WELL ABOVE-AVERAGE TAKE-UP
- With a take-up of 398,000 m², the Leipzig logistics market achieves its second-best ever result in 2022. It is an impressive 42 % above the ten-year average, but nevertheless remains significantly below the record result from the previous year (505,000 m²).
- Demand remained consistently high throughout the year. Since it continues to meet with an insufficient supply of space, there are few alternatives for users in terms of location in the market area. Therefore, the availability of space is primarily decisive in the decision for a property. Against this background, it can be assumed that the take-up could have been higher if there had been an adequate supply.
- In combination with the increased construction and financing costs, the prime rent has therefore risen to 5.20 €/m².
MANUFACTURING COMPANIES DOMINATE DUE TO LARGE DEALS
- Manufacturing companies are responsible for 47 % of the result with one of the highest take-up figures of the last ten years. Several major contracts make a significant contribution to this, first and foremost the expansion of the BMW plant by around 55,000 m².
- In the distribution of take-up by size categories, it is particularly noteworthy that in the segments up to 20,000 m², a similar volume was generated as in the record year 2021. The overall decline of around 21 % is therefore based solely on the fact that fewer large deals were recorded. The segment between 8,000 and 12,000 m² was particularly dynamic, accounting for 30 % of take-up.
- Due to the comparatively low amount of newly built space, the share of new construction is only 33.5 % - compared to a long-term average of 57 %. Furthermore, hardly any owner-occupier space was registered.
- In general, demand on the Leipzig logistics market is expected to remain high. It remains to be seen how strongly the current framework conditions with rising interest rates, high inflation, a weakening economy and the continuation of geopolitical conflicts will affect market activity. However, after what is likely to be a somewhat restrained development at first, there should be increasing momentum in the course of the year.
- The tight supply situation should ease noticeably from the second quarter onwards with the expected completion of speculative new buildings. Accordingly, the share of new buildings in take-up is likely to grow again significantly.
- In the course of this, a further increase in rent levels is to be expected. In addition to the average rent, a further increase in the top rent cannot be ruled out.
LOGISTICS MARKET REGION LEIPZIG
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Publisher and copyright: BNP Paribas Real Estate GmbH | Prepared by: BNP Paribas Real Estate Consult GmbH | Status: 31.12.2022
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