BNP Paribas Real Estate publishes logistics market figures for the fourth quarter of 2023 - Leipzig logistics market

Slightly above-average take-up on the Leipzig logistics market

Despite the ongoing tense overall economic situation, Leipzig's warehouse space and logistics market was strong in 2023 with 323,000 m² of take-up, even in a nationwide comparison. Although the very good result of the previous year was missed by just under 19 %, the current result is still around 9.5 % above the long-term average. This is the result of an analysis by BNP Paribas Real Estate.

"The second (141,000 m²) and third (79,000 m²) quarters proved to be extremely dynamic over the course of the year, with over 68% of space being taken up thanks to a number of major deals. Worth mentioning in this context are the letting of 86,000 m² by a German premium manufacturer in Bitterfeld-Wolfen and the start of construction of a BMW logistics centre in Industriepark Nord (35,000 m²). This means that the two largest deals in 2023 are in the industrial/production sector," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. A rising rent level was also registered in the fourth quarter. The prime rent is currently €5.90/m² (+13.5% year-on-year) and the average rent is €4.95/m² (+10%).

Industrial companies set a new record

Industrial and manufacturing companies eclipsed their results from previous years with a record market share. It is particularly noteworthy that this sector not only accounts for three of the five largest contracts, but also the most contracts and thus around 56 % of turnover. In addition, logistics service providers also account for a significant share of turnover at just under 27%. Retail companies, which have only signed one major contract with Picnic (20,000 m²), remain underrepresented at just over 11% in 2023.

While large-volume deals of at least 20,000 m² traditionally tend to occur in small numbers, four contracts of this size can be recorded in 2023. As a result, this category accounts for a slightly above-average 44 % of take-up. However, this should not obscure the fact that other size categories also achieved above-average results in individual cases. Medium-sized contracts between 12,000 and 20,000 m² also achieved an above-average result (15 %) at just under 25 %. While the owner-occupier share of 58,000 m² falls short of the long-term average by around 13%, the share of new builds is well above average at around 71%.

Prospects

"Leipzig's warehouse and logistics market continues to see stable demand despite the unchanged economic conditions. This means that Leipzig is currently one of the few major German logistics locations to record an increase compared to the long-term average. The market is also expected to be lively in 2024, meaning that take-up at a similar level is the most likely scenario. Supply is likely to increase over the course of 2024 due to large-scale speculative new builds. From today's perspective, good demand is likely to continue and rents will most probably continue their upward trend, albeit nowhere near the pronounced momentum of the previous year," 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.

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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