LOW SUPPLY LIMITS TAKE-UP
- At the end of the first half of 2023, the Frankfurt warehouse and logistics market achieved a take-up of 128,000 m². After a subdued start to the year, the second quarter recorded significantly more activity, nevertheless the half-year result is about 38 % below the previous year's figure as well as around 50 % lower than the long-term average.
- Primarily, this circumstance is due to an insufficient supply - partly exceeding the market area. Not least, leading to a situation in which many occupiers are drawing their rental options and renewing their contracts. As a result, there is little to no fluctuation, which is directly reflected in take-up. In addition, however, a slightly weakening economy is leading many companies to adopt a tendentially cautious attitude. The shortage of supply is particularly evident in the core area.
- Because of the supply shortage, both prime and average rents have risen further to 7.50 €/m² and 6.20 €/m² respectively.
STILL NO MAJOR CONTRACTS
- As in most leading logistics regions, the Frankfurt market area has not yet registered any major deals above the 20,000 m² mark. This explains the significant difference compared to the previous year's result, when more than 90,000 m² had already been let in this segment.
- The small and medium-sized categories, on the other hand, are approximately at the level of the corresponding long-term average in terms of the take-up registered to date.
- The shift in space demand already observed in the first quarter - from retail companies, which have been strongly represented in recent years, to industrial and manufacturing companies - continued in the second quarter. With an above-average share of around 30%, this is reflected in the latest take-up. Logistics firms, on the other hand, underline their high importance for the market over many years and, at 40%, are within the range of their average.