Brownfield sites as an opportunity: why the future of land development lies in brownfield sites

Key Findings

• Lack of space is slowing growth: In many regions of Germany, industrial and logistics space is almost exhausted. New land designations have been declining for years, while regulations continue to increase.
• Brownfields as a strategic solution: The reactivation of brownfield sites combines sustainability with effective location policy – avoiding additional land consumption, making use of well-integrated sites with strong infrastructure, and enabling long-term value creation.
• Technology as an enabler: Digital processes such as GARBE GRID Search allow data-driven identification and assessment of potential sites, thereby accelerating the sustainable development of land.

Lack of space as a brake on growth

Regardless of temporary fluctuations in demand, Germany’s economy has faced a paradox in logistics for several years: on the one hand, demand for modern industrial and logistics space continues to rise; on the other, available sites are becoming increasingly scarce. The number of new zoning designations has been declining for years, while political objectives to reduce land sealing – such as the federal government’s 30-hectare-per-day target by 2030 and the ‘net zero’ land sealing goal by 2050¹ – are making it even more difficult to allocate new commercial land.

The days when undeveloped greenfield sites were available in almost unlimited quantities are long gone. Restrictions on land allocation will continue to increase. If the economy is to grow, unused or derelict sites – so-called brownfields – will inevitably have to be reactivated.

The End of the Greenfield Era

In many regions of Germany, the shortage of land is already very noticeable. Project developers are reaching their limits, particularly in heavily industrialised federal states such as North Rhine-Westphalia, Hesse and Bavaria. Analyses by GARBE Research show that the potential for commercial and industrial space (GE/GI space) in North Rhine-Westphalia could be completely exhausted by 2042 at the latest – and in the most important logistics regions as early as 2037.

This structural shortage has immediate consequences: less scope for new developments, rising prices, growing competition for suitable land – and ultimately a threat to Germany as an industrial location, which is already under severe pressure due to unfavourable conditions compared to other nations (e.g. industrial electricity prices).

Brownfields as a sustainable solution

The reactivation of brownfield sites offers the opportunity to reuse land without sealing additional soil. These are mostly former commercial or industrial sites that lie fallow – from disused factories and former power plant sites to abandoned railway areas.
According to the Federal Environment Agency, there are an estimated 150,000 to 176,000 hectares² of unused or derelict land in Germany. Not all of these areas are suitable for land recycling or brownfield development. It is crucial that they meet certain requirements – such as a favourable location, existing infrastructure and fundamental development potential.

Brownfields often have an advantage over greenfields in this respect: they offer integrated locations with existing connections and at the same time make it possible to avoid additional land sealing in the open countryside.

Politics and business must act together

The reactivation of brownfield sites calls for close interdisciplinary cooperation.

• Local authorities must remove planning barriers, clarify regulations concerning contaminated land and actively support revitalisation projects.
• Businesses and project developers, in turn, should be willing to accept higher investment costs and longer lead times as a contribution to sustainable land-use policy.
• Public funding and government support play a crucial role – for instance, through federal and EU programmes that specifically promote brownfield redevelopment.

Logistics properties as infrastructure hubs of the future

Revitalised brownfield sites are not merely replacement areas – they have the potential to become central infrastructure hubs for the energy transition. Studies show that such sites can be transformed into locations for the production and distribution of green hydrogen – as part of so-called eco-industrial parks (EIPs) featuring circular economies, waste heat recovery and integrated energy systems.

For occupiers of logistics and industrial properties, this opens up new usage models, multifunctionality, and greater energy and resource efficiency – resulting in sustainable, long-term location advantages.

Conclusion: Brownfields – More Than a Last Resort, a Key to the Future

Given the scarcity of land, there is no way around revitalising existing areas. Brownfields are the key resource for combining growth, climate protection and sustainability. The combination of data processes, digital tools and innovative utilisation concepts makes them a central pillar of future land use. The future of land development therefore lies not in greenfield sites, but in brownfields – offering clear advantages for the environment, the economy and society alike.

Sources

1. German Environment Agency (UBA): Indicator: Settlement and Transport Area.
   Available at: https://www.umweltbundesamt.de/daten/umweltindikatoren/indikator-siedlungs-verkehrsflaeche#die-wichtigsten-fakten
2. German Environment Agency (UBA): Land Recycling and Inner Development, section “Brownfield Sites – Using Land, Protecting Green Spaces”, 14 October 2020.
   Available at:  https://www.umweltbundesamt.de/themen/boden-flaeche/flaechensparen-boeden-landschaften-erhalten/flaechenrecycling-innenentwicklung#brachen-nutzen-grune-wiesen-schonen