REALOGIS: Retail accounting for every third sqm logistics space

Munich, 28 March 2022 – The retail sector is increasingly becoming one of the largest renters of warehouse and logistics properties in Germany. This is the conclusion reached by the latest analysis from Realogis, the leading consultant for industrial and logistics properties and business parks in Germany, with over 70 experts.

In 2021, retail companies signed new contracts for more than 1.35 million m² of rental and owner-occupied space in Germany’s top 8 logistics locations alone (Hamburg, Berlin, Ruhr region, Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich). This accounts for 35% of total take-up in the top 8 locations, which amounted to 3.86 million m² at the end of last year.

Compared to the same period of the previous year, retail companies thus increased their take-up by 7% in 2021 compared to 2020 (take-up: 1.264 million m²) and by 42% in 2020 compared to 2019 (take-up: 887,192 m²).

“In the eight largest German metropolitan areas, more than one in three square metres in warehouse and logistics properties went to traditional retail or e-commerce companies in 2021,” reported Florian Stork, Realogis Managing Director responsible for the Munich Germany South location.

“This demonstrates the important role warehouse and logistics properties play in ensuring a smooth flow of goods, both between the retail company and its suppliers and to its customers,” said Julian Petri, Realogis Managing Director for the Rhine-Main area.

“Retail is the greatest driver of demand for space. Traditional retail is applying its processes in more appropriate, new logistics properties based on its digitalisation strategy. Players dealing only with e-commerce are claiming a large share of the market as a result of the boom in online ordering,” commented Bülent Alemdag, Realogis Managing Director for the top markets in NRW.

The largest individual market for warehouse and logistics space in 2021 was the Ruhr region at 379,500 m², representing 55% of total take-up for industrial and logistics space in the entire Ruhr area. Frankfurt was the second-largest individual market out of the metropolitan areas analysed and accounted for 255,800 m², 39% of the market’s total take-up. It was followed by Berlin at 193,000 m² (30.9%), Cologne at 146,450 m² (46.8%) and Hamburg at 144,900 m² (23%). Düsseldorf (108,500 m² (31%)), Munich (78,100 m² (25.9%)) and Stuttgart (46,843 m² (15.8%)) occupy the bottom three spots.

As well as the Ruhr region, retail also topped the sector ranking in the top 8 market of Cologne in 2021, accounting for greater take-up than the distribution/logistics and industry sectors. Following a weak 2019, when retail accumulated just 28,095 m², the Cologne market quadrupled its take-up to 117,500 m² in 2020 and increased this by another 24.6% to 146,450 m² in 2021.

The largest top deals made by retail companies in 2021 at the top 8 German locations were:

• E-commerce company BBG (Chal Tec): 105,000 m² in the Ruhr region
• Textile retail chain P&C: 45,000 m² in Cologne
• Online furniture retailer Riess Ambiente: 40,000 m² in Hamburg
• Discount supermarket LIDL: 30,300 m² in Berlin
• Wholesaler Lekkerland: 28,000 m² in Cologne