Wednesday, 15 October 2025
Germany’s warehouse and logistics property market remained broadly stable through the third quarter of 2025, with most regional rental rates unchanged despite economic uncertainty and slowing trade volumes. According to data from major consultancies including JLL and CBRE, prime rents across nearly all major logistics hubs either held firm or showed only marginal movement, underscoring the market’s resilience.
The exception appears to be the Dresden region, where rents edged slightly higher, driven by limited supply and sustained demand from the expanding semiconductor and technology manufacturing industries. Industry analysts say the concentration of new investment in Saxony’s “Silicon Valley” corridor is fuelling stronger demand for high-specification logistics and industrial space.
Across other regions — including Munich, Berlin, and Düsseldorf — prime rents stabilised after several years of strong increases. Top rates in these cities now range between €9 and €11 per square metre per month, among the highest in Europe. Meanwhile, smaller regional markets such as Magdeburg and Kassel have seen steady pricing as developers adopt a cautious stance toward speculative construction.
Market experts describe the sentiment as “optimistically realistic.” Inquiries for space have picked up again in the second half of the year, but both developers and occupiers remain careful amid inflationary pressures and geopolitical tension. Analysts note that while logistics continues to be one of the country’s most active commercial property sectors, activity is shaped by stricter financing conditions and rising construction costs.
Despite the macroeconomic challenges, the fundamentals of the sector remain strong. Persistent e-commerce demand, strategic manufacturing expansion and anticipated defence-related investments are expected to support leasing volumes in the months ahead. For now, Germany’s logistics market appears to have entered a period of consolidation — steady rather than spectacular — reflecting both its maturity and its vital role in Europe’s industrial backbone.
Source: JLL and CBRE
