BNP Paribas Real Estate publishes logistics market figures for the second quarter of 2023 - No large-scale contracts on the Stuttgart logistics market yet

The Stuttgart warehouse and logistics space market achieved take-up of 47,000 m² in the first half of 2023. After the record result from the previous year (155,000 m²), the market achieved a relatively weak result in the middle of the year, which is a good 41 % below the ten-year average. In addition to the changed macroeconomic conditions, the insufficient supply of space also played an important role in this development. This is the result of an analysis by BNP Paribas Real Estate.

"Against this backdrop, no large-scale contracts have been signed to date. The largest deals to date include two contracts in new developments: Dachser rented around 11,300 m² in Rottenburg and a manufacturing company rented around 7,000 m² in Korntal-Münchingen," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.  As in most other top logistics markets, rents have continued to rise over the past twelve months. The prime rent has risen by 14% to €8.10/m² and the average rent by 11% to €6.10/m².

Manufacturing companies remain strong

The distribution of take-up by size category illustrates the differences compared to the same period of the previous year. While more than two thirds of the result up to mid-2022 was taken up in the 12,000 m² and larger space segments, these categories have not yet been taken up at all. Currently, contracts of 5,000 to 8,000 m² account for more than half of take-up at just under 55 %, with a further 24 % in the 8,000 to 12,000 m² category. The strong industrial base of Stuttgart's economy is regularly reflected in the logistics figures and the industry/production segment is currently making the largest contribution to take-up, accounting for almost 58%. Supported by the Dachser deal in Rottenburg, logistics service providers account for a good 28 %. In contrast, contracts from retail companies have not yet been recorded in the market area. Owner-occupiers have also not yet become active, whereas the proportion of new builds is at a comparatively high level of around 53%.

Prospects

"Despite a slowdown in momentum due to the general economic conditions, the supply situation remains the limiting factor on the Stuttgart logistics market, meaning that the interim result could have been higher if there had been sufficient supply. The majority of speculative space developments already under construction are not expected to be completed until 2024, meaning that no relief can be expected from the new-build segment in the short term," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH. The trend towards lease extensions in existing properties is therefore also continuing on the Stuttgart market. Against this backdrop, it is at least questionable whether the long-term average of around 184,000 m² can be achieved by the end of the year. Prime rents are likely to rise further due to the low supply of space and the increased construction costs and requirements for new-build space (ESG).
 
Still no large-scale contracts on the Stuttgart logistics market | BNP Paribas Real Estate

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

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