TOP 7 INDUSTRIAL AND LOGISTICS PROPERTY MARKETS 2025: Rental market rises, transaction volume declines

The market for industrial and logistics property in Germany's Top 7 locations saw a split development in 2025: while the rental market grew slightly and take-up rose by 6.75% to around 2.11 million m², the transaction volume on the investment market fell by around 14% to €1.81 billion. The main reason for this decline was a limited supply of products meeting a continuing high interest to invest.  

„Despite economic uncertainties, the Top 7 logistics markets have shown overall resilience. Five of the seven rental markets recovered moderately, while investment activity remained strongly driven by supply," says Markus Müller, spokesperson for the commercial real estate network German Property Partners (GPP). The network includes Grossmann & Berger Immobilien, Anteon Immobilien, GREIF & CONTZEN Immobilien, blackolive and E & G Immobilien

LETTING MARKET – SPACE TAKE-UP RISES MODERATELY

In defiance of the weak economy, the Top 7 logistics regions in Germany recorded an overall increase in space take-up in 2025. Declines in some markets were more than offset by growth in other regions. Berlin in particular saw a strong increase in take-up of 42% to 404,000 m². Hamburg also grew significantly, achieving a 26% increase to 315,000 m². Also in Munich, Düsseldorf and Frankfurt, take-up rose slightly by 2% to 4%. In contrast, lettings in Cologne fell by 14% to 325,000 m² and in Stuttgart by 15% to 106,200 m². 

The strong demand from retail companies was striking, as they expanded their take-up and achieved market shares between 41% and 55% in Berlin, Düsseldorf, Cologne and Munich. After significant increases in 2022 and 2023, prime rents have been losing momentum since 2024. Consequently, rent levels stagnated or rose only moderately at most of the Top 7 markets in 2025. Only in Düsseldorf, prime rents went up noticeably again (by about 16% to €9.20/m²/month).

TRANSACTION VOLUME DECLINES – LOW SUPPLY LIMITS MARKET ACTIVITY

Although key market parameters such as prime yields and mortgage interest rates largely stabilised in 2025 and investor interest in industrial and logistics property remained high, the overall transaction volume of the Top 7 markets fell by almost 14%. This was not so much due to waning demand as to a limited supply of suitable products.

At the same time, investment performance varied greatly between individual locations The largest declines were recorded in Hamburg, with a slump of 55% to €280 million, and Cologne, with a minus of 56% to €140 million. Düsseldorf closed also significantly below the previous year's result (- 25% to €225 m). In contrast, several markets recorded noticeable growth. Stuttgart in particular saw the strongest increase, with a plus of 128% to €164 million. Frankfurt (+58% to €477 m), Munich (+15% to €217 m) and Berlin (+5% to €311 m) were also well above the previous year's result. However, in sum, the transaction volume for the Top 7 industrial & logistics markets decreased compared with 2024.

LARGELY STABLE YIELDS

Prime yields for logistics investments remained largely stable, on average around 4.50% across the Top 7 markets. Financing conditions are still restrictive and there are no signs of mortgage interest rates going down. Against this backdrop, no significant changes in prime yields are expected in the coming months. Prices rose on the commercial land markets in the Frankfurt, Munich and, to some extent, Cologne regions as a result of scarce supply, while speculative project developments remained scarce.

FORECAST: POTENTIALLY NEW MOMENTUM OVER THE YEAR

For 2026, it is expected that the demand for rental space in the industrial and logistics segment will gradually improve as economic stimulus measures are taking effect. In markets with a limited supply of new builds, such as Frankfurt and Cologne, prime rents for leases in this segment are bound increase. Also on the investment market, the limited supply of new builds is likely to affect transaction activity. However, investor interest remains robust and prime yields appear largely stable, as no significant changes in financing conditions are yet apparent.

“Should economic conditions improve over the course of the year, this could give new momentum to both the rental and the investment market. In the short term, however, the market environment remains challenging,” says Müller.

The detailed Industrial & Logistics Market Report for Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich is now available for download on our website