Logistics real estate is considered the most attractive asset class

Logistics properties account for the second-largest share of construction projects on the German real estate market. In 2022, the amount invested in logistics real estate rose to over ten billion euros for the first time. Investors have never provided so much for the logistics real estate market in Germany in the past, although it was also affected by the current financial market-driven uncertainties in 2022.

In the asset class ranking, logistics properties account for around 19% of the commercial investment market. This puts them in second place behind the office sector with 41%, but still two percentage points ahead of the retail sector. Investors see great security in logistics properties, as logistics, Germany’s third-largest economic sector, is an important part of the global economy even in times of crisis. In a survey of asset managers conducted by real estate investment company JLL, they rated logistics real estate as the most attractive asset class in terms of risk/return ratio.

The logistics region in which the most investments were made in 2022 is Berlin. This accounted for around 512 million euros of the total volume of investments. In second place is Frankfurt with 401 million euros and in third place is Munich, where 301 million euros in investments were made. The record could be broken again this year. Demand for new logistics properties remains high and, according to the JLL survey, 42% of 145 asset managers stated that they intend to invest more in 2023 than in the previous year.

While most investments in logistics real estate previously came from international investors, the situation changed by the end of 2022: just over 50% of all investments came from German investors. This means that around 5.2 billion euros of the total logistics real estate investment volume in 2022 came from Germany.

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Author: Verena Zieringer