Logistics Real Estate Market Grows in the First Half of 2024

The German logistics real estate market closes the first half of 2024 with a positive signal. According to an evaluation of its own research data, the comprehensive logistics real estate consultant Logivest reports the start of construction of a total of around 2.3 million square meters of new logistics space. The data is always based on the time of the groundbreaking.

(Munich) After the slump in the fourth quarter of 2023 to a historic low of under 500,000 square meters, the market shows a significantly more agile performance in the first two quarters of 2024, with an average of over one million square meters.

“Last year was very challenging for the German logistics real estate market. Rising costs and economic uncertainties led to a strong reluctance in new developments. However, the bottom seems to have been reached. Already in the first half of the year, some regions can report more new construction activities than in the entire last year,” says Kuno Neumeier, CEO of the Logivest Group.

Upper Rhine Surprisingly in the Top 5      

For the second consecutive time, Leipzig/Halle can position itself at the top of the German logistics regions. With around 270,000 square meters, the region has almost reached its total level of the previous year of around 275,000 square meters in the first half of the year. This is mainly due to a new construction of about 90,000 square meters by BentalGreenOak in Halle an der Salle and the logistics park by Panattoni in Könnern. Both projects are being developed speculatively – a positive signal that indicates market stabilization, according to Neumeier.

The established regions of Cologne Bay and Duisburg/Niederrhein also regain strength in the first half of 2024 and return to the top 3 logistics regions with a new construction volume of around 225,000 square meters each, as expected. Both Duisburg/Niederrhein and Leipzig/Halle were already identified by Logivest in the Logistics Real Estate Seismograph 2023/2024 as the regions with the greatest potential. In contrast, the Eastern Ruhr area has developed less positively, remaining well below the levels of recent years.

The Upper Rhine region can be surprising, as it shows its best result in the last five years with around 135,000 square meters of new developments. The basis for this is the new logistics center of Mercedes-Benz in Bischweier in the district of Rastatt. With around 130,000 square meters, the new building realized by Panattoni is the largest project of the first half of the year and catapults the Upper Rhine region for the first time into the top 5 logistics regions. However, the outlook for the next quarters is also quite positive. More than 100,000 square meters are planned with concrete projects in the region and could still be developed this year.

Optimism for Further Market Stabilization

“At the beginning of the year, we spoke of a market recovery starting in the second half of the year. Looking at the projected areas and the slight increase in speculative buildings, I am cautiously optimistic that the market will continue to stabilize in the second half of 2024,” says Neumeier.

Photo/Graphic: © Logivest