BNP Paribas Real Estate publishes logistics market figures for the fourth quarter of 2022 - cathedral city remains on track

Cologne, 25 January 2023 - The Cologne logistics market recorded take-up of a good 256,000 m² in 2022, exceeding the long-term average (225,000 m²) by around 14%. This makes the current full-year result the third-best result of the past 10 years. This is the result of an analysis by BNP Paribas Real Estate.

"However, the cathedral city was unable to match the previous year's record result of 334,000 m² and fell just short of this by almost 23 %. Only a small amount of new-build space came onto the market over the course of the year, meaning that the proportion of new-build space was only a low 21% for the year as a whole and therefore well below average. The dynamic trend in rents continued in 2022 due to higher construction costs and the ongoing shortage of space available at short notice," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. The prime rent rose by 21% to €7.00/m² in a 12-month comparison. The average rent also recorded an increase of 6% to €5.20/m².

Logistics and industry in the lead

The distribution of take-up among the demand groups is dominated in equal measure by logistics service providers and industrial companies. Both sectors account for around 29 % and 75,000 m² of take-up respectively. Retail companies, which are traditionally important for the Cologne market, are in third place in the sector distribution with around 22%.

In terms of size class distribution, large lettings of over 20,000 m² stand out with around 36 % of take-up, including the contract signed by the Production Resource Group for around 20,300 m³ in the first quarter, which was accompanied by BNPPRE. An above-average result of just under 16% was also registered for the size segment between 12,000 and 20,000 m². In general, market activity in the smaller segment is also comparatively dynamic. The size segment below 5,000 m² contributed around 20 % or 51,000 m² to take-up.

Prospects

"Despite economic and geopolitical uncertainties, the Cologne logistics market was again characterised by relatively high market momentum in 2022. Against the backdrop of limited availability of logistics space in the core area, demand in the Cologne market area is increasingly focussing on peripheral locations around Cologne. In view of the current economic influences, rental activity is expected to be subdued at the start of 2023. Nevertheless, demand for 2023 as a whole is expected to remain high compared to the previous year. A slight increase in supply due to new speculative space on the market seems possible from today's perspective. Due to the combination of currently high inflation, significantly increased construction costs and a continuing shortage of supply, a further increase in rents over the course of the year is the most likely scenario," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Domstadt remains on course | BNP Paribas Real Estate

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
Melanie Engel - Tel: +49 (0)40-348 48-443, Mobile: +49 (0)151-117 615 50, melanie.engel@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 4,500 employees, the company supports owners, tenants, investors and the public sector in their projects thanks to local expertise in 30 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.

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