Logivest with Current Report on the Logistics Real Estate Region Hamburg

Logivest, a nationwide consulting company focused on logistics real estate and locations, has conducted a detailed analysis of the entire logistics real estate market in the Hamburg region for the first time and published it in the form of a comprehensive regional report. With this, Logivest continues its new series of background reports, which it started in August with an analysis for the Hanover region.

(Hamburg/Munich) Based on research data collected and professionally evaluated over the years, all top logistics regions in Germany are gradually being analyzed, prepared, and made available for free download.

The Hamburg region is one of the most important logistics locations in Germany. The North of Germany is also a pioneer in current issues, as demonstrated at the ITS Congress. The world’s largest event on intelligent mobility and the digitalization of transport recently took place in Hamburg.

The investigation of the Hamburg region shows that the logistics real estate market has a currently available area of 560,000 square meters, with a total hall area of more than 10 million square meters across over 160 commercial areas. This means that the logistics region of Hamburg has a vacancy rate of just 5.5 percent. Currently, spaces in over 70 logistics properties can be rented. The market shows a lively area turnover. In 2020, around 490,000 square meters were transacted here, which is about 37 percent more than in 2019. “The main driver of demand is the growing online trade,” says Marvin Hesse, Team Leader Industrial & Logistics Letting Hamburg. The dynamic development of demand has continued. In the first half of 2021, around 335,000 square meters of logistics space were transacted in Hamburg. The share of Hamburg’s area turnover in the total German logistics area turnover is also increasing: in 2019 it was 5.1 percent, in 2020 7.7 percent, and in the first half of 2021 already 9 percent.

Hamburg Number One of the Logistics Regions in Germany

The basis of this comprehensive logistics real estate market is that Hamburg is number one among the five strongest logistics regions in Germany. The main reason for this is the Port of Hamburg, Germany’s largest universal port, which also has very good connections to the rail network. In 2020, 126.3 million tons of sea goods were handled here alone. In terms of logistics space inventory, the main user sectors of the market are logistics service providers, trade (including e-commerce), and aerospace. The ten largest users are Kühne & Nagel, DHL, Rewe, Rhenus, Aldi, H.D. Cotterell, Amazon, Airbus, Lidl, and Vollers Hamburg. “The Port of Hamburg has great significance globally as a gateway. A large part of the goods and products is distributed by logistics service providers,” explains Hesse.

New Construction Becomes a Bottleneck

In terms of new construction, the Hamburg region reached 60,000 square meters in 2021, placing it twelfth among all 23 top logistics regions in Germany. The difference to classic German logistics hotspots like Bremen and Hanover particularly underscores Hamburg’s role as a growth location for trade, logistics services, and manufacturing. However, with this new construction volume, the Hanseatic city is heading towards increased supply shortages. In 2020, 260,000 square meters were still created, and in 2019 even 285,000 square meters. At least, two major projects indicate a certain relaxation: In Wilhelmsburg, FourParx is developing a double-decker logistics property with over 120,000 square meters of rental space for logistics, commerce, and production. Additionally, five modern logistics properties in Kaltenkirchen, which offer a total of more than 57,000 square meters of building space, are nearing completion. “However, it could become tight afterward,” says Hesse. “There are fewer and fewer available plots in and around Hamburg. And the eastern part of Hamburg, such as the logistics hub Gallin, is not yet being accepted as a new logistics location, even though there is development potential there.”

Top Rent on Average Not Significantly Higher than Nationwide

The strong demand for space in the logistics region of Hamburg is only partially reflected in rents. The rent range for new buildings is between 4.50 and 6.95 euros per square meter. Compared to 2020, the minimum rent has decreased by 30 cents, while the maximum rent has increased by 45 cents. “This development is mainly due to the fact that there are hardly any new buildings in the most sought-after locations,” says Hesse. Therefore, the general top rent for new buildings in Hamburg is significantly above the average value of the nationwide top rent of 6.00 euros, at 6.40 euros per square meter. The general average rent, however, is 5.10 euros in Hamburg, which is 10 cents above the nationwide average.

The logistics real estate market in the Hamburg region is also a safe haven for investors. The top yield (net initial yield) is 3.48 percent – just five basis points above the nationwide top yield.

Download the Study:

https://www.logivest.de/broschueren

Photo: © Logivest