NOTICEABLE UPTURN IN Q2, BUT MARKET HAS NOT YET REGAINED ITS FORMER STRENGTH
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The German logistics market recorded a take-up of 2.44 million sqm (including owner-occupiers) in the first half of the year. After a subdued start to the year with a result of just 1.02 million sqm in q1, market activity increased both in the amount of space taken up and the number of contracts signed in the second quarter. Take-up accelerated to 1.42 million sqm, but nonetheless remained 16% below the previous year's figure and 24% below the ten-year average.
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The still rather weak economic development continues to have a slowing effect on demand. Companies are tending to postpone investment decisions and hold on to existing space if possible. This is because, on the one hand, rents have risen significantly and, on the other, the lack of available space at short notice remains a limiting factor in some markets. As a result, many companies are opting for lease extensions, which are not relevant for take-up. Nevertheless, the market in the second quarter is livelier than at the start of the year, particularly outside the major logistics hubs.
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The major logistics regions (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig and Munich) recorded the lowest result of the past ten years with a total take-up of 854,000 sqm. Thus, the previous year’s result was missed by 13% and the ten-year average by 27%. Cologne is the only market moving above average; all others are currently performing below average. The ranking is led by Frankfurt (195,000 sqm; +52% y-o-y) ahead of Berlin (151,000 sqm; +21%), Cologne (145,000 sqm; +164%) and Hamburg (131,000 sqm; -21%).