[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row column_structure=”2_3,1_3″ module_class=”reverse-columns-mobile” _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.1″ global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.1″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” global_colors_info=”{}” theme_builder_area=”post_content”]Credits: Four Parx, DHBW, [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.1″ hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]LOGISTICS PILOT: Why is the logistics real estate market not performing as well this year as it did in 2022? Is it solely due to fewer larger transactions and the fact that foreign investors are hesitant?<\/p>\n Nehm: <\/strong>The logistics asset class may be performing less strongly this year compared to last, but it\u2019s still experiencing comparatively stable user demand. Accordingly, what I\u2019ve just said relates more to the investor side than to that of the user, and there are many reasons for the restraint we\u2019re seeing at the moment. A cocktail of high construction prices, interest rate developments, inflation, the war in Ukraine and the energy crisis has unsettled the market. Such uncertainty is what investors like least and is what has ultimately led to the current reluctance to invest.<\/p>\n B\u00e4hr: <\/strong>This is due to numerous factors, first and foremost among them are the interest rate hikes by the European Central Bank, which have brought much uncertainty to the market. This has changed some investors\u2019 purchasing behaviour; large institutional investors have even suspended purchases almost completely because, at the same time, sales prices have fallen by up to 40 per cent, but both land purchase prices and construction prices haven\u2019t fallen to the same degree, so only a lower margin remains for the development of projects. This means a higher risk. Increasing rent can make up for some of this, but not at the rate at which margins have fallen.<\/p>\n LOGISTICS PILOT: Are land scarcity, the simplification of building law and the need to reconcile environmental and economic considerations the issues of 2023? <\/p>\n Nehm: <\/strong>All these issues place a lot of pressure on logistics properties. In terms of their design, energy balance, choice of location and sustainability, this is initially positive \u2013 but also overdue. The golden age of building as cheaply as possible and selling as expensively as possible is over for now. Both the lack of space and the ESG and sustainability requirements are forcing innovations in the logistics property field. In my opinion, however, this is also an opportunity for the industry to reposition itself and fundamentally revise its battered image. I\u2019ll give you an example \u2013 when competing for attractive space, it\u2019s becoming much harder to win over local authorities that, for their part, are forced to contribute to the energy supply. If we could quickly develop concepts in which the real estate can generate renewable energy \u2013 so, solar, wind, geothermal \u2013 for the community in the form of a local power plant, things would probably change, especially in terms of acceptance and image. The property wouldn\u2019t be the source of the problem, it\u2019d be the solution!<\/p>\n B\u00e4hr: <\/strong>Two types of land shortage are currently prominent. The first is the fact that there are only a few suitable plots of land left in urban areas that still have the building rights required for logistics real estate. The second is that logistics real estate lacks acceptance among citizens, local authorities and councils. This makes it increasingly difficult to find new project sites and more time-consuming to obtain the corresponding building rights or planning permission. Another issue is digitalisation within logistics real estate. The industry is in the digital stone age here, and relevant data beyond that gained by electricity and water meters is rarely collected. In the future, though, it won\u2019t be possible to implement the EU taxonomy or the ESG requirements without digitalisation, nor will we be able to operate efficiently without it. [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_sidebar area=”et_pb_widget_area_7″ show_border=”off” admin_label=”Werbung Startseite \/ Artikel” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_sidebar][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2023\/02\/Prof.-Alexander-Nehm_500px.png” title_text=”Prof.-Alexander-Nehm_500px” align=”center” _builder_version=”4.22.1″ custom_margin_tablet=”” custom_margin_phone=”25px||||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.1″ header_3_text_color=”#002e5b” text_orientation=”center” custom_margin_tablet=”” custom_margin_phone=”||40px||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Prof. Alexander Nehm <\/strong>has been teaching at the Baden-W\u00fcrttemberg Cooperative State University in Mannheim since 2020 and is a Business Administration expert focussing on logistics real estate. [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ prev_background_color=”#ffffff” _builder_version=”4.21.0″ background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(0,58,124,0.13) 0%|#ffffff 100%” background_color_gradient_start=”rgba(0,58,124,0.13)” background_color_gradient_end=”#ffffff” custom_padding=”0px||0px|||” top_divider_style=”slant2″ top_divider_flip=”horizontal” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.21.0″ custom_padding=”114px||||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.1″ custom_margin=”||||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]LOGISTICS PILOT: What are Germany\u2019s most significant logistics real estate markets? <\/p>\n Nehm: <\/strong>You can probably really only talk about the \u201cBig 7\u201d \u2013 after Hamburg, Duisburg\/Lower Rhine and Rhine-Main, these include Rhine-Neckar, Cologne, Berlin and the eastern Ruhr area. Bremen\/Bremerhaven and the Hanover region are also in the top ten, though. In general, the north has two decisive advantages over the south \u2013 the topography and its large seaports. The theoretical land potential is significantly greater here than in mountainous areas. Although it\u2019s becoming harder to find good sites in the north\u2019s prime areas, a lot\u2019s happening at the moment. For example, VW is building a battery cell manufacturing gigafactory in Salzgitter, which is also expected to generate strong demand for logistics. The JadeWeserPort is also growing \u2013 the project developer P3 has started building a total of 140,000m\u00b2 of warehouse space there. This lighthouse project is an important signal for the location. Plus, Bremen\u2019s freight transport centre has been regarded as a showcase model in Germany and Europe for years. There seems to be no room for stagnation here \u2013 innovation is part of our DNA. The current BLG new-build C3 made headlines in the Nordsee-Zeitung. \u201cLogistics hall as power station: BLG impresses Economics Minister Habeck\u201d. The energy generation methods used in the new hall are extraordinary and provide a good link to the examples I just described.<\/p>\n B\u00e4hr: <\/strong>Certainly, the \u201cBig 5\u201d, so, the metropolitan areas around D\u00fcsseldorf, Berlin, Munich, Hamburg and Frankfurt am Main, remain the most important markets. In contrast, other regions that haven\u2019t been so strong so far are constantly developing, such as around Leipzig Airport, Erfurt and Magdeburg, and the regions surrounding Berlin and Bremen. As far as Lower Saxony is concerned, I see strong development at the JadeWeserPort and the hinterland there that\u2019ll impact the area between Oldenburg, the A1\/A29 motorway junction and Bremen.<\/p>\n LOGISTICS PILOT: So, are \u201cbrownfields\u201d or \u201cgreenfields\u201d the future? <\/p>\n Nehm: <\/strong>That’s easy. Firstly, the usage of undeveloped land is simply no longer acceptable from a sustainability point of view. Plus, the German government is aiming to reduce land consumption to less than 30 hectares per day by 2030. For the logistics real estate industry, this means that competition for commercial land allocations will become more intense. The result is that brownfield developments have become the \u201cin thing\u201d in logistics.<\/p>\n B\u00e4hr: <\/strong>Brownfields embrace the challenges of the future as they make efficient use of limited space and don\u2019t encroach on more “greenfield” sites. Our multi-storey \u201cMach2\u201d project in Hamburg is a pioneering example of how space-efficient brownfield development works. We\u2019ve created around 120,000m\u00b2 of logistics floor space on a 100,000m\u00b2 site. Before, only a maximum of 50 to 60 per cent development, so up to 60,000m\u00b2 was possible on such a plot (bre)<\/em><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.21.0″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2023\/02\/Francisco-J.-Baehr_500px.png” title_text=”Francisco-J.-Ba\u0308hr_500px” align=”center” _builder_version=”4.22.1″ custom_margin_tablet=”” custom_margin_phone=”25px||||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.1″ header_3_text_color=”#002e5b” text_orientation=”center” custom_margin_tablet=”” custom_margin_phone=”||40px||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Francisco J. B\u00e4hr <\/strong>is managing partner at Four Parx, an innovator in the development of commercial and logistics real estate.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ prev_background_color=”#ffffff” _builder_version=”4.16″ background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(0,58,124,0.13) 0%|#ffffff 100%” background_color_gradient_start=”rgba(0,58,124,0.13)” background_color_gradient_end=”#ffffff” custom_padding=”0px||0px|||” top_divider_style=”waves2″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The logistics real estate market is currently experiencing a downturn. LOGISTICS PILOT spoke to Professor Alexander Nehm from the Baden-W\u00fcrttemberg Cooperative State University and Francisco J. B\u00e4hr, Managing Partner at Four Parx, about the reasons for this and its impact.<\/p>\n","protected":false},"author":10,"featured_media":64072,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[297],"tags":[],"class_list":["post-64082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-point-of-view-en"],"yoast_head":"\n\u201cUncertainty is what investors like least.\u201d<\/h3>\n
\u201cThe industry\u2019s in the digital stone age.\u201d<\/h3>\n