Market report Frankfurt full year 2025

In the Greater Frankfurt area, a total of 435,200 m² of industrial and logistics space was taken up by tenants and owner-occupiers in 2025. The analysis is based on market data from the REALOGIS Unternehmensgruppe, Germany’s leading consultancy for industrial and logistics properties and commercial land.

The five largest leases in 2025, signed by Shaoke (36,000 m²), FIEGE (30,700 m²), Alnatura (27,200 m²), Aldi Süd (25,500 m²) and Pirelli Deutschland (14,000 m²), accounted for around one third, or 31%, of total take-up.

Take-up: Stabilisation in existing buildings, strong increase on greenfield sites

Leasing activity was again driven by transactions in existing buildings. In 2025, these totalled 289,700 m², representing 66% of overall take-up. Compared with 2024 (291,600 m² / 69%), this was virtually flat, with a moderate decline of 1,900 m², or 1%. Following a marked 20% decline in the previous year, existing buildings are now showing signs of stabilisation. The two large leases by Shaoke and Pirelli Deutschland contributed 50,000 m², or 17%, of take-up in existing buildings.

Greenfield developments accounted for 120,400 m², or 28%, in 2025. After 72,400 m², or 17%, in the previous year, this corresponds to an increase of 48,000 m², or 66%. The large leases by FIEGE, Alnatura and Aldi Süd accounted for 69% of take-up in this category.

Take-up on space in former brownfield sites reached 25,100 m², equating to a 6% share. Compared with 2024 (59,300 m² / 14%), take-up in this category declined by 34,200 m², or 58%.

Subleases: Share rises to 23%

As in the previous year, subleases continued to play a significant role in the Frankfurt market. After around 17%, or 70,300 m², of take-up was attributable to subleases in 2024, volume increased by 30,900 m², or 44%, to 101,200 m², representing a market share of 23%.

Market structure: Tenants dominate, owner-occupiers down sharply

As in the previous year, the Frankfurt market was predominantly driven by tenants. 419,300 m², or 96%, of take-up in 2025 resulted from lease transactions. While tenant take-up rose by 54,800 m², or 15%, owner-occupier transactions fell by 43,000 m², or 73%, to 15,800 m², representing just 4% (2024: 58,800 m² / 14%).

Building types: Big-box space takes the lead

By building type, big-box space was the leading category in 2025, replacing the catch-all category “Other”, which includes deals that cannot be assigned to either big-box assets or business parks. Big-box space reached 199,100 m², or 46%, posting the most pronounced increase of 67,200 m², or 51% (2024: 131,900 m² / 31%).

In second place, the “Other” category accounted for 119,600 m², or 27%. Compared with 2024 (179,200 m² / 42%), this represents a decline of 59,600 m², or 33%. Business parks remained in third place with 116,500 m², corresponding to a 27% market share. Compared with 2024 (112,200 m² / 27%), this segment saw a moderate increase of 4,300 m², or 4%.

Rhine-Main North ranked second with 38,500 m², representing a 9% market share. Compared with 2024 (57,000 m² / 13%), this equals a decrease of 18,500 m², or 32%. Rhine-Main East followed in third place with 31,100 m², or 7%, marking the lowest figure recorded for the submarket since 2018. The previous year’s result of 95,400 m², or 23%, was missed by 64,300 m², or 67%, and the five-year average of 118,760 m² by 74%.

Frankfurt recorded 26,600 m², or 6% (2024: 19,000 m² / 5%), an increase of 7,600 m², or 40%, year-on-year. The five-year average of 24,420 m² was exceeded by 9%. Mainz/Wiesbaden came in at 16,300 m², or 4% (2024: 10,500 m² / 2%), rising by 5,800 m², or 55%. Rhine-Main West remained at the bottom with 12,200 m², or 3% (2024: 8,800 m² / 2%).

Retail/Wholesale followed with 125,200 m², or 29% (2024: 112,600 m² / 27%). Despite the increase of 12,600 m² (11%) in 2025, the five-year average of 152,760 m² was missed by 18%. Within retail, traditional retail dominated with 113,500 m², or 91% (2024: 96,300 m² / 86%). Three of the largest leases together contributed 66,700 m², or 59%, to the result. The downward trend in e-commerce continued in 2025. E-commerce occupiers accounted for 11,700 m², or 9%, and recorded a decline of 4,600 m², or 28% (2024: 16,300 m² / 14%).

Manufacturing ranked third with 73,800 m², or 17% (2024: 93,900 m² / 22%). Take-up declined by 20,100 m², or 21%, compared with the previous year. Relative to the five-year average of 58,800 m², this was still an above-average year, exceeding the average by 26%.

The Supply/Others category reached 27,700 m², or 6% (2024: 56,900 m² / 13%), recording the largest decline both in absolute terms (-29,200 m²) and percentage terms (-51%). The five-year average of 36,820 m² was missed by one quarter (25%).

Units between 5,001 m² and 10,000 m² reached 130,900 m², or 30% (2024: 100,200 m² / 24%). Take-up rose by 30,700 m², or 31%, and exceeded the five-year average of 113,420 m² by 15%. Units of 5,001 m² and above therefore accounted for 67% of total take-up in 2025, up from 55% in the previous year.

Mid-sized units between 3,001 m² and 5,000 m² slipped to fourth place, totalling 65,300 m², or 15% (2024: 100,100 m² / 24%), a decrease of 34,800 m², or 35%. Units between 1,000 m² and 3,000 m² amounted to 73,600 m², or 17% (2024: 77,300 m² / 18%), showing a moderate decline of 3,700 m², or 5%. Small units of under 1,000 m² continued to represent a marginal share of the market with 6,200 m², or 1%. This result missed the previous year by 55%, and the five-year average by 50%.

Outlook 2026: Market recovery continues

Take-up in the logistics and industrial property market is expected to remain below the five-year average again in 2026, as the pipeline of new developments remains limited. However, a further gradual market recovery is expected, which should also be reflected in take-up figures. The extent of this recovery will also depend on geopolitical conditions, the specific impacts of which cannot yet be reliably assessed.