Market report Stuttgart half year 2025

In the first half of 2025, all market participants in the Stuttgart market for logistics, warehouse and industrial properties leased a total of 51,800 m² of space.

Unfortunately, the market was not able to maintain the slight increase of 9,400 m² from the same period last year. The decisive factors were the slow order situation from previous years and the continuing caution of the economy, although the latter is currently beginning to adjust to the new conditions.

During the reporting period, rentals involving existing space continued to set the pace, accounting for 45,700 m² or 88 % of total take-up. Coming from 65,200 m² or 100 % in the first half of the previous year, when the entire take-up was in existing space, the current figure represents a decrease of 19,500 m² or 30 %. The largest contributors to take-up were the public sector* with a contract signed for 11,250 m² in Stuttgart and a logistics company in Esslingen with 4,800 m². 

The previously absent lettings in new buildings accounted for 6,100 m² or 12 % in the past six months.

As in the same period last year, the industrial and logistics property market in Stuttgart is purely a rental market, meaning that owner-occupiers continued to hold back on new property leases.
 

It is also the only submarket to significantly exceed its five-year average of 9,040 m² (+78 %). The extremely strong result is largely attributable (70 %) to the public sector's transaction volume of 11,250 m².

In third place is the Ludwigsburg district with 9,200 m² or 18 %, down from 21,600 m² or 33 % in the same period last year, which represents an absolute slump of 12,400 m² or more than half (-57 %).

The district of Böblingen remains in fourth place with 2,900 m² or 5 %, almost maintaining its market result (H1 2024: 3,200 m² or 5 %). The Rems-Murr district also remains in penultimate place with 300 m² or 1 % (H1 2024: 2,800 m² or 4 %). Göppingen, which was previously in third place, has slipped to last place: no contracts were concluded in the Göppingen market area in the past six months, whereas in the previous year this submarket accounted for 12,600 m² or 19 %.

With the exception of the Stuttgart city area, all submarkets fell below their respective 5-year average by at least 16 %.

Manufacturing ranks second again with 15,200 m² or 29 %, down from 24,500 m² or 38 %, due to a lack of large rentals. The Logistics/Distribution sector accounts for 11,900 m² or 23 % (H1 2024: 2,300 m² or 3 %), recording the most significant growth of all sectors at 9,600 m² (a fivefold increase).This was supported by the signing of a lease with a logistics company for 4,800 m². Nevertheless, the 5-year average of 18,900 m² was significantly undershot by 37 %.

In fourth place is the previously leading Retail/Wholesale sector with 5,400 m² or 11 %, which declined by 78 % or is down by 19,400 m². The five-year average of 32,540 m² was missed most significantly by all sectors, at 83 %. Half of the total take-up was accounted for by e-commerce and traditional retail, each with 2,700 m². This represents a delta for both sub-categories, although it is significantly higher for traditional retail: For traditional retail, it amounts to 16,000 m² or -86 %, coming from 18,700 m² or 75 %, and for e-commerce, it amounts to 3,400 m², which corresponds to a halving (coming from 6,100 m² or a decrease of 56 %).

Units between 5,001 and 10,000 m² currently rank last, as no leases were registered in this segment (H1 2024: 23,200 m² or 36 %). The average for the last five first half-years of 21,800 m² was thus completely undershot.

In third place are spaces between 3,001 and 5,000 m², with 8,500 m² or 16 % (H1 2024: 20,500 m² or 31 %), representing a decline of 59 %.

Smaller to medium-sized space rentals between 1,000 and 3,000 m² took the top spot with 24,350 m² or 47 %, up from 16,500 m² or 25 % or third place in the first half of 2024. The year-on-year increase of 7,850 m² or 48 % contributed to the current 5-year average of 19,300 m² being exceeded by 26 %.

Small spaces below 1,000 m² continue to rank fourth with 7,700 m² or 15 %, coming from 5,000 m² or 8 % (+2,700 m² or +54 % year-on-year).

Overall, the smaller size categories exceed the respective 5-year average, while the larger ranges are significantly below the typical level:

• > 10,000 m²: 52 % below the 5-year average
• 5,001 - 10,000 m²: 100 % below the 5-year average (total loss)
• 3,001 - 5,000 m²: 56 % below the 5-year average
• 1,000 - 3,000 m²: 26 % above the 5-year average
• < 1,000 m²: 37 % above the 5-year average

Outlook

We expect take-up in the second half of the year to exceed that in the first half, and we hope that 2025 as a whole will outperform the previous year. Due to changed conditions, we sense that the economy, particularly the automotive industry, is beginning to reorganise itself. This is a positive sign. However, the upturn will probably not be really noticeable in the logistics and industrial property markets until 2026.

* At the end of the reporting period H1 2025, the public authority and the owner were engaged in exclusive negotiations. Due to the advanced stage of the negotiations, the marketing of the property was suspended. At that time, the lease agreement had not yet been signed; however, a timely and highly probable conclusion of the contract was anticipated. Should the transaction not materialize contrary to expectations, the report will be adjusted accordingly.