NO MAJOR CONTRACTS SIGNED YET, TAKE-UP AT LOW LEVEL
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The Hamburg market for warehouse and logistics space recorded take-up of around 178,000 m² by the end of the third quarter. This implies that the current result is only around half the long-term average. Meanwhile, the already subdued result of the previous year was undercut by 28 %. Furthermore, the current take-up at the lowest level in the past ten years for the Hanseatic city.
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The moderate market momentum can be attributed to the economic headwind that is still clearly noticeable. Although there is generally solid demand for space, particularly in the core area of the Hamburg logistics region, many companies are delaying their rental decisions against the backdrop of the currently uncertain overall economic development. This is particularly evident in the large-scale segment. For example, no contract for more than 12,000 m² has yet been registered this year. The largest agreements to date, such as that of owner-occupier Sterac Transport & Logistik in Braak, are in the 10,000 m² range. However, with a total of only around 60 registered contracts (-28 % compared to the 10-year average), the Hamburg market is currently characterised by comparatively low momentum, even apart from the lack of large contracts.
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However, the rental trend gives proof that the supply side is also preventing higher take-up. Despite the low market momentum, both the prime rent (€8.50 per m²; +20 cents) and the average rent (€6.40 per m²; +15 cents) have increased since the beginning of the year underscoring the lack of supply in the region. Modern space in the core area in particular continues to be in demand with only limited availability.