruer, Head of EMEA Logistics and Industrial Insights. “This indicates that reindustrialization is focused on revitalizing existing spaces.”

Despite ongoing challenges, including a prolonged government shutdown, U.S. markets remain surprisingly strong, illustrating the paradox of 2025. Industrial real estate has evolved from a simple logistical role to a pivotal front line for national security and economic policy. The warehouse is no longer just a box at the edge of town.

Source: Cushman & Wakefield.

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