STRONG START TO THE YEAR WITHOUT OWNER OCCUPIERS
- The Leipzig logistics market was able to take the momentum from 2021 into the new year. With take-up of 89,000 m², the 10-year average was exceeded by a remarkable 65% and the third-best start to the year in history was achieved. Given that owner-occupier transactions have not yet been concluded, the gap of just under -18% compared with the very good result for the previous year become relative.
- The market continues to be characterized by a shortage of supply. The supply of space can only inadequately meet demand, particularly in the large-space segment. Therefore for companies the looking for new logistics premises. Speculatively constructed space is accordingly absorbed by the market from a very early stage on and is often already fully let before completion.
- The prime rent remains stable at 4.65 €/m² (+1% compared with Q1 2021), as at the end of 2021.
LEIPZIG CONFIRMS REPUTATION AS TOP INDUSTRIAL
- Leipzig's high attractiveness as a location for industrial companies is clearly reflected in the latest result. The BMW Group's decision to expand with a further 55,000 m² in the market area sends out a clear signal. In addition small scale deals helped push the volume of manufacturing companies to an above-average market share of 65%.
- Supported by the 10,000 m² deal concluded by Momox, retail companies generated some 16% of take-up so far, which is below their average (almost 20%). Logistics firms are currently acting much more moderate than in other years, contributing only just under 14% of volume. In their case in particular, the Q1 result is very likely to have been a snapshot only.
- The high market share of 70% generated by the new assets segment is primarily due to the completion of BMW Group, but also underlines the fact that large modern spaces in the market area continue to be in short supply.
SUPPLY OF SPACE REMAINS AT A LOW LEVEL
- Leipzig's logistics market has set the course for a good result for the year. The demand currently remains at a consistently high level, which sends out a positive signal for the coming months. Nevertheless, uncertainties have also increased in the Leipzig market area and it remains to be seen how a possible economic slowdown and the need for supply chain reorganization emerging in some sectors of the economy will affect Leipzig's market activity in the short term.
- Irrespective of this, Leipzig has very good locational prerequisites for production, trade and logistics companies, so that the positive growth trend that has been set is very likely to continue.
- In view of the continuing shortage of supply, particularly in the new construction segment, and rising construction costs, there are signs of a further increase in rental prices.
LOGISTICS MARKET REGION LEIPZIG
All rights reserved. At a Glance is protected in its entirety by copyright. No part of this publication may be reproduced, translated, transmitted, or stored in a retrieval system in any form or by any means, without the prior permission in writing of BNP Paribas Real Estate GmbH. The statements, notifications and forecasts provided here correspond to our estimations at the time when this report was prepared and can change without notice. The data come from various sources which we consider reliable but whose validity, correctness or exactness we cannot guarantee. Explicitly, this report does not represent a recommendation of any kind, nor should it be regarded as forming a basis for making any decisions regarding investment or letting or renting property or premises. BNP Paribas Real Estate can accept no liability whatsoever for any information contained or statements made herein.
Publisher and copyright: BNP Paribas Real Estate GmbH | Prepared by: BNP Paribas Real Estate Consult GmbH | Status: 31.03.2022
Further Information: Christopher Raabe, Head of Logistics & Industrial | Phone +49 (0)40-348 48-0
Photo credits: Adobe Stock / C. By A. Fink; Mathias Weil