High take-up of commercial and industrial real estate in Berlin in 2021

Berlin, January 21, 2022 | The market for commercial and industrial real estate in Berlin recorded a very good year in 2021. With take-up of 620,000 m², the previous year's result of 471,000 m² was exceeded by 31.6%. The leasing of larger spaces in the area surrounding the German capital was the catalyst here, he said.

"Berlin is in great demand from both companies and investors, so the mood on the market is very positive," sums up Sebastian König, Head of Industrial Space at Engel & Völkers Commercial Berlin. Nevertheless, his forecast for 2022 is only between 500,000 m² to a maximum of 550,000 m². In particular, the shortage of space in the inner-city area is slowing down the current momentum. Due to the persistently rising rents, companies should seek professional advice in good time before their leases expire. In the opinion of the market expert, the few new construction potentials could be used by project developers for speculative new buildings almost without risk due to the high demand.

The main market developments at a glance

Take-up by location

The surrounding area continues to gain in importance, increasing by 9 percentage points year-on-year to 70%. Most of the activity took place in the surrounding area South with 46% (+9 percentage points) and in the surrounding area North with 13% (+7 percentage points). The inner-city area lost 9 percentage points (30%). There, Spandau again dominates with a share of 8% (-1 percentage point).

Significant take-up

Five take-ups exceeded 20,000 m²: 

• ​Approx. 30,500 m², Lidl Digital International GmbH, Umland-Süd, rental stock
• Approx. 27,300 m², Raben Logistics GmbH, Umalnd-Süd, lease new building
• Approx. 25,000 m², Bergmann & Franz, Umland-Nord, lease new building
• Approx. 20,550 m², Gestamp, Umland-Süd, lease existing building
• Approx. 20,000 m², Rieck Logistic, Umland-Nord, lease new building

With an unchanged share of 42 %, transport/logistics holds on to first place. The retail sector has gained 17 percentage points (29 %), whereas production/commerce/industry has lost 16 percentage points (12 %).

Take-up by size class

At 28% (+ 4 percentage points), the size class 5,001 - 10,000 m² is in first place by some distance. The > 15,000 m² segment gained seven percentage points (27 %). The size classes 2,501 - 5,000 m² (16 %, -4 percentage points), 1,001 - 2,500 m² (12 %, -4 percentage points), 10,001 - 15,000 m² (11 %, -3 percentage points) and < 1,000 m² (6 %, - 2 percentage points) remained almost unchanged.

Rent/own use

71% of all contracts concluded were for rental in the portfolio. Compared with the previous year, this represents a drop of 16 percentage points. With a share of 27%, the rental sector in new construction increased by 16 percentage points. The share of owner-occupiers remained unchanged at 2%.

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