Market for logistics properties in the Ruhr region: high demand with decreasing availability of space

(Essen, 14 February 2024). Although take-up in 2023 was down on the previous year at just under 500,000 m², the Ruhr region has positioned itself as the most active location for logistics properties in Germany. Demand for suitable properties remains high amid a steadily increasing shortage of space.

Imran Kaya, logistics property specialist at Brockhoff, explains: "The Ruhr region is an attractive business location due to its central location within Germany and Europe as well as the availability of labour. However, there is a significant shortage of space in the central Ruhr region, especially for pure logistics companies that require large halls with the appropriate facilities." The peripheral locations in particular are benefiting from this: in Greven, Brockhoff succeeded last year in acquiring the WM Group as an anchor tenant for the "Aconlog Park Greven" with 46,500 m² of space. The largest logistics letting brokered by Brockhoff at the time, 56,500 m² of space to L-Shop in the "MLP Unna Logistics Park", also reflects the opportunities offered by peripheral locations.  

The light industrial asset class has seen an increase in activity compared to the previous year. This includes hall and office combinations with up to 10,000 m² of space, most of which are located in traditional industrial estates. For some years now, these properties have been used not only by workshops and manufacturing companies, but also by last-mile delivery companies, for example. In the past year, companies from the food delivery sector, the expanding communications technology and energy supply sectors have increasingly joined the ranks of tenants, as have providers from the leisure and sports segment, leading to increased competition for the available space. In 2023, Brockhoff marketed over 45,000 m² of space to customers from the food delivery, leisure, communications technology and energy supply segments. This includes the sale and letting of a 10,000 m² last-mile property in Bochum to REWE Lieferservice.

Brockhoff has also been able to conclude cross-sector deals in almost every city in the Ruhr region. In Bochum, Brockhoff was able to realise the lease of an 8,300 m² hall to LUCHS AG and the lease of a 5,900 m² hall to the long-established company Schrauben und Draht Union. In Dortmund, Hestal moved into 10,000 m² of hall space through Brockhoff. Brockhoff was involved in numerous other deals in Oberhausen (8,500 m², 1,440 m² and 600 m²), Mülheim (1,900 m²), Hattingen (1,890 m²), Bochum (1,900 m² and 955 m²), Essen (4,500 m², 1,830 m² and 1,300 m²) and Dortmund (1,250 m²).

Undeveloped sites and plots with new-build potential, of which there are very few left in the central Ruhr region, are also particularly sought-after. Thanks to its extensive network, Brockhoff succeeded in selling an 8,500 m² prime plot close to the city centre in Essen and a 4,370 m² greenfield site in Gelsenkirchen. In the Bochum area, Brockhoff assisted with the interim letting of a site to be developed with a total area of just under 100,000 m². These sites are usually let off-market and developed for use by several tenants.

"The owners of properties in industrial estates are often private individuals who hold one or more properties in their portfolio. Many of them are in our network, so we know early on where properties are becoming available and can find suitable tenants," says Devin Diviniyathasan, who specialises in marketing light industrial properties at Brockhoff, explaining the ownership structure of this special asset class in contrast to classic logistics halls, which often belong to the portfolios of institutional investors.

The realisable rents for light industrial properties in the Ruhr region, particularly in good locations, continue to rise due to the high demand pressure. The pace of the cycle of sales has also picked up again. While completion times were delayed at the start of the coronavirus pandemic, Brockhoff is now observing an acceleration of processes again.

Against this backdrop, active market activity can be expected in 2024, which will utilise the potential of the available space at rising rent levels.

_________________________________________
Brockhoff GmbH is one of the leading commercial estate agents in Germany and is the property market leader in the Ruhr region. The owner-managed company based in Essen was founded in 1987 by Eckhard Brockhoff and, with over 35 years of experience in the property sector, has extensive expertise in the marketing of properties in the OFFICE, INVEST, RETAIL and LOGISTICS sectors. The portfolio includes the nationwide sale of office and investment properties, office letting with a focus on the Ruhr region, the brokerage of retail properties in prime locations in small, medium-sized and large German cities as well as the letting and sale of logistics properties. In 2021, ADOMO Beteiligungs GmbH acquired a 41% stake in the company.

--------------------------

Contact:
Marina Pohl
Head of Public Relations
Brockhoff GmbH
Engelbertstr. 43
D-45139 Essen

Tel:    +49 201 - 81092 - 43
Fax:   +49 201 - 81092 - 36
Mobile: +49 152 02712222

Email: pohl@brockhoff.de
www.brockhoff.de