Market Report Industrial & Logistics Space Berlin 2024

Decline in take-up on Berlin's industrial and logistics space market - despite high demand.

Market Report Industrial & Logistics Space Berlin: 1st Half Year 2024

Despite high demand: decline in take-up on Berlin's industrial and logistics space market

In the first half of 2024, take-up on the Berlin market for industrial and logistics space amounted to 116,000 m². The result is below that of the same period last year (151,000 m²). Overall, 90 % of take-up was below 10,000 m². In 2023, only 56 % was below this threshold. Large deals of over 15,000 m², which still accounted for 41 % of take-up in 2023, did not take place in the first half of the year. The largest deal in the first quarter of 2024 was a letting of around 11,800 m² in Lichtenberg, while the largest deal in the second quarter was a letting of around 7,800 m² in Reinickendorf brokered by Engel & Völkers Commercial. Overall, the districts of Lichtenberg, Reinickendorf and Treptow-Köpenick recorded the highest take-up.

Berlin
- Marktreport Industrie- & Logistikflächen Berlin: 1. Halbjahr 2024 – Kennzahlen

High demand in the urban area

As hardly any new builds were completed, contracts concluded in this segment only account for around 27% (24,000 m²) of total take-up. However, thanks to the improving economic conditions, activity in new construction is expected to increase again in 2025. Demand is concentrated in the Berlin city area. 73 % of take-up took place there. This is due to the increased demand for smaller spaces and the opportunity to offer employees an attractive location in view of the shortage of skilled workers. However, availability in these areas is limited, which is leading to an increase in the revitalization of properties.

No rent increases

Despite the limited supply, there have been no rent increases to date. The average rent remains at EUR 7.20/m², the prime rent at EUR 8.20/m². Take-up of space in Berlin is expected to be below average in 2024 as a whole. It is foreseeable that there will also be no significant number of large lettings in the second half of the year.