BNP Paribas Real Estate publishes data on the logistics market for the first quarter of 2024 - Düsseldorf logistics market with stable demand - take-up above long-term average

Following the strong year-end spurt in the final quarter of 2023, the Düsseldorf market for warehouse and logistics space also closed the first quarter of 2024 on a positive note. A total take-up of 57,000 m² was recorded, an increase of an impressive 19% compared to the long-term average. This is the result of an analysis by BNP Paribas Real Estate.

"Although the figure of 67,000 m² from the same period of the previous year was missed by almost 15%, this was the best start to the year ever," emphasises Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. Demand continues to slightly exceed supply. Even though space on the periphery or properties close to the city centre are most sought after in Düsseldorf's city locations, there is still a lack of adequate space on offer throughout the city." This is also reflected in the development of rents. Prices for logistics space have risen noticeably in the recent past: the highest rent has climbed by almost 10% to €7.90/m² in the last 12 months. The average rent is in no way inferior with an increase of 11% to €6.50/m².

Logistics service providers driving demand

As in the previous year, market activity is concentrated in the space segments up to 20,000 m². The largest contract in the first quarter was signed by Goodcang Logistics for 17,500 m² in Wülfrath, while the two contracts signed by Nelo Verkehrs- und Industrielogistik in Neuss (9,600 m²) and Pharmaserv Logistics in Düsseldorf (8,200 m²) were also the largest deals of the quarter. The remaining take-up was significantly smaller and mainly below the 3,000 m² mark.

As logistics service providers accounted for the largest deals, they were also responsible for the majority of take-up. More than two thirds of the result is attributable to this sector. In addition, retail companies accounted for a good 18% of take-up, while demand from the industrial/production sector has so far only accounted for 5%.

Prospects

The Düsseldorf logistics market is holding its own even in the difficult macroeconomic environment and, unlike many other logistics agglomerations, is delivering significantly above-average take-up. The market is benefiting from a comparatively good supply of space. In addition to existing properties, sublet space has brought additional relief to the market.

New construction activity has also not slowed down significantly despite the economic slowdown: Construction is continuing, in some cases speculatively, and it is not uncommon for these spaces to be let out early. In the first quarter of 2024, this segment will account for around one fifth of take-up. The recent slight increases in the GfK consumer climate index and the Ifo business climate index - and in particular the very significant rise in business expectations - form the basis for a further revival in demand in the coming months.

"Against this backdrop, the excess demand is unlikely to be significantly reduced in the coming months. Further, albeit only moderate, growth in rents is therefore also very likely," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Link to the market report: https://www.realestate.bnpparibas.de/marktberichte/logistikmarkt/duesseldorf-at-a-glance

Link to press release: Düsseldorf logistics market with stable demand - take-up above long-term average | 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

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