Industrial Property And Logistical Real Estate - Sale Or Purchase In Germany

Industrial property, logistics facilities, storage areas, production areas and warehouses for buying or selling in Germany

As an important part of the industrial real estate market, logistics facilities such as production areas, storage areas and warehouses are becoming increasingly significant. This potential speaks for itself. Half the total market value of commercial real estate involves industrial properties. This means that the proportion of traffic from all levels of retail space, office space, hotel properties and nursing homes constitute the total real estate industry. The real estate industry is increasingly recognized as an area for investment, focusing on warehouse and production space. This has been the trend both in the United States of America and in the United Kingdom for some time. Above-average returns are the ultimate incentive for investors. For institutional investors, it is also important that the numbers of leases are usually high in the case of commercial real estate whose lease contracts take a long time to be completed. The personal ownership rate of the users of commercial real estate is shrinking, thus opening the doors for more property investors. In the wake of globalization, the logistics real estate sector in Germany has become the large beneficiary of this development. With the country’s central business location in Europe, the transport of goods to neighbouring countries and for the national supply is very important. Demand for warehouses, storage areas and production areas is particularly significant. The most relevant types of logistics real estate are warehouses, distribution warehouses, cargo-handling facilities and storage facilities. The tenant or prospective users of logistics properties are freight forwarders, courier and parcel services, supply dealers with customers, manufacturers and wholesalers with their own warehouses, or retail chain-store companies with their own interim storage. The needs of these potential users of logistics facilities are mostly congruent. The companies usually need a huge floor space or storage area or production area. The location is also extremely important for the logistics companies, and its detailed macro- and micro-analysis is essential, as in other real estate investments. Excellent access with short start-up moves to roadways and railways represents the most important factor in determining the macro situation. Another important aspect is whether the logistics real estate planning has the type of location as per the law for a commercial area (GE) or for an industrial area (GI). The industrial area has the significant advantage of allowing a permanent exercise of trade; it may open 24 hours with no breaks in the warehouse, storage area or production area for full flexibility and maximum efficiency. Regarding the micro-situation, it is important that there is no residential area in the immediate environment; there must be an area where workers can take breaks; and connection to telecommunications networks is also important. The minimum technical requirements for logistics real estate have risen, so logistics facilities quickly become obsolete and are replaced by the conventional markets. When planning a logistical estate property, communications, staff rooms and offices can usually be from around 10 to 15% of the total floor-space. The demand for adequate logistics facilities such as warehouses, storage areas and production areas is increasing. Its rents depend upon several criteria and situations. When investing in logistics facilities, it is especially important to note that they will be used by third parties constantly; otherwise actual return on investment cannot be achieved. The logistics property must be set up flexibly so that adjustments are possible with any change of tenants in relation to the warehouse, storage area or production area. It must be respected in the same way as the other commercial properties, on a balanced tenant structure to reduce the risk of vacancy and losses in rent.

Buying Guides for industrial property and logistics real estate in Germany

The Investment Property Specialist real estate agent from Germany  KARODI provides services for sale or purchase of real estate industrial or logistics facilities such as production areas, storage areas and warehouses nationwide in Germany. In particular, we are active in the cities of Aachen, Bergisch Gladbach, Berlin, Bonn, Dortmund, Dusseldorf, Essen, Hamburg, Frankfurt, Koblenz, Cologne, Leverkusen, Mainz, Munich, Munster, Neuss, Stuttgart, Solingen, Wiesbaden and Wuppertal, or in the territory of the federal states of North Rhine-Westphalia (NRW), Hessen and Rhineland-Palatinate.