Logistics real estate is considered the most attractive asset class
Logistics real estate makes up the second largest part of construction projects on the German real estate market. In 2022, total investments in logistics real estate exceeded ten billion euros for the first time. Investors have never provided so much for the logistics real estate market in Germany in the past, although this was also affected by the current financial market-driven uncertainties in 2022.
In the asset class ranking, logistics real estate makes up around 19% of the commercial investment market. This puts them in second place behind the office sector with 41%, but still two percentage points ahead of the retail sector. Investors see great security in logistics real estate, since logistics, as Germany's third-largest economic sector, is an important part of the global economy even in times of crisis. In a survey of asset managers by the real estate investment company JLL, these logistics properties were rated as the most attractive asset class in terms of risk-return ratio.
The logistics region in which most investments were made in 2022 is Berlin. This accounted for around EUR 512 million of the total volume of investments. In second place is Frankfurt with 401 million euros and in third place is Munich, where 301 million euros of investments were made. The record could be broken again this year. Demand for new logistics real estate remains high and according to the JLL survey, 42% of 145 asset managers said they plan to invest more in 2023 than in the previous year.
While most investments in logistics real estate have so far come from international investors, the situation changed by the end of 2022: just over 50% of all investments came from German investors. Thus, around 5.2 billion euros of the total logistics property investment volume in 2022 came from Germany.
Would you like to find out more about financing and logistics real estate? Then you have the ideal opportunity at BUILDINX, the first business platform covering the entire value chain of innovative logistics and industrial real estate. There you have the opportunity to find out about financing options for your logistics real estate and to network with investors.
Autor: Verena Zieringer