Munich, Berlin and Stuttgart remain Germany’s most expensive new-build logistics locations and Ulm can report the highest increase in prime rents within a year (+22.2 percent): These are the results of the real estate consultancy Realogis, which created the rental price map H1 2021 in 32 logistics real estate markets . It evaluated the rental prices for new logistics properties on the one hand and for functional existing properties on the other in Germany’s eight top locations and 24 regional markets.
Top rents for new logistics buildings
The most expensive new logistics location in terms of top rent (upper range) is Munich at € 8.50 / m². With a gap of one euro, Berlin follows in second place (€ 7.50 / m²), while Stuttgart comes third with € 6.95 / m². New-build logistics properties are characterized by a hall height of at least ten meters, spacious delivery zones, at least one to two gates per 1,000 m² of hall space, efficient heating systems and sprinkler systems. The square meter price refers exclusively to storage space or logistics space (or not to proportionate office forms, mezzanine forms or other forms of use).
All other top eight locations share ranks with regional champions: Nuremberg ranks fourth with € 6.80 / m², ahead of Frankfurt (€ 6.75 / m²), Ingolstadt (€ 6.50 / m²) and Karlsruhe (€ 6.50) € / m²) as well as the top eight locations Hamburg (6.30 € / m²) and Düsseldorf (6.10 € / m²). The top eight logistics locations Cologne (12th place with 5.85 € / m²) and the Ruhr area (17th place, 5.30 € / m²) offer significantly more moderate prime rents for newly built logistics properties.
Most favorable location: Halle
The owners in Hanover (20th place; € 5.10 / m²) and Bremen (21st place; € 5.00 / m²) demanded the highest prime rent for new logistics buildings in the north. To the east lies Leipzig (4.60 € / m², 24th place) ahead of Dresden (26th place; 4.50 € / m²) and Zwickau (27th place with 4.50 € / m²). The cheapest location in relation to the prime rent of new buildings is Halle with € 3.60 / m².
In the first half of 2021, the top rent for new logistics buildings rose by far the most in Ulm compared to the previous year, followed by Mannheim, Karlsruhe, Berlin and Munich.
These are the largest price increases within the past 12 months (H1 20-H1 21):
- Ulm: + 22.2% to 5.50 € / m coming from 4.50 € / m²
- Mannheim: + 9.1% to 6.00 € / m² coming from 5.50 € / m²
- Karlsruhe: + 8.3% to 6.50 € / m² coming from 6.00 € / m²
- Berlin: + 7.1% to 7.50 € / m² coming from 7.00 € / m²
- Munich: + 6.9% to 8.50 € / m² coming from 7.95 € / m²
These top locations recorded slight price increases:
- Ruhr area: + 3.9% to 5.30 € / m² coming from 5.10 € / m²
- Frankfurt: + 3.8% to 6.75 € / m² coming from 6.50 € / m²
- Düsseldorf: + 2.5% to 6.10 € / m² coming from 5.95 € / m²
- Hamburg: +1.6% to 6.30 € / m² coming from 6.20 € / m²
- Cologne: + 0.9% to 5.85 € / m² coming from 5.80 € / m²
The only location that fell in price in H1 2021 is Magdeburg (3.8% to 3.75 € / m², coming from 3.90 € / m²).
Entry rent for new buildings
The most expensive new construction logistics location for rent (lower range value, i.e. marketable entry value that must be paid at least at the respective logistics location) is Munich with 6.50 € / m², as in the previous year, followed by Stuttgart (6.30 € / m²) and Hamburg (€ 6.10 / m²). The other top locations are fifth (Frankfurt with € 5.50 / m²), sixth (Düsseldorf € 5.30 / m²), eighth (Cologne with € 5.10 / m²), 15th (Ruhr area 4.40) € / m²), rank 24 (Berlin with 4.10 € / m²).
The cheapest entry-level prices for new logistics rental space among all locations in Germany are in eastern Germany: Zwickau (25th place with € 4.00 / m²), followed by Dresden (26th place with € 4.00 / m²) and Leipzig (27th place) with 3, 80 € / m²). The cheapest location overall is Halle with € 2.90 / m² (32nd place).
These are the largest price increases within the past twelve months (H1 21-H1 20):
- Mannheim: + 13.2% to 4.30 € / m², coming from 3.80 € / m² in H1 2020
- Augsburg: + 12.5% to € 4.50 / m² coming from € 4.00 / m² in H1 2020
- Würzburg: + 7.5% to 4.30 € / m² coming from 4.00 € / m² in H1 2020
- Ulm: + 7.1% to 4.50 € / m² coming from 4.20 € / m²
- Dingolfing: 7.1% to 4.50 € / m² coming from 4.20 € / m²
Magdeburg is once again the only location where the minimum rent for new buildings has become cheaper compared to the same period in the previous year (-1.7% to 2.95 € / m², coming from 3.00 € / m²). The Ruhr area, Frankfurt, Düsseldorf, Cologne and Stuttgart remained at the previous year’s level.
Rental price range: Berlin shows the greatest difference between the minimum rental price and the top rental price for new logistics buildings at 3.40 € / m², followed by Nuremberg (2.30 € / m²) and Munich (2.00 € / m²). In contrast, the prices in Hamburg (€ 0.20 / m²) and Wolfsburg (€ 0.30 / m²) are closest together, which means that the minimum rent is almost the same as the prime rent.
At the southern German locations of Dingolfing, Würzburg and Augsburg, it was observed that the range of rental prices for new buildings decreased significantly. The reason for this was that the minimum rents (lower value of the range) rose, while the prime rents persisted.
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