At a Glance Q4 2023

Logistics market Munich

+5 %

2023 vs. 2022

At a Glance Munich Q4 2023

SHORTAGE OF SUPPLY CONTINUES TO LIMIT TAKE-UP

The Munich warehouse and logistics market is recording broad demand even in the current tense economic situation. With take-up of 238,000 m², the long-term average was missed by 15 %, but there was a slight increase of 5 % compared to the previous year.
In addition to brisk market activity overall, two major contracts made a significant contribution to the result. These include the 60,000 m² new build for a logistics firm in Oberding (owner-occupier) and the 30,000 m² expansion by Siemens Mobility at its site in Munich-Allach.
Furthermore, the shortage of supply continues to characterise the market, with hardly any adequate space available for rent, particularly in the large-space segment. In 2023, owner-occupier developments predominantly contributed to take-up of 10,000 m² or more, resulting in an owner-occupier share of almost 35 %, which is well above the long-term average.
Due to the scarcity of supply and increased construction costs, rents have continued to rise over the course of the year. The prime rent now stands at 10.50 €/m², while the average rent is 8.70 €/m².

MAJOR CONTRACTS DOMINATE SECTOR & SIZE CLASS DISTRIBUTION

The sector statistics are dominated by the two major lettings already mentioned, which provide logistics and industrial companies with above-average market shares of 47 % and 44 % respectively. In absolute terms, logistics firms also generated significantly more take-up than the average of the last 10 years (78,000 m²). The relative share of take-up contributed by retail companies (4 %) is correspondingly lower.
The fact that the segment over 20,000 m² accounts for a clearly above-average share of take-up of 38 % is also entirely due to the aforementioned major contracts of an owner-occupier and an expansion at the existing location.
However, demand in the smaller-space segment of up to 3,000 m², which is traditionally important for the Munich market, was also lively once again, accounting for 27 %. In addition, greater participation was recorded in the size segment from 3,000 to 5,000 m² as well as between 8,000 and 12,000 m², with market shares of 16 % and 14 % respectively.

KEY FIGURES

OUTLOOK

The weakening economy was reflected in the Munich logistics market, resulting in a slightly below-average result for 2023 in a long-term comparison. The increase in take-up compared to the previous year was largely due to the two large-size contracts and a very high proportion of owner occupiers (35 %) compared to the ten-years average.
In 2024, demand is likely to be at a similar level to previous years. Although the pronounced shortage of space, which is limiting take-up in the large-scale segment, is unlikely to change, the supply and demand situation in the light/industrial sector is likely to ease slightly as a result of several business parks coming onto the market. Due to a lack of alternatives, some of these areas are even used for logistical processes.
In view of the continuing shortage of supply accompanied by strong demand, high construction costs and the costs of increasing energy efficiency, a further rise in rental prices is the most likely scenario, both at the prime end and on average.

LOGISTICS MARKET REGION MUNICH

MAJOR CONTRACTS

60,000 m²
Logistics firm
Oberding

30,000 m²
Siemens Mobility
Munich

11,000 m²
Dachser
Allershausen

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Publisher and copyright: BNP Paribas Real Estate GmbH | Prepared by: BNP Paribas Real Estate Consult GmbH | Status: 31.12.2023
Further Information: BNP Paribas Real Estate | Branch office Munich | Phone +49 (0)89-55 23 00-0
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