13.02.2023

REALOGIS publishes Germany’s latest rental map for new build logistics properties for Q4 2022

• Munich is most expensive logistics property market, exceeding the EUR 10/m² mark for the first time
• Most expensive location outside the top 8 is Nuremberg
• 14.9% average rise in prime rents
• Highest jump in new build prime rent in Halle, followed by Magdeburg
• Included in the rental map for the first time: Osnabrück and Hof
• Largest gap for new build properties in Berlin

Munich, 13 February 2023 – Realogis – Germany’s leading property consulting company for industrial and logistics properties and business parks – has looked at Germany’s most important logistics markets and changes in prime rents for new builds compared to the start of the year. For the first time, its analysis covered 33 locations (previously 32), including the top 8 locations of Berlin, Hamburg, Düsseldorf, the Ruhr region, Cologne, Frankfurt, Stuttgart and Munich and 25 regional markets. The regional markets of Osnabrück and Hof were added, while Göttingen was removed from the current overview on account of a lack of activity in 2022. All Realogis figures are based on actual up-to-date rents offered by owners – and not on an evaluation of online adverts.

According to the rental map analysis, Munich was again Germany’s most expensive location for new logistics properties at the end of 2022. Users in the fields of manufacturing, retail and logistics had to pay prime rents of EUR 10.50/m² for the first time, compared to EUR 8.50/m² at the start of 2022. This pushed the Munich metropolitan area over the EUR 10 per square metre mark in this property segment for the first time.

EUR 2 behind, Berlin takes second place out of the top 8 locations (EUR 8.50/m² from EUR 7.50/m² at the start of the year). In third place are the regional market of Nuremberg and the top 8 location Stuttgart, each at EUR 8.00/m² (Q1 2022: EUR 6.50/m² or EUR 7.90/m²), followed in fourth place by Hamburg at EUR 7.80/m² (Q1 2022: EUR 7.90/m² or EUR 6.70/m²) and then the regional markets of Augsburg and Ingolstadt at EUR 7.50/m² in each case (Q1 2022: EUR 6.00/m² or EUR 6.50/m²). Stuttgart moved down one place compared to Q1 2022, with Augsburg up six places.

The other top locations are Frankfurt (7th place at EUR 7.30/m²; Q1 2022: EUR 7.10/m²), Düsseldorf (8th place at EUR 7.15/m²; Q1 2022: EUR 6.30/m²) and Cologne (9th place at EUR 7.00/m²; Q1 2022: EUR 5.95/m²). In 12th place came the Ruhr region (EUR 6.50/m², Q1 2022: EUR 5.50/m²).

“Alongside the German top 8, the southern regional markets of Nuremberg, Karlsruhe, Augsburg and Ingolstadt in particular are in the top third of all 33 logistics locations,” said Florian Stork, Realogis Managing Director for the Munich metropolitan region and southern Germany.

The most expensive northern markets outside the top 8 are Hanover and Braunschweig at EUR 6.00/m² (Q1 2022: EUR 5.50/m² or EUR 4.90/m²), followed by Kassel at EUR 5.80/m² (Q1 2022: EUR 5.50/m²).

Eastern markets, which tend to be in the bottom third and are thus the most affordable regions in terms of new build prime rents, are lead by Leipzig, which was comparable to Hanover and Braunschweig at the end of 2022 at EUR 6.00/m² (Q1 2022: EUR 4.80/m²). Prime rent in Dresden is EUR 5.50/m² (Q1 2022: EUR 4.80/m²), with the figure for Zwickau and Halle coming to EUR 5.30/m² (Q1 2022: EUR 4.50/m² / EUR 4.00/m²). The lowest prime rents for all 33 markets are paid by users in Magdeburg at EUR 5.10/m² (Q1 2022: EUR 4.00/m²).

14.9% average rise in prime rents
“Prime rents rose by an average of 14.9% in the sub-markets analysed*, and they are clearly trending upwards,” explained Christian Beran, Realogis Managing Director for northern and eastern Germany. “23 markets saw double digit increases. Prime rents for new logistics properties climbed by 22.2% in the eastern markets alone – i.e. Magdeburg, Halle, Leipzig, Zwickau, Erfurt and Dresden. Another seven markets saw single digit rises.”

Highest jump in new build prime rent in Halle, followed by Magdeburg The highest increases in prime rents in eastern and southern markets were in:

• Halle (+32.5% to EUR 5.30/m², from EUR 4.00/m²)
• Magdeburg (+27.5% to EUR 5.10/m², from EUR 4.00/m²)
• Augsburg (+25% to EUR 7.50/m², from EUR 6.00/m²)
• Leipzig (+25% to EUR 6.00/m² from EUR 4.80/m²)
• Munich (+23.5% to EUR 10.50/m² from EUR 8.50/m²)
   

By contrast, Realogis reported stagnating prime rents in Heilbronn, which were unchanged at the previous year’s level of EUR 6.50/m².

New markets: Osnabrück and Hof Prime rents for new builds in the recently added logistics markets of Osnabrück and Hof are in the bottom third of all markets at EUR 5.70/m² for both locations. This is also the case in Osnabrück when compared with the other northern markets of Hanover, Braunschweig, Kassel, Bremen, Bielefeld and Wolfsburg. Hof, on the other hand, follows Würzburg and Dingolfing (both EUR 6.50/m²) in the southern markets, bringing up the rear in terms of prime rents for new-build properties at EUR 5.70/m².

Augsburg is the most expensive location outside the top 8 (minimum rent) The most expensive locations outside the top 8 in terms of minimum rents for new builds are Augsburg, Karlsruhe, Mainz/Wiesbaden, Ingolstadt, Nuremberg and Ulm

• Augsburg at EUR 6.50/m² (+44.4%, Q1 2022: EUR 4.50/m²)
• Karlsruhe at EUR 6.40/m² (+16.4%, Q1 2022: EUR 5.50/m²)
• Mainz/Wiesbaden at EUR 5.75/m² (+9.5%, Q1 2022: EUR 5.25/m²)
• Ingolstadt at EUR 5.60/m² (+6.7%, Q1 2022: EUR 5.25/m²)
• Nuremberg at EUR 5.60/m² (+15.5%, Q1 2022: EUR 4.85/m²)
• Ulm at EUR 5.60/m² (+24.4%, Q1 2022: EUR 4.50/m²)

The most expensive northern markets outside the top 8 in terms of minimum rent for new builds were Hanover, Kassel, Braunschweig and Bremen

• Hanover at EUR 5.40/m² (+20%, Q1 2022: EUR 4.50/m²)
• Kassel at EUR 5.20/m² (+13%, Q1 2022: EUR 4.60/m²)
• Braunschweig and Bremen at EUR 5.20/m² (+15.6%, Q1 2022: both EUR 4.50/m²)

The most expensive eastern logistics property markets outside the top 8 were Leipzig, Dresden, Zwickau and Halle

• Leipzig and Dresden at EUR 5.20/m² from EUR 4.20/m² (+23.8%) / EUR 4.50/m² (+15.6%)
• Zwickau, Halle and Erfurt at 4.80/m², from EUR 4.00/m² (+20%) / EUR 3.50/m² (+37.1%) and EUR 3.80/m² (+26.3%)
• Magdeburg once again came back of the pack at EUR 4.50/m², up from EUR 3.30/m² (+36.4%)

Largest gap for new build properties in Berlin
“Once again, Berlin has the largest gap between the minimum rent and the prime rent for new build properties. There is now a EUR 3.00 difference between minimum rents and prime rents for new logistics properties, said Ben Dörks, Managing of Realogis Immobilien Berlin GmbH. “The price differences are the result of land prices paid by various project developers. Those who secured greenfields years ago can offer these for new build developments at far lower prices. However, project developers who acquired land only in the last two years paid ten times more and have to take this into account when calculating rents.”

The smallest gap between the minimum rent and the prime rent for new build properties is in Dresden at just 30 cents.

*excluding Osnabrück and Hof because they are reported for the first time Back