Munich logistics market posts record result thanks to major deals

BNP Paribas Real Estate publishes logistics market figures for the second quarter of 2023 - Munich logistics market posts record result thanks to major deals

Munich, 27 July 2023

The Munich warehouse and logistics market achieved take-up of 169,000 m² in the first half of the year, setting a new record. This result is a good 59% above the previous year's figure and also around 43% above the ten-year average. These are the findings of an analysis by BNP Paribas Real Estate.

"In a nationwide comparison, Munich is therefore very far ahead and is one of the few top markets to achieve an above-average result.    This exceptional result in economically challenging times was made possible above all by two major deals that are unusual for the Munich market. These include Siemens Mobility, which rented a further 30,000 m² at its company location in Munich-Allach.   Rents are continuing to rise noticeably, primarily due to the lack of supply that continues to characterise the market," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. Over the past twelve months, prime rents have risen by almost 19% to €9.50/m² and average rents by a good 17% to €7.50/m². Munich thus remains the undisputed most expensive German logistics market.

More than half of the take-up to date has been achieved with large-scale deals of over 20,000 m² (a good 53 %). However, there was also lively momentum in the smaller segments of up to 5,000 m², which are also above their ten-year average in absolute terms. In contrast, the lack of available space in this half of the year is primarily reflected in the low take-up of space between 5,000 and 20,000 m².

In terms of sector distribution, logistics service providers are ahead of the generally leading manufacturing companies in Munich with a good 46%, followed closely behind with 43%. Both categories thus achieved significantly above-average results. As is the case nationwide, retail companies have so far been underrepresented, contributing just over 2% of turnover with a few small-scale contracts. The proportion of owner-occupiers is exceptionally high at almost 42%, as is the proportion of new builds, which is also well above average at 46%.

The Munich market benefited from two major contracts in the first half of the year and was thus able to achieve a very high take-up of space. Although the difficult economic conditions have led to a slight weakening of demand in quantitative terms, there is still a clear surplus of demand throughout the market. On the supply side, there is still a shortage of suitable space in almost all size categories. Due to the low availability of land and the low level of (speculative) construction activity, there are no signs of this changing in the short to medium term. "Against this backdrop, the trend towards lease extensions is continuing. It can be observed that some users are staying in the property despite their intention to move and are also accepting significantly higher rents - in some cases above the prime rent. A further increase in the rent level must therefore be assumed due to the higher construction costs and ESG requirements," 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.

As part of its commitment to sustainable cities, BNP Paribas Real Estate aims to play a leading role in the transition to creating more sustainable real estate that is low-carbon, resilient, inclusive and conducive to well-being. To this end, the company has developed a CSR policy with the following four objectives: to improve the economic performance and use of buildings in an ethical and responsible manner, to enable a low-carbon transition and reduce the environmental footprint, to ensure the development, engagement and well-being of employees and to be an active player in the property sector, building and promoting local initiatives and partnerships.

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.