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Demand is picking up for logistics warehouses
Germany’s logistics real estate market is showing early signs of a rebound—though the surface calm conceals mounting structural strain. Take-up volumes remain below historical averages, but demand is picking up in key urban centres. Vacancy rates, while inching upward, are doing so from a historically low base, and prime rents are still rising in several core markets.
According to BNP Paribas Real Estate, take-up in Germany’s Top 7 logistics markets reached 1.3 million sqm in the first half of 2025—still subdued, but a clear improvement over H2 2024. In Berlin, Munich and Düsseldorf, take-up volumes rose by 12%, 10%, and 9% respectively. Prime rents in Munich are now at €9.50/sqm, with Berlin and Frankfurt both above €8.50/sqm, underscoring persistent competition for high-quality space.
International capital is also making a cautious return. JLL reports a growing share of foreign investors re-entering the market, drawn by long leases, ESG-compliant stock, and the potential for inflation-indexed rental uplifts. “Logistics real estate continues to be one of the few asset classes where yield stability is grounded in real operational need,” said Diana Schumann of JLL. Fund managers like Real I.S. have responded by stepping up mandates and refocusing on logistics repositioning strategies. The company’s recent launch of a dedicated logistics fund targeting core-plus and value-add properties in secondary locations reflects investor appetite for assets that combine rental upside with decarbonisation potential.
Land bottlenecks and brownfield conundrums
Structural land scarcity remains the sector’s greatest constraint. According to Garbe Industrial Real Estate, land reserves for logistics in North Rhine-Westphalia will run dry by 2042—and in the state’s core industrial and consumption hubs, by 2037. “In regions with high proximity to production or consumption, we’re already running out of plots,” warns Tobias Kassner of Garbe in a hard-hitting piece in the Immobilien Zeitung. He calls for a dual-track approach: targeted rezoning in high-demand corridors and a broad-based strategy to unlock brownfield land. But brownfields are often fraught with hurdles—contamination, ownership fragmentation, and planning bureaucracy.
Logivest is even more blunt: “In many metro regions, greenfields are gone. Brownfields are all that’s left.” The firm highlights disused industrial estates, derelict rail sites and dormant logistics parks as viable but administratively snarled alternatives. Kuno Neumeier, CEO of Logivest, argues that a shift in mindset is overdue: “We need to stop treating logistics as a nuisance. Without space, we choke off the supply chains our cities depend on.”
Björn Holzwarth of E&G Real Estate in Stuttgart also sees opportunity in the brownfield dilemma: “The reactivation of former logistics and industrial sites is complex, yes—but with digital planning tools and cross-stakeholder coordination, we can compress timelines and reduce risk." Holzwarth said the investment market saw solid demand for core properties in the first half of the year, and more capital is being raised in the core segment. Purchase prices remained stable in the top seven locations, with prime yields around 4.50%.
"Buyers are interested in this asset class. Their focus is currently on higher-yielding properties," said Holzwarth. "In the first half of the year, properties with development potential were repeatedly sold. Developers and owner-occupiers were often on the buyer side. In land purchases, developers have been increasingly forming joint ventures with end investors."
Solar potential meets grid paralysis
The potential for rooftop solar integration across logistics assets is enormous, yet largely underutilised. Garbe estimates that Germany has more than 362 million sqm of logistics and commercial rooftop space suitable for photovoltaics, with less than 10% currently in active use. If 80% were harnessed, the country could generate 29 GW of clean power—roughly equivalent to the output of 36 nuclear reactors.
Moritz Wickert of Garbe Renewable Energy identifies multiple hurdles: “Roof statics, tenant negotiations, and bureaucratic inertia make PV rollouts slow and costly.” But the most immediate constraint is the electricity grid. Inka Klinger of Hamburg Commercial Bank warns: “Nearly half of eligible rooftop space remains unused because the local grids simply can’t absorb the electricity.”
Unless municipalities accelerate rezoning, brownfield sites are systematically reactivated, and grid infrastructure is modernised, Germany’s logistics sector risks shifting from competitive advantage to structural bottleneck. The building blocks are actually in place: international capital, recovering demand, and underutilised rooftops. What's lacking is coordination, speed and political resolve.