LOGISTICS MARKET STARTS THE YEAR WITH MODERATE TAKE-UP
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The German logistics markets were characterized by subdued market activity overall at the start of 2024. By the end of the first quarter, take-up totaled only 1.02 million m² (including owner-occupiers). Although this means that the 1 million-m²-mark was once again surpassed right at the start of the year, it is nonetheless the weakest start to the year since 2010. The result is 18% below the previous year's figure and around 31% below the ten-year average.
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The economic downturn, which has now persisted for several quarters, has thus also made itself visible for the first time in registered logistics take-up, albeit with a slight delay. In addition to the general economic conditions, the noticeable rise in rents, a high level of cost awareness on the part of occupiers, longer review processes when renting and the continuing low supply of adequate space in many conurbations also play a role in the lower fluctuation on the market. Accordingly, occupiers are currently increasingly tending to exercise their contractual options and extend expiring leases.
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In the major logistics regions (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Leipzig and Munich), take-up totaled 425,000 m², which is 23% below the long-term average, but 7% above the previous year's result. A striking aspect of the generally somewhat quieter first quarter is the overall low number of large-scale lettings, which are still completely absent in the markets of Berlin, Frankfurt, Hamburg and Munich, consequently these markets achieved below average results.