Brownfields as an opportunity for logistics real estate

Logistics properties are among the most sought-after construction projects in the real estate sector. In 2022, around 5.1 million square meters were built on with logistics properties in Germany. However, given the high demand for space, it is becoming increasingly difficult to find suitable building land. The lack of building plots that are still natural and undeveloped is driving prices ever higher. Although these so-called greenfields have so far been preferred by construction companies, they are expensive and building on them means that more and more natural land is being sealed.

One way of satisfying the increasing demand for space is to revitalize and use brownfield sites. This is land that has already been sealed and on which other industrial buildings previously stood. Constructing buildings on brownfield sites is not only sustainable, but also cheaper, as land prices are generally lower than for undeveloped land. A further advantage is the existing connection to the infrastructure, which, in contrast to the construction of buildings on greenfields, does not have to be built first.

The Ruhr region shows how it can be done: Numerous construction projects have been realized here on former industrial sites. A good example of this is the Rheinhausen district in Duisburg. Large logistics centers have been built there on the site of a former steelworks. Thanks to the existing infrastructure, these are trimodally connected and have their own container terminals. In addition, over 4,000 new jobs have been created at the site, around twice as many as the steelworks could offer. Another plus point in favor of brownfield development. Not only has sustainable construction been achieved, but the creation of new jobs has also significantly increased acceptance in the region.

Brownfields already accounted for around 27% of the space for new logistics properties in 2020. This upward trend is set to continue due to the increasing scarcity of land. By 2050 at the latest, new construction projects should only be realized on brownfield sites – as envisaged by the EU Commission.

If you would like to find out more about the possibilities of using brownfield sites, then visit BUILDINX! At the first business platform covering the entire value chain of innovative logistics and industrial real estate, you will find the right contacts when it comes to selecting suitable building plots for your logistics real estate. You can network with us and realize your construction projects in cooperation with other companies.

Author: Verena Zieringer