MODERATE START TO THE YEAR
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The Cologne market for warehouse and logistics space started the year 2025 somewhat cautiously. Although more contracts were signed than in the first quarter of the previous year, the current take-up of 32,000 sqm is still around 57% below last year’s strong q1 result, when two large-scale deals pushed the take-up volume.
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Due to natural market volatility, a look at a single quarter can only ever be seen as a snapshot, but the consequences of the still stuttering economic engine have also been felt in the Rhine metropolis in recent months. On the one hand, demand for space can be described as somewhat more moderate overall and, on the other, ongoing letting processes are taking longer than they did a few quarters ago. Against this backdrop, take-up in the first quarter still deviates by 45% from the ten-year average.
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The largest contract to date was signed by the public sector in the south of Cologne for 11,400 sqm. Other notable leases include 8,300 sqm for a retail company in Cologne and 5,800 sqm for the paper manufacturer Fredrigoni in Frechen.
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In terms of rental price development, the average rent continued its steady growth in the first quarter and now stands at €6.30 per sqm. The prime rent remains unchanged at €7.70 per sqm.