SUPPLY SHORTAGE LIMITS TAKE-UP
- After the first nine months of 2023, a take-up of 245,000 m² was registered on the Frankfurt warehouse and logistics market. Although this result is only around 16 % below the previous year's figure, it is 39 % below the long-term average.
- This lower result is primarily due to the severe shortage of vacant warehouse and logistics space in the Frankfurt market area. The low availability of space is also reflected in the share of new construction of only 37 %, which is significantly below the long-term average (10-year average: 54 %). As a result, many occupiers are extending their leases so there is just little or no movement in the market. Demand for space remains strong, but many companies are Considering their decisions for longer than in the previous year.
- As a result of this excess demand and pressure, both prime and average rents have risen compared with the last quarter and are currently quoted at 7.75 €/m² and 6.50 €/m² respectively.
ONE MAJOR DEAL ABOVE 20,000 M²
- With the Mercedes-Benz deal in Trebur for around 21,000 m², only one large deal was recorded in the third quarter, which is a very low figure by long-term standards. Thus, the large-volume segment above 20,000 m² has so far only contributed 9 % to take-up, which is well below the long-term average of 31 %.
- While take-up in the small size categories is close to their long-term averages, the two medium size categories (5,000 m²-8,000 m² and 8,000 m²-12,000 m²) have significantly above-average market shares of 20 % and 29 % respectively.
- The logistics firms, which have usually dominated strongly in recent years (Ø 10 years: 42 %), still contribute the most to take-up with a third, but significantly less than usual. Wholesale/retail companies, with a strong share of around 29 % on average over many years, also account for only 16 %. By contrast, industrial and manufacturing companies have the highest share of the past 10 years, at 32 %.