Logivest expects recovery in logistics real estate by the end of 2024

For the first two quarters of 2024, the holistic logistics real estate consultant Logivest has analyzed which sectors drove new construction activities, which were able to slightly increase in the first half of the year with around 2.3 million square meters of logistics hall space. The leader here is the retail segment with around 31 percent, closely followed by the logistics and KEP service provider sector, which is only one percentage point behind at approximately 30 percent. The automotive sector ranks third with around 20 percent, as revealed by the evaluation of Logivest’s own research data.

(Munich) Just last year, in 2023, the retail sector recorded a significant decline in new construction areas. Now, the retail sector is recovering and currently holds the top position in new construction developments with a share of 31 percent of the total volume. Already at the beginning of 2024, a well-filled pipeline indicated that the retail sector would regain momentum in new construction developments. The forecast for 2024/2025 – published in the logistics real estate seismograph at the beginning of the year – was already reached in the first half of 2024 at nearly 30 percent. The largest project in this segment is the self-use of Fressnapf in Nörvenich, North Rhine-Westphalia, near Düren, covering approximately 72,000 square meters. The groundbreaking for the new e-commerce logistics center, including the office building of the pet supply provider, took place in March 2024.

The second strongest sector, almost on par with retail, is the logistics and KEP service providers, which accounted for around 30 percent in the first half of 2024. Here, the positive trend continues, as approximately 40 percent of the projected new construction volume has already been realized. In this segment, the largest project of the first half of the year is also a self-use: Group7 is developing a service center with an office building covering around 65,000 square meters in Oberding, near Munich Airport.

Among the top three is also the automotive sector, which holds around 20 percent of the total volume. In 2023, the sector was able to show an increase of around 170 percent compared to 2022, making it one of the winners. The positive trend continues, as of today, the automotive segment has already fulfilled the forecast for 2024/2025 by over 50 percent in the first half of the year. The Mercedes-Benz logistics center in Bischweier, covering around 130,000 square meters, is the largest new construction project overall in the first half of the year.

Battery and electronics sector holds five percent of the new construction volume

The battery and electronics sector has already reached the forecast for 2024/2025 in the first two quarters of 2024 and currently holds a share of around five percent of the total new construction volume. “The development of new construction dynamics in the battery and electronics segment is not surprising, as the shift towards e-mobility demands additional space requirements for battery logistics. Although the further development remains exciting given the currently volatile battery market in Germany, additional space will be needed in the coming years,” says Kuno Neumeier, CEO of the Logivest Group. The new logistics center of the Chinese battery manufacturer CATL in Nohra, in the Thuringian municipality of Grammetal, is among the largest developments in this area in the first half of 2024. Neumeier looks optimistically to the future: “Based on our research data, we expect that the logistics real estate market will recover significantly by the end of 2024.”

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