Logistics market Leipzig

STRONG START TO THE YEAR WITHOUT OWNER OCCUPIERS

• The Leipzig logistics market was able to take the momentum from 2021 into the new year. With take-up of 89,000 m², the 10-year average was exceeded by a remarkable 65% and the third-best start to the year in history was achieved. Given that owner-occupier transactions have not yet been concluded, the gap of just under -18% compared with the very good result for the previous year become relative.
• The market continues to be characterized by a shortage of supply. The supply of space can only inadequately meet demand, particularly in the large-space segment. Therefore for companies the looking for new logistics premises. Speculatively constructed space is accordingly absorbed by the market from a very early stage on and is often already fully let before completion.
• The prime rent remains stable at 4.65 €/m² (+1% compared with Q1 2021), as at the end of 2021.

LEIPZIG CONFIRMS REPUTATION AS TOP INDUSTRIAL

• Leipzig's high attractiveness as a location for industrial companies is clearly reflected in the latest result. The BMW Group's decision to expand with a further 55,000 m² in the market area sends out a clear signal. In addition small scale deals helped push the volume of manufacturing companies to an above-average market share of 65%.
• Supported by the 10,000 m² deal concluded by Momox, retail companies generated some 16% of take-up so far, which is below their average (almost 20%). Logistics firms are currently acting much more moderate than in other years, contributing only just under 14% of volume. In their case in particular, the Q1 result is very likely to have been a snapshot only.
• The high market share of 70% generated by the new assets segment is primarily due to the completion of BMW Group, but also underlines the fact that large modern spaces in the market area continue to be in short supply.

SUPPLY OF SPACE REMAINS AT A LOW LEVEL

OUTLOOK

• Leipzig's logistics market has set the course for a good result for the year. The demand currently remains at a consistently high level, which sends out a positive signal for the coming months. Nevertheless, uncertainties have also increased in the Leipzig market area and it remains to be seen how a possible economic slowdown and the need for supply chain reorganization emerging in some sectors of the economy will affect Leipzig's market activity in the short term.
• Irrespective of this, Leipzig has very good locational prerequisites for production, trade and logistics companies, so that the positive growth trend that has been set is very likely to continue.
• In view of the continuing shortage of supply, particularly in the new construction segment, and rising construction costs, there are signs of a further increase in rental prices.