Logistics market Germany

Executive Summary
 

SECOND-BEST RESULT OF ALL TIME FOR THE GERMAN LOGISTICS MARKET

• Following a first quarter which suggested a rather average year was in the making for the German market for storage and logistics space, the take-up figures picked up appreciably at mid-term. The year closed with the second-best result of all time, a total take-up volume of 6.9 million m² falling barely 7 % short of the record result from 2018.
• The major logistics hubs (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Leipzig, Munich, Stuttgart) reported sharp drops as a whole, with total take-up of 2.3 million m² down by some 20 % on the previous year. This represents the weakest result of the past six years. A key contributory factor here was high land prices, which are making it increasingly difficult to market property developments at acceptable rent levels. Increases in take-up were reported only by Munich (419,000 m²; +72 %) – whereby this result was primarily attributable to a single mega-deal comprising over 230,000 m² – and Berlin (501,000 m²; +16.5 %).
• The main beneficiaries of the shortage of space in the major logistics hubs are the locations outside of the large conurbations. A new all-time-high take-up volume of  4.6 million m² was reported here. This was 2 % up on the record established in 2018.

INDUSTRIAL COMPANIES TOP THE RANKINGS

• Despite uncertainties regarding the underlying economic situation, industrial companies head the sectoral breakdown on just under 41 %.
• Wholesale/retail companies also generated substantial demand, taking second place on a good 29 % ahead of the unusually weak logistics firms (25 %).

MARKED RENT RISES IN SOME LOCATIONS

• Rents have risen in many locations as a result of the generally strained supply and demand situation, increased land prices and, above all, higher construction costs.
• The sharpest increase was reported in Düsseldorf, which witnessed a 6.5 % hike up to 5.75 €/m². The prime rents have also risen appreciably in Cologne (5.40 €/m²; +6 %), Hamburg (6.30 €/m²; +5 %), Frankfurt (6.60 €/m²; +5 %) and Stuttgart (7 €/m²; +4.5 %).
• With regard to the average rent, Berlin reported the largest increase, with a rise of 7 %.