Logistics property

The "winners" in the crisis

While the domestic property industry, especially in the hotel, catering and retail sectors, has been massively affected by the corona pandemic and its consequences and is struggling with rent losses, the logistics sector can assert itself as a winner in this crisis. "The current situation means that distributors and retailers are desperately looking for large-scale warehouses that are needed at short notice until at least the end of the year", reports Tina Steindl, MSc., Team Leader Industrial/Logistics at Otto Immobilien. These "buffer stores" are urgently needed right now, supply chains must be secured and must not be noticeably interrupted by import barriers, production bottlenecks etc. The focus here is on urban logistics. In this field, delivery services for everyday requirements are taking a huge leap forward, and if this growth spurt continues long-term, then additional space or new locations will be created within Vienna. 

The share of online trade, which has been increasing for years, is also driving the demand for suitable logistics space in Vienna and is now being accelerated by the crisis, reports Patrick Homm, Head of Commercial. 

However the enquiries are not just for short-term rentals. "Professional enquiries for medium to long-term rentals are still coming in", explains Steindl.  This being said, the time scales of the current searches are extending, since the conditions are constantly changing and potential properties are being checked in painstaking detail. The marketing period therefore takes a little longer than before the corona crisis, report the experts at Otto Immobilien. 

Net rents for logistics and industrial properties are currently fluctuating between Euro 3.50 and 6.50 per m2 and month, depending on the quality and location. Vienna is therefore below the European average of Euro 7.30 per m2 and month, just slightly behind Munich (Euro 6.80) and Frankfurt and Warsaw (Euro 7.00). Given the growing demand, but also thanks to the creation of new and modern logistics centres, a further rise in rental prices is to be expected. The extent to which they will rise, however, is unpredictable given the constantly changing framework conditions.

The current issue of the Industry and Logistics Market Report from Otto Immobilien, containing further detailed information, can be downloaded from the link below: