TAKE-UP INCREASED NOTICEABLY OVER THE COURSE OF THE YEAR
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The Munich warehouse and logistics market achieved a take-up of 211,000 sqm in 2024. This corresponds to a decline of around 11% compared to the previous year and 23% compared to the ten-year average. It is noteworthy that the market was able to increase significantly from quarter to quarter despite the difficult economic conditions after a rather weak start to the year.
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This overall very solid result is attributable to several large-scale contracts that are rather unusual for the Munich market, which is generally characterised by a very limited supply, particularly in the modern large-scale segment. These include, on the one hand, the contract signed by Isar Aerospace in Vaterstetten for around 26,000 sqm of production space in a new build-to-suit property in the fourth quarter, generating significant take-up, and, on the other hand, the rental agreement signed by a manufacturing company for around 23,500 sqm in an existing building in Munich, which was also recorded in the fourth quarter.
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Along with the rental agreements for Thyssen Krupp Automotive in Allershausen from the third quarter and a retail company in Erding from the second quarter, both of which were concluded for new-build space and are in the region of 20,000 sqm, an above-average new-build share of almost 45% was recorded for 2024.
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While the prime rent, which is at a high level of €10.50 per sqm, has remained stable over the course of the year, the average rent has increased in small steps to €9 per sqm.