Logistics market Berlin

1 MILLION M² MARK REACHED FOR THE FIRST TIME

• The Berlin logistics market achieved an outstanding result last year with a take-up of 1.02 million m². This means that the German capital not only significantly exceeded its own record from 2021 (609,000 m²), but is also the first market in Germany to surpass the one million m² barrier in take-up.
• The new Tesla building in Grünheide, which was included in the result with 327,000 m² after final planning permission was granted in spring 2022, played a significant role in this milestone. But even if the Giga-Factory is excluded from the total volume, 697,000 m² are still on the books, which would represent a new record, too.
• The unique annual result was made possible by an unusual accumulation of large deals: Around 20 deals in the segment above the 10,000 m² mark are clear evidence of the resilience of the Berlin market against the backdrop of the current difficult economic environment.

BESIDES MANUFACTURING ALSO RETAIL WITH RECORD

• Due to the Tesla settlement, manufacturing companies unsurprisingly lead the sector distribution with a share of 46 %. But even without this special influence, industrial companies achieve an above-average result with around 143,000 m², which is not least due to some automotive suppliers.
• Meanwhile, wholesale/retail companies achieved a new record. With around 310,000 m², they exceed their long-term average by 69 %. A whole series of major deals contributed to this, such as the largest registered lease of the year: the rental of 50,000 m² by wholesaler Sonepar in Werder.
• Due to the high demand for modern space across all sectors as well as the significant increase in construction costs, the prime rent has risen by 30 cents over the course of the year to now 7.80 €/m².

KEY FIGURES

OUTLOOK

• The fact that Berlin's logistics market can look back on an absolute record year despite all the economic uncertainties reflects the unbroken high attractiveness of the capital for many companies.
• Nevertheless, the looming slight recession is likely to cause a somewhat subdued market dynamics in the coming months. In addition, the record result was made possible, among other things, by the fact that a not inconsiderable supply of speculatively built space was available on the market. However, these reserves have been largely rented out in the meantime. Since construction activity is also lower than in previous years due to higher interest rates and construction costs, the supply of space is also more limited than in previous years. For 2023, a take-up slightly below the long-term average of 494,000 m² therefore appears to be the most realistic scenario from today's perspective.