The Munich industrial and logistics real estate market achieved take-up of 236,100 square metres in 2025, an increase of 20 per cent compared to the previous year. The five-year average was only 2 percent below the five-year average. In 2025, there were also no market-relevant owner-occupier settlements in the course of the year.
Christian Kah, Head of Industrial & Logistics Germany at Colliers: “The second half of the year was much more dynamic and largely responsible for the positive result on the Munich market. Around 76 per cent of total take-up took place in the second half of the year. While large-scale deals were rarely the case in Munich in the past, several large-scale leases took place in 2025, which contributed to the strong result. However, these are mainly long-term planned built-to-suite projects, such as the leases of REPA Deutschland in Unterschleissheim and TTI in Maisach. Despite isolated vacancies in the region, the vacancy rate remains very low at 1.9 percent and the market remains very tight. There is a shortage of large new construction areas in the region in particular.”
Users’ focus on small-scale rentals
While large-volume deals made a significant contribution to total take-up, the focus of users was on the small-scale space segment up to 3,000 square metres, typical for the Munich market. Around two-thirds of all lettings took place in this area, but were responsible for only 23 percent of take-up. Most of the deals took place in the northern surrounding area, historically the strongest sub-market. This also applies to the most market-shaping rentals. The largest deal took place in Maisach, where the trading company TTI rented around 29,700 square meters of logistics space to expand its existing location. The largest lease in the fourth quarter took place in Erding. There, a logistics service provider rented around 17,000 square meters in a logistics hall under construction. Kah adds: “Due to the ongoing shortage of land and a very limited new construction pipeline, 85 percent of the leases took place in existing space. Leases in new buildings are mainly found in the Munich area, where there is still a few new construction potentials. The pipeline is extremely tight for 2026 – no new logistics space is currently being planned in Munich and the surrounding area, so the vacancy rate will remain low in 2026.” The strongest user group was formed by companies from the manufacturing industry with a share of 31 percent of take-up, followed by logistics service providers with 28 percent and retail companies with 21 percent.
Average rent grows faster than prime rent
The prime rent in the Munich logistics region for logistics space over 3,000 square metres has risen by 5 per cent compared to the previous year and currently stands at 10.30 euros/square metre. At 7 percent (9.50 euros/square metre), the average rent even showed slightly higher rent growth compared to the previous year. The economic situation, which has been weakened since 2023, has had an impact on light industrial rents in Munich. As a result, the prime rent in the segment fell slightly by 3 percent to 15.40 euros/square metre, while the average rent remained constant at 11.80 euros/square metre. Compared to the previous quarter, light industrial rents remained stable. “For 2026, we expect stable demand, especially from food logistics companies and CEP service providers, but also from the research and development sector, which benefits greatly from the high availability of skilled workers in the region. As a result, Munich is increasingly becoming an interesting location for defense companies with an R&D focus. In addition, the weakening of the combustion engine phase-out could lead to slightly positive impulses in the automotive sector. The extended transition periods will give companies time to react better to structural change, adapt their production processes and strategically plan investments. Overall, we expect positive effects for the Munich logistics market and stable take-up in 2026,” Kah concluded.
