A remarkable development is emerging in the industrial and logistics market in the greater Düsseldorf area. After the first nine months of the year, the region recorded a historic record result in space take-up. Current market activity thus exceeds even the exceptionally high levels recorded during the coronavirus pandemic years.
Primarily responsible for this significant upturn is the large-scale logistics property segment. Demand for corresponding sites has picked up noticeably. Asian occupiers in particular have acted as key drivers, with their space requirements significantly shaping market volume in recent months.
Diverging trends across space segments and supply shortages
While traditional large-scale logistics benefits from strong momentum, the situation in other subsegments appears more subdued. In the light industrial segment, a noticeable decline in interest was recorded over the same period. The market is thus divided into two speeds, with the focus clearly on large-format units.
On the supply side, new development activity in the Düsseldorf region currently remains low. As this tight supply meets significantly increased demand, pre-letting rates in the few available new-build projects are rising considerably. Market observers expect that this imbalance is likely to encourage a further increase in prime rents in the region.
New occupier groups and positive response in the investment market
Activity is further supplemented by enquiries from non-traditional sectors providing additional demand impetus. In particular, companies from the leisure sector, including specialised padel operators, are specifically seeking warehouse space, thereby broadening the tenant spectrum in the Düsseldorf market area.
- —High space take-up exceeds previous pandemic levels
- —Asian occupiers drive demand for large-scale space
- —High pre-letting rates amid scarce new development activity
- —Additional demand for space from the leisure sector
The pronounced momentum in the letting market has a direct impact on transaction activity. After nine months, the Düsseldorf logistics investment market achieved an above-average result, as the interplay of strong tenant demand and rising rental potential remains attractive to institutional investors.
