But it is a reason why the Germans were not gun-ho about sending German manned ships to make colonies. Spain took care of that. The Austrians of Austria had the Turks to worry about, and in the short term it was better to focus on European domination, especially when you have to contend with the rising French. Speaking of which, the French sold their American colonies to fund a war in Europe, which was seen as vastly more important.
The idea that Germans were too dumb or not evolved enough to set up colonies is wrong and so is the idea that "Germany" only came about in the 1850s and were too late (as if they suddenly emerged out of thin air). As far as the "Germans" (Habsburgs/Austrians/Southern Germans/whatever) were concerned the Spanish colonies would be under German control. Obviously things didn't turn out that way, but it was not because they were not advanced enough. If you want to point out why central Euros were not manning ships themselves well that is simple - they are were not and are not a seafaring people.
The English and Dutch were not great powers in the 1500/1600s but they built colonies because their maritime heritage and relative isolation from European bullshit. In fact, if the Dutch were located on a real island we would be speaking Dutch rather than English.The Italians, although seafarers, did not share that luxury because they were fist deep in European bullshit. They would have built some great new world colonies if not for the Italian Wars (it is worth nothing they controlled much of Greece and the middle east in the same way the western euros controlled their colonies in the Americas).