Market report Munich full year 2024

In 2024, all market participants in the Munich region signed contracts for a total of 229,600 m² of logistics and industrial space for rent.

The past year was well above average for new builds. In the reporting period, lettings in new-builds and existing properties were unusually close together. With a share of 51 % or 118,200 m² (FY 2023: 40% or 109,000 m²), new-builds even took the lead over existing lettings, which totalled 111,400 m² or a share of 49% (FY 2023: 60% or 161,000 m²). New-build properties also dominated the 5-year average of space take-up. This was 74,600 m² in 2024 and was exceeded by a significant 58 %. Existing properties, on the other hand, fell short of their average of 178,540 m² by a significant 38 %.

In terms of building type, big boxes recorded the only increase of 11,400 m² or 14 % (FY 2023: 84,000 m² or 31 %) of all sectors with 95,400 m² or 42 % and expanded their proportionate importance in 2024 with an increase of 11 percentage points in proportionate take-up.

Business park lettings halved their take-up to 34,300 m² or 15 %, down from 68,500 m² or 25 %. Transactions in properties that could not be assigned to either the big box category or a business park structure totalled 99,900 m² or 43 %. This puts them only just ahead of big boxes (FY 2023: 117,500 m² or 44 %).

Based on the above-average result for this submarket in 2023 of 203,800 m², however, the most significant decline of all regions was recorded, both in absolute terms and proportionately, with a delta of 95,600 m², which is almost equivalent to a halving, and a difference of 28 percentage points. Although the 5-year average of 126,580 m² was missed, the 15% shortfall was more moderate than might be expected at first glance.

The Region East recorded its highest take-up in the last five years, which is why the average of the last five years was also significantly exceeded. The previously third-placed Region East took second place with 83,800 m² or 36 %, up from 24,200 m² or 9 % in 2024. At +59,600 m², this region recorded the most significant growth of all market areas, with take-up more than tripling year on year. The agreements signed by Isar Aerospace (40,000 m²) and Sahlberg (16,000 m²) were responsible for a total of 56,000 m² or more than two thirds of take-up in the eastern region. The 5-year average was 51,220 m² in 2024 and was significantly exceeded by 64 %.

The Region West followed in third place with 24,200 m² or 11 %, down one place from 29,700 m² or a share of 11 %. Although the region was proportionally stable compared to the previous year, it fell by 5,500 m² in absolute terms, which corresponds to -19 %. The 5-year average was already undercut by 38 % in the previous year; this gap increased further in the past full year and currently stands at a deviation of 51 % from the 5-year average of 49,780 m². This means that less than half of the level of the last 5 years was achieved.

The Region South is in last place with 13,400 m² or 6 %, up from 12,300 m² or 5 % (+1,100 m² or +9 %). At 58 %, take-up in 2024 remained visibly below the 5-year average of 31,540 m². However, the absolute level of the average also shows that the region has been the least dynamic in the past five years.

The growth of 60,700 m² in the eastern and southern regions could not compensate for the overall delta of -101,100 m² in the northern and western market areas. This resulted in a year-on-year difference of 40,400 m², which is almost entirely attributable to the Munich Region North.

The previously third-placed Retail/Wholesale followed in second place with 78,500 m² or 34 %, coming from 31,100 m² or 12 %, with the only year-on-year increase in take-up totalling 47,400 m² or a more than doubling. Both traditional retail and e-commerce transactions contributed to this. The market was dominated by PicNic (e-commerce, 18,000 m²), Sahlberg (traditional retail, 16,000 m²) and an e-commerce company (e-commerce, 12,500 m²) with a total of 46,500 m² or 59 %.

E-commerce recorded an increase of 27,800 m² and thus increased its take-up to 48,400 m², which is more than double the previous year's figure of 20,600 m². Take-up by the traditional retail sector increased by 19,600 m² to a current 30,100 m², which corresponds to an increase of 19,600 m² and represents the higher percentage growth: Here there is almost a tripling. Despite the significant growth, the past year cannot be categorised as above average for both sub-categories: While e-commerce achieved a significantly above-average result (80 % above the 5-year average of 26,880 m²), traditional retail is 18 % below its usual level of currently 36,900 m².

Logistics/Distribution, which was previously in first place, followed in third place with 48,700 m² or 21 %, down from 118,200 m² or 44 % (-69,500 m² or -59 %), which missed its 5-year average of 85,800 m² by 43 %. The "Other" category remains in last place with 21,300 m² or 9 %, down from 28,400 m² or 10 %.

The five largest deals in 2024 accounted for four out of five square metres taken up, or a total of 106,500 m² in the category, and were therefore decisive for the strong result.

Larger spaces between 5,001 and 10,000 m² ranked third with 23,900 m² or 10 %, down one position from second place with 63,900 m² or 24 % (the most significant decline of all size categories was 40,000 m² or 63 %). The 5-year average of 57,300 m² was missed by 58 %.

Medium to large spaces between 3,001 and 5,000 m² are still in fourth place with 17,100 m² or 7 % (FY 2023: 27,950 m² or 10 %, -10,850 m² or -39 %; 5-year average: 37,710 m² was missed by 55 %).

The previously third-placed small to medium-sized spaces between 1,000 and 3,000 m² rose one place to 49,400 m² or 23 % (FY 2023: 63,200 m² or 24 %; -13,800 m² or
-22 %; 5-year average of 66,920 m² missed by 26 %).

Very small spaces of less than 1,000 m² achieved take-up totalling 10,300 m² or 4 % for the year as a whole and thus remain in last place, coming in at 13,950 m² or 5 %
(-3,650 m² or -26 %; 5-year average of 15,190 m² missed by 32 %).

Outlook

Since the end of the fourth quarter of 2024, we have observed a sustained high level of demand from the market. This positive development strengthens our confidence in a dynamic start to the year, allowing us to look to the new year with optimism.