LOW HALF-YEAR RESULT DUE TO LACK OF MAJOR DEALS
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The Munich warehouse and logistics market (including owner-occupiers) mainly recorded small-scale lettings in the first half of 2024, resulting in take-up of 52,000 sqm, which is around 53% below the ten-year average.
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While the new building of the logistics service provider Group 7 in Oberding alone pushed the previous year's take-up by 60,000 sqm, the largest contract registered to date only covers 8,100 sqm. The weak economic conditions are reflected in a somewhat subdued demand trend, with companies acting more hesitantly overall and tending to extend leases rather than rent new space.
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The high level of rents and the generally low supply on the Munich market have also been slowing market momentum for some time. Furthermore, no owner-occupier contracts have been registered to date.
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After rents rose significantly in 2022 and 2023 in particular, there are currently signs of stabilisation in Munich as in most other major logistics locations.
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The prime rent has remained unchanged at € 10.50 per sqm since the third quarter of 2023 and the average rent has also remained constant at € 8.70 per sqm.