Munich Warehouse and Logistics MarketView Snapshot Q4 2018
The lack of space in Munich as well as in surrounding areas is tremendous – in 2018 the lowest take-up volume since ten years was recorded.
New Developments are hardly possible since suitable properties are not available.
In 2018, only 49,000 sq m (-20%) of newly developed space were completed.
Due to the very good economic situation, especially in and around Munich, the interest in new commercial sites from many communities is fairly low – concerns in view of traffic loads predominate.
Due to the lack of space, prime rents continued to rise in 2018. However, it should be borne in mind that the most sought-after and thus most expensive spaces are located within the city, where the take-up of space was very low.
Strong demand and existing short supply will continue to diverge in 2019.
The market dynamics could again ensure above-average take-up of space in the year as a whole if suitable properties become available.