At a Glance Q1 2022

Logistics market Berlin

Logistikmarkt Berlin BNPPRE
487,000 m²
TAKE-UP
+225 %
Q1 22 vs. Q1 21
+261 %
In comparison to 10-YEAR
AVERAGE

HISTORICAL START TO THE YEAR - WITH AND WITHOUT TESLA

  • The Berlin logistics market got off to a flying start to the new year. Especially the new Tesla building in Grünheide, which accounts for 327,000 m² of take-up has set a record that will be difficult to top. Nearly two years after the beginning of construction the final building permission has now been issued. Aside of this major deal, the market dynamics have once again accelerated noticeably.

  • Overall the take-up amounts to 487,000 m². Even without the Giga-Factory the result still marks a new record with take-up of 160,000 m², which represents an increase of 7% to the already very strong previous year.
  • The prime rent quotes 7.50€/m², same as at the end of 2021. Compared with the same quarter of the previous year, it has risen by around 4%. In addition to the continued high demand and the limited supply of space, this reflects to the high letting dynamics in the modern space segment.

LOGISTICS FIRMS STRONGER THAN EVER

  • The main part of take-up in the first quarter of the year is attributable to the manufacturing sector by almost 75 %, which is not surprising due to the new Tesla building. However, remarkable is the continuing high dynamic among logistics firms. With a take-up of around 57,000 m², they have once again exceeded their top result from the previous year (+3%). Retail companies are active as well, reporting their best result since 2019 with almost 48,000 m², as well as an increase of 12% compared to the 10-year average.
  • Due to the Tesla Giga-factory construction the market share of new buildings soar to almost 80%. Even without the factory, the third highest take-up ever was recorded in this quality segment. In Berlin's core area, where there is a shortage of new-build space, transaction activities are largely concentrated on space of basic and medium standard.

SUPPLY OF SPACE CONTINUES TO DECLINE

OUTLOOK

  • The foundation for a strong annual result has been laid in Berlin. Nevertheless, the market is not likely to be entirely unaffected by developments in the Ukraine war and the looming economic gloom. The extent to which logistics demand will be affected by this remains to be seen for now.
  • Looking ahead, the Berlin market has good preconditions for dynamic development. For example, Berlin offers retailers excellent sales opportunities and the trend towards restructuring supply chains is likely to have a noticeable impact in the market area in the future.
  • The supply of space is likely to decline further, as modern existing space is being let quickly and new space is coming onto the market only gradually. Rental price levels should continue to trend upwards, specially in view of rising construction costs.

LOGISTICS MARKET REGION BERLIN

Major contracts

327,000 m²
Tesla
Grünheide

20,400 m²
HIVE Technologies
Rangsdorf

12,100 m²
SellerX
Großbeeren

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Published by: BNP Paribas Real Estate GmbH | Edited by: BNP Paribas Real Estate Consult GmbH | As of: 31.03.2022
Contact: Christopher Raabe, Head of Logistics & Industrial | Phone +49 (0)40-348 48-0
Photo credits: Adobe Stock / JFL Photography; Aleksei