BNP Paribas Real Estate publishes logistics market figures for the fourth quarter of 2022 - Low take-up despite high number of deals on the Munich logistics market

Munich, 30 January 2023 - Even though the Munich logistics market achieved a weaker result than in the previous year (-35%) with a total take-up of 226,000 m² in 2022 and thus also a below-average volume (-19%) compared to the long-term average, the overall annual balance must be viewed in a differentiated manner: The Bavarian capital even outperformed Berlin in terms of the number of deals included, where an exceptional result was achieved in the past 12 months thanks to very large-volume deals (around 1.0 million m²). This is the result of an analysis by BNP Paribas Real Estate.

"There was very lively market activity, but this only led to a relatively moderate take-up of space due to the very small average size of around 2,500 m² per deal. The majority of registered lettings were in the existing property segment, which accounted for a good 83% of take-up," says Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH. Rents have risen noticeably over the course of the year, with Munich being the first market to reach the €9.00/m² mark for prime rents and €7.00/m² for average rents.

Space up to 5,000 m² dominates, production in the lead

The traditionally very small-scale nature of the market, which is exacerbated not least by the supply bottleneck for large-scale vacancies and speculative new-build projects, is once again reflected in the size class distribution of take-up: at just under 60 % of the overall result, letting activity is predominantly in the small segments up to 5,000 m².

It is pleasing to note that, despite the more subdued fourth quarter (36,000 m²), two of the largest lettings took place at the end of the year due to the gloomy economic outlook: In addition to Rhenus Archiv Services in Karlsfeld, Proton Motor Fuel Cell also rented almost 10,000 m² in Fürstenfeldbruck. In terms of sectors, industry was clearly in the lead in 2022, accounting for 54% of take-up.

Prospects

"Letting activity on the Munich logistics market can be viewed from different angles: While smaller spaces have been re-let and new occupiers have been found for existing properties, the situation is much more difficult in the 10,000 m² and above segments, where the new-build sector often helps out in other logistics regions. Against this backdrop, the continuing tight supply situation and economic uncertainties remain limiting factors in the overall very good demand momentum. One of the consequences of this development is that users who would tend to relocate or expand under other circumstances are increasingly opting to extend their contracts for their existing properties. It can also be observed that rents of over €10/m² are being agreed for prime properties. These outlined conditions are likely to continue in 2023 and ensure further upward trends in prime and average rents," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Press contact:
Chantal Schaum - Tel: +49 (0)69-298 99-948, Mobile: +49 (0)174-903 85 77, chantal.schaum@bnpparibas.com
Viktoria Gomolka - Tel: +49 (0)69-298 99-946, Mobile: +49 (0)173-968 60 86, viktoria.gomolka@bnpparibas.com
Melanie Engel - Tel: +49 (0)40-348 48-443, Mobile: +49 (0)151-117 615 50, melanie.engel@bnpparibas.com

About BNP Paribas Real Estate

BNP Paribas Real Estate is a leading international property services provider that offers its clients comprehensive services in all phases of the property cycle: Transaction, Consulting, Valuation, Property Management, Investment Management and Property Development. With 4,500 employees, the company supports owners, tenants, investors and the public sector in their projects thanks to local expertise in 30 countries (own locations and alliance partners) in Europe, the Middle East and Asia. BNP Paribas Real Estate is part of the BNP Paribas Group, a leading global financial services provider.

Further information: www.realestate.bnpparibas.com/

About BNP Paribas in Germany

BNP Paribas is a leading European bank with an international reach. The BNP Paribas Group has been active in Germany since 1947 and has successfully positioned itself in the market with 12 business units. Private, corporate and institutional clients are served by around 6,000 employees nationwide in all relevant economic regions. www.bnpparibas.de