Tuesday, 21 July 2026
The Greater Frankfurt industrial and logistics property market recorded total take-up of 245,400 sqm during the first half of 2026, according to REALOGIS. While leasing activity remained broadly stable compared with the previous year, the market continued to be driven primarily by existing buildings, with limited availability of new developments.
Warehouse space accounted for 221,600 sqm, or 90% of total take-up, while mezzanine space represented 13,200 sqm (6%) and office accommodation 10,600 sqm (4%). Warehouse take-up was broadly unchanged from the 220,600 sqm recorded in the first half of 2025 and stood 14% above the current five-year average of 194,820 sqm.
The five largest transactions, signed by Siemens, MSK Pharmalogistic, FedEx, Wetech and IEDAU International, totalled 107,760 sqm and represented 44% of all take-up during the period.
“The market was clearly characterised by the availability of existing buildings,” said Julian Petri, Managing Director of REALOGIS Immobilien Frankfurt GmbH. “We expect demand to remain stable during the second half of the year, while the supply of new developments is likely to remain limited. Modern space in established locations that is available at short notice will therefore continue to be scarce, supporting rental levels.”
Prime rents increased to a record €8.70 per sqm per month, up 5% year-on-year from €8.30 per sqm and 2% higher than the €8.50 per sqm recorded at the end of 2025. Prime rents also remained around 9% above the current five-year average of €7.96 per sqm.
Existing properties dominated market activity, accounting for 209,600 sqm, or 86% of total take-up. Developments on former brownfield sites contributed 30,300 sqm (12%), largely due to MSK Pharmalogistic’s 22,760 sqm lease, while greenfield developments accounted for just 5,500 sqm (2%).
The market remained overwhelmingly lease-driven, with tenants accounting for 239,400 sqm, or 98% of take-up. Owner-occupier transactions represented only 6,000 sqm, while subleases totalled 7,200 sqm.
In terms of property types, industrial buildings outside the traditional big-box and business park categories generated the highest volume, with 101,500 sqm or 41% of take-up. Big-box logistics facilities followed with 81,200 sqm (33%), while business parks accounted for 62,700 sqm (26%).
Rhine-Main South remained the dominant submarket, recording 179,600 sqm of take-up and representing 73% of all leasing activity. Four of the five largest transactions, including those by Siemens, MSK Pharmalogistic, FedEx and IEDAU International, were completed in this submarket. Rhine-Main East ranked second with 40,000 sqm, while the City of Frankfurt recorded 9,500 sqm. Rhine-Main West and Rhine-Main North each accounted for around 3% of total take-up, while Mainz/Wiesbaden contributed approximately 1%.
Logistics and distribution companies were the most active occupiers, leasing 114,200 sqm and accounting for 46% of the market. Manufacturing companies followed with 77,800 sqm (32%), supported by Siemens’ 41,000 sqm transaction. Retail occupiers leased 34,500 sqm (14%), split between traditional retailers and e-commerce operators, while the supply and other business categories accounted for the remaining 18,900 sqm.
Demand was concentrated in larger premises. Units exceeding 10,000 sqm generated 130,600 sqm of take-up, representing 53% of the market. Premises between 3,001 sqm and 5,000 sqm accounted for 51,200 sqm, followed by units ranging from 1,000 sqm to 3,000 sqm with 35,100 sqm. Transactions between 5,001 sqm and 10,000 sqm reached 24,200 sqm, while units below 1,000 sqm accounted for only 4,300 sqm.
REALOGIS expects the market to remain stable through the remainder of 2026, with continued demand for modern warehouse space but limited new supply likely to keep prime rental levels elevated.
