A take-up of 99,000 m² (excl. owner-occupiers and proportions of office and commonly used spaces) was recorded for the market area defined by Colliers for industrial and logistic space, which includes the entire city as well as the surrounding area, representing a decrease of 30 % of results in the previous year. 61 % thereof or approx. 60,000 m² were leases for new space in the surround area and 39 % or 39,000 m² were leases for building located within the city limits. The reason for the strong decline is the general refrain of new leases due to the murky economic outlook as well as the low supply on the market. In comparison to last year’s second quarter results, vacancy rate has risen to 2.2 % however in absolute figures this represents a space of approx. 33,000 m² of new space, which is now available for lease on the market. “Most of all we see the absence of speculative new building projects as the largest hindrance on the leasing market for logistic space, even if we are at the same time determining a decline in new inquiries especially by hauling companies,” said Marcus Blumenthal, logistic consultant at Colliers International in Munich. Large-scale lease exceeding 10,000 m² have not taken place, which contributed greatly to take-up in past years. All in all 51,000 m² of logistic space in currently under construction, thereof 71 % is already leased. Thus only approx. 15,000 m² of space currently under construction is available.
Rent continues to show stability
Rent rates have remained however stable and underline the market’s reliability. Most of the nearly 50 registered lease agreements were concluded with rates between € 5.01 – € 6.00 per s qm (48 %). A significant rise was seen for leases starting at € 7.00 per s qm (+6 %), however not much change was seen in leases under € 4.00 per s qm (< 1%). On average the rent rates for modern light industrial space within the city limits were € 8.50 – € 8.75 per s qm. Newly constructed logistic buildings are achieving rent rates between € 5.95 - € 6.30 € per s qm in the surrounding area.
Conclusion and Prognosis
After above-average results were recorded in 2011 and 2012, the decline in take-up was expected. A significant increase in the lease performance is also not expected in the second half of the year, even if it is forecasted that the 200,000 m² mark will be met by the end of the year. Individual large inquiries are already in the last phases of negotiation and available space in new building will also be lease by the end of the year. “Demand in the first six months is somewhat milder, however the existing inquiries show that the need for high-quality space in correspondingly good locations remains strong,” according to Marcus Blumenthal.