BNP Paribas Real Estate publishes logistics market figures for the second quarter of 2023 - Another strong first half-year on the Leipzig logistics market

Leipzig, 31 July 2023

The Leipzig logistics market is continuing its series of high take-up figures in the first half of 2023 despite challenging economic conditions. At 185,000 m², it is up a good 2% on the previous year and exceeds the ten-year average by 37%. This is the result of an analysis by BNP Paribas Real Estate.

This makes Leipzig one of the few large logistics agglomerations to achieve a result above its average. This excellent result is supported by a major letting in Bitterfeld-Wolfen, where a manufacturing company is taking over a total of around 86,000 m² of space. "Overall, demand in all segments is at a stable high level and continues to exceed the available space. As in most other major logistics locations, rents have continued to rise," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. The prime rent is now €5.60/m² (+19%) and the average rent is €4.70/m² (+16%).

Industry generates more than half of take-up

The distribution of take-up by size category reflects the large-scale lettings accordingly. At almost 47 %, the over 20,000 m² category accounts for the highest share of take-up. In addition, the segment between 12,000 and 20,000 m² is also well occupied with just under 23 % and a total of three contracts from logistics service providers in Halle and Kabelsketal. Contracts for 8,000 to 12,000 m² also account for around 17 %. In terms of sector distribution, manufacturing companies, supported by the contract in Bitterfeld-Wolfen, account for more than half of the result (just under 55%) and are therefore well above their long-term average. While logistics service providers account for around a third, retail companies are still underrepresented at 5% in Leipzig's sector balance, which is normally quite evenly distributed in a long-term comparison. To date, hardly any owner-occupier deals (around 3%) have been recorded and the proportion of new builds is also still at a comparatively low level of just over 17%.

Leipzig's logistics market is showing a very good result at mid-year and continues to enjoy stable demand. As there are currently speculative projects under construction that are expected to be completed this year, it can be assumed that a high turnover result should also be achieved by the end of the year.

"While some companies are taking a wait-and-see approach due to the economic environment, other sectors are continuing to consolidate and adapt their supply chains. In addition, e-commerce, the transformation of the automotive industry and increasing digitalisation remain important drivers of demand. The already noticeable rise in rents is likely to continue. This is due to the limited supply of space, increased construction and financing costs as well as the high construction requirements for implementing ESG criteria," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Press contact:
Chantal Schaum - Tel: +49 (0)69-298 99-948, Mobile: +49 (0)174-903 85 77, chantal.schaum@bnpparibas.com
Viktoria Gomolka - Tel: +49 (0)69-298 99-946, Mobile: +49 (0)173-968 60 86, viktoria.gomolka@bnpparibas.com

About BNP Paribas Real Estate

BNP Paribas Real Estate is a leading international property services provider that offers its clients comprehensive services in all phases of the property cycle: Transaction, Consulting, Valuation, Property Management, Investment Management and Property Development. With 5,300 employees, the company supports owners, tenants, investors and the public sector in their projects thanks to local expertise in 23 countries (own locations and alliance partners) in Europe, the Middle East and Asia. BNP Paribas Real Estate is part of the BNP Paribas Group, a leading global financial services provider.

As part of its commitment to sustainable cities, BNP Paribas Real Estate aims to play a leading role in the transition to creating more sustainable real estate that is low-carbon, resilient, inclusive and conducive to well-being. To this end, the company has developed a CSR policy with the following four objectives: to improve the economic performance and use of buildings in an ethical and responsible manner, to enable a low-carbon transition and reduce the environmental footprint, to ensure the development, engagement and well-being of employees and to be an active player in the property sector, building and promoting local initiatives and partnerships.

Further information: www.realestate.bnpparibas.com/

About BNP Paribas in Germany

BNP Paribas is a leading European bank with an international reach. The BNP Paribas Group has been active in Germany since 1947 and has successfully positioned itself in the market with 12 business units. Private, corporate and institutional clients are served by around 6,000 employees nationwide in all relevant economic regions. www.bnpparibas.de