Düsseldorf logistics market confirms top results from the previous year

BNP Paribas Real Estate publishes logistics market figures for the second quarter of 2023 - Düsseldorf logistics market confirms top results from the previous year

Düsseldorf, 26 July 2023: The Düsseldorf logistics market can once again look back on strong letting momentum in the middle of the year and achieved its third above-average result in a row in terms of take-up. At a total of 152,000 m², the interim result is on a par with the comparable result of the previous year, although slightly more deals were registered with a lower average size per deal (around 7,600 m²) than in 2022 (around 9,000 m²). This is the result of the analysis by BNP Paribas Real Estate.

"With a take-up share of a good 57% of the total volume, the proportion of new builds also reached a high level once again, thanks in part to the contract logistics company GXO Logistics, which leased around 32,000 m² of logistics space in Dormagen in the second quarter," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.  The lively market activity is also reflected in the development of prime rents, which have risen by almost 9% in the last 12 months to currently €7.50/m².

Logistics companies in the lead, segments above 8,000 m² strong

In the sector ranking, logistics service providers took the lead in the distribution of take-up in the first six months, which was due to the aforementioned major deal by GXO Logistics and, in particular, the largest letting in the existing sector (17,000 m² in Hilden) by the forwarding company Engemann. However, retail (a good 23%) and industrial companies (around 21%) also played a decisive role in market activity, each contributing over a fifth, with isolated smaller and medium-sized deals in both sectors. In the size categories, the classes above 8,000 m² stand out, with their shares all significantly above their average values. In total, around 75 % of market activity is hidden behind these spaces in the medium and larger segments.

Prospects

In the first half of the year, the Düsseldorf logistics market laid the foundations for a successful performance in 2023 and also achieved an above-average result compared to the top markets. The comparatively broad distribution across several sectors and size categories speaks in favour of the good demand base in the logistics region. Overall, however, demand continues to exceed the available supply. "The requirements for logistics space have increased noticeably, with ESG criteria and measures to increase energy efficiency being among the most important drivers. As a result, a significant improvement in the quality of space can be observed on the supply side, both in existing and new buildings, in order to meet the increased user requirements. This development is also having an impact on rent levels. Accordingly, it cannot be ruled out that rents will continue to rise in the second half of the year, both on average and at the peak," 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
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