The Industrial & Logistics Market in the Stuttgart Region has been performing strongly in the first quarter of 2022. A space take-up of around 59,000 square metres exceeds last year’s result by 47 per cent. Newly built facilities accounted for a letting volume of ca. 9,100 square metres, slightly below the 10,400 square metres achieved in Q1/2021.
In their market research, E & G Real Estate have considered lettings at existing and new build property in the counties of Stuttgart, Böblingen, Esslingen, Göppingen, Ludwigsburg and Rems-Murr.
The first quarter in 2022 was dominated by a large-scale letting at County Böblingen with ca.35,000 square metres of hall space. As a result, greatest demand came from the sector Trade/E-Commerce with a space take-up of around 40,600 square metres and a share of 69 per cent in the overall letting volume. Logistics and shipping companies followed at a distance with around 5,900 square metres and 10 per cent market share. Industrial/ Manufacturing generated a space take-up of ca. 4,500 square metres (10% market share), while the service sector accounted for ca. 3,000 square metres (8% market share) in letting volume. The remaining 5,000 square metres were taken up by various other occupier groups.
Rent levels were showing some highly interesting developments. While existing hall space achieved rents between €3.90/m² and €6.90/m², rental values for newly built facilities ranged between €6.00/m² and €6.90/m². These figures clearly reflect the market dynamics in the Stuttgart Region. The pressure on all lettable space has become so high that by now comparable premium rents are being paid for existing as well as for new build products.