Logistics property has previously played a niche role in the German commercial property market, accounting for only around 5.5% of the overall annual transaction volume during the last five years. However, there is much to suggest that this proportion will increase going forward.
From a macroeconomic perspective, the German logistics sector has been a major contributor for many years, recording higher growth rates than the German economy as a whole. The sector generated approximately €235bn in 2015, which was almost a quarter of the overall logistics volume for Europe. Accordingly, logistics occupies third place in the economic sector rankings in Germany, with only the automotive and retail sectors generating higher revenue. The growth of the sector in recent years is substantially attributable to the booming e-commerce sector, which grew by 28% per year between 2010 and 2015. Since the strong growth in online retail will probably continue going forward, growth rates in the logistics sector are likely to remain above average (a more in-depth analysis of the German logistics market is provided in the research “Logistics and Real Estate Germany 2015”).
Source : Savills