Logistics rental market stable at mid-year with upward trend

Global challenges could become an opportunity for Germany as a business location

FRANKFURT, 25 July 2025 – Despite numerous economic and geopolitical uncertainties in the first half of 2025, the German market for warehouse and logistics space reached the previous year's level with around 2.76 million m² of space turnover (owner-occupiers and rentals) (H1 2024: 2.78 million m²). The proportion of owner-occupiers also remained constant at 27 per cent compared to the previous year. In a long-term comparison of space turnover, the five-year average was 21 per cent lower and the ten-year average 20 per cent lower. However, the number of transactions rose slightly year-on-year to 325.

Sarina Schekahn, Head of Industrial & Logistics Agency JLL Germany: "In view of the ongoing global debate on tariffs and an increasing number of conflicts that are also having a major impact on trade routes, the current stability is to be viewed positively. In addition, the mood in the market has noticeably brightened. Unfortunately, however, this has not yet been reflected in the statistics for the second half of the year. But if this feeling turns into fact, we can look forward to the second half of the year with optimism."

In uncertain times, Germany can become a location for secure buffer warehouses

At the same time, Schekahn also sees opportunities for the German market in the current geopolitical situation that should be exploited: ‘The current constellation gives the German logistics real estate market the potential to become a location for buffer

warehouses and, for example, a European hub. This applies in particular to the consumer goods industry, but also to parts of the automotive industry.’

The ‘Big 5’ metropolitan areas record significant growth

In the Big 5 metropolitan areas (Berlin, Düsseldorf, Frankfurt, Hamburg and Munich), around 850,400 m² were transacted in the first six months of the year, a total of 20 per cent more space than in the first half of 2024, but 15 per cent less than the corresponding five-year average.

A look at the regions reveals differences. Thanks to several owner-occupier deals, Hamburg was the region with the highest turnover at 233,000 m², exceeding the previous year's figure by 85 per cent. Frankfurt was the second strongest region with 228,600 m², around six per cent below the previous year's result. Berlin follows with 219,900 m² and an increase of 90 per cent year-on-year. Significantly less space than a year ago was transacted in the Munich region, with 55,700 m², corresponding to a decrease of 50 per cent. With around 103,000 m², the Düsseldorf region achieved exactly the same result as last year.

One in three square metres in the five metropolitan areas was transacted by industrial companies in the first half of the year (273,900 m², 42 per cent more than in the first half of 2024). Retail companies and users from the transport, traffic and warehousing sector each contributed 28 per cent to turnover. While retail also grew significantly year-on-year (57 per cent), demand for space from logistics companies fell by around 17 per cent.

"Asian e-commerce companies in particular are increasingly trying to enter the German market. They usually look for space through Asian (contract) logistics providers and want to rent as soon as possible – ideally in the coming month or the month after. Whereas the focus has been primarily on the west of the country up to now, there are now increasing trends towards the north and south," says Schekahn, analysing the players from the Far East.

The largest deal in the five metropolitan areas was the start of construction of the Netto logistics centre (owner-occupier) in Kremmen in the northern Berlin suburbs in the second quarter. Around 65,000 m² is to be built here by 2027. The two next largest deals were already registered in the first quarter: 
the start of construction of the new Körber Technologies building in Hamburg-Bergedorf (around 34,300 m²), and Alnatura signed a contract for just under 30,000 m² for a logistics centre in a project development in Groß-Rohrheim in the Frankfurt region.

In the first half of the year, almost 290,000 m² of warehouse space was completed in the five main regions, twice as much as in the previous year (192,000 m²), but around 20 percent less than the average for the comparable five-year period. At mid-year, around 650,000 m² is currently under construction, of which 42 percent is still unlet. Most of the space is currently being built in the Berlin (around 286,000 m²), Düsseldorf (145,000 m²) and Hamburg (approx. 101,000 m² – two-thirds of which is for owner-occupiers, with the rest almost completely let) regions. 

Meanwhile, prime rents in the five metropolitan areas have only risen in the Frankfurt region. They rose by 25 cents from 7.95 to 8.20 euros/m² per month. The highest rents are still achieved in Munich at 10.70 euros/m². Berlin ranks second at 10.50 euros/m², followed by Düsseldorf at 9.00 euros/m² and Hamburg at 8.50 euros/m².

Outside the five metropolitan areas, the Ruhr region achieved the highest turnover

The market outside the five metropolitan areas traded around 1.92 million m² in the first half of 2025. This was seven per cent below the previous year's figure (first half of 2024: 2.08 million m²) and 22 per cent below the five-year average. Owner-occupiers accounted for around 571,500 m² (30 per cent of turnover), a year-on-year decline of twelve per cent.

Most of the space was sought after by companies in the transport, traffic and warehousing sectors. They accounted for 39 per cent of turnover (up 12 per cent year-on-year). Retail companies contributed only 20 per cent to turnover (down 35 per cent year-on-year) and industrial users around 32 per cent (ten per cent less than in the first half of 2024). 

The region with the highest turnover was the Ruhr area with 212,200 m² (down 13 per cent compared to the first half of 2024), followed by the Mönchengladbach region with 144,000 m² (up 108 per cent year-on-year). Bremen followed with 102,000 m² (up 89 per cent).

One of the largest leases in the second quarter was signed by ID Logistics. The company leased 60,000 m² in the ‘Mittelweser Park’ in Estorf. The logistics company was also responsible for the largest lease in the first quarter, when it leased around 61,500 m² in Diemelstadt.
 
Contact: Sarina Schekahn, Head of Industrial & Logistics Agency JLL Germany
Phone: +49 (0) 40 350011 149
Email: sarina.schekahn@jll.com

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