TAKE-UP REMAINS BELOW PRIOR YEAR
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The take-up of warehouse and logistics space in the Hamburg market area amounts to 260,000 sqm for 2024. Although the German economy has once again slowed down slightly compared to the previous year and therefore lacked an economic boost for the German industrial and logistics sector for the second year in a row, letting activity in the greater Hamburg area is only slightly below the 2023 result at -4%.
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In general, there is still broad demand on the Hamburg market, but companies are hesitant to rent new space, particularly in the large-scale segment. Besides the global economic trend, the noticeable rise in rents is another reason for companies to come to arrange with existing space and extend leases rather than opt for new space.
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In the full year 2024, only one large-scale contract was signed with a retail company in Norderstedt (24,300 sqm). All other deals were concluded for up to 10,000 sqm, which also corresponds to a significant decline in the larger space segment compared to the previous year. In contrast, demand for smaller units was very lively, and a higher number of contracts was also recorded for 2024 than in 2023.
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In view of the still limited availability of new build space in the core area, the rent level rose again by almost 5% to €8.50 per sqm at the start of 2024. The average rent has remained stable at €6.40 per sqm since the first quarter.