German Warehousing Market Booms on E-commerce Surge and Trade Growth

Throughout 2022, the German warehouse and logistics market experienced a notable uptake, totaling approximately 8.5 million square meters. While this figure slightly fell short of the record set in the previous year, which stood at 8.67 million square meters, it still surpassed the five-year average by a significant margin of 19%. This suggests a sustained and robust demand for warehouse facilities within the country.

The surge in demand for warehousing across Europe can be largely attributed to the increasing prevalence of e-commerce. The COVID-19 pandemic played a crucial role in amplifying this trend. With lockdowns and restrictions forcing many businesses to close physical stores, consumers swiftly transitioned to online shopping and home delivery services. This rapid shift in consumer behavior accelerated the existing trajectory of increased online purchasing.

As a direct consequence, the need for warehouse space saw a dramatic increase. The pandemic acted as a catalyst, further propelling the demand for storage and distribution facilities. According to forecasts by Savills, an additional 8.6 million square meters of warehouse space will be required across Europe between 2021 and 2025 to meet this escalating demand.

This surge in demand isn't just about accommodating the storage of products for online sales. Another significant aspect driving the need for warehouse space is the management of reverse logistics, particularly the handling of returned packages. Approximately 20% (1.7 million square meters) of the projected additional warehouse space is expected to be dedicated to addressing this aspect of e-commerce logistics.

► Germany's Role in the European Logistics Landscape
Germany, a key player in European trade, has witnessed a steady rise in both exports and imports since 2018. This increase has fueled the business of logistics and warehousing in the country. Notably, commodities such as medical equipment, fishery products, wine, and pet food have seen significant growth in trade.

► Diversifying Warehouse Usage
While a substantial portion of this demand stems from the surge in online sales, it's crucial to note that not all warehouse space will be solely for storing products for purchase. Reverse logistics, particularly managing returned packages, is expected to account for a significant segment of this expansion. Approximately 20% (1.7 million square meters) of the projected additional warehouse space will be dedicated to handling return orders.

► Cold Chain Infrastructure and Trade Facilitation
Germany's robust agricultural sector and status as a major exporter of perishable commodities have led to the development of a well-established cold chain infrastructure. Positioned strategically in Europe, Germany serves as a pivotal hub in the cold chain market, facilitating the transit of goods across the continent and bolstering international trade. As of January 9, 2024, Germany boasts a collective total of 133 cold storage facilities.

► Industrial Construction Trends and Development
In the first half of 2022, Europe witnessed a substantial completion volume of 835,000 square meters, followed by an additional 530,000 square meters in the latter half of the year. This surge represents a doubling of the new construction volume compared to the previous year.

► Rents in Major Logistics Regions
The main logistics regions in Germany, including Hamburg, Berlin, Hannover, Münster, Bremen, Leipzig, Kassel, Düsseldorf, Frankfurt, Nuremberg, Mannheim, Karlsruhe, Stuttgart, and Munich, have experienced a rise in prime rents for warehousing space larger than 5,000 square meters. Increased construction costs have been a major contributing factor behind this rise in rents across all Big 5 regions over the last twelve months.

In conclusion, the surge in e-commerce driven by the COVID-19 pandemic has reshaped the landscape of warehousing demand in Europe. With Germany playing a central role in trade and logistics, the country's robust infrastructure and strategic positioning continue to drive growth in the warehousing sector, alongside evolving trends in industrial construction and rental markets.

► Warehouse Demand of Top European Countries
■ In Germany, with e-commerce driving the surge, the logistics sector reached a new record amount of transactions in 2021.

■ In 2021, the UK set a new record with 6 million sqm. A robust economic recovery (+7.1% in 2021) supported market expansion. Given the sustained expansion in rental rates and the small contraction of the new stock development pipeline, long-term returns appear steady.

■ Take-up in Poland saw yet another record-breaking year. The pandemic fueled e-commerce's already strong growth, and the sector was further helped by the economy's strong growth (+5.2% in 2021).

■ The market in France picked up steam following a sluggish start to the year, helped by robust GDP growth (+6.7% in 2021), among the strongest in Europe, and strong activity in Paris and Lille. In general, most submarkets still have little supply.

■ In 2021, take-up in the Netherlands achieved a new high. As a result of limited supply in the main logistical hubs, demand kept moving to less well-known areas. Although rents have steadied, there is still some upward pressure due to strong demand and limited supply.

In summary, the dynamics of the warehousing and logistics market in Germany, as well as across Europe, reflect a fundamental shift fueled by the rise of e-commerce and exacerbated by the COVID-19 pandemic. This shift necessitates not only an increase in warehouse capacity but also a rethinking of logistics strategies to adapt to evolving consumer preferences and market

► Scope of the Study
Makreo Research has recently unveiled a thoroughly exanimated report titled "Germany Warehousing and Cold Storage Market Size and Forecast (2020-2030) - Focus on Warehouse Market By Type, Industries and Major Cities," offering a detailed overview of the German Warehousing and Cold Chain Market which is projected to witness substantial growth from 2018 to 2030. This synopsis offers a concise overview of Germany Warehousing and Cold Chain Market, emphasizing revenue trends across multiple dimensions. The detailed analysis covers a broad spectrum, aiding stakeholders in strategic decision-making and market positioning from 2018 to 2030. The report places special emphasis on key players having strong presence in the industry with an overview of their financial and business performance, encompassing different aspects such as trade performance, market performance, company profiles, mergers and acquisitions and funding timelines. This vast collection of information aims to provide stakeholders and industry professionals with a in-depth and rigorous understanding of the developments occurring in this swiftly developing industry.

► Segmentation
■ By Type of Warehouses - General, Specialized and Cold Chain
■ By Cities - Dusseldorf, Hamburg, Berlin, Stuttgart
■ By Sectors - Retail, E-commerce, Pharmaceuticals

► Competitive Landscape
■ Mergers/Acquisitions/Investments
■ Company Profiles

► Period of Study
■ 2020 - 2023 : Past and Present Scenario
■ 2023 - Base Year
■ 2024 - 2030 : Future Outlook of the Industry

► Companies Covered
■ Dachser Group SE & Co. KG
■ Rhenus AG & Co. KG
■ DHL Group
■ DB Schenker
■ BITO-Lagertechnik Bittmann GmbH
■ Warehouses De Pauw, NV (WDP)
■ Everstox GmbH
■ Scholz Fulfillment GmbH & Co. KG
■ Byrd Technologies GmbH
■ Aramex Group

Get full Makreo Research report here:
Germany Warehousing and Cold Storage Market Size and Forecast (2020-2030) - Focus on Warehouse Market By Type, Industries and Major Cities
https://www.makreo.com/report/germany-warehousing-cold-storage-market-size-forecast-2020-2030

Related Reports:
Europe Warehousing and Storage Market Size and Forecast (2020-2030)
https://www.makreo.com/report/europe-warehousing-and-storage-market-size-and-forecast-2020-2030

Sweden Warehousing Market Size and Forecast (2018-2028) - Focus on Warehouse Market by Type, by Industries and Major Cities
https://www.makreo.com/report/sweden-warehousing-market-size-forecast-2018-2028

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