BEOS / Photographer Jens Kuesters
Air Tech Campus in Oberpfaffenhofen, a BEOS project
Germany’s corporate real estate sector—known locally as Unternehmensimmobilien—continues to show surprising resilience amid broader market weakness. While investment volumes slumped to a historic low in 2024, occupier demand held steady, yields stabilised, and development activity accelerated sharply.
Typically sitting between logistics, light industrial and office, Unternehmensimmobilien refers to a diverse mix of multi-use assets including business parks, light manufacturing facilities, urban logistics units and converted industrial sites. These properties often house small and mid-sized enterprises (SMEs) and are characterised by flexible layouts, decentralised locations and a heterogeneous tenant base. Long overlooked by institutional capital, they are now increasingly tracked and benchmarked, thanks in part to the work of the Initiative Unternehmensimmobilien and its data partner bulwiengesa.
Total space take-up for the year reached 2.7 million sqm, matching the previous year’s level. This was achieved despite a marked slowdown in the second half, when occupier activity tapered off alongside capital market caution. Light manufacturing properties remained the most sought-after category, although take-up fell sharply by 58.8% to 428,500 sqm. Owner-occupiers continued to drive this segment, particularly in southern Germany.
On the investment side, the picture was stark. The volume of transactions across the entire Unternehmensimmobiliensector fell to just €1.19 billion—a decline of 34% year-on-year, and the lowest figure recorded since bulwiengesa began systematic tracking. The second half of the year delivered only €457.7 million in deals, one of the weakest six-month periods on record. Activity was narrowly focused: business parks accounted for €256 million, or 55% of the half-year total, confirming their status as the most frequently traded property type in 2024.
Investor hesitation amid foreign re-entry
Yet there are early signs of international repositioning. Buyers from other European countries were noticeably more active, accounting for 48% of all investment volume. “After the price corrections of the past 18 months, international investors are increasingly taking advantage of the more favourable entry conditions to gain a foothold in the German real estate market,” said Felix Werner, Team Leader for Logistics Properties at bulwiengesa.
Yields across the segment have now stabilised. Initial gross yields for industrial parks held at between 5.20% and 6.30%, while light manufacturing assets ranged from 6.00% to 7.10%. Rental levels also showed resilience. Most segments remained flat, although flex spaces posted isolated increases. For investors comfortable with more hands-on management, the spread above prime logistics or office yields is becoming harder to ignore.
The development side of the market has picked up markedly. In the second half of 2024, completions totalled 1.3 million sqm—a 41.6% increase over the previous half-year. A new high of over 2.4 million sqm is forecast for 2025. These are not speculative spikes; the figures point to confidence among developers that demand fundamentals are solid. The project pipeline also suggests longer-term stability, with forward planning geared toward multi-tenant flexibility and operational resilience.
Still, liquidity remains tight, and the capital waiting in the wings has yet to fully re-engage. For institutional investors, this creates both an opportunity and a dilemma. The market has now priced in the correction, with yields reflective of risk and repositioning potential. What remains in question is timing—whether to wait for broader macro stabilisation or move early into a segment that is clearly decoupling from the struggles of traditional logistics and office assets.
Increased data transparency puts niche in focus
In REFIRE's opinion, the Unternehmensimmobilien category is gradually emerging from the shadows cast by the more mainstream logistics sector. The Initiative Unternehmensimmobilien, which currently comprises ten major players - Alpha Industrial Developers, Adolf Weber, Aurelis, Aventos, BEOS, Frasers Property, Investa, Siemens Real Estate, Stonevest and Stoneweg - continues to push for market transparency and professionalisation. In collaboration with bulwiengesa, the group’s biannual data now provides rare clarity in an otherwise opaque segment.
These properties may lack the scale or standardisation of core logistics assets, but they offer diversified income streams, urban accessibility, and operational versatility—features increasingly valued in a market where reliability is at a premium.
As development volumes rise and yield spreads persist, investors looking for stable, inflation-resistant income streams may find that the corporate real estate sector offers more than just defensive characteristics. With demand intact and capital slow to return, timing may now be the more decisive risk variable.