BNP Paribas Real Estate publishes logistics market figures for Q3 2023-Munich logistics market with high take-up result thanks to major deals

With take-up of 221,000 m² at the end of the third quarter, the Munich warehouse and logistics market achieved a result that is not only 16% above the previous year's result, but also 8% above the ten-year average. This is the result of an analysis by BNP Paribas Real Estate.

"In a nationwide comparison, Munich is one of the few top markets to achieve above-average take-up. In addition to brisk market activity overall, two large-scale contracts in particular made a significant contribution to this result. These include the new 60,000 m² building of a logistics service provider in Oberding (owner-occupier) and the 30,000 m² expansion of Siemens Mobility at its company site in Munich-Allach," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.

Due to the low availability of space and the increased construction costs, rents, which were already high, have continued to rise noticeably over the course of the year. The prime rent is now quoted at €10.50/m² and the average rent at €8.50/m². The particularly strong competition between the various types of space and the resulting very low supply of land and existing space for warehousing and logistics means that large-scale deals are less likely to be realised on the Munich market than in other major logistics hubs. However, due to the two contracts mentioned above, the proportion of contracts for 20,000 m² or more is currently 41%, well above the ten-year average of 17%.

The high proportion of small contracts of up to 3,000 m², which account for a good quarter of take-up, is also noteworthy. In contrast, the low shares of the medium size categories are mainly due to the lack of supply. The sector distribution is narrowly led by logistics service providers (almost 47%). However, manufacturing companies, which usually lead the field, also achieve an above-average result with a good 44%. Retail companies, on the other hand, are very cautious and have only accounted for around 3% of take-up so far.

"The high take-up of space in the current year was largely made possible by the two large-scale contracts. Although the weakening economy is noticeable on the demand side due to somewhat more restrained letting processes and lower demand from retail companies, the lack of available space remains the limiting factor. Particularly in the medium-sized and large-area segments, existing space is unable to meet demand. As there are also too few plots available for development and hardly any new-build space available for rent within the market area, no significant expansion of supply is expected initially. This will increasingly lead to users extending their tenancy agreements - even if their initial aim was to relocate and they have to accept a higher rent. Even against the backdrop of high construction costs and the costs of increasing energy efficiency, there is still upward pressure on rents," 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.

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About BNP Paribas in Germany

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