Berlin market for industrial and logistics space returns to stability with vigour

While 2024 was characterized by take-up of only 285,000 m² due to an economic slowdown and market players’ “wait and see” attitude, there was a massive improvement in market conditions during 2025.

With take-up of some 416,000 m², the region around ­ Berlin saw a significant market rally and growth, which was 46% higher than in the previous year. This means that market activity is once again aligning closely with its long-term activity level: excluding the exceptional year 2022, the current take-up has returned to within direct reach of the adjusted ten-year average of roughly 440,000 m².

This trend was primarily driven by new construction activity, and over half of the take-up was generated by new projects with a total completion volume of 211,000 m². The high absorption rate for modern spaces confirms this and also underlines the willingness of market players to accept extra rent surcharges for ESG-compliant standards.

Trade accelerates market upturn

Demand was dominated by the “Trade” segment (38%), which consolidated its top position thanks to the strong need for e-commerce capacity. This segment was followed by “Production and Industry” with a 32% share and the “Transport and Logistics” sector at 24%.

A striking structural trend is the growing need for smaller, flexible units under 3,000 m² as well as for specialist properties which can be used for “last mile” logistics in urban areas. Modern business parks and light industrial premises in ­ particular experienced above-average growth.

Hinterland expands its dominance

In geographical terms, there was a massive shift towards Berlin’s hinterland, which now accounts for 72% of the overall market. At 31%, the “North” region was the most popular location on the city’s periphery, fueled by major deals such as a contract for 65,000 m² premises in the second quarter. The top areas within Berlin’s city limits (28% share) were Lichtenberg and Marzahn-Hellersdorf. While inner city locations, where space is scarce, primarily serve urban service providers, the large-scale logistics segment is almost exclusively concentrated on the periphery and in locations near the airport.

Despite dynamic building activity, there was a moderate increase in rents. Prime rents went up to 8.40 euros/m²; the average rent was 7.50 euros/m². Sale and leaseback models are becoming more important on the investment market because they enable companies to reduce their capital commitment. Further key location criteria are now reliable power supplies for automation processes and the energy efficiency of buildings. Although the automotive industry is stagnating due to employee reductions, the market is proving to be highly resilient. In addition to new leisure concepts, an increasing number of Asian players are absorbing capacities in the strategically important region around Germany’s ­ capital city. The forecast for 2026 is optimistic, with take-up expected to be between 420,000 m² and 470,000 m².

Rental prices in EUR/m² depending on the type of use*

* The specifications relate to standard existing assets with a total area not exceeding 3,000 sqm. New developments or properties featuring high-specification fit-outs and superior micro-locations can achieve premium rents.