Logivest identifies driver sectors for the first half of 2024 / Retail, logistics and CEP service providers as well as the automotive sector are at the top of the new construction momentum sector ranking
For the first two quarters of 2024, the holistic logistics real estate consultant Logivest has analysed which sectors are driving new construction activity, which increased slightly in the first half of the year with around 2.3 million square metres of logistics hall space.
The leader here is the retail segment with around 31 per cent, closely followed by the logistics and CEP service provider sector, which is only one percentage point behind with around 30 per cent. The automotive sector is in third place with around 20 per cent, according to an analysis of Logivest's own research data.
As recently as last year 2023, the retail sector recorded a significant decline in new-build space. The retail sector is now recovering and, with a 31 per cent share of the total volume, is currently leading the way in new-build developments. Thanks to a well-filled pipeline, there were already signs at the start of 2024 that the retail sector would see a return to growth in new-build developments. The forecast for 2024 / 2025 - published in the logistics property seismograph at the beginning of the year - was already reached by almost 30 per cent in the first half of 2024. At around 72,000 square metres, the largest project in this segment is Fressnapf's own use in Nörvenich near Düren in North Rhine-Westphalia. The ground-breaking ceremony for the pet supplies retailer's new e-commerce logistics centre and office building took place in March 2024.
Logistics and CEP service providers were the second strongest sector in the first half of 2024, almost on a par with the retail sector at around 30 per cent. The positive trend is also continuing here, as around 40 per cent of the forecast volume of new construction has already been realised. In this segment, the largest project in the first half of the year is also for own use: Group7 is developing a 65,000 square metre service centre with an office building in Oberding near Munich Airport.
The automotive sector is also among the top three, accounting for around 20 per cent of the total volume. In 2023, the sector recorded an increase of around 170 per cent compared to 2022, making it one of the winners. The positive trend is continuing, as the automotive segment has already fulfilled over 50 per cent of the forecast for 2024/2025 in the first half of the year. The Mercedes-Benz logistics centre in Bischweier, which covers around 130,000 square metres, is the largest new construction project overall in the first half of the year.
The battery and electronics industry has already achieved the forecast for 2024/2025 in the first two quarters of 2024 and currently accounts for around five per cent of the total new construction volume.
‘The development of new construction momentum in the battery and electronics segment is hardly surprising, as the shift towards e-mobility requires additional space for battery logistics. Even if further development remains exciting in view of the currently volatile battery market in Germany, additional space will be required in the coming years,’ says Kuno Neumeier, CEO of the Logivest Group. The new logistics centre of the Chinese battery manufacturer CATL in Nohra in the Thuringian municipality of Grammetal is one of the largest developments in this area in the first half of 2024.
Neumeier is optimistic about the future: ‘Based on our research data, we expect the logistics property market to recover significantly by the end of 2024.’
