OVERALL WEAK RESULT FOR 2023 DESPITE STRONGER SECOND HALF
- The Berlin logistics market barely developed any momentum in the first half of the year. It was only in the second half of the year that market activity returned to a significantly higher and more stable level. Nevertheless, the total take-up of 350,000 m² is well below the 10-year average (-29 %).
- The continued lack of supply had a dampening effect on take-up. The low availability of space and the steadily rising level of rents in the Berlin market area are prompting many companies to opt for lease extensions. For lack of alternatives, a new lease is out of the question. In addition, the weak economic development in 2023 prevented a further increase in demand.
- Owner-occupiers behaved very cautiously in 2023. Although their long-term average is at 15 % of the market in Berlin, this segment only generated around 3 % of take-up this year.
- Modern space continues to be in high demand among occupiers. Their share amounts to an above-average 56 % in a long-term comparison. However, these spaces are in short supply, especially in city centre locations, which is preventing an increase in take-up.
LOGISTICS FIRMS IN THE LEAD
- Generalizing the letting activity by size category is impossible in 2023, as take-up increased not only in the small segment below 3,000 m² compared to 2022 (+37 %), but also in the medium segment between 8,001 and 12,000 m² (+4 %). Compared to the 10-year average, above-average take-up of around 101,000 m² (+2 %) and 70,000 m² (+13.5 %) was recorded for both size categories. The market shares amount to 29 % and 20 % respectively.
- Large contracts above the 20,000 m² mark accounted for a high market share of 28 %. As expected, the outstanding result from the previous year remained unrivalled.
- Logistics firms represent by far the most important sector with a share of almost 51 %. Although with around 180,000 m² of take-up these companies missed the high level of the two previous years, they exceeded the long-term average by 19.5 %. The sector is also responsible for the three largest contracts on the market.
- Following the expansionary trend in 2020 to 2022, the pressure on demand from wholesale/retailers has eased considerably. Although it is still the second strongest sector, it is around 46 % below the long-term average.