20.09.2022

REALOGIS H1 2022 rental map: Prime rent for existing properties up more than 20% in six markets

• Biggest gap between prime rent and minimum rent at EUR 2.80/m²
• Prime rent for existing properties in Hamburg higher than prime rent for new builds
• Ingolstadt records higher prime rent than the top 8 locations of Frankfurt and Stuttgart
• Minimum rents up an average of 16.2% across all 32 markets

Munich, 20 September 2022 – In addition to the prime rents for new builds, Realogis – the leading property consulting group for industrial and logistics properties and business parks in Germany, with over 70 experts – also regularly analyses the development of rents for functional existing properties throughout the country. Realogis defines these as properties with a hall height of at least 7.50 m, ramps and/or ground-level delivery, spacious delivery zones and heating.
Download: https://www.realogis.com/insights/rent-price-maps
“The biggest gap between the prime rent and the minimum rent for functional existing properties is found in Berlin,” reports Ben Dörks, Managing Director of Realogis Immobilien Berlin GmbH. “The difference between the most affordable and most expensive existing logistics properties for retail companies, manufacturers and their service providers is EUR 2.80/m².”

12 markets have a gap of less than EUR 1.00/m², 15 markets have a gap of between EUR 1.00 and EUR 2.00/m², and five markets have a gap of more than EUR 2.00/m² between the minimum rent and prime rent for existing logistics properties.

“Among the top 8 locations in Germany, the most expensive logistics location for existing properties in terms of the absolute prime rent at the top end of the range is the Hamburg metropolitan area at EUR 8.20/m²,” explains Stefan Imken, Managing Director of Realogis Immobilien Hamburg GmbH. This represents an increase of +18.8% compared with the prior-year figure of EUR 6.90/m².

At EUR 7.50/m², second place is taken by Berlin (unchanged year-on-year) and Munich (+15.4%, H1 2021: EUR 6.50/m²). They are followed by Frankfurt at EUR 6.90/m² (+21.1%, H1 2021: EUR 5.70/m²) and Stuttgart at EUR 6.90/m² (+6.2%, H1 2021: EUR 6.50/m²), then Düsseldorf and Cologne at EUR 5.60/m² (Düsseldorf: +9.8%, H1 2021: EUR 5.10/m²; Cologne +19.1%, H1 2021: EUR 4.70/m²). The most affordable existing properties are found in the Ruhr region with a prime rent of EUR 5.10/m² (+24.4% compared with EUR 4.10/m² in the previous year).

Ingolstadt records higher prime rent than Frankfurt and Stuttgart
In the same way as for new builds, the most expensive locations among the 24 regional champions when it comes to prime rents for existing logistics properties are found in southern Germany:

• At EUR 6.95/m² (+15.8%, H1 2021: EUR 6.00/m²), Ingolstadt is ranked just behind the top 8 locations of Hamburg, Berlin and Munich, and ahead of Frankfurt and Stuttgart
• At EUR 6.50/m², the next locations in line after Frankfurt are Nuremberg (+8.3%, H1 2021: EUR 6.00/m²), Augsburg (+30%, H1 2021: EUR 5.00/m²) and Karlsruhe (+30%, H1 2021: EUR 5.00/m²)
• Tenants in Regensburg are required to spend EUR 6.20/m² (+29.2%, H1 2021: EUR 4.80/m²)
• Prime rents in Mainz/Wiesbaden come in at EUR 5.90/m² (+13.5%, H1 2021: EUR 5.20/m²)

The most expensive northern location is Wolfsburg at EUR 5.50/m² (+5.8%, H1 2021: EUR 5.20/m²), while Dresden is the most expensive location in eastern Germany at EUR 5.50/m² (-8.3%, H1 2021: EUR 6.00/m²). The most affordable locations are found in the north and east of the country:

• Magdeburg at EUR 4.20/m² (+5%, H1 2021: EUR 4.00/m²)
• Erfurt at EUR 4.10/m² (+5.1%, H1 2021: EUR 3.90/m²)
• Halle at EUR 4.10/m² (+24.2%, H1 2021: EUR 3.30/m²)
• Göttingen at EUR 3.85/m² (+10%, H1 2021: EUR 3.50/m²)

Prime rent for existing properties up more than 20% in six markets
“The prime rent for existing properties saw double-digit growth in the majority of markets – 18 in all – and increased by more than 20% in no fewer than six markets,” notes Julian Petri, Managing Director of Realogis Immobilien Frankfurt GmbH.

They are:

• Augsburg and Karlsruhe with growth of +30% to EUR 6.50/m²
• Regensburg, +29.2% to EUR 6.20/m²
• Ruhr region, +24.4% to EUR 5.10/m²
• Halle, +24.2% to EUR 4.10/m²
• Frankfurt, +21.1% to EUR 6.90/m²

The average prime rent for existing properties climbed by 12.1% across all 32 markets, by 14.3% in the top 8 markets, and by 11.3% in the 24 regional markets. The biggest increase in northern Germany was recorded in Braunschweig, where the prime rent for existing properties rose by 16.3% to EUR 5.00/m² after EUR 4.30/m² in the previous year.

  Prime rent falls in just one market
Only one of the 32 markets saw falling rents for existing properties. Dresden recorded a downturn of 8.3% (from EUR 6.00/m² in H1 2021 to EUR 5.50/m²).

Prime rents for existing properties stagnated in three markets: Berlin, Ulm and Zwickau. Meanwhile, prime rents for existing properties increased by less than 10% in ten of the markets surveyed.

Minimum rents: Hamburg ahead of Munich and Stuttgart
The most expensive logistics location for functional existing properties in terms of the absolute minimum rent – the lowest available asking rent for a property in this category – is Hamburg at EUR 6.60/m² (+15.8%, up from EUR 5.70/m²), followed by Munich and Stuttgart at EUR 5.50/m² (Munich: unchanged; Stuttgart: +22.2%; H1 2021: EUR 4.50/m²).

• Third place is taken by Frankfurt at EUR 5.30/m² (+17.8%, up from EUR 4.50/m²)
• Düsseldorf is ranked fourth at EUR 5.10/m² (+15.9%, up from EUR 4.40/m²)
• Cologne takes fifth place at EUR 5.00/m² (+19%, up from EUR 4.20/m²)
• Berlin is in penultimate position at EUR 4.70/m² (+20.5%, up from EUR 3.90/m²)
• As previously, last place is occupied by the Ruhr region at EUR 4.50/m² (+32.4%, up from EUR 3.40/m²)
• This order is the same as in the first half of 2021

The highest minimum rents for existing properties in the regional markets are found in Ingolstadt, Nuremberg, Mainz/Wiesbaden, Augsburg and Regensburg:

• Ingolstadt at EUR 4.95/m² (+23.8%, H1 2021: EUR 4.00/m²)
• Nuremberg at EUR 4.90/m² (+22.5%, H1 2021: EUR 4.00/m²)
• Mainz/Wiesbaden at EUR 4.60/m² (+9.5%, H1 2021: EUR 4.20/m²)
• Augsburg (+28.6%, H1 2021: EUR 3.50/m²) and Regensburg (+15.4%, H1 2021: EUR 3.90/m²) at EUR 4.50/m²

The most expensive minimum rent in northern Germany is found in Hanover at EUR 4.30/m² (up from EUR 3.50/m², +22.9%), while the highest figure in eastern Germany was recorded in Dresden at EUR 4.20/m² (up from EUR 4.00/m², +5%).

The most affordable locations for renting existing logistics properties are Magdeburg (EUR 3.60/m²), Ulm (EUR 3.50/m²) and Göttingen and Halle (EUR 3.30/m²).

Minimum rents up 16.2% across all 32 markets
“The average minimum rent for functional existing properties across all 32 markets has risen sharply by 16.2%,” says Joel Adam, Managing Director of Realogis Immobilien Stuttgart GmbH. The average increase in minimum rents is a substantial 18% in the top 8 locations and 15.6% in the regional markets.

The minimum rent stagnated at H1 2021 levels in two markets (Munich and Ulm), while a further four regions saw single-digit growth. However, the vast majority of markets – 26 in all – recorded double-digit growth (>10%). 11 markets even saw growth in excess of 20%, including:

• Ruhr region, +32.4% to EUR 4.50/m²
• Halle, +32% to EUR 3.30/m²
• Augsburg, +28.6% to EUR 4.50/m²
• Leipzig, +25% to EUR 4.00/m²
• Ingolstadt, +23.8% to EUR 4.95/m²

The location in northern Germany with the strongest growth was Hanover, where the minimum rent increased by 22.9% to EUR 4.30/m². Back