In the first half of 2024 only a low level of activity was observed on the market for industrial and logistics space in Hamburg and its environs. At 135,000 m², take-up of space fell some 21 % below the prior year’s result. “Demand has slowed appreciably in response to uncertainty about how the economy will develop. Business was also held back by the ongoing shortage of modern facilities,” comments Felix Krumreich, consultant for industrial and logistics real estate at Grossmann & Berger, member of German Property Partners (GPP). Year on year the overall number of new agreements dropped by only 9 %. However, almost half of the properties taken were between 3,000 and 10,000 m² in size. No large-volume agreements were noted. “In the first six months of this year we registered neither rental agreements nor construction starts for owner-occupiers in excess of 10,000 square metres,” says Krumreich. As was to be expected, logistics enterprises dominated take-up in the Hamburg region. This sector accounted for four of the five largest agreements and more than half of the take-up of rental space. Despite the decline in take-up, rents rose year on year: the premium rent grew by some 5 % to €8.40/m² and average rents increased by close to 7 % to €6.40/m². “We expect to see rents stabilize at their high levels during the second half year. However, we cannot completely rule out very modest growth,” forecasts Krumreich.
The Market survey industrial and logistics property in Hamburg 2024/Q1-2 will soon be available to download from our website.
