BERLIN and MUNICH, October 5, 2017 /PRNewswire/ --
City Logistics between Aspiration and Reality
- Sustained boom: completions volume increased by 12 percent
- Investments up 18 percent, nearly 80 percent thereof by international investors
- Ranking: Munich and Berlin take place of top-performer Hamburg
- City logistics real estate: last mile issues remain unresolved
The German logistics industry is booming like never before. Demand for logistics real estate keeps rising, with building activity and investments predicted to reach peak levels in the ongoing year of 2017. At this point, the investment total already exceeds the year-end figure of banner year 2016.
Since 2012, the logistics real estate sector has been growing at an annual rate of 5.2 percent. With well over 5.1 million square metres about to come on-stream this year, logistics completions would actually exceed the year-end record total of 2016 by 12 percent.
The expanding e-commerce sector requires logistics operators to shorten the geographic distance to the end-customer. City logistics will therefore require new approaches to address the need for smaller innovative properties.
The demand for investment opportunities in Germany remains as high as ever. By the survey key date (31 July 2017), the investment volume was already up to 99 percent of the investment total of banner year 2016.
Hamburg lost its spot as top-performer in last year's ranking of regions to Munich (first place) and Berlin (second place) and dropped to third place.
About the Survey:
"Logistics and Real Estate" is an independent survey that comprehensively captures the asset class of logistics real estate. The analytics firm bulwiengesa studied the relevant market movements during the years 2011 through 2017.
Study available at: http://www.logistik-und-immobilien.de
Dr. Tilman Pradt