According to Realogis, a real estate, consulting company, the Hamburg logistics market experienced a 9% increase, as all market participants amounted to 490.000 sqm, during year 2018, in comparison to 2017. This reflects the third-highest figure in the past five years, since in 2016 610.000 sqm were registered, whereas in 2015, 540.000 sqm registered.
Specifically, Jörg Lojewski, Managing Director of the market-leading logistics expert Realogis Immobilien Hamburg GmbH, commented that the overall take-up would have been even higher if there had been more available space.
Yet, Lojewski stated that the high demand cannot be met because of lack of product availability.
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Moreover, Hamburg South accounted for the 49% of the overall figure, 240.100 sqm, at the end of 2018. Four of the five biggest deals were concluded in the region around the Port of Hamburg and Harburg.
The East region took second place at 34%, 166,600 sqm.
Also, the Hamburg logistics market was mostly characterised by deals in the size category of 10,000 sqm and above, as 34%, 166,600 sqm. While no deals in excess of 20,000 sqm were concluded in 2017, Realogis registered no fewer than five top deals last year.
In the meantime, smaller units, reaching up to 3.000 spm were all presented, accounting for the 30% of take-up, 147.000 sqm.
Limited availability in the medium size categories resulted in take-up of 16% (3.001 to 5.000 sqm) and 20% (5.001 to 10.000 sqm) respectively.
As far as the logistics sector is concerned, it has been the leading sector the last years.
In other words, in 2018, the logistics sector accounted for the 60% of total take up.
Irina Lysenko, research analyst at the Realogis Group commented that this reflects growth of 17%, signifying a record year for the Hamburg logistics market.
- Retail defended accounted for just 24%, 117,600 sqm of total take-up;
- Production companies experienced a decrease by 9% (44,100 sqm) in 2018 compared with between 14% and 16% in the past four years.
Furthermore, rent has been stable at 5.70/sqm euros for the past four years. As a result, prime rents on the Hamburg logistics market rose to 5.90/sqm euros in 2018 (+3.5%), thereby approaching the 6.00/sqm euros threshold in 2018 for the first time.
Realogis supports that there is no room for new development, as there are no available sites.
They believe that the market segment will be fully let for the first time in Q2 in 2019. If this scenario is to be real, Realogis predicts that the prime rents will exceed the 6.00/sqm euros for the first time in 2019.
As the deepening of the Elbe River has finally been approved following years of court proceedings, the latest generation of container ships will also be able to access the Port of Hamburg in the future, leading to growth in container turnover.
