Defence and logistics real estate.

Armed forces are to a large extent logistics organisations. Every new vehicle, weapon system and ammunition order brings warehousing, spare-parts supply, maintenance and transport with it. For years this backbone was reduced: depots were closed, sites converted and stocks cut to the minimum.

Today the logic is reversed. Just-in-case replaces just-in-time. Stocks are to be built up and quickly available, supply chains made more resilient and more production brought back to Europe. Germany's geography adds to this.

Germany as the alliance's hub

Germany's operational plan describes how allied forces would move through the country to NATO's eastern flank. This involves handling at ports and rail lines, rest and staging areas, refuelling, catering and repair. Much of it is provided by civilian partners under framework contracts, for example in rail, motorways and logistics services. At EU level, military mobility along designated corridors is being expanded.

What this means for real estate

• Additional warehouse and distribution space for clothing, equipment, spare parts and consumables.
• Production and assembly halls for manufacturers and suppliers expanding capacity.
• Maintenance and service with workshops, test benches and crane runways.
• Handling and staging areas at ports, rail terminals and motorway junctions.
• Light industrial and technology space for sensors, drones and software with high power demand.

Several studies by advisers, banks and research firms now estimate the additional space required by defence. The results vary widely because they cover different periods, regions and property types. For Europe, estimates range from about 15 to more than 35 million m² of additional space by the early 2030s. For Germany, figures of roughly 4 to 6 million m² are cited depending on definition, with some models arriving at considerably more.

For the property market, the key distinction is between total demand and investable demand. Much of the space is built by the state and industry for their own use, on existing plant sites or federal land. Bank research assumes that only around 20 to 30% of the additional space will be leased on the market. Measured against German logistics take-up of around 6 to 7 million m² a year, this is a noticeable but not dominant contribution in the mid single-digit to low double-digit percentage range.

What the market already shows

Since 2026, market reports have recorded the first large defence-related deals. The Bundeswehr, through its clothing company, has leased several logistics buildings of over 30,000 m² each. In northern Hesse a logistics centre of around 40,000 m² for the armed forces' central spare-parts logistics has opened, and a further logistics and technology centre is being built at Kassel Airport. Back in October 2025, the federal government also suspended the conversion of around 200 former military sites and is holding them as a strategic reserve.

Our view: defence is an additional, long-term demand driver, not a short-term boom. Implementation follows budget and procurement cycles with a time lag. Those who hold or develop suitable space today are well positioned when contracts turn into buildings and leases.

Since 2025 the legislator has introduced several simplifications for defence construction. For private owners and developers it matters which of them apply to them.

• Section 37 of the Federal Building Code allows deviations from planning law for federal projects with a special purpose. This mainly concerns the armed forces' own facilities.
• Section 37a of the Federal Building Code has applied since 30 October 2025. Projects to produce or store defence goods, in particular ammunition and explosives, are privileged in undesignated outer areas if the Ministry of Defence confirms their importance for operational readiness and security of supply. Reinstatement is required if the use is permanently abandoned.
• The act on accelerated planning and procurement for the Bundeswehr has applied since February 2026 and runs until the end of 2035. It simplifies procurement and construction procedures for the armed forces and the building administrations involved.
• A Bundeswehr infrastructure acceleration act is in the legislative process. It is intended to classify barracks, depots and transport links as being in the overriding public interest and to shorten procedures.
• Outside these special rules, civilian halls are subject to the usual requirements: zoning plan, area type, emissions control and fire protection.

For existing buildings this means: storage and distribution of defence goods are usually possible in a permitted logistics building without a new permit, as long as hazardous goods or explosives are not stored in relevant quantities. A switch to production or repair, by contrast, is generally a change of use requiring a permit. For special uses, the permit situation should be checked before signing.

Demand follows existing industrial and military sites as well as the axes of military mobility. Three focal areas are emerging:

• The north with a maritime focus: Kiel, Wilhelmshaven, Bremen and Hamburg with shipyards, ports and onward handling to the east.
• The west and centre with land systems: the Rhineland, the Ruhr and northern Hesse with vehicle construction, suppliers and central logistics.
• The south with aerospace, sensors and drones: the Munich area, the Danube region and Swabia.

Added to this are the corridors along which materiel and troops are moved: from the North Sea ports eastwards, along the Rhine and via the major motorway and rail hubs. Sites with rail access, proximity to ports and sufficient grid capacity are gaining importance.