Logistics market

Logistics properties in the Ruhr metropolitan area are still in high demand, merely the supply of premises regularly slows down the sales dynamics. Peak rents compared to the values at year’s end could rise again slightly across
the board. Based on the increased construction costs and higher standards for the sustainability of buildings, there are also good signs for rising rents in the future. Potentials for vital demand for premises can be recognised by new or adjusted industrial strategies (onshoring). It is based on shifting companies or a part of the production back to Germany again so as not to become dependent on semi-finished products from abroad. Nonetheless, it remains to be seen how demand in the processing industry will progress if the cyclical development starts to dampen in the second half of the year. Logistics and industrial properties (including light industrial properties) have been the asset class that was the highest in demand during the first half-year of 2022 in the investment market of the Ruhr metropolitan area. With transacted sales of 455 million euros, they pushed past office buildings to take first place. But the risen financing costs have also led to price corrections in the segment of logistics premises. The price level for the core logistics properties of Q1 can hardly be mapped in economic terms for investors anymore. In consequence, yields in Germany’s top logistics regions have added 20 to 25 base points compared to Q1/2022. The plus on prices compared to the values at the end of the year in 2021 is correspondingly lower in the first quarter of 2022 after yields compressed. The yields in the Ruhr metropolitan area in contrast mostly show stable trends, merely the core segment reports a slight increase by 10 base points on year-on-year comparison to 2021.