Industrial Hamburg 1Q2018

Rents rising thanks to agreements for large areas of new build space

Press release | Hamburg

In the 1st quarter of 2018 take-up of industrial, warehousing and logistics space in Hamburg and its environs fell by 37 % against the same quarter a year before. Grossmann & Berger, a member of German Property Partners (GPP), calculated the actual figure at 95,000 m². Accounting for 46 % of take-up (43,200 m²), owner-occupiers almost doubled their share of the market against the 1st quarter of 2017. Correspondingly, take-up of rental space dropped by 60 % to 51,800 m². “Obviously, this result is considerably lower than the excellent start to 2017. But there have been years when Hamburg posted far smaller amounts of take-up in the first quarter. Besides, there are always large swings in the quarterly results, and at the moment we are expecting the year to close with total take-up of space standing at 400,000 square metres,” says Felix Krumreich, consultant for industrial, warehousing and logistics properties at Grossmann & Berger, putting the current figures into perspective.
Letting market: Three major agreements for new builds
  1. Agreements: Unlike the total take-up figure, the number of known contracts rose slightly from 31 to 33.
    1. Construction started on In-Time Transport’s new logistics centre offering some 28,000 m² of hall space in the Trelder Berg commercial estate in Buchholz (Bundesstrasse 75, South West Environs). This was the biggest agreement noted in the 1st quarter. The company plans to move in at the end of 2018.
    2. The second-biggest transaction was appreciably smaller, a contract for 8,000 m² of hall space and 1,400 m² of office space signed by Amazon, an international group, for the construction of a central warehouse and distribution centre in Hamburg Port (Peutestrasse, Hamburg South).  On Peute, a port peninsula, packages are to be sorted and assigned to the various delivery routes in Hamburg and the region. The Abendblatt, a daily newspaper, reports that this will create over 200 new jobs.
    3. The forwarder Heinrich Dehn International Spedition signed the third-biggest contract of the quarter, renting 5,600 m² of storage space and 100 m² of offices (Altenwerder Hauptstrasse 5, Hamburg South) in the “Goodman Hamburg II Logistics Centre” in Altenwerder district.
  2. Take-up of space by size categories: The most popular size categories were 5,001 to 10,000 m² and 10,001 m² or more, accounting for 26 % and 29 % of take-up respectively. In contrast with the same quarter of 2017, when four agreements were signed for over 10,001 m², only one was recorded in 2018, the previously mentioned construction start for In-Time Transport. The number of agreements in the 5,001 to 10,000 m² segment also fell, from seven to four. The highest level of growth was seen in the size sector 1,000 m² or less, where take-up of space rose by 120 % to 11,000 m². The number of agreements registered for this size category doubled to 14.
  3. Rents: The premium rent for industrial, warehousing and logistics space in Hamburg and its environs rose by a modest 1.7 % year on year to €5.90/m²/month, whereas the average rent shot up by 4.3 % to €4.90/m²/month. Commenting the rising rents, Krumreich says, “In the first quarter some 25 % of the newly taken up space rented for over 5.51 euros per month. All five agreements for more than 5,000 square metres related to first occupancies in new builds, and this is the normal price bracket for such lets.” These transactions included the fourth-biggest agreement and second-biggest owner-occupier contract in the 1st quarter of 2018, signed by engineering firm Harburg-Freudenberger Maschinenbau for the construction of a 5,500 m² assembly and technology centre together with a 7,000 m² office building at Schlachthofstrasse (Hamburg South).
  4. Take-up of space by sub-markets: In the 1st quarter business was briskest in the Hamburg South sub-market with 38 % of the total take-up of space, followed by South West Environs with 31 %. These good standings result from the quarter’s largest agreement (as previously noted) which concerned a property in the South West Environs, and from the fact that Hamburg South registered six of the eight biggest contracts. Of the other sub-markets, only North West Environs posted a two-figure share, with 12 % of total take-up. This sub-market reported a bigger increase in take-up and number of contracts than any other in the city or the environs. An aviation company signed the biggest agreement in North West Environs, renting 3,020 m² of hall space and 1,630 m² of office space in Norderstedt (Oststrasse 61). Overall, the take-up of space was divided absolutely uniformly between the city and its environs, and thus even more balanced than it was a year ago.
  5. Take-up of space by industry: Logistics or forwarding companies were responsible for six of the eight biggest agreements concluded, totalling 70 % or over two-thirds of take-up. Although companies in the manufacturing/industry/crafts & trades sector signed two of the eight biggest agreements, their share of take-up of space was a mere 17 %.
The next detailed market survey will be published at the end of the first half year. The publication for the 4th quarter of 2017 is available here.

Press contact

Visitenkarte Xing
Britt Finke

Bleichenbrücke 9
20354 Hamburg

040-350 802 993
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