The German logistics real estate market is developing steadily in terms of new construction volumes in the first half of 2022 – this was the conclusion of the consulting company Logivest after assessing its own research data. With a volume of almost 2.6 million square meters, new investments in the first half of 2022 are in the range of the average for the last five years. The data is always based on the start time of construction.
Dresden / Chemnitz in the top 3
The analysis shows that the Dresden / Chemnitz logistics region with around 190,000 square meters of new building space is the clear winner in the first half of 2022. Named the 24th best logistics region last year by the Fraunhofer IIS Supply Chain Services Working Group, the region is already among the top three in surveys by Logivest, a real estate and logistics consultancy specialist. According to Logivest, the basis for this placement is a large-scale investment in Hainichen and a new VW logistics hall in Meerane, where the car manufacturer wants to combine components of the MEB mobile electric construction kit.
“After Leipzig and Magdeburg, Dresden is now showing the importance of the GDR regions for the logistics market. The location in the center of Europe, perfect connections and good availability of space at moderate prices also increase the attractiveness of these areas for international companies – says Kuno Neumeier, CEO of Logivest Group.
Duisburg / Lower Rhine in front of the Bay of Cologne
The leading logistics regions of Duisburg / Lower Rhine and the Bay of Cologne are in the lead in the first half of 2022 with around 360,000 and 197,000 square meters of new building space respectively. According to Logivest, the largest project development in the first half of the year also takes place in the Duisburg / Lower Rhine region. At the Rhein-Lippe port in Wesel, Beos Logistics is building an approximately 85,000 square meter logistics center for logistics provider Rhenus.
According to Logivest, very positive changes are also taking place in Koblenz (approximately 115,000 square meters) and Würzburg / Schweinfurt (approximately 150,000 square meters). Both regions experienced several large-scale projects in 2022. Dietz AG builds a 55,000 square meter logistics property for Wacker Neuson in Mühlheim-Kärlich, northwest of Koblenz, and in Burgbrohl, also northwest of Rhineland-Palatinate, is building a 25,000 square meter hall for a beverage producer .
In the Schweinfurt / Würzburg region, a 76,000 square meter logistics center is being built for S.Oliver, and the cornerstone for a 37,000 square meter property for Norma is laid in Gerolzhofen.
Reluctance in stabilized markets
Unlike emerging regions, according to Logest, some restraint is already noticeable in established markets such as Hamburg, Munich and Stuttgart. The first projects have been postponed until next year, and we are hesitating, if at all, when it comes to our new plans for the second half of the year.
“The demand for logistics space is consistently high – buffer warehouses, new production facilities – the industry is driven by the global situation. In addition, e-commerce and e-mobility require a huge amount of space. On the other hand, there is a shortage of building materials and there is increasing uncertainty in the energy supply, says Kuno Neumeier, CEO of Logivest Group.
According to the forecast, stagnation or slight decrease
Therefore, in the second half of the year, the logistics real estate expert forecasts a stagnation or even a slight decrease in the number of new constructions compared to the previous year, totaling approximately 5.4 million sq m. new building space. “Difficult to calculate construction costs and global uncertainty will also affect the logistics real estate market.”
However, according to Logivest, there are also positive developments, such as the emergence of new production facilities and the initial trend towards nearshoring. In Sülzetal near Magdeburg, chip maker Intel is expected to build a factory with 10,000 jobs by 2023. And in July 2022, the VW Group will launch the “Mission SalzGig”. According to Logivest, this is behind the construction of a global battery center with the group’s first cell factory at the Salzgitter plant.