LOW TAKE-UP AND HIGH MARKET DYNAMICS
The Berlin market for warehouse and logistics space (including the surrounding area) started the year with a solid result (-20%), which is nevertheless below the long-term average. However, the fact that the 74,000 m² of space is currently based on more than 25 contracts illustrates the continuing high market dynamics. Against this background, the decline in take-up is therefore more likely to be caused by the lack of major deals in the year so far and cannot yet be directly linked to the current corona crisis, as might be assumed. Since the majority of the contracts concluded are negotiated with a considerable period of preparation, the economic effects of the social lockdown cannot yet be measured in terms of take-up. Although this is not expected to be the case until the second quarter, it is not possible at this point to foresee how any short-term increases in demand by, for example retail companies will compensate for a possible wait-and-see attitude by other market participants.
Read the full report by downloading the PDF document.