Saturday, 29 August 2026
Sweden’s industrial and logistics property market recorded a sharp recovery in investment activity during the second quarter of 2026, even as leasing volumes remained well below last year’s level and vacancy stayed elevated. The contrasting trends suggest that capital is returning to the sector faster than the underlying occupational market is recovering.
Industrial and logistics transactions reached approximately SEK 19.5 billion in Q2, an increase of 132% compared with the same quarter of 2025. The number of completed deals rose 31% to 51, while logistics and industrial properties accounted for around a quarter of all Swedish commercial property investment during the period.
The increase formed part of a broader rebound in Swedish real estate transactions. Total investment across all property sectors reached around SEK 80 billion during Q2, representing a 146% year-on-year increase. Industrial and logistics emerged as the country’s second-largest investment segment during the quarter.
Despite the scale of the recovery, international capital played a relatively modest role. Cross-border investment into Swedish industrial and logistics property amounted to approximately SEK 1.8 billion, equivalent to just 9% of the sector’s quarterly transaction volume.
Several sizeable portfolio transactions contributed to activity. Areim acquired 33 warehouse and light-industrial properties across Greater Stockholm and Uppsala, comprising approximately 110,000 sqm and around 135 tenants. NP3 entered the Trestad region through the purchase of 23 predominantly industrial properties in southern Sweden from Anguli Fastigheter for around SEK 1.2 billion, covering approximately 141,000 sqm.
Another transaction saw Ryk Group acquire 15 light-industrial properties from Leje Fastigheter for approximately SEK 1.3 billion. Thirteen of the properties are in Stockholm and two in Gothenburg. Together, the deals indicate particularly strong investor interest in established warehouse and light-industrial portfolios combining location, occupancy and diversified income.
The occupier market presents a different picture. Leasing activity amounted to approximately 115,000 sqm in Q2 2026, compared with 208,000 sqm during the same period last year. While this represents a substantial year-on-year decline, activity remains considerably above Q2 2024, when only 24,000 sqm was recorded.
Large occupiers are nevertheless continuing to commit to new facilities. Sports and cycling retailer Spobik agreed a ten-year lease for a new 21,600 sqm property in Jönköping, while PostNord committed to approximately 15,000 sqm for a new parcel and pallet terminal in Timrå. Essity signed for approximately 22,800 sqm in Falkenberg, with the property subsequently due to expand to around 30,000 sqm.
These transactions indicate that demand has not disappeared, but it has become concentrated around occupiers with clearly defined long-term requirements. That distinction is important when considering the investment market’s rapid recovery.
Sweden’s stock of higher-quality logistics properties of at least 5,000 sqm stood at approximately 15.8 million sqm at the end of Q2. Vacancy was 9%, while net absorption reached 137,000 sqm. Stockholm prime rents remained at SEK 1,250 per sqm annually, unchanged from a year earlier.
Supply could create additional pressure during the remainder of the year. Approximately 99,000 sqm was completed during Q2, spread across five developments, with 28% delivered speculatively. Another 305,000 sqm is forecast for completion during Q3, substantially increasing the amount of recently developed space competing for occupiers.
Around 62% of the speculative space expected to complete during 2026 is scheduled for the second half of the year. This could place additional upward pressure on vacancy before occupier demand has fully recovered. Total development for the year, however, is expected to remain approximately 24% below the five-year average, suggesting that the supply cycle is already beginning to moderate.
The combination creates an unusual point in Sweden’s logistics property cycle. Investors are deploying significantly more capital at a time when leasing remains weaker than a year ago, vacancy is relatively high and another wave of speculative space is approaching completion.
Financing conditions appear to be part of the explanation. The research points to strong lender interest and increased competition between financiers as supportive factors for transaction activity during the second half of 2026.
Pricing is also showing signs of improvement at the prime end. The report places Gothenburg’s prime logistics yield at 4.80%, with a quarterly compression of 10 basis points. This suggests investors are again willing to accept slightly lower returns for the strongest properties even before the occupier market has completely normalised.
The divergence between investment and occupational conditions will be important during the remainder of 2026. If leasing strengthens while development slows, today’s investors could be positioning themselves ahead of improving fundamentals. If occupier demand remains subdued, however, the arrival of additional speculative space could prolong competition between landlords and restrict rental growth.
Sweden’s logistics market is therefore not experiencing a straightforward boom. Instead, capital markets appear to have entered the recovery phase ahead of occupiers, with investors increasingly willing to buy well-located, income-producing industrial and logistics assets while the leasing market continues to work through vacancy and new supply. The second half of 2026 will show whether that investment confidence is an early indicator of a broader recovery or whether the gap between property capital and occupier demand still has further to run.
