Rising rental prices for warehouse real estate: a market overview of Germany and the world
Consulting company Realogis conducted an analysis of the warehouse segment in Germany. Experts have studied the cost of facilities and market dynamics as a whole in 32 cities. According to their report, the increase in rental prices for warehouses was 25%.
Leadership in the number of rates is in Berlin, where the cost per square meter of logistics real estate is 7.5 euros. Hamburg is in second place with 7,2 euros per square meter. Next comes Stuttgart and Munich, the price per square meter here varies in the range of 6.5 euros. Also, high rates for storage facilities are observed in Nuremberg and Ingolstadt.
As for the eastern part of Germany, the highest prices in the segment are in Dresden, where the square meter costs 6 euros. About 5 euros per square meter of storage space will cost in Leipzig, and in Zwickau, the average rate is 4.5 euros.
The cheapest way to rent such real estate in Germany is in Erfurt, Halle, and Göttinga. Here the rates do not exceed 3.9 euros per square meter.
On average for the year, the rental of warehouse facilities in the country increased by 6.1%, but the market in Germany remains one of the lowest. At the same time, a record increase in rates was observed in Regensburg – by 25%. If to rent a warehouse here cost 4.8 euros per square meter a year ago, the monthly payment is already 6 euros per square meter now.
A significant increase was recorded in Dingolfing – 19,6%, the cost per square meter rose from 4.8 euro to 6 euro.
It should be noted that the increase in demand for logistics real estate is a global trend triggered by the pandemic. During the global lockdown, the demand for warehouses increased sharply, as businesses mostly moved online. As a result, investment in the market has increased significantly, and the trend will continue.
Analysts single out Italy as one of the most promising markets, and the United States continues to actively develop in this direction. As for prices, they are growing not only in these countries, and experts do not predict a slowdown so far.
One of the reasons for the increase in rates is the limited supply, which is inherent in most major markets. Over the past year, warehouse leasing in the U.S. increased by 10%, while in Europe the average increase was 8%. At the same time, the vacancy rate in the global logistics sector is only 4%. Compounding this situation is the fact that there is a lack of available land for the construction of new logistics facilities.
If we consider the global real estate market, last year was a record for it in terms of volume of investment. Investments in the segment increased by 54%, and activity is not declining.