Thursday, 10 September 2026
Norway’s industrial and logistics property market attracted NOK 6.6 billion of investment during the first half of 2026, an increase of 25% compared with the same period last year, even as international investors accounted for only a fraction of transaction activity. Industrial and logistics assets represented 17% of total Norwegian commercial property investment, three percentage points more than a year earlier and approaching the sector’s ten-year average share of 19%. A total of 31 transactions were recorded during H1, five more than in the corresponding period of 2025.
The recovery was overwhelmingly supported by domestic capital. Cross-border investment amounted to just NOK 100 million, equivalent to 1.5% of sector transaction volume, according to CBRE. Higher financing costs continue to restrict international activity despite improving investment volumes. One transaction had a particularly large influence on the first-half result, with KLP acquiring three logistics properties from Urban Partners for NOK 1.8 billion, accounting for approximately 27% of total industrial and logistics investment during the period.
The size of the KLP transaction means the 25% year-on-year increase should be viewed in context. Without the acquisition, first-half volume would have been considerably lower, although the increase in the overall number of transactions indicates that activity was not limited to a single deal. Investor sentiment towards the sector nevertheless remains positive. CBRE’s 2026 Nordic Investor Intentions Survey found that the balance between respondents planning to increase and decrease their industrial and logistics allocations was positive by 34 percentage points. Investors also appear to favour newly developed properties over ageing industrial stock.
Prime industrial and logistics yields remained at 5.50%, unchanged since the second quarter of 2025. Rather than significant further yield compression, current investment interest is therefore developing against a relatively stable pricing environment.
Conditions in Greater Oslo’s occupier market provide further support for investment activity. Logistics take-up reached 195,075 sqm during H1, an increase of 5.9% year-on-year, while prime rents remained around NOK 2,000. Vacancy nevertheless stood at 4.1% across Greater Oslo, giving occupiers more choice and greater scope to negotiate.
Older properties in more central locations are facing particular pressure, with landlords increasingly using incentives and greater flexibility on rents to secure occupiers. Tenants also appear less willing to lease more space than they require, creating a clearer distinction between the performance of modern logistics facilities and ageing stock.
The market varies considerably between Greater Oslo’s principal logistics corridors. Prime rents in Groruddalen reached NOK 2,000, with vacancy across the northern corridor at 3.6%. The western corridor, including Drammen, recorded prime rents of NOK 1,600 and vacancy of 4.8%, while the southern corridor around Langhus had the same prime rent but lower vacancy of 2.8%.
Development is increasingly concentrated towards the outer parts of Greater Oslo, including Vestby, Drøbak, Gardermoen and Nebbenes, where greater land availability supports new construction. Rents in these locations remain below those achieved in the strongest central hubs, although newer buildings can provide occupiers with lower operating costs.
The resulting market is becoming increasingly divided by asset quality. Modern logistics properties continue to attract investor interest and occupier demand, while older facilities face greater competition as tenants gain more alternatives and become increasingly selective about the space they lease.
Norway’s 25% increase in industrial and logistics investment therefore represents a meaningful improvement, but not yet a broad return of international capital. With foreign investors responsible for only 1.5% of first-half volume and one domestic portfolio acquisition representing more than a quarter of the total, the next stage of the market will depend on whether a wider group of buyers returns.
For the remainder of 2026, the key test will be whether investment volumes can remain elevated without relying on exceptionally large domestic transactions. Stable prime rents, relatively low vacancy and continued occupier demand provide supportive fundamentals, but the limited participation of cross-border capital remains one of the clearest constraints on a broader investment recovery.
