In the first nine months, the Frankfurt logistics lettings market achieved its highest take-up since the boom years of the coronavirus pandemic. Transactions in the big-box segment – those exceeding 10,000 square metres – have been the main drivers of this result. Prime and average rents continue to rise.
Large-scale enquiries are increasingly coming from e-commerce companies, automotive sector users and the pharmaceutical sector. Asian online retailers, in particular, are renting space on a short-term basis. However, the limited ability to plan ahead is dampening the willingness to commit to long-term leases. Speculative property developments are benefiting from this in particular, whilst demand for built-to-suit solutions remains subdued.
In the investment market, changing financing conditions and a limited range of products are leading to below-average results. After nine months, the transaction volume is significantly below the previous year’s level.
