LIP Invest, the leading provider of special logistics real estate funds in Germany, publishes the latest edition of its quarterly market report “LIP UP TO DATE – Logistics Real Estate Germany”. The report analyses the developments in the German logistics real estate market, from investment volume, take-up and new construction activity to yield development and geopolitical influences on the logistics industry.
Refinancing of logistics real estate
The market environment remains characterised by geopolitical tensions, rising financing costs and a high need for refinancing in the real estate industry. Regardless of other asset classes, logistics properties are comparatively well positioned for upcoming negotiations in the current environment. “Existing properties generally benefit from increased distribution income and a positive market value development. Although performance losses cannot be ruled out in the course of follow-up financing at the current interest rate level, the structurally high cash flows continue to ensure the ability to service capital at a reliable level,” says Sebastian Betz, Managing Partner of LIP Invest.
1.1 billion euros investment volume at the start of the year
The German investment market for logistics real estate got off to a solid start in 2026. The high number of small and medium-sized individual transactions is particularly striking, but there were also the first larger portfolio deals. Among other things, a logistics portfolio with a total of 139,000 square meters in Dortmund, Worms, Bönen and Herne changed hands for around 160 million euros. At the same time, the pressure on yields has recently increased significantly: the 10-year SWAP rose by around 50 basis points between the end of February and the end of March alone. “If the 10-year SWAP consolidates at the level of 3.0 to 3.2 percent in the second quarter, we expect yields to rise,” Betz said.
Rental market with a strong start to the year
With around 1.4 million square metres of take-up, the German logistics leasing market recorded a significantly stronger start to the year than in the previous year. This was driven by numerous contracts and a noticeable upturn in large-scale leases. Among other things, Marq Logistics has leased a total of 100,000 square meters in Philippsburg near Karlsruhe, 90,000 square meters of which to the logistics service provider Maersk.
New construction activity remains at a low level with around 600,000 square metres of newly built space. At the same time, larger project developments are being launched again. For example, Arrow Capital Partners is developing around 86,000 square meters of new logistics space in Rheinberg. An online retailer for garden furniture has already been confirmed as a tenant. The automotive industry also continues to generate demand: In Barsinghausen, around 40,000 square meters of hall space are being built for BMW’s spare parts logistics.
Strait of Hormuz: Challenge for global supply chains
Another key topic of the report is the impact of geopolitical conflicts on logistics. Since the escalation in Iran and the restrictions around the Strait of Hormuz, energy, transport and insurance costs have risen noticeably. At the same time, transport times are longer due to alternative routes and reduced capacities. Many companies are responding to this with higher safety stocks, more regional supply chains and greater use of real-time data.
Download the market report free of charge
The complete market report “LIP UP TO DATE – Logistics Real Estate Germany” with all figures, graphics and assessments is available for download free of charge at: https://www.lip-invest.com/downloads/
