DUE TO MAJOR DEALS: ONLY GERMAN TOP MARKET WITH ABOVE-AVERAGE HALF-YEAR RESULTS
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Despite the challenging market environment driven by the overall sluggish German economy and the continued decrease of supply, the Cologne logistics market can report good letting momentum at mid-year.
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With take-up totalling 146,000 sqm, the logistics region of the Rhine metropolis is the only German top market to close the first half of the year with an above-average result. The Cologne market area exceeded the very weak result of the previous year by a solid 165% and outperformed the long-term average by a remarkable 42%. The good result is also apparent in nationwide comparison. In H1 2024, Cologne's take-up is above the average for the most important markets of around 122,000 sqm.
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It is also pleasing that the lively market activity is not only reflected in the high take-up level, but also in a good number of deals. Nevertheless, the excellent result would not have been possible without the e-commerce furniture retailer Woltu, which took 44,500 sqm in an older existing building. It was one of the largest deals of the last five years. However, Woltu will use the property only until it can be converted to residential use. It is also worth noting that this contract and overall around 85% of H1 take-up was generated in the core area of Cologne’s logistics region, which emphasises the importance of well-connected logistics space close to the city centre.
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As in other markets, rents are now stabilising. Since the end of 2023, the prime rent has stood at €7.70 per sqm and the average rent at €5.80 per sqm.