Germany Warehouse and Logistics MarketView Snapshot Q4 2019
In many places a severe shortage of free existing stock and available land prevented higher take-up. The strong momentum is particularly remarkable considering the slight slowdown that German industry experienced in the past year. Driven by strong domestic demand, retail and e-commerce, had an offsetting effect.
The sentiment of German companies has meanwhile picked up again. Accordingly, the demand for warehouse and logistics space is set to remain strong.
As some decision processes often take a great deal of time, it is possible that the effect of the weaker economy in 2019 on take-up will only filter through over the course of this year.
Rents in general developed at a stable level, with rental growth in the top cities and regions as opposed to build-to-suit developments in particular for which low rents continued to be agreed due to the low yield levels.
The momentum on the warehouse and logistics market will be ongoing in 2020. A decisive factor will be whether the economy will continue its recovery, which will also keep the level of demand high. The following will then continue to apply: finding land suitable for logistics and existing free space will act as a constraint.