In terms of numbers of agreements, the market for industrial and logistics space in Hamburg and the environs gathered pace between July and September 2023. However, the result was appreciably smaller when compared with the large number of agreements for big amounts of space in the same period of 2022. The amount of space taken by owner-occupiers soared from 1 % in the 1st quarter to 27 % in the 3rd quarter. Nevertheless, this year’s third-quarter result remained likewise in the five-figure range, and year on year total take-up of space fell by 35 %. Grossmann & Berger, member of German Property Partners (GPP), calculated a cumulative figure of 260,000 m². “To date, demand has been stable and customers were seeking high-quality and new-build space. But there was a lack of new developments,” remarks Felix Krumreich, consultant for industrial and logistics real estate at Grossmann & Berger. “It must be said, however, that the current economic environment is also affecting the logistics sector. Therefore we expect the final figure for the year to be 350,000 square metres at the most.”
Industrial market Hamburg in detail:
- At 35 % the biggest size category, i.e. 10,000 m² or more, still accounted for the largest share of take-up. Whereas take-up of space in this segment dropped by 68 % year on year and the number of agreements fell from 14 to 6, it doubled for smaller premises, i.e. 5,001 to 10,000 m² of space, and take-up was one quarter higher in the 1,001 to 3,000 m² sector. Accordingly, these two size categories placed second and third with 27 % and 20 % of take-up respectively.
- “To date, of the six agreements for over 6,000 square metres in Hamburg and its environs signed by owner-occupiers, five are extensions to existing premises. The simple fact is that there is practically no land available for new developments”, reports Krumreich. The construction start for Bagela Baumaschinen in Kaltenkirchen is the only completely new building project. This manufacturer is having a 6,000-square-metre warehouse built on the Hochmoor industrial estate.
- Despite the challenging economic situation and the less promising business prospects, logistics and forwarding were the most active sector of industry with 40 % of the market, closely followed by manufacturing and industry with 38 %. Retail/wholesale accounted for only 15 % instead of 56 % in 2022, having already satisfied most of its requirements in that year.
- The sub-market Hamburg East registered the largest share of “new kids on the block” at 22 %. Partly this was due to the two biggest transactions noted in the 3rd quarter, concluded by Nagel Group and Pandora Group.
An overview of the top deals and all relevant market figures can be found in the press release for download.
The next Market survey industrial & logistics Hamburg will appear at the end of the 4th quarter 2023.