All asset classes are affected: Space shortage in Germany and Central Europe
- Asset classes
While residential and office buildings can compensate for smaller and more expensive plots of land by means of increased height, production, logistics and other physical processes quickly become inefficient if they have to run over different levels and the buildings become disproportionately elaborate. So the result will be long-term increases in the price of buildings for logistics and industry.
TURNING OLD INTO NEW: BROWNFIELD SITES
However, an opportunity is provided here by industrial wasteland, often left behind by the coal and steel industry – whether refurbished or unrenovated, with low levels of contamination and explosive remains. They are situated right where industry, commerce and logistics providers want them: often near city centres and always in a metropolitan area that has grown around these former industrial centres over the centuries. Large concentrations of consumers, production facilities and potential employees provide significant potential.
Integration in a particular industry cluster such as car manufacture or the aerospace industry often provides added security.
Brownfield development is a key area of expertise of Garbe Industrial Real Estate. High-quality new construction work has been carried out over the last seven years covering a total surface area of 1,000,000 m² of previously derelict ground at sites in cities such as Dortmund, Duisburg, Mannheim and Salzgitter.