The market for lettings in the industrial and logistics segment has seen further growth in S1-2022. With 152,000 m² of newly let hall space, the very good result of the previous year was once again exceeded by 19.7 %. The main drivers of this momentum were three major leases in Bondorf (County Böblingen), Bietigheim-Bissingen (County Ludwigsburg) and Wernau (County Esslingen), with a combined volume of 67,500 m². This corresponds to approx. 45% of the total take-up in the first half of 2022.
Around 109,000 m² or 72 % of the overall result concerned existing space. A positive trend is that around 43,200 m² were successfully let in the new-build segment. This corresponds to almost double the volume compared to the entire previous year. With the exception of one project in County Göppingen, all of these were brownfield developments.
At the same time, there is still a striking shortage of available rental space in the entire Stuttgart Region. Especially in County Ludwigsburg, the lack of supply resulted in declining rental transactions.
"The constant demand surplus in the Stuttgart Region also creates a certain market risk. This means that neither short- nor medium-term demand in the industrial and logistics segment can be met," states Alexander Fink, Consultant for Industrial & Logistics at E & G Real Estate.
Almost the entire rental volume in S1-2022 was generated by E-Commerce/ Retail (approx. 48 % market share), Transport/ Logistics (approx. 25 %) as well as by Industrial/ Production (approx. 20 %). The rental price for existing space ranged between € 3.90/m² and € 6.90/m². This corresponds to an average rent of approx. € 5.60 and again confirms the steady upward trend in recent years (2021 total: €5.50/m²).
For new-build, rents of € 6.80/m² to € 7.10/m² were achieved. As a result, the average rent remained at € 7.00/m². In view of the scarce supply of new-build hall space, premium rents are likely to rise further in the second half of the year.
Alexander Fink also confirms the continuing upward trend for Industrial and Logistics rents:
"For the upcoming rentals of a newly completed building in Altbach and a project development in Ebersbach, we expect a new peak rent of between € 7.25/m² and € 7.50/m²."