POSITIVE INTERIM RESULTS: TAKE-UP BACK AT AVERAGE LEVEL
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The Berlin market for warehouse and logistics space recorded positive interim results with a take-up of 320,000 sqm by the end of the third quarter. This represents an increase of almost 50% on the comparable period last year. Although the current take-up is 11% below the long-term average, this is still influenced by the Tesla plant in Grünheide, which contributed more than 300,000 sqm to the result in 2022. Excluding this special effect, the current figure is almost exactly in line with the long-term average. This is clear evidence that demand for logistics space in the capital has returned to positive territory after a period of weakness in the previous year. Inner-city space in particular is in high demand driven by the proximity to consumer markets.
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However, the largest transaction recorded so far this year is located on the outskirts of Berlin. Over summer, construction work began on the new 65,000 sqm Netto logistics centre in Kremmen. Partly as a result of this project, both the owner-occupier and new-build market shares are currently at a high level for Berlin, at 25% and 61% respectively.
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Meanwhile, rents are showing signs of a two-tier market. As there is significant excess demand for inner-city space, rents for smaller warehouses are now regularly exceeding €10 per sqm. In the traditional large-scale segment, where market activity is mainly concentrated on the outskirts of the city, rents have stabilised at €8.20 per sqm and €7.20 per sqm for prime and average rents respectively.