Although take-up in 2023, at just under 500,000 m², was below previous years, the Ruhr region ranks as Germany’s most active location for logistics property. Demand for suitable premises remains high as space becomes increasingly scarce.

Imran Kaya, Brockhoff logistics property specialist, explains: “The Ruhr region is an attractive business location because of its central position in Germany and Europe and the availability of labour. However, space is notably scarce in the central Ruhr region, particularly for pure logistics operators that need large halls with specific features.” Peripheral locations are benefiting most. In Greven last year, Brockhoff secured WM Group as anchor tenant for 46,500 m² at Aconlog Park Greven. The then-largest logistics letting brokered by Brockhoff—56,500 m² to L-Shop at MLP Unna Logistics Park—also shows the opportunities on the outskirts.

Activity in the Light Industrial asset class has increased year on year. It covers office and warehouse combinations of up to 10,000 m², mostly in traditional commercial areas. In recent years, these properties have been used not only by workshops and manufacturers but also by last-mile delivery companies. Last year, food delivery, expanding communications technology and energy companies, as well as leisure and sports operators, increasingly joined the pool of prospective tenants, intensifying competition for available space. In 2023, Brockhoff marketed more than 45,000 m² to clients in food delivery, leisure, communications technology and energy. This included the sale and letting of a 10,000 m² last-mile property in Bochum to REWE Lieferservice.

Brockhoff also completed transactions across a range of sectors in almost every Ruhr region city. In Bochum, it arranged the letting of an 8,300 m² hall to LUCHS AG and a 5,900 m² hall to established company Schrauben & Draht Union. In Dortmund, Hestal took 10,000 m² of hall space through Brockhoff. Further deals included Oberhausen (8,500 m², 1,440 m² and 600 m²), Mülheim (1,900 m²), Hattingen (1,890 m²), Bochum (1,900 m² and 955 m²), Essen (4,500 m², 1,830 m² and 1,300 m²) and Dortmund (1,250 m²).

Undeveloped sites and plots with new-build potential are also highly sought after, and very few remain in the central Ruhr region. Thanks to its extensive network, Brockhoff sold a prime 8,500 m² plot close to Essen city centre and a 4,370 m² greenfield site in Gelsenkirchen. In the Bochum area, it arranged an interim letting of a site of just under 100,000 m² earmarked for development. These sites are generally marketed off-market and developed for multiple tenants.

“Owners of commercial-area properties are often private individuals with one or more assets in their portfolios. Many are part of our network, so we know early when properties are becoming available and can introduce suitable tenants,” explains Devin Diviniyathasan, Brockhoff’s Light Industrial marketing specialist. This ownership structure differs from that of traditional logistics halls, which are often held by institutional investors.

Achievable rents for Light Industrial properties in the Ruhr region, particularly in good locations, continue to rise because of strong demand. The sales cycle has also picked up again. While transactions slowed at the start of the coronavirus pandemic, Brockhoff is now seeing processes accelerate.

Against this backdrop, market activity is expected to be strong in 2024, making full use of available space even as rents rise.

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Brockhoff GmbH is one of Germany’s leading commercial real estate agencies and the market leader in the Ruhr region. The owner-managed company, headquartered in Essen, was founded by Eckhard Brockhoff in 1987. With more than 35 years of industry experience, it has expertise in marketing properties across OFFICE, INVEST, RETAIL and LOGISTICS. Its portfolio includes nationwide sales of office and investment properties, office leasing focused on the Ruhr region, brokerage of retail properties in prime 1A locations in German cities of all sizes, and logistics leasing and sales. In 2021, ADOMO Beteiligungs GmbH acquired a 41% stake in the company.