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Market report on letting of logistics properties and industrial sites in the Greater Berlin area 2018

According to Realogis, with a take-up of approximately 442,200 sqm, the Berlin logistics and industrial properties market succeeded in topping its good result of the previous year by 7 % (2017: 412,000 sqm). At the same time, the letting volume generated by all market participants last year is the second-best result in the last five years and is 9 % above the 5-year average of approximately 405,200 sqm. In particular, the driving force was the new construction sector, which accounted for 272,200 sqm or a share of 61 %.

 
Logistik Immobilien Marktbericht

Take-up by regions

According to the expert for logistics properties Realogis, more than half of the take-up was generated in the surrounding region to the south of Berlin. Due to the availability of high-volume units for industrial and logistic use, 227,700 sqm (51 %) in total were newly let. However, from the second half of the year, demand in this segment stagnated due to a shortage of workers and the orientation of companies towards the city centre to achieve short routes to the customer.

Logistik Immobilien Marktbericht

By contrast, demand remained high within the borders of Berlin for the year as a whole – and this was the case in all units. However, the supply is limited in particular with regard to new sites. Owing to these limitations, this region only contributed approximately 155,800 sqm (35 %) to the total take-up. The East region took third place at 10% (45,700 sqm).

Take-up by size

With approximately 275,800 sqm, leases in the usual size category of more than 10,000 sqm contributed the lion’s share to total take-up (62 %), more than half of which even exceed 20,000 sqm. Decathlon (45,000 sqm), DHL (40,000 sqm) and Chefs Culinar (40,000 sqm) were among the top 3 tenants of the year.

Logistik Immobilien Marktbericht

In 2018, leases in the 5,001 sqm to 10,000 sqm unit achieved take-up of approximately 71,000 sqm (16 %). Sites under 1,000 sqm made the lowest contribution (approximately 14,000 sqm, just under 3 %). The two units of 3,001 to 5,000 sqm (38,000 sqm) and 1,001 to 3,000 sqm (43,300 sqm) were almost on a par in terms of percentage.

Take-up by industry

Take-up was dominated again by retail, which defended its leading role with a share of 45 % (about 197,000 sqm), of which 100,000 sqm was attributable to the e-commerce industry and online retail. Second and third place were taken by logistics providers and production companies, which concluded leases in 2018 with a total volume of 105,500 sqm (24 %) and 73,000 sqm (16 %) respectively.

Logistik Immobilien Marktbericht

Rents

Momentum on the Berlin logistics market within the city is also very clearly reflected in the trends in rents. With an increase of 24 %, the prime rent has increased sharply in 2018 and is now at EUR 6.80/sqm. A similarly high increase was recorded in the average rent, which was 22 % higher than in the previous year and reached a plateau at EUR 5.50/sqm towards the end of the year. Thus, the Berlin logistics market has reached the level of the top 7 logistics markets and is now at a similar level to Hamburg, Düsseldorf and Stuttgart.

Logistik Immobilien Marktbericht

In previous years, users were always offered good opportunities in vacant, cheap areas. This is now almost impossible due to the virtually full occupancy, and sites under EUR 4.00/sqm are a rarity. The construction costs have also risen significantly, which also comes into effect in the conversion or expansion of existing properties.

Relevant deals 2018

1. Decathlon Ludwigsfelde, 45,000 sqm (Expansion)
2. DHL, Ludwigsfelde, 40,000 sqm (Expansion)
3. Chefs Culinar, Ludwigsfelde, 40,000 sqm (Expansion)
4. Rewe, Berlin, 32,800 sqm (Prolongation)
5. Defshop, Ludwigsfelde, 20,000 sqm (Expansion)
6. Zalando, Ludwigsfelde, 20,000 sqm (Expansion)
7. Amazon, Berlin Süd, 14,600 sqm (Expansion)


Outlook for 2019

Although the prime rent will reach EUR 7.00/sqm in the current year, it will not exceed it, and the average rent will remain reasonably constant and increase to a maximum of EUR 5.80/sqm. Due to the current decline in the amount of space available, Realogis expects a letting performance of between 350,000 and 400,000 sqm in 2019.



Rental prices 2019 €/m²

Logistik Immobilien Marktbericht

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Facts

  • Berlin logistics and industrial properties market tops the previous year
  • Project developments account for over 60 % of total take-up
  • Southern Berlin region continues to be strong
  • “>10,000 sqm” segment with lion’s share
  • Retail confirms leadership
  • Prime rent increases by 24 %
  • Forecast for 2019: decline in result by up to 15 % due to shortage of space


Logistik Immobilien Marktbericht

* Greater Berlin market area
Berlin is a growing logistics location and Europe’s leading location for start-ups. Realogis defines the sub-market of the relevant available storage, logistics, industrial and production space in the surrounding areas as follows: in the north up to Neuruppin, Oranienburg, Eberswalde; in the east: Straußberg, Fürstenwalde; in the south: Ludwigsfelde/Großbeeren, Zossen, Königs Wusterhausen; in the west: Brieselang, Wustermark, Werder. Geographically, the Greater Berlin area is part of a vital traffic hub for the east-west connection and for north-south motorways, with its nine motorways (A100 (city motorway), A9, A10, A11, A12, A13, A24, B96 (a) and B101), inland ports and airports.



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Logistik Immobilien Marktbericht

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