REALOGIS publishes Germany's latest rental price map for new-build logistics properties Q4 2022

• Most expensive logistics property market is Munich with first-time jump above the €10/m² mark
• Most expensive location outside the top 8 is Nuremberg
• Average increase in prime rents of +14.9%
• Highest increase in prime rents for new builds in Halle followed by Magdeburg
• Included in the rent map for the first time: Osnabrück and Hof
• Largest divergence in the range for new-build properties in Berlin

Munich, 10 February 2023 - Realogis - Germany's leading real estate consultancy for industrial and logistics properties and business parks - has analysed Germany's most important logistics markets and the development of prime rents for new-build properties compared to the beginning of the year. For the first time, 33 locations (previously 32) were analysed, including the top 8 locations of Berlin, Hamburg, Düsseldorf, the Ruhr region, Cologne, Frankfurt, Stuttgart and Munich as well as 25 regional markets. The regional markets of Osnabrück and Hof are new additions; Göttingen has been excluded from the current overview due to a lack of activity in 2022. All Realogis figures are based on actual, daily updated asking rents from owners and not on the analysis of online offers.

According to the rent map analysis, Munich remained the most expensive new-build logistics location in Germany in absolute terms at the end of 2022. Occupiers from the industrial/production, retail and logistics sectors had to pay a prime rent of €10.50/m² for the first time. At the beginning of 2022, this was still €8.50/m². The Munich metropolitan region thus exceeded the €10 per square metre mark in this property segment for the first time.

Berlin follows with a €2 gap in second place among the top 8 locations (€8.50/m², up from €7.50/m² at the start of the year). The regional market of Nuremberg and the top 8 location of Stuttgart are in third place with €8.00/m² each (Q1 2022: €6.50/m² and €7.90/m² respectively), followed by Hamburg in fourth place with €7.80/m² (Q1 2022: €7.90/m² and €6.70/m² respectively), followed by the regional markets of Augsburg and Ingolstadt with €7.50/m² each (Q1 2022: €6.00/m² and €6.50/m² respectively). Stuttgart fell one place compared to the same quarter in Q1 2022, while Augsburg rose six places.

The other top locations are Frankfurt (7th place at €7.30/m²; Q1 2022: €7.10/m²), Düsseldorf (8th place at €7.15/m²; Q1 2022: €6.30/m²) and Cologne (9th place at €7.00/m²; Q1 2022: €5.95/m²). The Ruhr region ranks 12th (€6.50/sqm, Q1 2022: €5.50/sqm).

"In addition to the German top 8, the southern regional markets of Nuremberg, Karlsruhe, Augsburg and Ingolstadt in particular are in the top third of all 33 logistics locations," comments Florian Stork, Realogis Managing Director for the Munich metropolitan region and southern Germany.

The most expensive northern markets outside the top 8 are Hanover and Braunschweig at €6.00/m² each (Q1 2022: €5.50/m² and €4.90/m² respectively), followed by Kassel at €5.80/m² (Q1 2022: €5.50/m²).

The eastern markets, which are typically in the lower third and therefore represent the cheapest regions in terms of prime rents for new builds, are led by the Leipzig market, which is on a par with Hanover and Braunschweig at €6.00/sqm at the end of 2022 (Q1 2022: €4.80/sqm). The prime rent in Dresden is €5.50/sqm (Q1 2022: €4.80/sqm), in Zwickau and Halle €5.30/sqm (Q1 2022: €4.50/sqm and €4.00/sqm respectively). The lowest prime rent of all 33 markets is paid by tenants in Magdeburg at €5.10/sqm (Q1 2022: €4.00/sqm).

Average increase in prime rents of +14.9 %

"On average, prime rents rose by 14.9% in the submarkets* analysed, a clear upward trend," explains Christian Beran, Realogis Managing Director for Northern and Eastern Germany. "In 23 markets, the increase was in the double-digit percentage range. In the eastern markets alone - i.e. Magdeburg, Halle, Leipzig, Zwickau, Erfurt and Dresden - prime rents for new logistics buildings rose by 22.2%. In a further seven markets, it rose by single digits."

Highest increase in prime rents for new builds in Halle followed by Magdeburg

The largest increases in prime rents were observed in both the eastern and southern markets with:

• Halle (+32.5% to €5.30/m², coming from €4.00/m²)
• Magdeburg (+27.5 % to €5.10/m², up from €4.00/m²)
• Augsburg (+25 % to € 7.50/m², up from € 6.00/m²)
• Leipzig (+25% to €6.00/m², up from €4.80/m²)
• Munich +23.5 % to €10.50/m² coming from €8.50/m²

In contrast, Realogis has registered stagnation in the prime rent in Heilbronn, which remains at the previous year's level of €6.50/sqm.

New markets Osnabrück and Hof

The prime rents for new buildings in the newly added logistics markets of Osnabrück and Hof are in the lower third of all markets at €5.70/m² each. This picture is also confirmed for Osnabrück in comparison with the other northern markets of Hanover, Braunschweig, Kassel, Bremen, Bielefeld and Wolfsburg. Hof, on the other hand, brings up the rear in the southern markets, following Würzburg and Dingolfing (both €6.50/m²) with prime rents for new-build properties of €5.70/m².

The most expensive location outside the top 8 is Augsburg (minimum rent)

The most expensive locations outside the top 8 based on the minimum rent for new-build properties are Augsburg, Karlsruhe, Mainz/Wiesbaden, Ingolstadt, Nuremberg and Ulm

• Augsburg with €6.50/m² (+44.4%, Q1 2022: €4.50/m²)
• Karlsruhe at € 6.40/m² (+16.4%, Q1 2022: € 5.50/m²)
• Mainz/Wiesbaden at € 5.75/m² (+9.5%, Q1 2022: € 5.25/m²)
• Ingolstadt at € 5.60/m² (+6.7 %, %, Q1 2022: € 5.25/m²)
• Nuremberg at € 5.60/m² (+15.5 %, Q1 2022: € 4.85/m²)
• Ulm with € 5.60/m² (+24.4 %, Q1 2022: € 4.50/m²)

The most expensive northern markets outside the top 8 in terms of minimum rents for new-build properties were Hanover, Kassel, Braunschweig and Bremen

• Hanover with €5.40/m² (+20 %, Q1 2022: €4.50/m²)
• Kassel with €5.20/m² (+13%, Q1 2022: €4.60/m²)
• Braunschweig and Bremen with €5.20/m² each (+15.6%, Q1 2022: €4.50/m² each)

The most expensive eastern logistics property markets outside the top 8 were Leipzig, Dresden, Zwickau and Halle

• Leipzig and Dresden at €5.20/m² each, up from €4.20/m² (+23.8 %) and €4.50/m² (+15.6 %) respectively
• Zwickau, Halle and Erfurt with € 4.80/m² each, coming from € 4.00/m² (+20 %), € 3.50/m² (+37.1 %) and € 3.80/m² (+26.3 %) respectively
• Magdeburg again brought up the rear of all locations with € 4.50/m², coming from € 3.30/m² (+36.4 %)

Largest gap in the range for new-build properties in Berlin

"Once again, the gap between the minimum rent and the top rent for new-build properties is widest in Berlin. There is now a gap of €3.00/m² between the minimum and prime rents for new logistics properties," says Ben Dörks, Managing Director of Realogis Immobilien Berlin GmbH. "The price differences result from the land prices paid by different project developers. Those who secured greenfield sites years ago can offer them at significantly lower prices for the new buildings that have been developed. However, project developers who have only acquired a plot in the last two years have paid ten times as much in some cases and have to factor this into their rental price calculations."

The narrowest margin between the minimum rent and the prime rent is for new-build properties in Dresden, where it is just 30 cents.

*with the exception of Osnabrück and Hof, due to the first-time recording

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Email: s.westermann@shcommunication.de

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