BNP Paribas Real Estate publishes logistics market figures for the first quarter of 2023 - Ruhr logistics market: average and previous year's result within reach

Essen, 24 April 2024 - Against the backdrop of the difficult overall economic situation, the Ruhr logistics market has made a good start to 2023. With take-up of around 110,000 m², the interim result after the first quarter is in line with both the previous year (119,000 m²) and the long-term average (116,000 m²). The fact that all three results are within a relatively small corridor of between 110,000 and 120,000 m² also emphasises the high level of consistency in the Ruhr region, even under more challenging conditions. This is the result of the analysis by BNP Paribas Real Estate.

"The composition of the good overall result is once again due in large part to new lettings (54%) and existing lettings (46%). The two major lettings in the new-build sector include Recht Logistik (Bönen, 27,000 m²) and Bayer (Bergkamen, 15,000 m²), while larger areas were also let to the logistics service providers d-log (Essen, 11,000 m²) and ID Logistics (Dortmund, 10,000 m²). The prime rent is now €6.50/m² and the average rent is €5.30/m²," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.

Focus on medium-sized spaces, logistics companies in the lead

While large deals of 20,000 m² or more are traditionally the main reason for high take-up in the Ruhr region, in the first quarter it was primarily medium-sized deals of between 8,000 and 20,000 m² that were the key drivers of take-up. They accounted for just under half of the volume, leaving a market share of around a quarter each for large contracts and smaller contracts of up to 8,000 m². The sector distribution is also unusual, with manufacturing companies and logistics service providers sharing the result in the first three months with a good 69% and just under 31% respectively. In contrast, retail companies, which have been among the most active demanders in the Ruhgebiet in recent years, are experiencing a supply shortage in the modern space segment and somewhat more restrained market activity. However, this should be seen as a snapshot rather than a general market trend. Owner-occupier deals have also failed to materialise to date due to a lack of available space.

Prospects

"Despite the challenging economic conditions, the logistics market in the Ruhr region closed the first quarter well and demand continues to exceed supply, particularly in the 5,000 m² and larger categories. On the supply side, project developers continue to try to utilise the few available plots of land in order to gradually expand the portfolio through new developments. However, the segment of short-term space requests in particular can hardly be served in this way. On the other hand, some relief is provided by the provision of sublet space, which represents a temporary solution but does not compensate for the excess demand in the long term. It can also be assumed that retail companies' activities will pick up noticeably over the course of the year as the economic outlook continues to improve. A slight upward trend in rents is also to be expected," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Ruhr logistics market: average and previous year's result within reach | 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
Melanie Engel - Tel: +49 (0)40-348 48-443, Mobile: +49 (0)151-117 615 50, melanie.engel@bnpparibas.com

About BNP Paribas Real Estate
BNP Paribas Real Estate is a leading international property services provider that offers its clients comprehensive services in all phases of the property cycle: Transaction, Consulting, Valuation, Property Management, Investment Management and Property Development. With 5,300 employees, the company supports owners, tenants, investors and the public sector in their projects thanks to local expertise in 23 countries (own locations and alliance partners) in Europe, the Middle East and Asia. BNP Paribas Real Estate is part of the BNP Paribas Group, a leading global financial services provider.

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