• The Industrial and Logistics Property Index (IWIP) forecasts a declining development of rental prices for warehouse, logistics, and production properties in Germany for 2025, with a decrease of (−3,1 %).
• Particularly in the warehouse sector, the strongest price drop is expected (−4.0%), followed by logistics properties with −3.7% and production properties with a moderate decline of −0.9%.
• Thus, all segments show negative growth rates, indicating a slight recession in the market.
• The Consumer Price Index (CPI), on the other hand, rises by +2.3% compared to the previous year, signaling continued moderate inflation, which is clearly decoupled from the rental price development in the industrial and logistics property market.

• The Industrial and Logistics Property Index (IWIP) shows a continued positive development of rental prices for warehouse, logistics, and production properties in Germany for 2024 with an increase of +3.5%.
• Particularly noteworthy is that the value development of all analyzed property categories – even if only slightly – exceeds that of the Consumer Price Index (CPI).
• Warehouse and production properties both record an increase of +3.1%, while logistics properties lead with a rise of +4.5%.
• Overall, the value development at +3.5% is below the previous year’s figure of +4.5%, with logistics development almost halving at +4.5%. The CPI also falls significantly behind last year’s increase, with a growth of +2.2% compared to +5.9%.

THE Industrial Property Index (IWIP) METHODOLOGY

The Industrial Property Index (IWIP) methodology: In times of advancing globalization and increasing integration of financial markets, companies are increasingly active in multiple countries and property submarkets. Their performance increasingly depends on knowledge of the regional specifics in the submarkets in which they invest. Additionally, professional investors seek to identify opportunities and risks prior to an investment. Such effects can best be identified through the use of an index. Such an index represents the entire breadth of the market — without gaps, without overlaps, and free from any subjective views.

Industrial Property Index (IWIP)

The IWIP Index, created by IndustrialPort in cooperation with the German Economic Institute (IW) in Cologne, meets these requirements.

It is used by professional investors throughout Germany for investment analysis, rental value tracking, portfolio structuring, hedging, and the creation of real estate funds.

Through sub-indices for warehouse, logistics, and production properties — further divided into the three equipment classes basic, functional, and modern, as well as spatially into nine different location suitability classes — the IWIP index strategy enables clients to monitor portfolios and individual assets in a coherent and consistent way. This avoids benchmark mismatches and uncompensated risks.

COMPLETE COVERAGE OF RENTAL PRICE DEVELOPMENT IN THE GERMAN INDUSTRIAL PROPERTY MARKET

The IWIP Index Series – Advantages of the IWIP Index:

• Nationwide coverage: Based on all approx. 11,000 municipalities, the IWIP Index offers a comprehensive depiction of rental price development across Germany.
• Measurement and attribution of value development:
  Industry-leading index for mandates in Germany, with subsets by region, usage type, equipment class, and more — available for targeted investment mandates.
• Research:
  Research-based indices and analyses from IndustrialPort help institutional investors build and manage more value-oriented portfolios.
• Product development:
  IndustrialPort develops innovative indices used by the investment industry.
• Consistent framework:
  All IWIP sub-indices follow a modular approach with a scientific methodology. This allows investors to identify hidden risks, gaps, or overlaps.
• Replicability:
  Minimum data volume requirements for individual sub-indices ensure the size of each investment opportunity is reflected and facilitate replicability of the indices.

Our modular approach — Modern index strategy

IndustrialPort indexing offers a modern, seamless, and fully integrated approach to measuring complete rental price development, without gaps or overlaps.

Modern

Developed to evaluate individual submarkets.

The IWIP Index and its sub-indices are based on an innovative calculation method. It offers a balance between the need for a stable index and flexible, individualized analysis.

Seamless

The IWIP Index covers the entire country and all industrial property classes.

All IndustrialPort sub-indices are based on the same calculation method.

They cover all spatial and property-specific submarkets with non-overlapping size and age segmentation.

Integrated

Uniform methodology for each market segment.

While other providers represent either survey-based market sentiment or the complete change in rental prices, IndustrialPort mathematically determines the value-driving differences in individual equipment features. In addition, equipment-driven effects on rental changes are separated from market-driven rental increases. IndustrialPort places great value on the transparency of its index and publishes the results in the form of a report for each index determination. For IndustrialPort, the investability and replicability of its index are of high relevance. Therefore, comparative validations are carried out against other real estate indices.