By Hartwig Benken, Head of Servicing, Germany, Solutus
The German commercial real estate market remains challenging. Higher financing costs, refinancing requirements and increased lender selectivity continue to influence decisions across the market.
However, not all sectors face the same pressures. Logistics and industrial real estate in Germany continues to demonstrate a resilience that stands apart from many other asset classes. But working with lenders and investors across Germany, the question I keep coming back to is a practical one: what does that resilience actually mean for loan performance, refinancing decisions and long-term asset management? A strong sector does not mean every asset is a strong loan, and understanding the fundamentals behind each property remains essential.
Why logistics real estate in Germany remains resilient
The occupier market has stayed notably stable despite wider uncertainty. Take-up in the first quarter of 2026 reached around 1.3 million square metres, broadly in line with the past three years. This followed a 2025 in which leasing activity gradually recovered, with take-up over the first nine months up around 8% year on year. Prime rents across Germany's five largest logistics markets rose around 4% year on year, while big-box vacancy remained below 5% in early 2026.
For lenders and loan servicers, what matters is the quality, durability and diversification of the income sitting behind those numbers. On that front, the occupier base has evolved significantly. Alongside traditional demand from e-commerce operators and third-party logistics providers, we are seeing increased requirements from manufacturers reshoring production, defence-related occupiers and businesses connected to data centre infrastructure. That broader base offers greater diversification than the sector had five years ago, and it changes how lenders should assess tenant concentration, covenant strength and long-term income security.
Location remains equally important. Demand continues to favour properties close to population centres, transport links and established industrial hubs, where planning constraints make new supply increasingly difficult to deliver.
Supply constraints support prime assets, but not every property equally
Limited new development has been one of the key supports for the sector. Pipelines remain subdued, speculative construction is tightly controlled, and European completions are heading towards a nine-year low on a rolling twelve-month basis. In Germany, the share of new-build assets within take-up fell to around 40% in early 2026. Established locations, including Munich, Hamburg and the Frankfurt corridor, have largely absorbed the excess supply from the previous development cycle.
A constrained market, however, does not remove asset-level risk. If anything, it sharpens the divide. Modern, energy-efficient properties in strong locations continue to attract occupiers, lenders and investors. Older buildings, assets requiring significant capital expenditure and properties with weaker long-term relevance face a very different outlook. For loan servicers, that distinction becomes decisive when assessing refinancing prospects, restructuring options or potential exits.
How German CRE lenders are approaching logistics financing
The wider lending environment remains cautious, with greater scrutiny applied to sponsorship, business plans, asset quality and refinancing assumptions. Logistics and industrial is one of the sectors where financing appetite has held up comparatively well. Well-let assets in strategic locations with credible sponsors continue to attract attention.
The investment market reflects this confidence. German industrial and logistics investment reached €3.26 billion in the first half of 2026, up 24% on the same period last year, supported by both domestic and international investors. An active investment market gives lenders valuable flexibility when weighing refinancing, restructuring or exit strategies, though liquidity alone does not eliminate risk. The performance of a logistics-backed loan still depends on the underlying asset and the income supporting it.
Why logistics assets still require careful loan servicing
Strong sector fundamentals make detailed asset-level analysis more important, not less.
Lease structure is a key consideration. Logistics leases vary considerably in length, indexation, break provisions and tenant obligations, so two fully occupied assets can present very different lending profiles depending on remaining term and income visibility. Tenant covenant matters just as much. The sector spans global logistics providers, e-commerce businesses, manufacturers and smaller regional operators, each with different financial strength. Single-let big-box properties warrant particular attention, because income visibility rests heavily on the commitment of one occupier.
Valuation completes the picture. Modern, energy-efficient prime stock continues to attract investor demand, while older assets with higher capex requirements or weaker ESG credentials may see more limited liquidity. The key question is not simply what an asset is worth today, but whether it remains competitive and financeable over the life of the loan.
The role of specialist loan servicing in Germany
For lenders and investors, sector resilience is only the starting point. A logistics-secured loan still requires a detailed understanding of lease profile, tenant covenant, income quality, valuation evidence and realistic refinancing or exit options. This is where specialist commercial real estate loan servicing adds value.
At Solutus, we support lenders and investors throughout the lifecycle of real estate loans, from monitoring performing facilities and assessing covenant compliance through to refinancing support, restructurings and complex debt situations. Our experience across Germany and wider Europe lets us combine market knowledge with asset-level analysis in both performing and stressed situations.
Logistics and industrial is well positioned to remain one of the better-performing sectors in Germany's CRE market over the next two years. But the next phase will be defined less by which sectors perform well and more by which assets demonstrate durable income, strong fundamentals and long-term relevance. For anyone financing, acquiring, refinancing or managing logistics real estate in Germany, disciplined asset-level management will remain essential.
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Sources
Figures are as reported by the sources below, as at early to mid 2026.
Q1 2026 take-up of 1.3 million sqm, prime rent growth of 4.1% and big-box vacancy of 4.7%: CBRE, Germany Logistics Market Q1 2026 (cbre.de)
Nine-month 2025 take-up of around 4.4 million sqm, up 8% year on year, and structural supply chain changes driving new occupier demand: Colliers, Industrial & Logistics Germany 2025/26 (colliers.de)
Rolling twelve-month completions heading towards a nine-year low and tightly controlled speculative development: CBRE, European Logistics Outlook 2026 (cbre.com)
Share of new builds in Q1 2026 German take-up falling to around 40%: CBRE, Germany Logistics Market Q1 2026 (cbre.de)
H1 2026 industrial and logistics investment volume of €3.26 billion, up 24% year on year: CBRE, reported July 2026
