REALOGIS publishes Germany's latest rental price map Q4 2022 for existing warehouse and logistics properties

• Berlin loses its leading role in existing rents
• Most expensive locations outside the top 8 were Ingolstadt, Nuremberg and Regensburg
• Most expensive eastern locations are Dresden, Leipzig and Zwickau
• +38,5 %: Highest increase in rents in Munich
• Prime rents for functional existing properties increased by 12.2 % on average
• Existing rents increasingly close to new-build levels due to lack of space
• Minimum rent increased by 16.3 % on average

Munich, 7 March 2022 - Every year, all market players in Germany take up between 8 and 9 million m² of space in warehouse and logistics properties for rent and owner-occupation. New builds traditionally attract the most attention, as they provide interesting new locations or relocations for well-known retail and industrial companies, logistics providers and freight forwarders.

In 2022 alone, more than 3 million m² of new lettings were attributable to existing properties. Realogis defines functional existing properties as properties with a hall height of at least 7.50 metres, ramps and/or ground-level access as well as spacious access zones and heating. They play a major role in the production, storage, handling and distribution of goods to end consumers or business customers. Realogis - Germany's leading property consultancy for industrial and logistics properties and business parks - has taken a closer look at the development of their rents at 33 locations. The current rental price map supports experts in banks, investment and asset managers as well as users from the retail, logistics and freight forwarding sectors.

The most expensive logistics location in absolute terms for existing properties by prime rent in Germany in 2022 was Munich. "The upper end of the range is €9.00/m², which corresponds to a whopping 38.5% increase on the previous year's figure of €6.50/m²," says Nicolas Werner, Managing Director of Realogis. Munich has thus risen two places compared to the start of 2022.

Hamburg is also back in the top 3 with €8.30/m² (+15.3%, Q1 22: €7.20/m²) and Stuttgart with €7.80/m² (+23.1%; Q1 22: €6.50/m²) together with Berlin (4th place; +4%; Q4 22: €7.50/m²). Berlin gave up its top position and thus lost three places. Germany's most expensive markets for logistics and warehouse properties also included Ingolstadt (5th place; €6.95/m², +13%, Q4 2021: €6.15/m²) and Nuremberg and Regensburg in joint seventh place with €6.65/m² (both +10.8%, coming from Q1 22: €6.00/m² each).

The most favourable locations in terms of prime rents for functional existing properties are Hof and Magdeburg at €4.50/m² each.

The most expensive northern locations are Hanover, Wolfsburg, Bremen and Kassel

• Hanover and Wolfsburg at €5.50/m² (+2.8%, Q1 2022: €5.35/m² and sideways movement on the Wolfsburg side)
• Bremen at € 5.30/m² (+12.8%; Q1 2022: € 4.70/m²)
• Kassel at € 5.20/m² (+7.2 %; Q1 2022: € 4.85/m²)

Most expensive eastern locations are Dresden, Leipzig and Zwickau

• Dresden at €5.20/m², still the most expensive market in the east in terms of prime rents for existing properties despite a decline of 13.3% from €6.00/m²
• Leipzig remains stable at the high level of the start of the year at €5.00/m²
• Zwickau at € 4.70/m² (+ 4.4 %; Q1 2022: € 4.50/m²)

+38,5 %: Highest rent increases in Munich

Regardless of the geographical location, the greatest increase in rents took place in Munich. Rents for existing properties have shot up by 38.5%, from €6.50/m² to €9.00/m².

This was followed by Augsburg (+30 %, from €5.00/m² to €6.50/m²), the Ruhr region (+25.6 %, from €4.30/m² to €5.40/m²) and Halle (+24.3 %, from €3.70/m² to €4.60/m²).

Wolfsburg (€5.50/m²), Leipzig (€5.00/m²) and Heilbronn (€5.50/m²) show that rents are not rising in all 33 locations analysed, as they are stagnating at the same level as at the start of the year. Dresden is the only market to show a decline of 13.3%, falling from €6.00/m² to €5.20/m². The outlier of €6.00/m² was due to the re-letting of the last major existing property, which is also used for production.

Rise in prime rents for functional existing properties averages 12.2 %
"On average across all locations, prime rents for functional existing properties have risen by 12.2 %, while the average increase of 18.7 % in the top 8 markets is more pronounced. In a total of 19 markets, the increase in prime rents for existing functional properties is in the double-digit percentage range compared to the previous year," explains Florian Stork, Managing Director of Realogis.

The most significant divergence between prime and minimum rents for existing properties was observed in the Munich and Berlin markets. In Munich, the range for functional existing properties was €3.00/m², followed by Berlin at €2.60/m², ahead of Stuttgart at €2.30/m² and Ingolstadt and Regensburg at €1.75/m² each. The lowest and highest rents for functional existing properties were closest together in Erfurt and Düsseldorf at €0.30/m² each.

"We are also observing that existing rents are inevitably moving closer and closer to the level of new-build properties due to a shortage of space," reports Joel Adam, Managing Director of Realogis. "In Stuttgart, the maximum rent for existing properties is now €7.80/m², which is higher than the minimum rent for new builds of €7.10/m²."

Minimum rent increased by 16.3% on average

In 20 markets, the minimum rent rose by a double-digit percentage compared to the previous year. On average across all markets, the minimum rent for functional existing properties rose by 16.3%, while the top 8 markets saw an even more significant increase of 18.5%.

Germany's most favourable entry-level rents in existing properties were registered in Magdeburg and Hof at the end of 2022. In Magdeburg, users can already sign contracts for €4.00/m² (+25%; Q1 2022: €3.20/m²) and in Hof for €3.70/m², the only market below the €4 mark. The minimum rent did not fall in any market; only in Heilbronn did it stagnate at the previous year's level of €4.20/m².

REALOGIS press contact:
Silke Westermann
Public Relations Specialist
Tel: +49/211/53 88 3-440
Email: s.westermann@shcommunication.de

Corporate contact REALOGIS:
REALOGIS Holding GmbH
Silja Schuppler
Marketing
Rundfunkplatz 4, 80335 Munich
Tel: +49/89/51 55 69 17
E-mail: s.schuppler@realogis.de
www.realogis.de

REALOGIS. The No. 1 in industrial and logistics property

The REALOGIS Group is Germany's leading address for consulting and brokerage services for industrial and logistics properties and commercial land. founded in 2005, the owner-managed, healthily grown and crisis-proof group of companies knows the German market like no other: in 2021, REALOGIS achieved a turnover of almost 1.3 million m2 of brokered usable space in the letting segment alone. Net commission income from all services totalled around 25 million euros in the 2021 financial year.

REALOGIS also won the 2021 German Real Estate Award in the "Commercial Player" category, which recognises companies for their special commitment, creativity, innovative strength and sustainability.
The group of companies includes eight branches in Berlin, Düsseldorf, Germany South/North, Frankfurt am Main, Hamburg, Leipzig, Munich and Stuttgart.

The more than 70 REALOGIS property professionals provide advice and support to national and international companies from the logistics, e-commerce, retail and industrial sectors as well as private and institutional investors. Fast, flexible, regional and customer-orientated. The four core competences include finding tenants with strong credit ratings for existing and new properties, supporting investors in property investments and in the project development of greenfield and brownfield sites, providing a perfect service for finding or selling properties and developing and implementing holistic property strategies. This covers the entire property cycle - from location analysis and optimisation of expansion targets to the sale of assets that are no longer required for operations.

In short: REALOGIS offers "More space for your success" in every respect.