BNP Paribas Real Estate publishes logistics market figures for the first quarter of 2023 - Munich logistics market: Successful start to the year

Munich, 27 April 2023 - Despite the difficult overall economic situation, the Munich logistics market got off to a very good start in the first quarter of 2023. With take-up totalling around 70,000 m², the Bavarian capital achieved an above-average result (+30% compared to the long-term average), making it one of the few top markets to achieve this at the start of the year. This is the result of an analysis by BNP Paribas Real Estate.

"However, an unusually large deal for Munich played a significant role in the record result: Siemens Mobility rented a further 30,000 m² at its company location in Munich-Allach. While the existing sector once again accounted for the majority of the volume with a share of 81 per cent, there was also a major new-build deal to report with Yaskawa's new headquarters covering 10,000 square metres," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. Rents are now peaking at €9.00/m² and averaging €7.20/m².

Large deals by production companies as drivers

As the aforementioned large-scale lettings suggest, the manufacturing sector once again boosted market activity in the first quarter. Overall, the sector has a very high market share of a good 87%. However, not only the largest but also the most deals were in the industrial sector. In terms of size categories, large deals (a good 43%) are almost balanced out by the traditionally strong smaller space categories up to 5,000 m² (around 42%) and form the two opposing focal points of demand. The fact that no owner-occupiers have yet participated in the take-up of space is a clear indication of the lack of space available to realise such projects. The distribution of demand across the market area also reflects the supply-related shift of many users from the core area to peripheral locations. Here, compromises must increasingly be made in favour of well-connected locations in the periphery.

Prospects

"So far, the economic development has not yet been reflected in the letting dynamics on the Munich logistics market. However, it should also be noted that the market was able to benefit from major sales drivers in the first three months, which are not to be expected every quarter due to the price and supply structure of the Munich logistics region. In addition, there are currently virtually no major speculative new construction projects in sight that could have a positive impact on the tight supply situation. Consequently, the trend of users extending their existing contracts and exercising lease options is consolidating. As there are currently no signs of any easing on the supply side and the demand situation is somewhat more subdued in some cases but can still be considered good overall, the pressure on rents will remain high for the rest of the year," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Munich logistics market: Successful start to the year | BNP Paribas Real Estate

Press contact:
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Melanie Engel - Tel: +49 (0)40-348 48-443, Mobile: +49 (0)151-117 615 50, melanie.engel@bnpparibas.com

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