Brownfield developments gain traction in German logistics property market

by   CIJ News iDesk III
2024-07-30   11:01
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The German logistics property market saw a notable uptick in new developments during the first half of 2024, with approximately 2.3 million square meters of new-build space reported by holistic logistics real estate consultant Logivest. A significant trend observed was the increasing relevance of brownfield developments, which accounted for around 38% of the projects—up by six percentage points compared to 2023.

“Especially when it comes to sustainability, reducing land consumption and revitalizing brownfield sites are playing an increasingly important role,” said Kuno Neumeier, CEO of the Logivest Group.

Despite greenfield developments still dominating at approximately 62%, their prevalence is declining, particularly in regions like Duisburg/Lower Rhine. For instance, Prologis is developing a 57,000 square meter logistics facility for Yusen Logistics on a brownfield site in Bottrop. Additionally, the largest project of the first half of the year, Mercedes-Benz’s new 130,000 square meter logistics center, is being constructed on the site of a former chipboard factory in Bischweier. Both projects feature roof-mounted photovoltaic systems, enhancing their sustainability and energy self-sufficiency.

Neumeier highlighted that while brownfield developments initially present uncertainties, former industrial sites can offer advantages over greenfield sites, particularly in infrastructure. Industrial sites often already have high-potential grid connections necessary for comprehensive charging infrastructure.

Logivest’s analysis indicates that approximately 5.5 million square meters of brownfield sites will be available for new construction projects this year. This potential can be gradually exploited, especially given the low acceptance of logistics properties and the reluctance of local authorities to tender new commercial spaces.

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