Market report Stuttgart full year 2022

According to our analysis, the Stuttgart rental market for warehouse, logistics and industrial space continued the previous year’s positive trend in 2022. Total take-up by all market participants in the period from January to December 2022 came to 316,000 m², around 6.5% above the previous year’s figure of 296,612 m². The five-year average was also exceeded by a significant 41% year-on-year and now comes to 223,352 m².

Four of the seven top deals were attributable to existing properties and together accounted for 84,142 m² or 39.4% of take-up in existing properties. These also included the biggest deal of the year by REWE for more than 35,000 m².

Three deals were in new buildings, contributing 59,788 m² or 58.4% and including the second-biggest lease of the year by a logistics specialist for 33,263 m².

Once again, brownfields did not play any role in the Stuttgart rental market for industrial and logistics properties in the past year. Since 2018, we observed take-up of brownfields only in 2021 at 4,500 m² or 2%.

The Esslingen district came in second again at 91,900 m² or 29.1% (2021: 77,088 m² or 26%, up 3.1 percentage points), with two of the top deals – Krannich Solar and Robert Bosch GmbH – together contributing 26,525 m² or 29% of this region’s take-up.

In third place in 2022 was Göppingen with 52,000 m² or 16.5% (2021: 23,322 m² or 7.8%), which thus more than doubled the previous year’s result (up 123%). This was partly due to the second-biggest deal, which accounted for 64% of take-up in the region.

After consistently taking first place since 2018, the Ludwigsburg district was relegated to the lower ranks for the first time with 46,600 m² or 14.7%. Coming from 117,541 m² or 39.6% in 2021, Ludwigsburg dropped three places compared to the previous year. In absolute terms, less space was taken up in Ludwigsburg than in any year since 2018. Compared to the previous year, the decrease in its relative share came to 24.9 percentage points, whereas in absolute terms its take-up fell by 60%. Only one top deal – with E. Breuninger GmbH & Co. KG – was attributable to the Ludwigsburg region this time.

In fifthplace was the Rems-Murr district with 16,300 m² or 5.2% (2021: 8,523 m² or 2.9%) and in last place was the city of Stuttgart with 5,100 m² or 1.6% (2021: 10,580 m² or 3.6%), representing the lowest take-up in this region since 2018.

The leading sector since 2018, logistics/distribution took first place again in 2022 at 131,000 m² or 41.5%, although it saw losses in absolute and relative terms (2021: 162,847 m² or 54.9%). It lost the most ground in relative terms out of all sectors at -13.4 percentage points and recorded an absolute decrease of 19.6%. Only one of the top deals in 2022 was attributable to logistics/distribution, which contributed around a quarter of take-up.

The most take-up occurred in the segment of large spaces of 10,001 m² or more, as in the previous year, which contributed 154,600 m² or 48.9% (2021: 33.1% or 98,191 m²). Almost one in two square metres of take-up were in this category, as well as all seven top deals, which represented around 46% of total take-up at 143,900 m².

The 3,001 to 5,000 m² size category remained in third place at 50,300 m² or 15.9%. Compared to 60,507 m² or 20.4% in 2021, it lost ground slightly in relative terms (down 4.5 percentage points) and significantly in terms of absolute take-up (down 17%). This group accounted for 12 of the 59 deals.

It is followed by smaller spaces between 1,000 and 3,000 m² with a share of 13.4% or 42,200 m² (2021: 13.5% or 40,083 m²), which thus almost matched the previous year’s level. This size category generated 23 of the 59 deals, the same number as in the previous year.

Smallest spaces of less than 1,000 m² brought up the rear with 7,500 m² or 2.4%, the result of ten deals (2021: 8,540 m² or 2.9%).

Never before have both the prime rent and the average rent increased by a double-digit percentage year-on-year. This represents the biggest increase in both figures since our records began.

In various talks with companies, we have gained the impression that the economy is currently robust. Despite current fears of recession and massive price increases on the energy market, demand for space has not declined. If this trend continues, then probably only a few existing spaces will come onto the market in 2023. New construction will also grow weaker in 2023, and only a few users in the Greater Stuttgart area will be able to enjoy new modern and sustainably constructed space.

Construction costs for logistics, retail and industrial properties have shot up to exorbitant levels and become almost incalculable. In the past six months, hardly any new construction projects for logistics have been commissioned in the Greater Stuttgart area. This means that there is currently little possibility for companies to grow further in Greater Stuttgart.