TAKE-UP REMAINS BELOW PRIOR-YEAR LEVEL
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With take-up reaching 59,000 sqm in the first half of the year, the Leipzig logistics and warehouse market remained below both the prior-year result (-32%) and the ten-year average (-52%). Following a subdued start to the year, market activity gained momentum in the second quarter, generating 39,000 sqm of take-up.
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Against the backdrop of continued economic weakness, occupier demand remains subdued, particularly in the larger size segments. The biggest transaction recorded so far was the 10,600 sqm lease signed by wholesaler Salcar in Borsdorf. While take-up in the smaller and mid-sized categories is broadly in line with long-term averages, the absence of larger, volume-driving transactions explains the shortfall compared with both last year’s result and historical market levels. In addition, decision-making processes for large-scale occupier requirements continue to take longer than they did a few quarters ago.
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As a result of the extensive speculative development activity in recent years, combined with the availability of sublease space, a significant supply of logistics space is currently available, particularly in peripheral locations. This growing availability is putting pressure on rental levels. While the prime rent has remained stable at €5.70/sqm, the average rent has declined slightly to €5.00/sqm.