BNP Paribas Real Estate publishes logistics market figures for the fourth quarter of 2022 - Leipzig logistics market with well above-average take-up

With take-up of 398,000 m², Leipzig's logistics market achieved its second-best result ever in 2022. It is an impressive 42% above the ten-year average, but nevertheless well below the record result from the previous year (505,000 m²). This is the result of an analysis by BNP Paribas Real Estate.

"Demand remained consistently high over the course of the year. As it continues to be met by an insufficient supply of space, there are few alternatives for users in terms of location in the market area. As a result, the availability of space is the key factor when deciding on a property. Against this backdrop, it can be assumed that take-up could have been higher if there had been sufficient supply," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. In conjunction with the increased construction and financing costs, the prime rent has therefore risen to €5.20/m².

Manufacturing companies are responsible for a good 47 % of the result with one of the highest take-ups in the last ten years. Several major deals made a significant contribution to this, above all the expansion of the BMW plant by around 55,000 m². In the breakdown by size category, it is particularly noteworthy that the volume of take-up in the segments up to 20,000 m² was similar to that of the record year 2021. The overall decline of around 21% is therefore solely due to the fact that fewer major deals were recorded. The segment between 8,000 and 12,000 m² is currently particularly dynamic, accounting for a good 30% of take-up.

Due to the comparatively low amount of newly constructed space on the Leipzig market, the proportion of new builds is only 33.5 % - compared to a long-term average of just under 57 %. In addition, hardly any owner-occupier space was registered.  In principle, demand on the Leipzig logistics market is expected to remain high. It remains to be seen how strongly the current general conditions, with rising interest rates, high inflation, a weakening economy and the continuation of geopolitical conflicts, will affect market activity. However, after what is likely to be a somewhat restrained development at first, increasing momentum should materialise over the course of the year.

"The tense supply situation should ease noticeably from the second quarter onwards with the expected completion of speculative new builds, which should lead to a significant increase in the share of new builds in take-up. As a result, rents are expected to continue to rise. In addition to average rents, a further increase in prime rents cannot be ruled out," 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
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