The Baden-Württemberg state capital of Stuttgart is among the top 10 locations in Germany and is exhibiting significant growth in the industrial sector. This result of a current study corresponds with the experiences gathered by the Stuttgart bank Ellwanger & Geiger in many years of doing business. In its current study on the industrial and logistics market report, the bank is analyzing the industrial region of Stuttgart. The overall economic growth in Germany is also making itself known in Stuttgart: The manufacturing industry is investing in new production areas. The demand for industrial and logistics real estate is growing, which can lead to a shortage of properties and increasing prices.

According to Ellwanger & Geiger, a clear trend can be observed: Manufacturing companies are rediscovering the opportunities of the Stuttgart region. Most in demand are production areas for highly specialized processes that have technical installations such as crane bridges, high-voltage current connections and compressed air supply and are also functional and flexible.

According to the bank, logistics companies are also a part of the trend. They are increasingly functioning as an interface between the acquisition and production industries and are being commissioned with production-related tasks such as finishing and pre-assembly, which require a low level of specialization – sectors that were previously all taken on by the production companies.

The need for excellent space is growing, and new buildings are particularly in demand. Last but not least, the growing interest of national and international investors in industrial and logistics real estate is a trend that characterizes the greater Stuttgart metropolitan area and creates interesting investment opportunities.

Source: Immobilienwirtschaft