At a Glance Q3 2023

Logistics market Leipzig

Logistikmarkt Leipzig BNPPRE
264,000 m²
TAKE-UP
-14 %
Q3 2023 vs. Q3 2022
+29 %
IN COMPARISON TO 10-YEAR
AVERAGE

STRONG RESULT AT THE END OF THE THIRD QUARTER

  • Despite the economic downturn, Leipzig's logistics market has remained very solid so far this year. Although the strong result of the previous year was missed by around 14 %, the 264,000 m² currently registered corresponds to the third-best result of the past 10 years. Accordingly, the current interim result exceeds the long-term average by almost a third.
  • Even though demand for logistics space continues to be very robust in almost all sectors, one segment in particular is currently standing out: driven by the shift towards e-mobility, many car manufacturers are expanding their logistics capacities for e-components such as batteries. With the leasing of 86,000 m² by a German premium manufacturer in Bitterfeld-Wolfen and the start of construction of a BMW logistics centre in Industriepark Nord (35,000 m²), the two largest deals of the year are in this sector.
  • The rent level increased once again in the third quarter. The top rent is currently 5.80 €/m² (+20 cents compared to Q2) and the average rent stands at 4.70 €/m² (+25 cents).

PRODUCTION COMPANIES CONTRIBUTE MORE THAN HALF OF TAKE-UP

  • The distribution of take-up by sector impressively reflects the large lettings from the automotive segment. Production companies currently account for around two-thirds of take-up, which is a new record both in relative and absolute terms. In addition, only logistics firms still contribute a noteworthy 23.5 % of take-up. Wholesale/retail companies, which are usually strongly represented in Leipzig, have hardly made an appearance so far with a share of 3 %.
  • Driven by the aforementioned deals, completions above the 20,000 m² mark set a new record with around 142,000 m². However, the fact that the solid performance of the Leipzig logistics market is not based solely on a few large deals is particularly evident from the fact that a high number of small deals below 3,000 m² also set a new record in this segment (27,000 m²).
  • While the owner-occupier share of 19 % is in line with the average of the last five years, the share of new builds is well above average at around 70 %.

KEY FIGURES

OUTLOOK

  • The Leipzig logistics market continues to enjoy stable demand and is currently one of the few large German logistics agglomerations that have not recorded any losses on average over many years. Market activity is also expected to remain brisk in the final quarter, with the result that the 300,000 m² threshold is likely to be significantly exceeded for the fourth year in succession.
  • While the shortage of space is likely to remain the dominant issue in many market segments, there are signs of a slight recovery in supply in the medium size segment of 5,000 to 10,000 m², although demand remains constant.
  • Accordingly, rents, especially in the segment of high-quality new-build space, are likely to increase slightly once again. However, the increase will no longer reach the very pronounced momentum of the previous quarters.

LOGISTICS MARKET REGION LEIPZIG

MAJOR CONTRACTS

86,000 m²
Manufacturing
Bitterfeld-Wolfen

35,000 m²
BMW Group
Leipzig

21,000 m²
SMP
Leipzig

Download this market report as PDF

All rights reserved. At a Glance is protected in its entirety by copyright. No part of this publication may be reproduced, translated, transmitted, or stored in a retrieval system in any form or by any means, without the prior permission in writing of BNP Paribas Real Estate GmbH. The statements, notifications and forecasts provided here correspond to our estimations at the time when this report was prepared and can change without notice. The data come from various sources which we consider reliable but whose validity, correctness or exactness we cannot guarantee. Explicitly, this report does not represent a recommendation of any kind, nor should it be regarded as forming a basis for making any decisions regarding investment or letting or renting property or premises. BNP Paribas Real Estate can accept no liability whatsoever for any information contained or statements made herein.

Publisher and copyright: BNP Paribas Real Estate GmbH | Prepared by: BNP Paribas Real Estate Consult GmbH | Status: 30.09.2023
Further Information: Christopher Raabe, Head of Logistics & Industrial | Phone +49 (0)40-348 48-0
Photo credits: Adobe Stock / C. By A. Fink; Mathias Weil