Totalling a mere 180,000 m² of take-up at the end of three quarters, the market for industrial and logistics space in the Hamburg region sank to an all-time low. Volumes fell some 31 % below what was already a weak result in the prior year. At no point so far this year has there been an agreement for a large amount of space. The third quarter likewise closed with neither lease agreement nor construction start for an owner-occupier for more than 10,000 square metres of space. “In the case of small to mid-sized properties take-up is stable and on a par with previous years. Potential clients for large properties remain very hesitant to commit due to the uncertain economic situation. In addition, there is a shortage of modern premises which can meet today’s more stringent demands“, remarks Nico Beckmann, consultant for industrial and logistics properties at Grossmann & Berger Immobilien, a member of German Property Partners (GPP). Rents are largely unchanged from the previous quarter. “The steep rental increases of recent years have now come to an end because demand has fallen. Unless the letting market picks up steam again, one cannot rule out a decline in prime rents,” concludes Beckmann.
The Market survey industrial and logistics property in Hamburg 2024/Q1-3 will soon be available to download from our website.
