The Munich market for industrial and logistics properties recorded a leasing turnover of around 56,200 square meters in the first half of 2025. This emerges from a press release by Colliers. Compared to the previous year's period, this represents an increase of 26 percent in the leasing sector, reports the real estate consultant. Since there were no relevant owner-occupier transactions during the period under consideration, the total floor space turnover fell by 46 percent compared to the previous year. The result is thus about 59 percent below the five-year average.
Small-scale deals dominate the market activity
Demand was once again focused on the small-scale space segment up to 3,000 square meters. Around 88 percent of all deals were in this area, which accounted for half of the total floor space turnover. The remaining 50 percent was achieved through deals in the segment between 5,000 and 10,000 square meters. The largest single deal occurred in the second quarter in Kirchheim near Munich, where a grocery retailer leased around 10,000 square
meters in an existing property. Together with two other larger leases from the first quarter, the suburban North-East sub-market secured a dominant share of 80 percent of the total floor space turnover.
Logistics remains the strongest user group
Logistics service providers represented the strongest user group with 32 percent, followed by other users (31 percent), trading companies (25 percent), and the manufacturing industry (12 percent). The latter, however, accounted for 27 percent of the number of deals and was particularly active in the small-scale segment. There were no deals from the automotive sector, while demand was registered from the defense, pharma, and tech sectors.
“Companies from the manufacturing industry have the smallest share of floor space turnover, yet they were responsible for 27 percent of the deals in Munich and have rented more in the small-scale space segment. The lack of deals in the automotive sector is also noticeable, as it is still undergoing transformation. However, we see demand in both the defense, pharma, and tech sectors. The vacancy
rate in Munich has slightly increased in recent months, but at 1.2 percent it remains very low, so there are hardly any available modern spaces on the market,” adds Kah.
Vacancy rate remains at a low level
The vacancy rate in Munich has slightly increased, yet it remains very low at 1.2 percent. Therefore, the market shows hardly any available modern spaces.
Rental prices continue to rise
The top rent for logistics spaces over 3,000 square meters rose by 5 percent year-on-year to 9.80 euros per square meter. The average rent increased by 6 percent to 8.90 euros. In the light-industrial segment, rents remained stable: 15.80 euros at the top and 11.80 euros on average. Despite the tight supply, the market has developed into a tenant's market. Incentive packages are increasingly being offered, but they are smaller in Munich than in other regions.
Outlook: Increasing supply expansion expected
An increase in available spaces is expected in the coming months. This includes the "Unternehmer Park" by Aurelis with over 20,000
square meters and additional sublease spaces. Against this backdrop, it is expected that the floor space turnover in the Munich industrial and logistics real estate market could reach the five-year average of around 200,000 square meters over the course of the year.
Philipp Hunger, Consultant Industrial & Logistics at Colliers in Munich: "The demand in the Munich logistics market consistently meets a very limited supply. Nonetheless, the market has developed into a tenant's market and more and more incentive packages are being offered, although they are lower due to the space shortage in the region than in other regions. New construction spaces coming to the market over the year, such as the 'Unternehmer Park' project development by Aurelis with over 20,000 square meters, as well as sublease spaces coming to the market, will provide more product on the supply side. Therefore, we assume that the floor space turnover in the Munich industrial and logistics market will reach the five-year average of 200,000 square meters over the course of the
