The nationwide warehouse and logistics space market concluded the first half of the current year with a take-up of 3.3 million sq m. This result surpasses the previous year's level by 23% and is slightly above the ten-year average by 4%. The second quarter significantly contributed to this development, increasing the take-up of the first three months by nearly 16%. This market development, as analysed by BNP Paribas Real Estate, is remarkable given the backdrop of economic and geopolitical uncertainties, including the situation in Iran and the conflict surrounding the Strait of Hormuz.
Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH, highlighted the high market activity and the increased number of contract completions. Notably, more large-scale deals of 20,000 sq m and above were registered than in previous years. This segment accounted for almost half of the total take-up, reaching its second-highest volume in the last ten years, surpassed only by 2022. Logistics service providers remain the dominant demand group with a market share of 44% and are responsible for numerous large lettings. The trend of e-commerce companies, particularly from Asia and especially China, increasingly commissioning logistics service providers, continues. Online retailers such as Amazon are also expanding again at an accelerated pace.
Regional Developments and Rental Price Dynamics
The top logistics markets – Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig and Munich – together recorded a take-up of 1,018,000 sq m in the first half of the year. This represents a decrease of nearly 6% compared to the strong result of the previous year. Frankfurt achieved the highest result with 200,000 sq m (-20%), followed by Hamburg (190,000 sq m; -14%) and Berlin (189,000 sq m; -10%). Düsseldorf showed a slight decrease of 3% with 161,000 sq m. Cologne, however, recorded the highest increase with 134,000 sq m (+58%), and Munich grew by almost 42% to 85,000 sq m of take-up. In Leipzig, demand was more moderate at 59,000 sq m (-32%). The polycentric Ruhr area showed high market dynamics and concluded the first half of the year with 280,000 sq m (+39%). Outside the established logistics hubs, take-up totalled 2.3 million sq m, representing a significant increase of 42% year-on-year and exceeding the ten-year average by 12%.
Considering the nationwide take-up by industry segment, there was a quantitative increase in all three main areas. Logistics service providers led with a market share of almost 44%. Manufacturing companies secured space amounting to over 1 million sq m (30%), which is an above-average figure. Retail companies took third place with 19% of the take-up. Although they transacted more space than in the weak previous year, they remained below their long-term average. This reflects the trend that e-commerce companies are increasingly covering their space requirements through logistics service providers.
Prime rents in the respective markets remained largely stable at mid-year. Compared to the previous year, an increase was observed in almost all locations. Munich achieved the highest rent for prime properties in excellent locations with 11.25 €/sq m (+7% compared to H1 2025). Frankfurt and Hamburg followed with 8.80 €/sq m each (+7% and +4% respectively), Düsseldorf with 8.70 €/sq m (+2%). Berlin (8.30 €/sq m; +1%) and Cologne (8.20 €/sq m; +6%) also exceeded the 8-euro mark, as did the Ruhr area with 8.00 €/sq m (+1%). Leipzig showed a price level of 5.70 €/sq m. On average, prime rents in the top markets increased by a good 4% year-on-year to approximately 8.50 €/sq m, while average rents saw an increase of 5% to 7.20 €/sq m.
Outlook and Challenges
Despite moderate economic growth and geopolitical uncertainties – particularly the ongoing situation in Iran and around the Strait of Hormuz, as well as US customs policy – the warehouse and logistics space market achieved a take-up significantly higher than in previous years and was able to increase further in the second quarter. These factors, along with rising energy prices and a new interest rate level, continue to influence international trade flows and supply chains. The German federal government's planned reform package is expected to provide impetus for higher economic growth in Germany.
The existing trends on the demand side of the German logistics letting market are likely to continue throughout the rest of the year. Companies are stabilising supply chains and increasing local inventories to be able to react flexibly to changing conditions. While the automotive sector is undergoing its transformation process, initial deals in the defence sector have already been registered. However, demand for extensive space will primarily be driven by e-commerce companies via logistics service providers. In certain top markets, short-term space availability, particularly in the large-scale segment, could become a more prominent focus again.
