BUILDINX 2025: Defense Drives Demand for Logistics Properties

When the BUILDINX opens its exhibition doors from November 18 to 20, 2025, the increasingly important keyword Defense will be on the agenda alongside many other important topics. In Dortmund, GARBE Industrial and FIEGE Logistics will specifically address the impacts of political decisions on the industry and present their forecasts and requirements for the coming years.

(Dortmund) It is considered certain among experts that the increased defense spending by the federal government in the coming years will lead to a rise in real estate financing, particularly in the asset class of warehousing and logistics. This is evidenced by the latest survey from the German Real Estate Financing Index (DIFI). This assessment is also supported by a report from real estate consultant Savills: A significant increase in demand for industrial and logistics properties across Europe is expected. Planned major projects such as the procurement of new Eurofighters, the modernization of Taurus cruise missiles, and investments in tank, drone, and air defense systems make Germany a particularly important defense market, which is why experts anticipate strong demand in the domestic logistics sector.

Additional Space Requirements Expected

Savills estimates that there will be a demand for up to 37 million square meters of additional space in Europe, with 6 million of that in Germany. Concrete figures will be provided by Tobias Kassner, Head of Research & ESG and Member of the Executive Board at GARBE Industrial, in his keynote speech at BUILDINX on November 19. He will also provide a compact overview of demand situations and ongoing investment programs, as well as outline the expected development of defense spending in Germany and Europe. The focus will be on the overall economic potential and investable volumes for institutional investors, the most important types of locations and product ranges, as well as the structure and location patterns of the defense industry in both regions. The goal is to clearly categorize opportunities, risks, and next steps for market participants.

More Transparency in Security Regulations

In their expert talk on November 18, Michael Quaden, Program Director Defense Solutions at FIEGE Logistics, and Michael Ulverich, Managing Director at Michael Ulverich Consulting, will discuss how the logistics real estate industry can adapt to the defense sector. Quaden has been engaged in the Middle East for many years, including in Iraq, Syria, and Lebanon, before working in consulting positions at EY, PwC, and FTI Consulting on topics such as business continuity and crisis management. Currently, Quaden advocates for more transparency in security regulations, qualifications, and processes that would apply to logistics providers in this context. Only then could access to defense logistics be facilitated for medium-sized companies; however, the armed forces and logistics providers would need to work more closely together in the future.

Powerful European Defense Ecosystem

With Michael Ulverich, a well-versed expert in the defense sector will also be present at BUILDINX: He has previously served as Managing Director & COO of Krauss-Maffei-Wegmann GmbH & Co. KG and as head of the global production network of MAN Truck & Bus. His work focuses on the transformation of industrial value creation systems and the integration of industry, logistics, and defense economy into a powerful European defense ecosystem.

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