TAKE-UP SLIGHTLY BELOW PREVIOUS YEAR'S LEVEL
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The Berlin warehouse and logistics market achieved take-up of 216,000 m² in the first three quarters of the year. Thus, the weak economic development has not spared the capital region implying that the result is around 6% below the comparable result of the previous year and falls significantly short of the ten-year average (-39%).
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Berlin's market development is largely in line with the nationwide trend of predominantly moderate take-up. Nevertheless, Berlin is in second place in
the location ranking behind Frankfurt (304,000 m²) and ahead of Cologne (204,000 m²). -
Potential users are still hesitant, particularly in the large-scale warehousing segment, and are tending to wait and see how the economy develops and remain in existing space instead of changing their space and loication. Against this backdrop, there is somewhat less market activity overall and no contracts above the 12,000 m² mark have been concluded to date. The largest lease currently signed is for the pharmaceutical wholesaler Alliance Healthcare with 11,800 m².
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Meanwhile, the supply of space is expanding, primarily due to building completions that have not yet been absorbed by the market. However, this trend will reverse again in the medium term, as fewer new projects are currently being realised.
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While the rent level is higher than in the previous year, it has stabilised since the second quarter at a peak of €8.20 per m² and an average of €7.20 per m².