Market report Stuttgart full year 2024

In 2024, all market participants in the greater Stuttgart area signed contracts for a total of 125,200 m² of logistics and industrial space for rent and owner-occupation.

However, the number of square metres in existing properties that were taken up remained stable. While existing properties accounted for 124,900 m² of all transactions in the same period of the previous year, the total between January and December 2024 was 124,200 m². Nevertheless, the 5-year average of 168,000 m² was undercut by 26%.

Apart from two contracts adjacent to the Stuttgart market area and one letting of 1,000 m², no new builds were concluded in 2024. The 5-year average was missed by 49,175 m².

In second place is the district of Esslingen with 33,700 m² or 27 %, followed by third place with 35,300 m² or 16 %. Proportionally, the most significant increase in importance was observed here, amounting to 11 percentage points, although there was also a decline in absolute terms, even though the region can be considered comparatively stable year-on-year at -1,600 m² or -5 %. At 8,600 m², around a quarter of take-up in the district of Esslingen was contributed by a manufacturing company. Nevertheless, the year as a whole was well below average: the 5-year average of 55,260 m² was missed by 39 %.

The Rems-Murr district, which previously ranked fourth, followed in third place with 16,100 m² or 13 % (FY 2023: 21,700 m² or 10 %). Around half of the take-up was accounted for by one technology company alone with 7,900 m². Apart from the Stuttgart city area, the Rems-Murr district is the only region that is above the 5-year level; the five-year average of 15,790 m² was exceeded by 2 %.

The district of Göppingen is in fourth place, coming in fifth place with 15,500 m² or 12 %, up from 18,200 m² or 8 %. At 6,500 m², Natura GmbH contributed around 42 % to the region's take-up. The 5-year average of 21,800 m² was missed by 29 %.

Stuttgart's city area, which was previously in last place, is in penultimate place with 12,000 m² or a share of 10 %, up from 8,500 m² or 4 %. The current figure is also 12% above the 5-year average of 10,700 m².

The reason for the rise in the rankings of all regions - with the exception of the district of Ludwigsburg, which remains in first place - is the virtual absence of contract signings in the previously second-placed district of Böblingen. Of all the regions, Böblingen saw the sharpest decline of 46,700 m² or -88 %, leaving only 6,400 m² or 5 % of the 53,100 m² in the region.

The Retail/Wholesale sector took second place with 35,400 m² or 28 %. Natura GmbH's take-up of over 6,500 m² accounted for 18 % of total retail take-up. Compared to the previous year's result, in which the Retail/Wholesale sector took first place with 82,100 m² or 38 %, the sector recorded the most significant delta of all others: a drop of 46,700 m² is equivalent to more than a halving (-57 %). The 5-year average of 59,500 m² was also missed by 41 %.

Within the sector, transactions by traditional, bricks-and-mortar retail companies dominated with 21,700 m² or 61 %. Transactions by companies specialising predominantly in e-commerce accounted for 13,700 m² or 39% (-78% compared to 61,200 m² in 2023 as a whole). The collective category "other" follows with 32,800 m² or 26%, up from 31,300 m² or 14%, and is the only category to exceed the 5-year average of 24,160 m² (+36%).

With take-up of 3,700 m² or 3 %, Logistics/Distribution slumps by 36,300 m² or 91 % compared to the take-up in 2023. The 5-year average of 80,000 m² was almost completely missed at 95 %.

A significant share of this development is attributable to the top deals, which fall entirely into this category and have contributed a total of 32,800 m² or 59 % of take-up. Apart from the smallest spaces, it is the only size category to exceed the corresponding 5-year average (2024: 52,240 m² exceeded by 6 %).

The size category between 3,001 - 5,000 m² rises one place to third place with 26,800 m² or 21 %, up from 22,400 m² or 10 %. However, the increase of 4,400 m² or 20 % is not enough to reach the 5-year average of 35,000 m² (-23 %).

Space between 1,000 m² and 3,000 m² remained in second place last year with 30,700 m² or 25% (FY 2023: 35,300 m² or 16%; down by a moderate 4,600 m² or 13%). While they were at the level of the last 5 years in the previous year (the average was exceeded by 1 %), they undercut the current 5-year average by 11 % (this is 35,000 m²).

With 12,500 m² or 10% (FY 2023: 12,400 m² or 6%), very small spaces of less than 1,000 m² rose from last place to fourth place due to the lack of large transactions of over 10,000 m² and moved sideways in absolute terms. Of all size categories, micro-space is the most likely to exceed its 5-year average of 10,170 m² by 23 %.

Outlook

After a weak previous year, demand on the industrial and logistics property market in the greater Stuttgart area remains subdued for the time being. At present, project business continues to take priority on the user side, with strategic decisions still being postponed. Market participants in Stuttgart as a business location need clarity with regard to political and economic developments so that new market dynamics can develop.