SOLID H1 PERFORMANCE DESPITE HEADWINDS
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The Frankfurt logistics and warehouse market recorded a solid performance in the first half of the year. Take-up amounted to 200,000 sqm, remaining below both the previous year's result (-20%) and the long-term average, yet continuing to demonstrate overall market resilience.
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Demand remains strong despite the challenging economic environment. Occupiers continue to focus on modern logistics space within the core market area as well as locations close to the airport and the city. At the same time, supply in these segments remains limited, resulting in a persistent demand surplus, particularly for high-quality space available at short notice. Against this backdrop, locations across the wider Rhine-Main region are becoming increasingly attractive. In parallel, flexibility and planning certainty are gaining importance among occupiers, reflected in growing demand for shorter lease terms and additional options within long-term rental agreements.
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Supported by the ongoing supply shortage and stable demand, rental growth has continued. Over the past 12 months, prime rents increased by 7% to €8.80/sqm, while average rents across all lease transactions rose by 9% to €7.60/sqm.