Stuttgart Logistics Report “Expects H2 2016 Lettings Activity”

21st July 2016

Logistics BusinessStuttgart Logistics Report “Expects H2 2016 Lettings Activity”

Property managers Realogis have issued a report about logistics and industrial lettings in the Stuttgart region. Speculative building is not expected, but lettings activity is expected in the second half of the year.

The stability of tenants particularly in units larger than 10,000 sqm characterised the industrial and logistics property market in the Stuttgart metropolitan region during the first half of 2016. Take-up reached just 59,000 sqm compared to approx. 100,000 sqm in the first half of 2015, according to the latest analysis by Realogis – Germany’s leading real estate consultant and agent for logistics and industrial property and business parks with ancillary office space. A total of 31 lease signings took place in the first six months, but no units larger than 10,000 sqm were available during this period. Thus there were no new lettings in a segment that is highly relevant to the overall take-up result. At the same time, no relevant new developments were brought onto the market.


“Nevertheless, we expect to see a significant increase in activity in the coming months. Based on the strong demand and several large deals in the pipeline for existing properties, we expect the Stuttgart metropolitan region to maintain the same level of take-up as reported last year,
” said Oliver Stenzel, managing director of Realogis Immobilien Stuttgart GmbH. In 2015 as a whole, all market players generated a take-up volume totalling 240,000 sqm of industrial and logistics space.

Another positive development experienced by the Realogis managing director is that local communities are more willing to enter into a dialogue about new industrial and logistics developments than in previous years. Oliver Stenzel: “Communities are more open to proposals regarding the settlement of new companies when we approach them directly and provide them with information at an early stage.” However, speculative project developments still have no chance of getting approved, in contrast to other logistics locations in Germany.

In reference to take-up by manufacturers, retailers and logistics companies on a regional basis revealed that the Ludwigsburg district was the most popular location in the first half of 2016 with take-up of approx. 22,300 sqm (11 lease contracts). In second place was Böblingen with 11,850 sqm (7 lease contracts) followed by Esslingen with 11,740 sqm (7 lease contracts) and Rems-Murr district with 9,230 sqm (4 lease contracts). Stuttgart saw two lease contracts with total take-up of approx. 3,450 sqm. Wiesheu GmbH signed a lease for 8,000 sqm of industrial/logistics space in the Ludwigsburg district (Großbottwar), representing the largest contract signing in the reported period.

Rental prices for existing industrial and logistics stock in the Stuttgart region remained at a high level in the first half of 2016, with average rents ranging from 3.90 Euro/sqm in the Göppingen district to 5.30 Euro/sqm in the Böblingen district. Rents in prime locations can still amount to 5.80 Euro/sqm or as much as 6.00 Euro/sqm in exceptional cases.

For the first time, Realogis also analysed industrial and logistics space take-up in the federal state of Baden-Württemberg. Here, take-up by all market players amounted to approx. 278,000 sqm in the first half of 2016. This positive result was primarily due to the new 130,000-sqm development by project developer Goodman for Zalando in the Ortenau district.