The strong letting performance of the third quarter could not be carried on into the last quarter of 2013. It passed as uneventfully as the first two quarters. The total annual take-up was 198,100 m² excluding owner-occupiers and attributable office and social areas. This is a 29% decrease in rented logistic and storage area, 80,000 sq. m less than in 2012.
This drop is the result of the ailing demand from the automotive industry, which had always been strong suppliers of good turnovers during the last 3 years. “The massive expansion plans of the automobile manufacturers and their suppliers were eventually realized to the greatest extent in 2012, so that this business line hardly set any impulse, at least until midyear.” says Marcus Blumenthal, expert for industrial and logistic space at Colliers International Munich. “Towards the end of the year, however, the number of contract conclusions increased again and further inquiries came from the automotive sector, which will become noticeable with the 2014 turnover results.” he adds.
When considering the individual segments it shows a different picture. “The significant turnover decrease is to a large extent due to the segment starting at 5,000 sq. m, whose letting result diminished nearly by a half to 61,000 sq. m.” Tobias Seiler, Research Analyst at Colliers International Munich, explains the setback in demand. Even the segment between 3,001 and 5,000 sq. m could not compensate for this, although it recorded a 70% increase to 49,500 sq. m. Due to expansion and reorganization, above all Deutsche Post and DHL appeared as customers for available spaces and new building projects in the city area and its outskirts, renting a total of approx. 23,000 sq. m.
Accounting for a share of 34% (67,000 sq. m) vacant storage spaces located within the city limits were significantly more in demand than during the previous year (2012: 17% or 48,500 sq. m). At Am Nordring and around Frankfurter Ring numerous lease contracts were signed. Also in the southern city area, several locations with space of more than 1,000 sq. m each were leased in the commercial zones. The supply of new first-class logistic space is limited and the vacancy rate remains stable the very low level of 2.3%. In the course of the year some spaces in Munich’s east will come into the market, which will be leased by the end of 2014; so that only marginal changes in supply are to be expected in the total annual results.
The rent prices remained stable and were at € 6.40/sq. m for first-class spaces in the outskirts, in the city area up to € 8.95 are to be paid per sq. m. The short supply of modern storage space since 2010 has meanwhile led to a slight increase in offered rent prices at popular locations throughout the market area. As a consequence a moderately rising average rent price can be expected if the raised offer prices become accepted. “Although we do not expect the demand to boost in general in 2014, we suppose that the automotive sector augments its activity again and the letting performance exceeds the previous year’s result.” forecasts Marcus Blumenthal.