Munich logistics market: demand for smaller spaces is booming!

Munich logistics market: demand for smaller spaces is booming!

The Munich logistics market will show interesting dynamics in 2025. According to current reports, take-up of space has increased, particularly in the small segment up to 3,000 square meters. Around 88 percent of the rental agreements concluded relate to this area size, which accounts for half of the total take-up of space. In addition, deals between 5,000 and 10,000 square meters are responsible for a further 50 percent of sales. This segment will be crucial for the future development of the region, while the overall average is declining somewhat.

Particularly noteworthy is the largest single transaction in the second quarter in Kirchheim near Munich, where a food retailer rents around 10,000 square meters in an existing property. The North-East submarket even secures 80 percent of the total take-up through three larger rentals. The strongest user group is made up of logistics service providers, which account for 32 percent of the transactions, followed by other users with 31 percent, trading companies with 25 percent and the manufacturing industry, which only accounts for 12 percent.

Market analysis and rental prices

The vacancy rate in Munich has increased slightly and is now 1.2 percent, but it remains very low. Rental prices are also showing a positive development: the prime rent for logistics space over 3,000 square meters has risen by 5 percent to 9.80 euros per square meter, while the average rent has risen by 6 percent to 8.90 euros. In the light industrial segment, however, rents remained stable at a peak of 15.80 euros and an average of 11.80 euros.

The availability of space is expected to increase, including through projects such as Aurelis' “Entrepreneur Park”, which will offer over 20,000 square meters. The take-up of space could reach the five-year average of around 200,000 square meters over the course of the year, which, according to Transport Online, underlines the positive market positioning.

Growth in the logistics sector

The developments on the Munich logistics real estate market are characterized by strong growth. In 2024, take-up of 179,000 square meters was achieved in the first three quarters, which corresponds to an increase of 21 percent compared to the same period last year. The almost non-existent vacancies in the big box segment, which is driving demand, deserve particular attention.

Another trend is the approximately 60,000 square meters of owner-occupied space that was registered by Group 7 AG in Schwaig/Oberding in the first quarter. These uses accounted for 33 percent of the total take-up of space. New buildings have also become more important, with their share increasing by 58 percentage points to 73 percent. In addition, the share of transport and logistics companies is increasing, which now accounts for 44 percent of the market.

The forecast for 2024 shows that take-up of up to 220,000 square meters could be realistic. However, market challenges remain, particularly in terms of supply constraints and rising rental prices, which are fueling competition.

Overall, the general conditions in the Munich logistics market are exciting. Both demand and development opportunities paint a positive picture for the coming months. CBRE reports that the Munich market has become more attractive and dynamic in recent years, which is clearly reflected in the current figures. The industry can look forward to further developments.

For detailed information on trends in the Munich logistics market, please visit Transport Online and CBRE.

Transportation Online and CBRE.