Munich logistics market: visible increase in demand at the start of the year, take-up above the long-term average

The Munich market for warehouse and logistics space has made a dynamic start to 2026. By the end of the first quarter, take-up of 57,000 m² had been recorded. This not only exceeded the prior-year quarter by 73%, but also exceeded the ten-year average by 14%. This is the result of the analysis by BNP Paribas Real Estate.

"It is particularly noteworthy that, despite all the geopolitical and economic uncertainties, a noticeable increase in demand for space was recorded across the market. This is currently expressed above all in the number of registered contracts, which at around 30 is one of the highest values in the last ten years. The largest deal in the first quarter was the lease of 10,000 m² by a technology company from the defence sector in Schwabing-Freimann," explains Christopher Raabe, Managing Director and Head of Logistics & Industrial at BNP Paribas Real Estate GmbH.

The rent level had already risen noticeably in the previous year. The prime rent for logistics properties rose by 7% to €11.25/m². In the light industrial segment as well as for small-scale last-mile objects, however, higher values can also be observed selectively. Meanwhile, the average rent has risen by 10% and is now just below the €10 mark at €9.90/m².

The distribution of take-up among the individual size classes paints an unusual picture at the start of the year. With the leasing of 8,000 m² of logistics space by logline express in Schweitenkirchen – in addition to the aforementioned deal in Freimann – only one other contract above 5,000 m² was recorded. As a result, more than two-thirds of take-up comes from the small-scale segment. In this respect, Munich clearly stands out from the other important German logistics locations, which is not least due to the fact that the Bavarian capital is a very technology- and innovation-oriented business location.

Accordingly, as usual, industrial/manufacturing companies will also contribute the largest share of take-up in the first quarter of 2026 at around 36%. The majority of this is generated by leases in business parks or properties close to the city centre, which are often in the small-scale segment. Logistics service providers (33%) also account for significant shares of revenue, whose leasing activities focused not only on leasing in Schweitenkirchen but also on inner-city distribution and last-mile concepts. Classic big-box logistics have only played a limited role in Munich for several years due to high land prices and the scarce supply of space, and are increasingly shifting to locations beyond the boundaries of the market area.

"The Munich logistics market has started 2026 with a lot of dynamism and there are many indications that market activity is likely to remain high in the coming months. However, the general conditions are challenging: geopolitical tensions in the Middle East, the associated volatile energy prices and continuing smouldering international trade conflicts are causing economic uncertainty. Nevertheless, the first quarter impressively underlined the resilience of the Munich market. On the one hand, the relatively broad economic basis is a guarantee that weaker demand from individual sectors, such as the automotive sector, does not directly lead to a structural problem. On the other hand, in the course of Europe's security policy realignment, it has recently become apparent that the Bavarian capital is anchored in an increasingly relevant high-tech cluster of the security and defence industry. The presence of well-known players from this segment, as well as start-ups, have already led to take-up of space and are likely to continue to support demand in the future. Meanwhile, a further increase in the rent level is emerging. The supply of modern space available at short notice is still scarce and project developments can only be realised with appropriate rent levels, not least due to the high land prices," says Bastian Hafner, Head of Logistics & Industrial Advisory at BNP Paribas Real Estate GmbH.

Link to the market report: Munich logistics real estate market Q1 2026 | BNP Paribas Real Estate