How Logistics Real Estate Valuation Actually Works — Matching Properties with the Right Tenants

Last updated: April 15, 2026

Logistics real estate is one of the most actively invested asset classes in Europe. In 2025, European logistics take-up reached 28.1 million square meters — 8% above the pre-pandemic average — while investment volumes pushed 11% ahead of the prior year (JLL, European Industrial Market Dynamics Q4 2025). Yet most valuation methodologies still treat logistics as a single, undifferentiated asset class.

This guide explains how understanding occupier use cases transforms logistics real estate valuation — and why matching the right property with the right tenant is the key to premium rents, long-term tenancy, and stable cashflows.

Why Does Occupier Use Case Matter for Property Value?

Traditional valuation relies on comparables — headline rents of buildings with similar size, location, and specification. This provides a useful starting point, but it misses a critical layer: different occupier types extract fundamentally different value from the same building. Understanding these use cases is what separates good investments from great ones.

"A cross-dock facility and a last-mile hub may sit on the same street, but their rental economics are completely different. One is cost-driven, the other is proximity-driven. When you understand the occupier's use case, you can identify which tenants will pay a premium — and commit to longer leases."

— Raimund Paetzmann, Occupier-Side Strategist, Logivalue

According to the CBRE European Logistics Occupier Survey 2025, 53% of occupiers now prioritise modern warehouse specifications over traditional facilities when making expansion and relocation decisions. Building design, power supply infrastructure, and sustainability features are gaining relevance as key location factors. Investors who understand these occupier priorities can position their assets to attract the tenants that deliver the strongest cashflows.

How Many Types of Logistics Properties Exist?

Logivalue's valuation framework identifies 95 distinct logistics property types across 14 categories. Each type has different cost structures, tenant requirements, and rental economics. This granularity matters because a property's value depends on which tenant type it serves — and what that tenant would actually pay.

"When we say logistics real estate isn't one asset class, we mean it literally. We've identified 95 distinct property types across 14 categories, each with different occupier economics. Understanding this granularity is how you find tenants willing to pay premium rents and sign long-term leases."

— Carl-Friedrich zu Knyphausen, Managing Director, Logivalue

Prologis research has independently argued for richer property segmentation, defining four consumption-side categories: Last Touch (urban infill for same-day delivery), City Distribution (1-2 day shipping reach), Multi-Market Distribution (regional hubs at transport nodes), and Gateway facilities (port-adjacent multi-market buildings). Logivalue's 95-type framework builds on this foundation with substantially more granularity.

Key property types and their economics

Last-mile rental premium: Savills Investment Management, "Thinking Outside Big Boxes". Cold chain cost multiplier: Industry construction cost analysis.

How Occupier-Side Analysis Complements Traditional Valuation

Traditional valuation and occupier-side analysis serve complementary purposes. Comparables provide a market baseline. Supply chain valuation adds a critical layer: understanding which tenant types extract the most value from a specific building — and are therefore willing to pay premium rents and commit to longer leases.

"When you understand a tenant's total supply chain cost — transport, labour, automation, throughput — you can identify which buildings will command premium rents and which tenants will stay for the long term. That's the foundation of stable cashflows."

— Raimund Paetzmann, Occupier-Side Strategist, Logivalue

What Variables Determine Logistics Property Value?

Logivalue evaluates each property against 42 site variables and 65 scoring profiles. The variables span four categories:

• Location — proximity to distribution networks, labour markets, transport hubs, and end consumers
• Building specification — clear height, floor loading, dock doors, column spacing, automation readiness
• Operational suitability — temperature control capability, cross-dock feasibility, throughput capacity, power supply
• Market dynamics — local supply scarcity, permitting constraints, tenant demand by type, competitive positioning

Labour availability has become the most decisive location factor for logistics occupiers, according to the CBRE European Logistics Occupier Survey 2025, overtaking traditional factors like transport connectivity.

How Constrained Is the European Logistics Market?

The supply side of European logistics real estate is under structural pressure. According to Prologis Research (2025), Europe's €500 billion logistics real estate market faces a supply gap of more than €150 billion, with normalised development requiring approximately eight years to reach equilibrium.

"When you evaluate a logistics building from the occupier's perspective — what does this building do for a tenant's supply chain? — you discover which use cases unlock premium rents and long-term commitment. That's where the real value lies."

— Carl-Friedrich zu Knyphausen, Managing Director, Logivalue

Case example: a cross-dock facility in the Netherlands

In a recent engagement, Logivalue evaluated a 45,000 sqm cross-dock facility in the Netherlands that had been marketed at a headline rent based on regional comparables. By modelling the building's throughput capacity, dock-door configuration, and access to the A2 motorway corridor against five potential tenant types, the analysis revealed that the property's optimal use case — a high-frequency cross-dock for a parcel carrier — supported a rental level 18% below the comparable-based estimate, while an e-commerce returns processing centre would pay 12% above it. The spread between worst-case and best-case tenant was more than 30%. By targeting the e-commerce returns use case, the investor secured a tenant willing to pay above-market rent on a long-term lease — delivering stable cashflows grounded in the tenant's operational dependency on the asset.

What Is Supply Chain Cost Simulation in Real Estate?

Supply chain cost simulation models how a building's characteristics affect a tenant's total logistics costs — including transport, labour, automation requirements, and throughput capacity. By understanding what each tenant type would actually pay, investors can identify the use cases that yield premium rents and long-term commitment.

This methodology is particularly valuable for properties where matching the right tenant unlocks significant value — last-mile facilities (where the right occupier pays a substantial proximity premium), cold chain assets (where specialised tenants commit to 10+ year leases), and automation-ready buildings (where fit-out investment creates deep tenant loyalty and stable cashflows).

What Does a Logistics Real Estate Valuation Service Include?

Logivalue's Investment Intelligence service covers six core capabilities:

1. Supply chain cost simulation — evaluate deals by simulating occupiers' total supply chain costs, not just headline rents
2. Catchment area mapping — map catchment areas against real operational criteria that occupiers actually use
3. Use case identification — identify the highest-value use case for each building through deep-dive analysis
4. Spec alignment — align building specifications with target occupier profiles to maximise tenant fit
5. CAPEX quantification — quantify the capital expenditure required to optimise tenancy and unlock value
6. Portfolio strategy — develop future-proof portfolio strategy based on market dynamics and occupier trends

For institutional investors conducting warehouse investment advisory or logistics property due diligence, these six capabilities provide the occupier-side expertise needed to match properties with the tenants that deliver premium rents, long-term tenancy, and stable cashflows.

Who Are Logivalue's Logistics Real Estate Experts?

Logivalue's team combines real estate investment acumen with operational logistics experience — a positioning that is credible and nearly impossible to replicate.

• Raimund Paetzmann — Europe's leading occupier-side strategist for logistics real estate. Former head of real estate at Amazon and Zalando, with DIFA/Union Investment background. Delivered 40+ fulfilment centres across Europe.
• Carl-Friedrich zu Knyphausen — Former logistics operations leader at DHL, arvato, and Zalando with hands-on experience managing and automating warehouse facilities and supply chain networks.
• Lisa Graham — Real estate investment advisor with deep expertise in property valuation, market analysis, and investment strategy for institutional investors.

Sources and Further Reading

• JLL, European Industrial Market Dynamics Q4 2025
• CBRE, European Logistics Outlook 2026
• CBRE, European Logistics Occupier Survey 2025
• Prologis Research: Europe's €500bn Supply Gap (2025)
• Prologis, The Modern Supply Chain: A New Model for Defining Logistics Real Estate
• Savills Investment Management, Thinking Outside Big Boxes
• Savills, European Logistics Market Stability 2025