By the end of June 2021, a total of 309,000 m2 was taken up by tenants or owner-occupiers, according to 70-strong Germany logistics agent, Realogis.

‘This year, the falling trend of the comparative periods was finally interrupted. For the most part, confidence is back. Happily, companies are making decisions for the future again,’ said Adriano Borgia, MD of the company.

Julian Petri, also an MD, said, ‘The good half-year result was primarily thanks to a strong second quarter with take-up of 218,000 m².

The data points come a day after research showed average prime yields for logistics assets in Germany stand at 4.05%.

Realogis’ Borgia explained: ‘Demand is currently very good, as decision-makers have become less cautious. Unfortunately, however, the forecast annual take-up of over 490,000 m² could be hampered by the scarcity of existing and new-build properties. Because of the growing demand, it would actually be possible for the annual figure to increase, if the space were available on the market.’

The current figure exceeds the previous year by 11% (H1 2020: 279,320 m²) and is also the second-highest growth since H1 2016, when it amounted to 40% (from 248,000 m² from H1 2015).

At the same time, the latest figure joins the premier league of half-years from the last six years: only the record-breaking first half of H1 2016 was stronger at 348,000 m², around 13% above this year’s figure.

The current half-year figure is also 6.4% higher than the five-year average of 290,500 m².

In the first six months of the year, 200,000 m² and thus 65% of all leases concluded related to newly built properties.

Of the total of 64 deals registered in the first half of the year, a majority of 24 (or 38%) was attributable to the retail sector, followed by logistics/distribution with 20 (31%). The third-most deals were registered in the miscellaneous category with 14 (22%). The fewest deals were seen in the manufacturing sector with six contracts signed (9%).

Large spaces
‘As in the previous year, properties larger than 5,000 m² dominated again in the first half of this year,’ said Petri.

Smaller spaces between 1,000 and 2,999 m² took second place with a share of 16% or 48,000 m², growing by 3 percentage points year on year from third place with 35,000 m² or 13% in H1 2020.

Prime rent stagnate
Prime rent has stayed at its provisional high of €7 per m2 from H1 2020. This is the second stagnation, after H1 2019, of the last five years.

Over the past five years, it increased by 3% from €6.30 per m² to €6.50/ per m² in H1 2017, by 7% to €6.95/m² in H1 2018 and by a minimal 5 cents, or 1%, to €7 per m² in H1 2020. It currently exceeds the five-year average of €6.88/m² by just 1.7%.

In contrast to the prime rent, average rent in H1 2021 grew by 3% to the highest figure for a half-year so far of €5.10 per m², exceeding the five-year average of €4.94 per m² by 3.2%.

The logistics industry is Germany’s third-largest economic sector after the automotive industry and retail. It still ranks higher than mechanical engineering and the electrical industry.