COMMERCIAL PROPERTY MARKET GERMANY'S TOP 7 CITIES 2017/2018
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LOCAL EXPERTISE – ACROSS GERMANY
INDUSTRIAL/LOGISTICS
COMMERCIAL PROPERTY MARKET
GERMANY‘S TOP 7 CITIES
2017/2018
WWW.GERMANPROPERTYPARTNERS.DE
LOCAL EXPERTISE – ACROSS GERMANY MARKET REPORT | LOGISTICS/INDUSTRIAL/STORAGE | INVESTMENT/LETTING 2017/2018
ABOUT US
GERMAN PROPERTY PARTNERS
As leading commercial real estate companies of our respective one service provider for all your commercial real estate
regions, we have joined forces to form a nationwide real estate needs in Germany: from us. Thanks to our network and our
network. We are four strong partners. respective market positions, we have excellent knowledge
of locations and priority market access across Germany.
With offices in Hamburg and Berlin, Grossmann & Berger pro-
vides real estate services in Northern Germany, while E & G Real Our staff members have been with our companies for many
Estate with branch offices in Stuttgart and Munich takes care years, making German Property Partners a very reliable LOCAL EXPERTISE - ACROSS GERMANY
of Southern Germany. ANTEON Immobilien is your partner for partner.
the property market of Düsseldorf and the surrounding region GERMAN PROPERTY PARTNERS
and GREIF & CONTZEN Immobilien is always on top of things re-
garding the metropolitan region of Cologne and Bonn. Dear Readers,
Our goal is to provide outstanding services in all of Ger- The investment market for industrial and logistics pro- and warehouse letting markets. The investment topics are
many’s most important property regions through our perties reached unprecedented heights in 2017, due to further complemented by an account of the development
German Property Partners network. What makes our ser- sales of a number of major portfolios comprising pro- of land prices.
vices so special is that you are able to seek advice from perties across the country. Various property transac-
tions in all size categories took place in the top seven This market analysis is made possible through the coope-
cities Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, ration of leading commercial real estate service providers
Partners Stuttgart and Munich and the respective surrounding re- from Northern, Central and Southern Germany in the
gions. The interest of German and foreign investors in this German Property Partners (GPP) network. Thanks to our
Grossmann & Berger ANTEON asset class continues to increase - and so does their wil- detailed local market expertise, we have access to data
The real estate consultancy firm with ANTEON is an owner-managed real lingness to pay high prices. for the logistics regions that include the surrounding re-
experience stretching back for over estate consultancy firm that specia- gions as well as the respective central cities.
80 years is among the leading service lises in brokering rental and investment In this market report, we are going to provide you with an
providers for sale and letting of com- transactions for commercial, logistics overview of the market situation in the seven logistics re- We hope that you will find this report an informative and
mercial and residential properties in and residential properties. ANTEON is gions listed above for the entire year of 2017. In addition insightful read. We would also be pleased to get in touch
Northern Germany, and is an affiliate also a leading provider of property mar- to a comparison and summary of these locations we are with you personally and to offer support regarding any in-
of the HASPA group of companies. keting, project support and research going to take an in-depth look at the individual investment dividual real estate related matters.
services.
TOP 7............................................................................... 4 Guido Nabben
GREIF & CONTZEN E & G Real Estate HAMBURG....................................................................... 8 Spokesman for German Property Partners
The owner-managed service company With many years of experience in the BERLIN.......................................................................... 10
has been providing consultancy, areas of commercial and residential DÜSSELDORF................................................................ 12
evaluation, brokering and management property investments as well as com- COLOGNE....................................................................... 14
services for commercial and residential mercial letting of office, retail, indus- FRANKFURT.................................................................. 16
properties in the metropolitan region of trial and logistics space, E & G Real STUTTGART................................................................... 18
Cologne | Bonn for around 40 years, and Estate is among the leading real estate MUNICH......................................................................... 20
is experienced in the entire value chain service providers in Southern Germany.
of real estate transactions.
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TOP 7
FACTS & FIGURES 2017/Q1-4 KEY FIGURES 2017/Q1-4
Investment: Largest transactions Letting: The largest contracts
per region based on floor space per region
HAMBURG BERLIN
Business park in Schenefeld, Holsten brewery, approx. 24,000 m² 1 5.80 €/m² 1 5.00 €/m²
Hamburg Hamburg 2 4.25 €/m² 2 4.30 €/m²
42,200 m², buyer: Sirius Real Estate warehouse space in Hamburg-Hausbruch
3 4.60 % 3 4.50 %
Logistics facility in Nauen, 44,000 m², Asos, approx. 47,000 m² warehouse 4 200-240 €/m² 4 60-170 €/m²
Berlin Berlin
buyer: China Investment Corporation space in Großbeeren 5 130-150 €/m² 5 55-140 €/m²
6 60-85 €/m² 6 30-90 €/m²
Logistics centre in Mönchengladbach, Amazon, approx. 152,000 m² warehouse
Düsseldorf Düsseldorf
64,000 m², buyer: RLI Investors space in Mönchengladbach
Logistics centre in Bedburg, 100,000 m², Papyrus Deutschland, approx. 22,000 m²
Cologne Cologne
buyer: China Investment Corporation warehouse space in Cologne-Niehl
DÜSSELDORF
Logistics centre in Bodenheim, 41,000 m², BLG Logistics, approx. 64,000 m²
Frankfurt Frankfurt 1 5.40 €/m²
buyer: AXA Investment Managers warehouse space in Frankfurt-Fechenheim 2 4.60 €/m²
Logistics centre in Ludwigsburg, BOSCH, approx. 38,000 m² warehouse 3 4.75 %
Stuttgart Stuttgart 4 300-350 €/m²
27,000 m², buyer: RLI Investors space in Tamm
5 200-250 €/m²
Logistics centre in Eching, 35,500 m², Rhenus SE & Co. KG, approx. 41,500 m² 6 70-90 €/m²
Munich Munich
buyer: China Investment Corporation warehouse space in Munich-Neufahrn
Key Figures Top 7
Hamburg Berlin Düsseldorf Cologne Frankfurt Stuttgart Munich Top 7
COLOGNE FRANKFURT
2017 4.60 % 4.50 % 4.75 % 4.70 % 4.60 % 4.50 % 4.40 % Ø 4.58 %
1 5.00 €/m² 1 6.20 €/m²
Net prime 2016 4.90 % 5.10 % 4.95 % 5.00 % 5.00 % 5.10 % 5.00 % Ø 5.01 % 2 4.80 €/m² 2 5.40 €/m²
yield
Year-on-year
3 4.70 % 3 4.60 %
change -0.30 pp -0.60 pp -0.20 pp -0.30 pp -0.40 pp -0.60 pp -0.60 pp -0.43 pp 4 130-185 €/m² 4 230-330 €/m²
5 80-145 €/m² 5 65-235 €/m²
2017 240 170 350 185 330 410 700 max. 700 6 70-100 €/m² 6 50-190 €/m²
Land prices
city area 2016 230 150 300 160 300 360 550 max. 550
(max., €/m²) Year-on-year
change +4 % +13 % +17 % +16 % +10 % +14 % +27 %
2017 150 140 250 145 235 300 660 max. 660
Land prices
surrounding 2016 140 130 200 130 230 240 380 max. 380
region STUTTGART MUNICH
(max., €/m²) Year-on-year
+7 % +8 % +25 % +12 % +2 % +25 % +80 %
1 6.50 €/m² 1 6.80 €/m²
change 2 6.50 €/m² 2 6.10 €/m²
2017 450,000 480,400 437,000 280,000 659,000 409,800 271,000 2,987,200 3 4.50 % 3 4.40 %
4 260-410 €/m² 4 390-700 €/m²
Take-up of 2016 665,000 434,500 275,000 200,000 701,300 241,000 321,000 2,838,000 5 150-300 €/m² 5 175-660 €/m²
space (m²)
Year-on-year
6 30-170 €/m² 6 125-430 €/m²
change -32 % +11 % +59 % +40 % -6 % +70 % -16 % 5%
2017 5.80 5.00 5.40 5.00 6.20 6.50 6.80 Ø 5.81
Prime rent *
city area 2016 5.80 4.90 5.60 5.00 6.10 6.50 6.80 Ø 5.81
(€/m²/month) Year-on-year KEY FIGURES INVESTMENT/LETTING:
change 0% +2 % -4 % 0% +2 % 0% 0% 0%
1 Prime rent logistics* (city area) 4 Land prices** (city area)
2017 4.25 4.30 4.60 4.80 5.40 6.50 6.10 Ø 5.14
Prime rent *
surrounding 2 Prime rent logistics* (surrounding region) 5 Land prices** (surrounding region)
2016 4.25 4.20 4.60 4.50 5.40 6.75 6.00 Ø 5.10
region
(€/m²/month) Year-on-year 3 Net prime yield 6 Land prices** (greater area)
change 0% +2 % 0% +7 % 0% -4 % +2 % +1 %
* Logistics: min. 5,000 m², 10 m height to lower edge roof trusses, min. 1 dock loading bay / 1,000 m², state-of-the-art, new building or first letting period * Logistics:min. 5,000 m², 10 m height to lower edge roof trusses, min. 1 dock loading bay / 1,000 m², state-of-the-art, new building or first letting period
** Land: commercial / industrial area, from 1 hectare, developed, contamination-free, virtually rectangular in shape
4 Source: German Property Partners (GPP)/bulwiengesa for Berlin, Frankfurt and Munich Source: German Property Partners (GPP)/bulwiengesa for Berlin, Frankfurt and Munich 5
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TOP 7
INVESTMENT LETTING
Thanks to a number of sales of large, nationwide logistics average yield gap to office buildings has decreased from The seven top markets achieved a combined take-up of AVAILABLE AND VACANT SPACE
property portfolios in the past year, investment transac- 150 to 132 base points. At 60 base points, the decrease around 3.0 million square metres of warehouse space In 2017, all seven top markets were characterised by
tions in this segment have reached an unprecedented of prime yields was particularly noticeable in Berlin, in 2017. This corresponds to an increase by around 5 % scarce availability of space that failed to sufficiently cater
scale in Germany’s seven top markets of Hamburg, Berlin, Stuttgart and Munich. The highest sales prices were compared to 2016. The percentage of owner-occupiers for the demand. Demand has been excessive, on the one
Düsseldorf, Cologne, Frankfurt, Stuttgart and Munich. achieved in Munich, where yields are down to just 4.40 %. remained relatively stable at around 22 %. hand, in the segment of large, modern warehouse units.
At the other end of the scale, there are Düsseldorf and Co- This was the case in Stuttgart, for example. In Düsseldorf
INVESTMENT PROPERTIES logne with returns of 4.75 % and 4.70 % respectively. TAKE-UP OF SPACE and Cologne, on the other hand, there has been a lack of
The take-over of the logistics platform Logicor by China In- The largest take-up of warehouse space was realised in warehouse units of less than 2,000 m². Development pro-
vestment Corporation involved particularly big properties in LAND PRICES the logistics region of Frankfurt, with around 659,000 m². jects for new buildings played an important part in most of
the regions of Berlin, Cologne, Frankfurt and Munich. These The lack of available land has caused purchasing prices Figures for space let or dedicated to owner-occupation in the regions when it came to covering companies’ demand
transactions are among the biggest sales that occurred for industrial building land to increase further in the com- Stuttgart, Düsseldorf and Berlin range between 410,000 and for large units. The biggest facility completed in 2017 were
in each of these regions in the past year. This is especially mercial and industrial areas of the seven top markets in 480,000 square metres. 280,000 m² and 271,000 m² respec- around 64,000 m² for Amazon in Logistikpark Hamburg 1
true for a 100,000 m² warehouse in Bedburg near Cologne. 2017. In Stuttgart, Düsseldorf and Cologne, the highest tively were taken up in Cologne and Munich. This corresponds in Winsen. Nevertheless, plots of land that are suitable for
In the course of the portfolio sale by REIT Hansteen to the prices realised have increased by double-digit percen- to double-digit year-on-year growth rates of up to 70 % building new warehouses have become rare even in the
joint venture of Blackstone and M7 Real Estate, individual tages. The highest prices achieved in Hamburg increased in Stuttgart, Düsseldorf, Cologne and Berlin. Demand for surrounding communities of Hamburg and a number of
or multiple logistics facilities changed hands in almost all of by between around 4 % and 9 %, depending on the location. space from retail companies and logistics service providers other towns in the greater area.
the seven top markets. One of the biggest properties of the made up around 30 % of the overall turnover of space in each
portfolio with 30,000 square metres of warehouse space is OUTLOOK of the seven regions. Large units of more than 10,000 m² OUTLOOK
located near Düsseldorf. In Hamburg, the highest sales price The continuously strong pressure to invest in the capital accounted for almost half of the total take-up. However, a si- According to economic forecasts, the economic upswing in
in this market segment was realised with the “Magnet Port- markets is pushing investors towards the real estate in- gnificant share of 32 % was also contributed by small to me- Germany is going to continue in 2018 and there are going to
folio” which comprises around 27,600 m² of space, located on vestment market. Yields in the asset class of industrial dium-sized units of up to 5,000 m². be further stimuli from abroad. It is therefore to be expected
the street Essener Bogen, with a price in the mid-double-digit and logistics properties are on a relatively high level, that demand for industrial and logistics space is generally
million euro range. The biggest individual sale in the economic despite the fact that purchasing prices have meanwhile RENTS going to be high. However, in Hamburg, Düsseldorf, Stuttgart
region of Stuttgart concerned a logistics property in Lud- increased. Interest from investors is expected to intensify The average prime rent for the seven logistics regions, for and Munich in particular, the take-up of space is going to
wigsburg with around 27,000 square metres of warehouse further in 2018, as a result. It is therefore likely that yields large-scale warehouse units with more than 5,000 m² re- be limited by a lack of available space. There are even signs
space. RLI Investors bought the property from alstria REIT-AG. are going to decrease further over the course of the year. mained on the same level in 2017 as in the previous year, that companies from the economic region of Stuttgart may
However, this development is expected to be less pro- at around € 5.80/m²/month. Rents increased slightly in choose to move to other metropolitan areas. In Berlin, Co-
YIELDS nounced than it was in 2017. The overall transaction Berlin and Frankfurt, by around 2.0 % and 1.6 % respec- logne and Frankfurt, it is becoming apparent that the share
There has been a further significant increase in 2017, when volume is going to decrease, as it is unlikely that there are tively. Prime rents ranged between €5.00/m²/month in of space taken up in the respective surrounding regions is
it comes to the willingness among institutional investors going to be portfolio transactions on a similar scale as Berlin and Cologne through to €6.50/m²/month and €6.80/ going to increase owing to the better availability of space
for industrial and logistics properties to pay high prices. last year. Owing to the scarcity of land, the upward trend m²/month in Stuttgart and Munich. Median rents in the outside of the city areas. In most locations it appears likely
On average, net prime yields have decreased in the seven of prices for industrial building land is going to continue in regions surrounding the top 7 cities were around €4.50/ that slight increases of rent can be realised over the course
top markets from 5.01 % to 4.58 % over the past year. The most of the seven top locations. m²/month on average. of the year, owing to the scarcity of available space.
TOP 5 transactions in the TOP 7 cities (based on floor space) Take-up of space by industry Take-up of space by unit size
10 % 12 %
Region Property/location Buyer Seller Floor space
21 %
Logistics centre, China Investment 26 % 49 % 47 %
1 Cologne Logicor - Blackstone 100,000 m²
Bedburg Corporation
Logistics centre, 33 %
2 Düsseldorf RLI Investors Redevco 64,000 m² 30 %
Mönchengladbach 21 %
22 %
Logistics facility, China Investment
3 Berlin Logicor - Blackstone 44,000 m² 11 %
Nauen Corporation 14 %
36 % 31 % 12 %
Business park, 11 %
4 Hamburg Sirius Real Estate Unknown (equity fund) 42,200 m² 9%
Schenefeld 5%
2016 2017 2016 2017
Central warehouse, China Investment
5 Berlin Logicor - Blackstone 42,000 m² Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
Berlin-Buch Corporation
Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
6 Source: German Property Partners (GPP)/bulwiengesa for Berlin, Frankfurt and Munich Source: German Property Partners (GPP)/bulwiengesa for Berlin, Frankfurt and Munich 7
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21
23
7
Bad Oldesloe
Henstedt-
Ulzburg
LETTING
€ 3.00 – € 5.00 /m2 Norderstedt € 3.00 – € 5.00 /m2
HAMBURG
Uetersen
Ahrensburg Compared to the extraordinary results of the year harbour (Hamburg South) and to a certain extent in Bill-
Pinneberg
before, take-up of industrial, storage and logistics space brook/Allermöhe (Hamburg East).
Halstenbek 1 in Hamburg and the surrounding region has decreased
by almost one third. At 450,000 m², take-up was signifi- AVAILABLE SPACE
Schenefeld Stapelfeld cantly lower than the record figure of the previous year Over the past few years, the availability of space has
Wedel
HAMBURG Barsbüttel (665,000 m²), but on a similar level as in 2013 and 2014. decreased steadily and there is a lack of suitable plots for
23 24 The share of owner-occupiers rose from 18 to 27 %. property development projects.
24
€ 4.50 – € 5.80 /m2 Reinbek Schwarzenbek TAKE-UP OF SPACE OUTLOOK
Buxtehude Neu Wulmstorf 25
In 2017 there was no transaction that could be compared Owing to the lack of available space, take-up is likely to be
€ 2.50 – € 5.50 /m2
to the Amazon deal in 2016 (around 64,000 m²). The two on a similar scale in 2018 as it was in 2017. With two spe-
7 Geesthacht biggest units taken up in 2017 were accounted for by the culative new building projects in the harbour area and a
€ 2.50 – € 4.50 /m
2 commencement of construction of two buildings for ow- number of large, immediately available existing units, the
Seevetal ner-occupation. The brewery Holsten took up around 24,000 market continues to be dynamic, while the demand is high.
1 Winsen (Luhe) m² in the commercial district Hausbruch (Heykenaukamp,
Hamburg South). On Kuehnstrasse in Jenfeld (Hamburg TOP 3 PROJECTS COMPLETED IN 2017
Buchholz North-East), Olympus Deutschland expanded their de-
in der Nordheide € 2.50 – € 4.50 /m 2
city area
1 velopment and production centre by around 20,000 m². 1. WINSEN - Logistikpark Hamburg 1, for Amazon,
surrounding region
39 Just as in the previous year, the biggest share of the take-up approx. 64,000 m² warehouse space
customary rents for (34 %) was accounted for by the segment of units of more 2. HAMBURG-BILLBROOK - Still logistics centre,
units of 500 m² and up
than 10,000 m². Unlike 2016, however, retail was under-re- approx. 27,000 m² warehouse space
presented with a share of just 20 % in 2017 (down from 44 %). 3. HAMBURG-WALTERSHOF - Goodman Interlink for
Instead, the market was dominated by the logistics and unknown tenant, approx. 14,000 m² warehouse space
forwarding industries with a share of 36 % and the area of
INVESTMENT production/industrial/crafts with 33 %. Furthermore, the
distribution of take-up was reversed compared to the year
TOP 3 UNITS TAKEN UP
HAMBURG before: Hamburg accounted for 67 % and the surrounding 1. HOLSTEN-BRAUEREI, HAMBURG SOUTH approx. 24,000 m²
region for 33 % of space taken up. warehouse space, owner-occupier, start of construction Q4
2. OLYMPUS DEUTSCHLAND, HAMBURG EAST approx. 20,000 m²
The asset class of logistics properties is affected by of around 5 %. Land prices in the region surrounding RENTS warehouse space, owner-occupier, start of construction Q4
the general scarcity of products available in Hamburg’s Hamburg ranged between €130 and €150. Compared to the previous year, the average rent increased 3. PROP AND COSTUME DEPOT FOR THE HAMBURG
investment market. An overall transaction volume to €4.90/m²/month, while the prime rent remained stable STATE OPERA, HAMBURG EAST
(Hamburg excluding the surrounding region) of only OUTLOOK at €5.80/m²/month. Prime rents are realised in the vicinity approx. 17,300 m² warehouse space, Q1
around 65 million euros was registered in 2017. This cor- The ongoing scarcity of available products may continue of Schnackenburgallee (Hamburg West), in the area of the
responds to a year-on-year decrease of 58 %. The share to curb the development of the transaction volume. Land
of the total volume dropped from 10 to 2 %. prices are likely to remain on a high level. Pressure on Take-up of space by industry Take-up of space by unit size
yields is going to continue, and yields are therefore likely
DEVELOPMENT OF YIELDS to be compressed further.
Further pressure on yields is exerted by the demand
surplus in the logistics segment. The net prime yield
11 % 6%
decreased further compared to the year before. It
dropped from 4.9 % to currently 4.6 % for industrial, 16 %
34 %
storage and logistics properties and could be realised in 36 %
the sub-markets of Hamburg East (Billbrook/Allermöhe) TOP 3 TRANSACTIONS BASED ON UNIT SIZE
33 % 13 %
and Hamburg South (Veddel).
1. SCHENEFELD, approx. 42,200 m² warehouse space,
LAND PRICES buyer: Sirius Real Estate, Q3 20 % 31 %
Land prices increased in all parts of Hamburg and the 2. HAMBURG-LANGENHORN, Magnet Portfolio,
surrounding region since the previous year. The highest approx. 27,600 m² warehouse space, buyer: PGIM Real Estate, Q2
prices were paid in the city area of Hamburg (sub-markets 3. NORDERSTEDT, Casio European headquarters, approx.
Hamburg East and South) with between €200 and €240/ 25,300 m² warehouse space, buyer: Berenberg Real Estate, Q1 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
m², which corresponds to a year-on-year increase Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
8 9
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Oranienburg 11
LETTING
BERLIN Author: bulwiengesa
€ 3.30 – € 5.10 /m2
€ 3.40 – € 4,50 /m2 A total of 480,400 m² of storage and warehouse space to be very important, in order to create new available space.
Henningsdorf was let in the logistics region of Berlin in 2017. Very
Nauen 111 114 strong growth could be observed compared to the pre- OUTLOOK
Falkensee vious year. As designated sites for storage and warehouse space
10 Neuenhagen are severely limited within the city area of Berlin, availa-
BERLIN bei Berlin TAKE-UP OF SPACE bility and demand are going to be focused mostly in the
€ 2.80 – € 6.40 /m2 There was a very high take-up of space in the past year, surrounding region. Once again, demand for smaller units
115 with a total of 480,400 m² of warehouse space. The unit of less than 3,000 m² and demand for large units of more
103 100 10
let to the British online retail company Asos accounted than 10,000 m² is going to be of particular significance
Potsdam for around 10 % of the total annual take-up. The retail in- in 2018. Rising rental levels are to be expected in the city
Schönefeld
117
dustry was the most important group of demanders, ac- area and on the outskirts.
€ 3.30 – € 5.10 /m2 counting for some 43 %, followed by the logistics and
113 12 transport industry (25 %). Owner-occupation is less signi-
10 Ludwigsfelde Königs Wusterhausen
ficant in Berlin than in other markets. Around 85 % of the
2
total take-up of space in 2017 were let and around 11 %
9 were built for owner-occupation. Take-ups of units of more TOP 3 PROJECTS COMPLETED IN 2017
€ 3.40 – € 4.50 /m2 city area than 10,000 m² accounted for around 40 % of the total ta-
surrounding region ke-up. Furthermore, smaller lettings of storage and logi- 1. GROSSBEEREN - for Asos,
13 and connected areas
stics units of less than 1,000 m² in commercial estates, approx. 47,000 m² warehouse space
customary rents for contributed a significant share of transactions, at 30 %. 2. BERLIN-SPANDAU - expansion for BMW plant,
units of 500 m² and up
approx. 35,000 m² warehouse space
© Greif & Contzen/bulwiengesa RENTS 3. TREBBIN - central warehouse Porta Möbel,
The prime rent in the city area of Berlin was around €5.00/ approx. 25,000 m² warehouse space
m²/month, owing to high demand paired with scarce availa-
INVESTMENT bility of space. The average rent was around €4.40/m²/month.
Average rents of €4.10 and €3.90/m²/month respectively could
TOP 3 UNITS TAKEN UP
BERLIN Author: bulwiengesa be registered in the surrounding region and connected areas. 1. ASOS, GROSSBEEREN
approx. 47,000 m² warehouse space, Q2
AVAILABLE SPACE 2. DM-DROGERIE MARKT, WUSTERMARK
The four transactions for logistics portfolios with pro- OUTLOOK There has been a strong demand surplus in Berlin’s storage approx. 25,000 m² warehouse space, Q1
perties all across Germany contributed to a significant The compression of net prime yields in Berlin’s logistics and warehouse space market. Newly developed properties 3. BLG LOGISTICS, FALKENSEE
increase of the transaction volume in the logistics region property market continued in 2017. Higher purchasing could be marketed quickly and featured only an insignificant approx. 22,000 m² warehouse space, Q2
of Berlin. It is in particular due to the ongoing upward prices have become financially feasible, due to the current share of vacant units. Newly constructed buildings continue
trend in the area of e-commerce that investors are fo- economically favourable low-interest phase. However,
cused in particular on small to medium-sized storage they have reached a level that only allows for slight further
and logistics properties. reductions of yields. Considering the low availability of Take-up of space by industry Take-up of space by unit size
space and the growing demand, it is to be expected, ne-
DEVELOPMENT OF YIELDS vertheless, that prices will increase slightly in 2018.
The compression of yields is an ongoing process in Berlin.
While rents for storage and warehouse space increased,
purchasing prices increased even more. The net prime
24 % 25 %
yield decreased considerably compared to the previous 30 %
year, dropping by 60 base points and reaching a record low
41 %
of 4.50 % in 2017. TOP 3 TRANSACTIONS BASED ON UNIT SIZE
7%
LAND PRICES 1. NAUEN, logistics facility, approx. 44,000 m² warehouse 13 %
Purchasing prices for building land of up to €170 /m² were space, buyer: China Investment Corporation, Q2 43 % 7% 9%
registered in Berlin’s city area, owing to a low availability 2. BERLIN-BUCH, central warehouse, approx. 42,000 m²
of space, paired with strong demand. In the surrounding warehouse space, buyer: China Investment Corporation, Q2
region and in connected areas, land was sold for prices 3. KETZIN, transshipment facility, approx. 13,000 m²
ranging between € 55 and €140 /m² and between € 30 and warehouse space, buyer: Frasers Centrepoint Limited Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
€90 /m² respectively. Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
10 11
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40
57
73
€ 3.75 – € 4.80 /m2
43
LETTING
Krefeld € 3.50 – € 5.30 /m2 DÜSSELDORF
€ 4,00 – € 5,00 /m2
Ratingen A total of around 437,000 m² of warehouse space were of available modern units of around 700 m² and up in com-
61
44 3 taken up in the logistics region of Düsseldorf in 2017. mercial estates. Units in the smaller segment of around
Willich Meerbusch 1 This corresponds to an increase of 59 % since the pre- 400 m² were even harder to come by.
€ 3.50 – € 4.60 /m2 vious year (2016: 275,000 m²).
52 DÜSSELDORF OUTLOOK
TAKE-UP OF SPACE The supply situation is going to remain tense in 2018, with
52 Mönchengladbach € 4.00 – € 5.40 /m2 € 3.00 – € 5.10 /m2
Retail companies accounted for half of the total space continuously strong demand. This is going to lead to a
Neuss taken up (50 %). This was due in particular to the 152,000 m² slight increase of rents for modern existing units that are
Hilden
€ 3.50 – € 4.50 /m 2
logistics unit let to Amazon in Mönchengladbach. Logi- available at short notice. Potential for new property de-
€ 4.00 – € 4.60 /m 2
stics service providers and industrial / production busi- velopments is limited by a lack of available building land.
nesses followed on ranks two and three. Owner-occupiers A total take-up of around 300,000 m² is forecast for 2018.
Langenfeld
(Rheinland) made up around 24 % of the market.
Grevenbroich
46
€ 3.00 – € 4.50 /m2 RENTS
61 The prime rent of €5.40/m² was realised in a property
€ 3.50 – € 4.80 /m2
development project in Düsseldorf-Heerdt. The average TOP 3 PROJECTS COMPLETED IN 2017
46 rent for modern and functional existing properties re-
city area
mained stable compared to the year before at €4.50/m². 1. KREFELD - for Expeditors,
44 surrounding region
Facilities in mint condition in the region surrounding Düs- approx. 16,900 m²
57 customary rents for seldorf were let for up to €4.60/m²/month and for around 2. DÜSSELDORF-HEERDT - for Rhenus home Delivery,
units of 500 m² and up
€4.00/m²/month on average. approx. 12,000 m² warehouse space
3. DÜSSELDORF-HAFEN - for neska,
AVAILABLE SPACE approx. 10,500 m² warehouse space
Functional logistics space in existing properties cont-
INVESTMENT inued to be scarce in 2017. This was the case in particular
for coherent units from about 3,000 m² and up that made
TOP 3 UNITS TAKEN UP
DÜSSELDORF up a large share of the potential demand. Property de- 1. AMAZON, MÖNCHENGLADBACH
velopment projects became more important, as a result. approx. 152,000 m² warehouse space, Q4
However, these failed to cater sufficiently for the high 2. IMPERIAL INDUSTRIAL LOGISTICS, KREFELD
The investment market for logistics properties was do- OUTLOOK demand. One of the reasons for this was that such units approx. 21,000 m² warehouse space, Q1
minated by high-volume portfolio transactions and Based on the latest forecasts, net initial yields are going to were often not available for moving in, in line with pros- 3. SPEDITION BÖNDERS , GREVENBROICH
the take-over of entire platforms. This led to a record continue to decrease and to settle at about 4.6 % or even pective tenants’ requirements, as they frequently needed approx. 12,000 m² warehouse space, Q4
transaction volume of around 256 million euros that cor- 4.4 %. The scarcity of available products across various space at short notice. Furthermore, there has been a lack
responds to a year-on-year increase of approx. 42 % in segments and the continuously high demand are going to
Düsseldorf, too. provide for a dynamic investment market this year once
again. Investors are going to comply with short reaction Take-up of space by industry Take-up of space by unit size
DEVELOPMENT OF YIELDS times and to accept high purchasing prices. Further lar-
The continuously high demand paired with a lack of avai- ge-scale portfolio transactions are expected to take place 1% 2%
lable products led to a steady decrease of the prime yield in 2018; it is therefore likely that the transaction volume
for logistics properties to around 4.75 %. Core and core will be on a similar level as in 2017. 5%
plus transactions continued to be on a low level in terms 12 % 8%
of yields. It was very noticeable that investors were under
strong pressure to invest. 37 %
15 %
TOP 3 TRANSACTIONS BASED ON UNIT SIZE
LAND PRICES
Purchasing prices for development sites in the city area of 1. MÖNCHENGLADBACH, logistics centre, approx. 50 % 71 %
Düsseldorf rose to up to €350/m². An analogous trend could 64,000 m² warehouse space, buyer: RLI Investors, Q3
be observed in the immediate vicinity of the city, where 2. HILDEN, approx. 30,000 m² warehouse space,
prices of up to €250/m² were realised. Prices in the greater buyer: Blackstone / M 7 Real Estate, Q2
area remained largely stable at €70 to €90/m². On the whole, 3. NEUSS, approx. 29,000 m² warehouse space,
it can be said that there has been a noticeable increase of buyer: Institutional investor, Q4 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
prices across all sub-markets. Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
12 13
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46 57
59 3
Dormagen 1
€ 2.40 – € 4.70 /m2 Monheim
€ 2.80 – € 4.40 /m2
57
Leverkusen LETTING
Pulheim
COLOGNE
Bedburg Bergisch Gladbach
44 1
A total take-up of around 280,000 m² of warehouse Space that is available in property development projects is
61 4
Bergheim € 2.50 – € 4.20 /m2 space was realised in the logistics region of Cologne in very important for potential tenants, as a result.
COLOGNE 2017. This corresponds to an increase of 40 % compared
4 to the previous year. OUTLOOK
Frechen € 3.80 – € 5.00 /m2 The ongoing economic upswing is going to continue driving
€ 2.90 – € 4.50 /m2 3
Hürth TAKE-UP OF SPACE the demand for space in 2018. The majority of transactions
Kerpen This growth is based on a number of letting contracts con- is going to take place in the surrounding region, owing to the
1
cluded for large units as well as on construction measures scarcity of space available within Cologne’s city area. State-
4
Brühl 59 regarding facilities for owner-occupation with more than of-the-art warehouse space is currently being provided to
Erftstadt Wesseling Troisdorf 10,000 m². The paper manufacturer Papyrus Deutschland, the market in the form of a number of property development
the IT service provider Computacenter and the online retailer projects. However, these cater mostly for users that re-
benuta took up the biggest units of around 22.000 m² each quire large units of more than 5,000 m². Rents may increase
€ 3.50 – € 4.50 /m2
in Cologne-Niehl, Kerpen and Dormagen. Construction mea- further in 2018, especially in the city area of Cologne.
Weilerswist
sures and property purchases by owner-occupiers account
BONN for about 16 % of the total take-up of space. Retail companies,
in particular from the field of e-commerce, were the biggest TOP 3 PROJECTS COMPLETED IN 2017
group of demanders at around 41 %. Users from the areas of
1 € 3.30 – € 4.80 /m2 3 city area
industrial, production and crafts accounted for about 27 % 1. BEDBURG - for NEX Logistics, 1st and 2nd construction
surrounding region
61 of space taken up. Small and medium-sized units of up to phase, approx. 40,000 m² warehouse space
565 customary rents for 5,000 m² each made up a significant share of around 33 %. 2. KÖLN-FELDKASSEL - for unknown tenant,
units of 500 m² and up
approx. 11,000 m² warehouse space
RENTS 3. WESSELING - for archiving services and medical products
The prime rent in Cologne’s city area is €5.00/m²/month. In (2 tenants), approx. 10,000 m² warehouse space (3,000 m² / 7,000 m²)
the surrounding region it increased from around €4.50 to
INVESTMENT €4.80/m²/month over the course of the year. The average
rent in the surrounding region went up from around €3.80
TOP 3 UNITS TAKEN UP
COLOGNE to €4.30/m²/month. 1. COMPUTACENTER AG, EUROPARING, KERPEN
approx. 22,000 m² warehouse space, Q1
AVAILABLE SPACE 2. PAPYRUS DEUTSCHLAND, COLOGNE-NIEHL
Investment transactions in the logistics region of Co- OUTLOOK Vacancies have decreased significantly both in the city approx. 22,000 m² warehouse space, Q1
logne increased significantly owing to the sale of four Purchasing prices for logistics properties have already area and in the surrounding region. The number of available 3. BENUTA, DORMAGEN
nationwide logistics portfolios. In addition to this, a reached a very high level. Only slight further yield reduc- existing properties is generally low. In particular when it approx. 22,000 m² warehouse space, Q4
number of smaller and medium-sized properties were tions appear possible, as a result. However, considering comes to smaller warehouse units between 800 and 2,000 m².
sold. These often changed hands between private in- the ongoing economic upswing, a high demand for space
vestors and owner-occupiers or corporate investors. is going to continue to be met by very limited availability in
the market for building plots. Prices are therefore likely to Take-up of space by industry Take-up of space by unit size
DEVELOPMENT OF YIELDS increase further in this segment.
Over the past few years, purchasing prices for logistics
properties have increased far more than rents. The net
prime yield dropped from 5.00 to 4.70 % over the course 5%
11 %
of 2017. The yield gap to office properties is therefore 21 % 12 %
1.0 % points.
LAND PRICES TOP 3 TRANSACTIONS BASED ON UNIT SIZE 47 % 17 %
41 %
Owing to the scarce availability of land and the high
demand, prices for commercial building land have in- 1. BEDBURG, warehouse Spedition Hammer, approx. 100,000 m² 27 %
creased to up to €185/m² in the city area of Cologne. warehouse space, buyer: China Investment Corporation, Q2 20 %
Prices between €80 and €145/m² are being realised in the 2. FRECHEN, cross docking facility, approx. 18,000 m²
surrounding region and between €70 and €100/m² in the warehouse space, buyer: Fund by AXA Investment Managers, Q2
greater area. 3. BRÜHL, DHL distribution centre, approx. 16,000 m²
warehouse space, buyer: CBRE Global Investors, Q1 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
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45 7
Gießen
5
3 Butzbach LETTING
FRANKFURT Author: bulwiengesa
5
48 The logistics region of Frankfurt and the Rhine-Main area OUTLOOK
45
€ 2.60 – € 5.60 /m2 experienced high demand for space in 2017, thanks to its Most of the units that are going to be let within Frankfurt’s
geo-strategic location as well as other factors. A total of city area in 2018 will be smaller than 1,000 m². A moderate
66
Bad Homburg around 659,000 m² of space was taken up over the course increase of rents is to be expected, owing to the cont-
3
€ 3.90 – € 6.70 /m2 Bad Vilbel of 2017. Demand from the logistics and transport indus- inued scarcity of available space. Large rental units and
tries was at a high level, once again. properties are clustered in particular in the surrounding
FRANKFURT AM MAIN
66 region and connected areas of the region Rhine-Main and
Offenbach am Main TAKE-UP OF SPACE Frankfurt and are going to make up a major share of the
Wiesbaden
€ 3.70 – € 6.30 /m2 These take-up figures are the result of a number of letting total take-up.
66
contracts for large units as well as various large-scale
Dreieich
Mainz build-to-suit developments. Construction measures and
3
61 Bingen 60 € 3.90 – € 6.70 /m2 661 property purchases by owner-occupiers accounted for a
63 share of 21 % of the total turnover of space. The logistics
€ 2.60 – € 5.60 /m2 service provider TST, for example, realised the region’s
€ 2.60 – € 5.60 /m2 Darmstadt biggest owner-occupation project with around 36,000 m²
in Gernsheim. Another logistics service provider took up TOP 3 PROJECTS COMPLETED IN 2017
5 city area the biggest unit let, which has around 64,000 m² and is
61
surrounding region located in the eastern part of Frankfurt. 1. GERNSHEIM - for TST Logistik,
Gernsheim and connected areas
approx. 36,000 m² warehouse space
customary rents for RENTS 2. GINSHEIM-GUSTAVSBURG - VGP-Park,
67 units of 500 m² and up
63 The prime rent for the core area of the logistics region approx. 35,000 m² warehouse space
© Greif & Contzen/bulwiengesa of Rhine-Main and Frankfurt stood at around €6.20/m²/ 3. KELSTERBACH - for multiple unknown tenants,
month in 2017. This corresponds to a slight increase of approx. 31,000 m² warehouse space
around 2 % compared to 2016. A prime rent of €5.40/m²/
INVESTMENT month was realised in the surrounding region. The average
rent for the entire logistics region including connected
TOP 3 UNITS TAKEN UP
FRANKFURT Author: bulwiengesa areas was around €4.70/m²/month. 1. BLG LOGISTICS, FRANKFURT-FECHENHEIM
approx. 64,000 m² warehouse space, Q3
AVAILABLE SPACE 2. GORILLA SPORTS, GROSS-GERAU
More than 30 properties were sold in the logistics region OUTLOOK Vacancies continue to be scarce in the city area of approx. 35,000 m² warehouse space, Q4
of Rhine-Main and Frankfurt in 2017. Some of these were The logistics region of Rhine-Main and Frankfurt cont- Frankfurt and they are limited mostly to used properties. 3. REWE GROUP , RODGAU
part of nationwide logistics portfolios and have once inues to benefit from its central location in Germany as Letting opportunities are considered to be very favourable. approx. 25,000 m² warehouse space, Q1
again contributed to a very active transaction market. well as in Europe and the area features a very well-de-
Some of the buildings from the Logicor portfolio, such veloped logistics infrastructure. It is to be expected
as the Fresenius logistics centre in Biebesheim, were of that investment demand will be high once again in 2018,
particular importance in this context. leading to a further increase of purchasing prices. The Take-up of space by industry Take-up of space by unit size
compression of yields is meanwhile likely to slow down to
DEVELOPMENT OF YIELDS a certain degree.
The logistics market of the Rhine-Main/Frankfurt region
is among Germany’s most expensive markets, along with 6%
9%
Munich. In this area, too, purchasing prices have increased 12 %
significantly stronger than rents over the past few years.
The net prime yield stood at 4.60 % at the end of 2017. This 20 %
7%
corresponds to a yield spread of 1.30 % points compared TOP 3 TRANSACTIONS BASED ON UNIT SIZE 48 % 49 %
to centrally located office buildings in Frankfurt.
1. BODENHEIM, logistics centre, approx. 41,000 m²
23 % 27 %
LAND PRICES warehouse space, buyer: AXA Investment Managers, Q2
Greenfield sites for commercial developments in Frankfurt’s city 2. BIEBESHEIM, logistics centre, approx. 29,000 m²
area were sold for purchasing prices of up to €330/m². Scarce warehouse space, buyer: China Investment Corporation, Q2
availability and high demand in particular in the southern part 3. MAINZ, logistics centre, approx. 13,000 m²
of the logistics region, led to prices of up to €235/m² in the sur- warehouse space, buyer: Frasers Centrepoint Limited, Q4 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
rounding region and up to €190/m² in connected areas. Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
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7
€ 4.00 – € 6.50 /m 2
81
Murrhardt
LETTING
Bietigheim- Backnang STUTTGART
Vaihingen Bissingen
8
an der Enz
Around 409,800 m² of space were taken up in the eco- OUTLOOK
Ludwigsburg
€ 4.50 – € 5.60 /m2 nomic region of Stuttgart in 2017. This corresponds to a Companies may choose to move to neighbouring metro-
significant increase of about 70 % compared to 2016. politan areas, owing to the lack of sites provided by the
Waiblingen communities on which large buildings can be const-
Leonberg TAKE-UP OF SPACE ructed for industrial as well as logistics purposes. It is to
STUTTGART The total take-up of space is made up of 240,600 m² of be expected that the share of existing space let is going
Schorndorf space let plus 44,700 m² of space bought by owner-occu- to decrease further in 2018. The ongoing trend towards a
Weil der Stadt
€ 3.70 – € 6.50 /m2 Esslingen piers and 124,500 m² of space in construction projects for supply shortage is going to intensify.
am Neckar 7
Sindelfingen owner-occupation. Two transactions that accounted for a
Wendlingen Göppingen
8
large share of the total take-up were around 38,000 m² of
Böblingen newly built warehouse space let to Bosch in Tamm and the
Leinfelden- € 3.30 – € 4.90 /m2
Echterdingen Kirchheim start of construction work for a goods and service centre
€ 3.30 – € 6.50 /m2 Nürtingen unter Teck
Geislingen for Breuninger with around 52,000 m² in Sachsenheim
Herrenberg an der Steige (both sites are located in the rural district of Ludwigsburg).
€ 3.20 – € 4.75 /m2 The greatest share of demand was accounted for by the
8
industrial/production segment (including the automotive TOP 3 PROJECTS COMPLETED IN 2017
industry) with around 55 % and the retail industry with
city area
81 around 23 %. 1. FREIBERG A.N. - for Porsche/LGI,
surrounding region
approx. 20,000 m² warehouse space
customary rents for RENTS 2. WAIBLINGEN - for Schmalz+Schön Logistics,
units of 500 m² and up
A slight decrease of the average rent for existing warehouse approx. 15,000 m² warehouse space
space from €4.63/m²/month down to €4.60/m²/month could 3. ESSLINGEN-PLIENSAUVORSTADT - for Gmähle-Scheel
be observed in the economic region in 2017. The average (media group), approx. 5,000 m² warehouse space
rent for newly constructed space was €6.10/m²/month and
INVESTMENT therefore slightly higher than the average rent of €6.04/m²/
month in 2016.
TOP 3 UNITS TAKEN UP
STUTTGART 1. BOSCH, TAMM
AVAILABLE SPACE approx. 38,000 m² warehouse space, Q4
Demand for large and multi-functional warehouse units re- 2. PORSCHE/LGI, FREIBERG A.N.
As in previous years, a strong interest could be observed OUTLOOK mains high and cannot be satisfied, despite the high new- approx. 20,000 m² warehouse space, Q1
from both institutional and private investors. A total of Considering the great economic strength, it is to be ex- build ratio. A growing supply shortage has meanwhile led to 3. MÜLLER LOGISTIK , BENNINGEN A.N.
twelve transactions with a combined floor space of around pected that demand for both functional existing units units on the outskirts of the economic area, for which there approx. 15,300 m² warehouse space, Q3
147,200 m² of warehouse and production space could be de- and in particular for modern warehouse space is going to had previously been little or no demand to be accepted.
termined. The estimated overall transaction volume for the increase further. Due to the lack of greenfield sites that
economic region is around 185 million euros. can be built on, brownfield sites are becoming more and
more significant for developers and owner-occupiers. Ho- Take-up of space by industry Take-up of space by unit size
DEVELOPMENT OF YIELDS wever, demand cannot be satisfied at short notice, as pre-
The net prime yield in the economic region was 4.5 % in paratory work such as examinations regarding possible 4%
the 4th quarter of 2017. In the same period of 2016, it had contamination, procurement of building permissions and
been 5.1 %. It is to be expected that the net prime yield will approval processes may take years.
9% 13 %
decrease by a few further base points in 2018. 13 %
LAND PRICES 9%
A sharp increase of land prices can be observed, owing to the TOP 3 TRANSACTIONS BASED ON UNIT SIZE 23 % 53 %
scarcity of available plots in the city area of Stuttgart. Prices
for commercial building land increased from between €210 1. LUDWIGSBURG, logistics property, approx. 55 % 21 %
and €360/m² in 2016 to between €260 and €410/m², which 27.000 m² warehouse space, buyer RLI Investors, Q3
corresponds to a growth rate of more than 13 %. This trend 2. FREIBERG A.N., newly build logistics facility, approx.
also applies to the surrounding region, where land prices 20,000 m² warehouse space, buyer: Frasers Centrepoint, Q4
range between around €150 and €300/m². 3. MAGSTADT, light industrial, approx. 17,000 m²
warehouse space, buyer: Alpha Industrial, Q3 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
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92
9
Moosburg
an der Isar
Freising 92
LETTING
8 € 4.30 – € 6.10 /m2 MUNICH Author: bulwiengesa
A total take-up of around 271,000 m² of warehouse the central area, leading to a relatively low number of
space was realised in the logistics region of Munich in planned construction projects.
Unterschleißheim
Dachau 2017. Demand decreased compared to the previous year,
€ 4.30 – € 6.10 /m2 9 – € 7.00 /m2
92 € 5.10 94 but it continues to be on a high level, nevertheless. OUTLOOK
Demand for space remains on an undiminished high level.
99 9
TAKE-UP OF SPACE Take-up continues to be limited by the lack of available
Fürstenfeldbruck 8 The biggest rental transaction took place in Neufahrn, space. A major share of the space taken up will be located
Germering MUNICH
94 where the logistics service provider Rhenus rented around in the surrounding region and in connected areas. Ho-
96
€ 5.90 – € 8.20 /m 2 41,500 m². The next biggest transactions were on a scale of wever, available space is becoming increasingly scarce in
Gräfelfing around 12,000 m². At about 10 %, the share that owner-oc- these areas, too. A further increase of rental levels is to be
Unterhaching
96 cupiers contributed to the total take-up was low, owing to expected.
€ 5.10 – € 7.00 /m2 the lack of available space and high prices. Almost three
quarters of the space taken up were accounted for by the
industrial, production and crafts sector (41 %) as well as
Wolfratshausen the logistics and transport industries (33 %). Transactions
8
concerning units of more than 10,000 m² accounted for the TOP 3 PROJECTS COMPLETED IN 2017
city area greatest share of the size categories analysed, at 31 %.
€ 4.30 – € 6.10 /m2 € 4.30 – € 6.10 /m2
95 surrounding region 1. KIRCHHEIM - for online retailing, industrial and medical
Holzkirchen and connected areas
RENTS products (3 tenants), approx. 26,500 m² warehouse space
customary rents for The prime rent in Munich in 2017 was €6.80/m²/month. 2. SULZEMOOS - for various tenants,
8 units of 500 m² and up
A peak level of €6.10/m²/month was registered in the sur- approx. 22,000 m² warehouse space
© Greif & Contzen/bulwiengesa rounding region; rents in connected areas were slightly 3. MAISACH - for Freudenberg, approx.
lower at €5.70/m²/month. The overall average rent for the 19,300 m² warehouse space
entire logistics region was around €5.40/m²/month.
INVESTMENT AVAILABLE SPACE
TOP 3 UNITS TAKEN UP
MUNICH Author: bulwiengesa The logistics region was characterised by a very low va- 1. RHENUS SE & CO. KG, MUNICH-NEUFAHRN
cancy rate in 2017. In Munich’s city area, there were approx. 41,500 m² warehouse space, Q2
virtually no available modern existing premises. Tenants 2. METRO CASH & CARRY, SULZEMOOS
In addition to properties that changed hands as part OUTLOOK could quickly be found even for speculative warehouse approx. 12,000 m² warehouse space, Q1
of major portfolio transactions, the investment market Considering the high investment demand, it is to be expected units, in the surrounding region and connected areas. 3. BAYERISCHE STAATSBRAUEREI WEIHENSTEPHAN,
of the logistics region of Munich was characterised by that purchasing prices for logistics properties in the Munich Property developments were essential to cater for the FREISING, approx. 11,900 m² warehouse space, Q2
transactions concerning smaller to medium-sized pro- area are going to increase further in 2018. It remains to be demand, however, available land was scarce also beyond
perties in the past year, in particular in the segment of seen, however, whether the yield compression will continue
light industrial facilities. This type of property is very po- at the same rate as in previous years, owing to the fact that
pular among private and institutional investors. prices are already very high. The situation on the property Take-up of space by industry Take-up of space by unit size
market is extremely tense, especially in the city area of
DEVELOPMENT OF YIELDS Munich that is the core area of the logistics region. Owing to
Munich was Germany’s most expensive market in 2017, the lack of suitable sites, there is virtually no pipeline of up-
once again. Over the course of the year, the net prime coming property development projects. Property developers 5%
yield lost 60 base points, dropping from 5.0 % to 4.4 %. are paying ever higher prices for commercial building land. 17 %
As in previous years, purchasing prices increased more 18 %
33 % 31 %
strongly than rents.
TOP 3 TRANSACTIONS BASED ON UNIT SIZE
LAND PRICES
22 %
The scarcity of available land paired with high demand 1. ECHING, logistics centre, approx. 35,500 m² 41 %
9%
is reflected by the land prices: up to €700/m² were paid warehouse space, buyer: China Investment Corporation, Q2 24 %
in Munich’s city area in 2017. Prices for commercial 2. POING, multi use logistics facility, approx. 32,000 m²
building land in the surrounding region ranged between warehouse space, buyer: China Investment Corporation, Q2
€175 and €600/m², and between €125 and €430/m² in 3. KIRCHHEIM, “Multipark Kirchheim“, approx. 26,500 m²
connected areas. warehouse space, buyer: CBRE Global Investors, Q2 Logistics service providers / transport Retail up to 1,000 m² up to 3,000 m² up to 5,000 m²
Industrial / production / craft businesses Other up to 10,000 m² from 10,001 m²
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LOCAL KOMPETENZ– ACROSS
– DEUTSCHLANDWEIT
GERMANY MARKET REPORT | LOGISTICS/INDUSTRIAL/STORAGE | INVESTMENT/LETTING 2017/2018
GLOSSARY
GERMAN PROPERTY PARTNERS Across Germany Services
AVERAGE RENT PRIME YIELD » Hamburg » Real estate investments
The average rent is the rent paid in the market for logistics space on The attainable prime yield is the initial yield that can be achieved with
» Berlin » Commercial letting
average. The figures indicated refer to the base rent excluding bills. a state-of-the-art property with a long-term standard lease (credit-
It can be determined based for example on the arithmetic mean or worthy tenant) in a very good location. It is indicated as the net initial » Düsseldorf » Corporate real estate management (CREM)
the median. yield in percent, i. e. as the ratio between the gross purchasing price (net » Cologne | Bonn » Research
purchasing price plus land transfer tax, notary fees and broker’s com- » Frankfurt » Banking and financing services
DEFINITION OF MARKET REGIONS mission) and the annual rental income minus non-apportionable an- » Stuttgart » Equity financing of development projects
The logistics regions covered in this report each comprise the admi- cillary costs.
» Munich » Fund and asset management
nistrative area of their central city or agglomeration and usually also
TAKE-UP OF SPACE » Property management
include the adjacent surrounding area. It depends on the individual
cases and the established business connections of local market The take-up of space is the total space of all warehouse units that were » Real estate evaluation (valuation reports)
participants, how much of the surrounding region is included in the let or sold to an owner-occupier or constructed by an owner-occupier in » Agriculture and forestry real estate
market region. a specific period of time. The date the rental or purchasing contract was
concluded or construction was taken up on the base plate is considered
to determine if a transaction is included. Renewals of existing leases are
LAND PRICE
not registered as take-up. Calculations are based on the floor space in-
The land price refers to the customary purchasing price paid per
dicated in the rental contract.
square metre of developed and contamination free building land in a
commercial / industrial area, for plots with a minimum size of 10,000 m²
and a virtually rectangular shape.
PRIME RENT
The prime rent is the highest rental price realised for logistics units
of 5,000 m² and up.
Please note that all statements included in this report are non-binding. They are based mostly on information provided by third parties. The market report is inten-
ded for the sole purpose to provide general information to our clients.
SERVICES Grossmann & Berger GmbH • I Immobiliendienstleister • Bleichenbrücke 9 (Bleichenhof) • D-20354 Hamburg
GERMAN PROPERTY PARTNERS Phone: +49 (0)40 / 350 80 2 - 0 • Fax: +49 (0)40 / 350 80 2 - 36 • info@grossmann-berger.de • www.grossmann-berger.de Managing directors: Holger Michaelis,
Andreas Rehberg, Lars Seidel, Axel Steinbrinker
Chairman of the supervisory board: Frank Brockmann • Entered in the commercial register: Hamburg B 25866
Supervisory authority: Bezirksamt Hamburg-Mitte, Fachamt Verbraucherschutz, Gewerbe und Umwelt, Klosterwall 2, 20095 Hamburg VAT identification number
pursuant to section 27a German VAT act: DE 118 556 939
We are your single point of contact for competent expert We are well-versed when it comes to the conventions of
support in all matters regarding commercial real estate the finance industry, as two of our partners have a backg- ANTEON Immobilien GmbH & Co. KG • Ernst-Schneider-Platz 1 • D-40212 Düsseldorf
Phone: +49 (0)211 / 58 58 89 - 0 • Fax: +49 (0)211 / 58 58 89 - 88 • immobilien@anteon.de
in Germany. round in banking. Benefit from our local expertise and re- Managing partners: Guido Nabben, Heiko Piekarski, Jens Reich, Dirk Schäfer, Marius Varro
gional networks, when looking for office, retail, industrial, Trade licence: a licence pursuant to Section 34 c of the German Industrial Code/GewO was granted with no restrictions by the Municipal Government of the
Our range of services covers property investments as storage, logistics or special use space. State Capital Düsseldorf
Phone: +49 (0)211 / 89-23223 • ANTEON Immobilien GmbH & Co. KG, registered in Düsseldorf, registry court Düsseldorf HRA 19934,
well as commercial letting. We are familiar with all risk General partner: ANTEON Verwaltungsgesellschaft mbH, registered office in Düsseldorf, registry court Düsseldorf HRB 58418
classes and property types. For investors we arrange Furthermore, we will provide you with corporate real estate VAT identification number pursuant to section 27a German VAT act: DE 259 465 200
for purchases and sales of office, hotel, storage, logi- management and research services that are tailored to-
Greif & Contzen Immobilien GmbH • Pferdmengesstraße 42 • D-50968 Köln
stics and retail properties as well as apartment com- wards your specific projects. With further financing, fund Phone: +49 (0) 221/93 77 93 - 0 • Fax: +49 (0)221/93 77 93 - 77 • gpp@greif-contzen.de
plexes across Germany, whether it be individual buil- and asset management as well as property management Managing directors: Theodor J. Greif, Rainer Krauß
dings or portfolio transactions. We are also pleased to services, our range includes everything you will need to District court: registered in: Cologne, trade register no.: 11414
Supervisory authority: Stadt Köln, Ordnungsamt, Postfach 103564, 50475 Köln
provide support during the preparation of property de- promote your projects in an effective and sustainable VAT identification number pursuant to section 27a German VAT act: DE 123 055 006
velopment projects. manner.
E & G Real Estate GmbH • Börsenplatz 1 • D-70174 Stuttgart
Phone: +49 (0)711 / 2148-300 • Fax +49 (0)711 / 2148-290 • info@eug-re.de • www.eug-realestate.de
Managing directors: Mario Caroli, Björn Holzwarth
Supervisory authority: Amt für öffentliche Ordnung, Gewerbe- und Gaststättenbehörde, Eberhardstraße 37, 70173 Stuttgart
Trade register and registration number: District Court Stuttgart, HRB 733293
Responsible under Section 55 par. 2 of the Interstate Broadcasting Agreement (RStV): Björn Holzwarth, Managing Director
VAT identification number pursuant to section 27a German VAT act: DE 257 361 630
22 23
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