SECOND QUARTER LAGS BEHIND THE MOMENTUM OF THE FIRST QUARTER
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The Leipzig logistics market achieved a take-up of 87,000 sqm in the first half of the year, remaining at the same moderate level as the previous year. After a lively start to the year with an above-average result, the second quarter was characterised by hesitant contract signing and low take-up. Overall, the interim result deviates by around 34% from the ten-year average.
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The subdued market activity in the second quarter reflects the still stuttering economic engine. Although there has been a slight improvement in demand, this has not yet been reflected in the full breadth of the market in the form of corresponding contracts. Nonetheless, large leases were recorded in the first quarter, including BravoBike, a JobRad Group company, which leased 21,000 sqm in Kabelsketal, and Elflein Logistik, a logistics firm, which leased 17,400 sqm in Kabelsketal, too.
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On the supply side, there is an abundance of available space, especially on the outskirts, due to the completion of several speculative new properties. Additionally, sublet space is available, which increases the total supply.
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Against this backdrop, rents are under pressure, with prime rent already falling slightly to €5.70 per sqm at the beginning of the year. The average rent remains at €5.10 per sqm.