Logistics market cologne

STRONG START TO THE YEAR

• With take-up of 99,000 m², the Cologne logistics market got off to a strong start to the new year. After the brilliant start to 2021 (119,000 m²), it is the second-best result at the beginning of the year in the long-term view. The 10-year average was thus exceeded by an impressive 80%.
• The logistics market in the cathedral city was characterized by high overall market dynamics in the first quarter. In addition to the continuing particularly high demand from the e-commerce sector, expansion topics and inquiries from start-ups are increasingly being placed on the market. At the same time, the supply bottleneck has tightened further. In general, the volume of available space at short notice is especially limited in the core area. The supply situation in the favored central locations is even more severe  .
• The top rent increased by 3 % compared to the same period last year standing  now at 6.00 €/m².

MANUFACTURING AND WHOLESAIL SIGNIFICANTLY ACTIVE

• Companies from the manufacturing sector have been particularly strong in transactions. Several deals have contributed to a significantly above-average market share of almost 51%, including the largest deal to date with a take-up of around 40,000 m².
• Retail companies have generated almost 15,000 m² of take-up. Thus, market activity in this segment  has not yet caught up with the exceptional year of 2021 (Q1 2021: around 39,000 m²), nevertheless it is  in line with the long-term average. Retail companies have made a positive impression to date, particularly in the mid-sized segment.
• Logistics companies currently perform a subordinate role with a market share of around 12%.
• The market is stable in terms of take-up by size class. As in the previous year, contracts in excess of 20,000 m² account for more than half of the take-up.

COLOGNE MAINTAINS TOP THREE RANKING

OUTLOOK

• The Cologne market continues to be characterized by high demand for space, fueled not least by the vivid development in the area of last-mile logistics. Despite the challenging economic conditions, the cathedral city is heading for an annual result which is likely to be in line with the long-term average out of today‘s perspective.
• On the supply side, there is currently no sustained relief on the horizon. In terms of  project developments, there are, on the one hand, repeated delays in the construction phase and, on the other hand, just a few speculatively constructed assets which are very quickly being absorbed by the market. Large and modern spaces are still hardly available at short notice.
• The excess demand typical of Cologne will remain prevalent. In combination with rising construction costs, the level of prime rents is likely to rise further.