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In demand among tenants but spurned by investors? German logistics sale prices will continue to depress as investors become more cautious about the sector — despite tenant demand remaining strong
- June 1, 2023: Vol. 17, Number 6

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In demand among tenants but spurned by investors? German logistics sale prices will continue to depress as investors become more cautious about the sector — despite tenant demand remaining strong

by Nikolai A. Mader

The German economy continues to display a healthy appetite for logistics real estate. In the first three quarters of 2022, 10 percent more space was leased compared with the same period last year. And there is no sign of a slowdown in demand to date.

The war in Ukraine and the uncertain geopolitical situation have not yet had a noticeable negative impact on take-up. Rather, based on the experience of the past two years, companies are trying to make their supply chains more resilient and are increasingly engaging in reshoring and nearshoring to reduce supply- chain risks.

Demand for space, which is driven in roughly equal parts by logistics providers, retailers and industry, cannot be met by supply in many markets. This is causing rents to continue to rise in Germany’s eight most important logistics hubs. In Munich, the prime rent rose to €8 per square metre in the third quarter, and to €7.50 per square metre in Berlin and Hamburg. By the end of the fourth quarter

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