German logistics and industrial real estate investments fell by 17% to EUR 587 mln in the first six months of 2011, according to new research by Colliers International. The figure goes against the overall trend, which has seen commercial property transactions rise by 24% year-on-year to a total of EUR 11 mln in Germany in the same period.

'This market segment remains limited to specialised investors,' said Andreas Trumpp, head of Research at Colliers International's German office.

Based on transaction volume, real estate investment trusts were the biggest buyers of logistics and industrial real estate, with EUR 209 mln invested. Open-ended and special funds accounted for EUR 112 mln worth of deals, while closed-ended funds invested EUR 81 mln. International investors accounted for two-thirds of the transaction volume.

A lack of new developments in the past three-four years has created a shortage of modern facilities, which is driving up rental values, according to Marcus Blumenthal, senior consultant for Industry and Logistics at Colliers International in Munich. 'The most expensive area is the Rhine-Main region, where first-class logistics and industrial real estate is currently being traded at a prime yield of 6.50%,' he said. ‘The biggest jump was seen in Berlin, where prime yields moved by 60 basis points to 7.40%,' Blumenthal said.