Prime rents for logistics space continue to rise year-on-year - markets with low rents also increase compared to the previous quarter

FRANKFURT, 6 July 2023 - Prime rents for warehouse and logistics space in Germany have risen further. In all 19 markets analysed, rents for space of more than 5,000 m² increased year-on-year, in some cases significantly, although slight growth was only recorded in six markets compared to the first quarter of 2023.

By far the highest prime rent in the second quarter of 2023 was recorded in Munich at €10.50/m². Compared to the same quarter of the previous year, this represents an increase of a whopping 35 per cent. This was followed by Düsseldorf (up 31 per cent) and Stuttgart (up 11 per cent) at EUR 8.50/m² each, followed by Hamburg at EUR 8.25/m² (up 10 per cent).

With a rise of 36 per cent, the largest increase was registered in Essen, just ahead of Munich and Düsseldorf; the prime rent there climbed to EUR 7.50/m² in the second quarter. With an increase of 30 per cent to EUR 7.50/m², Dortmund was another city in the Ruhr region to record a significant rise in prime rents.

A comparison between the first and second quarters of this year paints a different picture: prime rents only increased in six markets. Leipzig/Halle recorded the largest increase of six per cent. The prime rent there recently totalled EUR 5.50/m². In Kassel/Bad Hersfeld and Erfurt, it rose by four per cent to EUR 5.95/m² and EUR 5.00/m² respectively. Prime rents also rose in Frankfurt am Main (plus three per cent) and in Bremen and Dresden (two per cent each). JLL expects further lettings in the high-price segment after the second half of the year, meaning that prime rents are also likely to rise again in other markets.

Sarina Schekahn, Head of Industrial & Logistics Agency JLL Germany: "We are experiencing sustained high demand for industrial and logistics space in most regions. However, the acute shortage of space in many conurbations and the lack of project developments due to the ongoing economic uncertainties are slowing down the market and continuing to drive up rents. The situation is increasingly prompting users to take options and secure leases at pre-crisis conditions, as well as to consider markets that were not previously in focus. As a result, rents in central and eastern Germany in particular rose in the second quarter." The situation becomes even clearer when looking at recent years: since the fourth quarter of 2018, prime rents in Leipzig/Halle and Essen have risen by 67 per cent each; in Frankfurt am Main and Stuttgart, the increase since then has been 25 per cent.

"Companies from the automotive, life science/pharmaceutical and hazardous materials sectors in particular are acutely looking for space. In order to even begin to meet this demand, development must be speculative in particular. Occupiers must abandon the idea that locations follow supply chains. The situation has now changed: supply chains must be adapted to the available and affordable locations," says Schekahn.

AboutJones Lang LaSalle SE

For more than 200 years, JLL (NYSE: JLL), a leading global commercial property and investment management firm, has helped clients acquire, build, occupy, manage and invest in a wide range of commercial, industrial, hospitality, residential and retail properties. As a Fortune 500 company with annual revenues of $20.9 billion and offices in more than 80 countries worldwide, our approximately 103,000 employees offer the power of a global platform combined with local expertise. Driven by our goal of shaping the future of property for a better world, we help our clients, employees and society - true to our motto "SEE A BRIGHTER WAY".

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Contact:
Lars Frensch
Senior Manager Corporate Communications JLL Germany
Jones Lang LaSalle SE
Bockenheimer Landstraße 55, 60325 Frankfurt am Main, Germany
T +49 (0)151 6502 83 40
jll.de

• Rent index for warehouse and production space Q2 2023