Absolute Record Value in the Berlin Logistics Market

With a space turnover of 709,000 m², the Berlin logistics market, driven by the Tesla deal (327,000 m²), achieves a result at mid-year that would represent a record outcome even as an annual total in almost all top logistics markets. It is encouraging that even without the Tesla Gigafactory, with a volume of 382,000 m², a new half-year benchmark has been set for Berlin as well as for the A-cities overall. This is the analysis by BNP Paribas Real Estate.

(Berlin) Contributing to this was also a strong second quarter (222,000 m²), in which a multitude of other large contracts were registered with the two deals from Lidl in Werder (32,700 m²) and in Potsdam (26,200 m²), as well as the transactions from Picnic in Ludwigsfelde (31,700 m²) and Schnellecke Logistics in Rangsdorf (30,800 m²). “In light of the very dynamic market developments with tight supply and rising construction costs, both the prime and average rents are continuing to rise, currently at €7.50 and €6.50/m² respectively,” says Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.

Industry, Trade, and Logistics Each with Record Levels

If we exclude the sales shares significantly determined by the Tesla Gigafactory, the industry, trade, and logistics sectors, the three most important pillars of the logistics market, all achieved above-average space turnovers. Thus, industrial companies totaled 366,000 m² (average: 67,000 m²), while trade companies generated 212,000 m² (average: 110,000 m²), and logistics providers also performed significantly above average with 110,000 m² (average: 56,000 m²). High demand impulses were observed from the food sector, as demonstrated by the examples of Lidl and Picnic. The size classes were significantly determined by large contracts over 20,000 m² (accounting for nearly 72%), which also set a new record with seven deals.

Supply is Tightening Even in Peripheral Locations

The Berlin logistics market concludes the first half of the year with an exceptional balance, which, in addition to the Tesla Gigafactory in the second quarter, was driven to an extraordinarily high level by a multitude of other large transactions. Despite all the euphoria, it remains to be seen how demand will develop in the second half of the year in light of economic and geopolitical uncertainties.

“On the supply side, the bottleneck in the core area has so far been compensated by attractive partial locations in the periphery. However, since only sporadically is an expansion of the space supply evident here, the overall market area is increasingly tightening. Against this backdrop, there is currently no end in sight to the rising rents,” says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Photo: © BNP Paribas Real Estate GmbH