Prime logistics rents remain stable in most markets

 
Sentiment brightens slightly – markets in Hesse record slight price increases

FRANKFURT, 7 July 2025 – The German market for warehouse and logistics space continued to show only slight momentum in the second quarter of 2025. Since the beginning of the year, only two of the 20 markets surveyed have recorded rising prime rents for space larger than 5,000 m², and even then only in the low single-digit range. However, unlike in the first quarter, there was no decline in prime rents.
 
Specifically, the markets with increased prime rents since the beginning of 2025 are the two Hessian markets considered in the analysis: values there rose by three per cent in each case, so that rents in Frankfurt are now up to 8.20 euro/m² and in Kassel/Bad Hersfeld up to 6.10 euro/m². ‘The industrial and logistics market in Frankfurt is particularly in demand due to its strategically favourable location and large catchment area, which is why there is now a shortage of space there,’ says Sarina Schekahn, Head of Industrial & Logistics Agency JLL Germany. ‘The shortage of space and the additional competition from data centres are leading to rising land costs, which are passed on to tenants when they purchase. Added to this is the lack of new-build properties, which is why Frankfurt is clearly a landlord's market.’
 
Compared to the second quarter of the previous year, several other markets recorded growth in prime rents. In Berlin, for example, prime rents rose by 24 per cent to 10.50 euros/m². The Rhine-Neckar metropolitan region, which had already been observed previously and has now been added to this overview, recorded an increase of 17 per cent to 8.20 euros/m². Essen continued to grow by seven percent (€8.00/m²), as did Hanover/Braunschweig (€6.40/m²), Kassel/Bad Hersfeld (€6.10/m²) and Frankfurt (€8.20/m²), each by three percent.
 
‘The mood on the market for industrial and logistics properties has improved, albeit only minimally. Enquiries are on the rise again, but whether and to what extent the more positive sentiment will also be reflected in rentals will become apparent in the course of the year. After all, the combination of economic and political challenges continues to cause uncertainty among some users,’ Schekahn continues. "Geopolitical uncertainties are also affecting potential future demand from the defence sector. Once these users have leased a suitable production site, they will try to secure additional space in the surrounding area in order to strategically integrate supply and distribution into their processes in an optimal manner. Asian market participants, often from the e-commerce segment, currently account for a significant share of the market. They are primarily looking for readily available properties in the lower price segment in western Germany and therefore have little influence on the development of prime rents."
 
Meanwhile, the most expensive locations for logistics and industrial properties have maintained their positions: At €10.70/m², Munich continues to command the highest rents, while Berlin reaches up to €10.50/m². Düsseldorf ranks third with €9.00/m², followed by Stuttgart (€8.75/m²) and Cologne and Hamburg with €8.50/m² each.
 
A look at the past five years shows how strongly prime rents have risen in the market for logistics and industrial properties: in Berlin, the figure rose by a significant 91 per cent (around €5.00/m² more) and in Hanover/Braunschweig, which came in last, by 16 per cent (around €0.90/m²). In eleven of the 20 markets surveyed, growth exceeded 50 percent.

Contact: Sarina Schekahn, Head of Industrial & Logistics Agency JLL Germany
Phone: +49 (0) 40 350011 149
Email: sarina.schekahn@jll.com

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For more than 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management firm, has been helping clients buy, build, utilise, manage and invest in a wide range of commercial, industrial, hotel, residential and retail properties. As a Fortune 500® company with annual revenue of $23.4 billion and offices in more than 80 countries worldwide, our approximately 112,000 employees offer the power of a global platform combined with local expertise. Driven by our goal to shape the future of real estate for a better world, we help our clients, employees and society – true to our motto ‘SEE A BRIGHTER WAY’. JLL is the brand name and a registered trademark of Jones Lang LaSalle Incorporated.

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