With around 770,000 square metres of new construction volume, logistics and CEP service providers will once again lead the industry ranking on the German logistics property market in 2024. However, the sector nevertheless recorded a decline of around 20 percent compared to the previous year and over 50 percent compared to 2022. Based on its own research data, the holistic logistics real estate consultant Logivest analysed which sectors were driving new construction activity totalling around 4.4 million square metres in 2024.
The retail sector saw massive growth in some cases, taking second place with a total of almost 700,000 square metres of new build space and recording an increase of over 20 percent compared to 2023. With an increase of 180 per cent, retail in the non-food sector stands out in particular. The largest project here is Fressnapf's own use of around 72,000 square metres 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.
Automotive sector declines, Defence records growth
The automotive sector is still one of the top industry drivers in 2024, although it has seen a decline of around 40 percent to just under 340,000 square metres. The new Mercedes-Benz logistics centre in Bischweier, which at around 130,000 square metres is also the largest project development in 2024, accounts for over a third of this. Even if the automotive industry is tackling fewer new construction projects, it remains - at least for the time being - one of the most important demanders of space. And so almost 350,000 square metres are again in the pipeline for 2025/26. Similarly, the Battery & Electronics segment could increase by around 150 per cent in 2024. The fact that the shift towards e-mobility is also playing a role here is also obvious in view of the major projects for CATL in Nohra.
The global political situation, on the other hand, is responsible for a new sector gaining momentum in the logistics property market in 2024. The aerospace and defence sector, which has been rather inconspicuous in recent years with just a few square metres, will enter the sector ranking with a new construction volume of over 100,000 square metres. And the pipeline is also well filled for the coming years. Around 77,000 square metres of logistics space are already planned today.
However, the retail sector has the greatest potential in 2025/26 and, with a projected area of around 1.2 million square metres, is likely to be the driver of new developments in the coming years.
