• Take-up down by 22.6%
• Big box logistics represents nearly 60%
• Prime rent increases by 18.9%

2023: New space completed equals take-up for one year

Düsseldorf, 26 August 2022 – Following the strong prior-year result of 163,000 m², take-up by all market participants of industrial and logistics properties and business parks for rental in Düsseldorf in the first half of 2022 has declined by a substantial 22.6% year-on-year. This is the conclusion reached by REALOGIS, the leading consultant for industrial and logistics properties and business parks in Germany, with 70 experts.

“Nonetheless, take-up of 126,100 m² of industrial and logistics properties by all market participants is a good result and the second-strongest since 2018,” reports Bülent Alemdag, Managing Director of REALOGIS Immobilien Düsseldorf GmbH. This is also reflected by the five-year average, which is currently 116,914 m² and was topped by 7.9% in the past six months.

Existing properties account for the largest share of take-up at 96,000 m² or 76.1%, with new build leases accounting for 30,100 m² or 23.9%.

Big boxes – i.e. large spaces of 10,000 m² or more mainly used for logistics and with a maximum office share of 20% – contributed the biggest share to take-up at 73,100 m² or 58%, while business parks contributed 18,400 m² or 14.6% and other (individual) spaces claimed 34,600 m² or 27.4%.

“Approximately 7 out of 10 leases have a term of 5–10 years, with only around 10% of all lease terms for 10 years or longer,” says Bülent Alemdag.

Every second square metre let to retail

Retail is the leading sector for Düsseldorf’s industrial and logistics property market with a share of 71,300 m² or 56.5% (H1 2021: 48,900 m² or 30%). The sector thus made substantial gains in absolute terms, also increasing its relative importance among all sectors the most significantly with a rise of 26.5 percentage points. Picnic, Galaxus and NSB Polymers represent the three biggest deals signed in the retail sector. Combined, they account for 41,000 m² or 57.5% of the sector.

Rented space in H1 2022

E-commerce is top of the retail category with 49,300 m² or 69.1% ahead of traditional retail with 22,000 m² or 30.9%.

The logistics/distribution sector takes second place with 46,300 m² or 36.7% (H1 2021: 96,170 m² or 59%), having lost significant ground in terms of absolute take-up and relative importance (decrease of 22.3 percentage points). Two of the top five deals were made in this sector: Wisag Logistics (11,500 m²) and Filzhut Lager+Logistik GmbH (11,000 m²), representing a combined total of 22,500 m² or 48.6% of sector take-up.

In third place is manufacturing with 8,500 m² or 6.7% (H1 2021: 13,040 m² or 8%).

Prime rent increases by 18.9%

Prime rent for industrial and logistics properties and business parks reached its highest level to date in the first six months of the year with a substantial increase of 18.9% to EUR 7.25/m² (H1 2021: EUR 6.10/m²). Realogis claims this is the biggest increase since records began, with the five-year average of EUR 6.07/m² having been exceeded by a whopping 19.4%.

Outlook for 2023: 120,000 m² of new space under development

Just under 120,000 m² of new space is currently being developed by various project developers in the Düsseldorf market area.

“All new space in the Düsseldorf market area will be completed next year on a speculative basis – in itself bringing a high volume of state-of-the-art properties onto the market in addition to existing space that will become vacant,” says Bülent Alemdag.

REALOGIS press contact:
SH/Communication – Public Relations Agency
Silke Westermann
Press
Fritz-Vomfelde-Strasse 34, 40547 Düsseldorf
Tel: +49/211/53 88 3-440
e-mail: s.westermann@shcommunication.de

REALOGIS company contact:
REALOGIS Holding GmbH
Silja Schuppler
Marketing
Rundfunkplatz 4, 80335 Munich
Tel: +49/89/51 55 69 17
e-mail: s.schuppler@realogis.de
www.realogis.de

REALOGIS. No. 1 for industrial and logistics properties

The REALOGIS Group is Germany’s leading player for the consulting and brokering of industrial, logistics and commercial properties. Founded in 2005 as a pioneer for the asset class of logistics and industry, the owner-operated group has enjoyed healthy growth, is crisis-resistant and knows the German market like no other. In 2021 Realogis generated nearly 1,3 million m² of usable space alone in the letting segment. The net commission revenue of all services in the financial year 2021 are EUR 25 million.

In 2021, REALOGIS also won the German Real Estate Prize in the “Commercial Player” category, which honours companies for their outstanding commitment, creativity, innovative strength and sustainability.

Realogis is represented in the country’s seven top logistics locations of Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Leipzig, Munich and Stuttgart, while a dedicated organisational unit ensures transparency in around 15 additional regional logistics markets. 70 real estate professionals advise national and international companies from the fields of logistics, e-commerce, retail and industry as well as private and institutional investors. Quick, flexible, regional, customer-oriented and with a high volume of transactions.

REALOGIS four core competencies are arranging highly creditworthy tenants for new and existing properties, assisting investors with property investments and project development of greenfields and brownfields, outstanding service for locating or selling sites, and the development and implementation of holistic property strategies.

In short, REALOGIS creates more room for its customers’ success in every sense. Further information: https://www.realogis.de