Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL

 
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
Office Market Overview
Big 7 | 1st quarter 2020
Published in April 2020
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
The lockdown begins to leave its mark
on the office lettings market

Germany is on high alert, not only in terms of people’s           rometer fell by 4.6 to 93.4 points in March, the biggest drop
health but also with regard to the economy. An unprece-           since this key economic indicator came into being. Econom-
dented lockdown has forced the domestic economy to                ic institutes are now largely anticipating a significant de-
grind to a halt, and the outcome is still uncertain. In Ger-      cline in economic output to varying degrees, at least in the
man, the word ‘luv’ refers to the windward side of a ship.        next two quarters. Hurriedly launched government rescue
The degree to which the economy is knocked off course by          programmes are designed to alleviate more acute setbacks.
the current pandemic will determine whether its recovery          In particular, the multi-billion-euro “economic stabilisation
takes an “L”, “U” or “V” form. We will only find out which for-   fund” is intended to strengthen companies by providing
mation we are heading for in the next weeks or months,            capital and guarantees. If necessary, the state should be
when the full extent of the recession becomes known and           able to invest in companies, as was the case during the fi-
government rescue packages are in place. Right now, acute         nancial crisis more than ten years ago. There are also emer-
crisis management, or the capacity of companies to act, is        gency loans for businesses and a support package for the
paramount.                                                        self-employed and small businesses. In addition, the short-
                                                                  time working model that was used quite successfully in the
It is therefore not surprised to see that companies from al-      financial crisis has been implemented again.
most all sectors (trade, services and construction) have
stopped recruiting new staff or have put recruitment plans        At the beginning of March, we were still talking about falling
on hold. It is no coincidence that the Ifo employment ba-         unemployment and a high number of vacancies, while

Completions and Vacancy Rate Big 7

                                                                                                         v

                                                                                          -366,000 sqm
                                                                                                  Vacancy
                                                                                             compared to last year

Office Market Overview | 1st quarter 2020                                                                                      2
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
Demand for office space falls significantly
                                                                    compared to the previous year
                                                                    This cannot fail to have consequences for the commercial of-
                                                                    fice lettings markets. Here too, the second half of March clear-
                                                                    ly illustrates how the office market has changed after the
                                                                    spread of the coronavirus. It would be pure speculation and
                                                                    therefore pointless to say how this might look in future. Look-
                                                                    ing at the cold figures for the first quarter of 2020, it can at
short-term work was practically non-existent. Since then,           least be said that the lettings markets would have declined
there has been a complete turnaround. The last two weeks            even without the coronavirus, since first signs of a somewhat
in March marked a historic turning point. More than 470,000         subdued market were already evident at the end of last year.
companies submitted applications for short-time work by
27 March alone and gone up to 725,000 by mid of April. This         Total take-up for the Big 7 (Berlin, Cologne, Düsseldorf, Frank-
increase could of course be quickly slowed down or re-              furt, Hamburg, Munich, Stuttgart) amounted to 701,000 sqm
versed if the economic lockdown is eased, but since infec-          in the first quarter of 2020, corresponding to a 30% decline on
tion rates are still rising rapidly then the economy is likely to   a 12-month basis. This represents the weakest three-month
remain in emergency operation mode at least during April.           period in terms of take-up since Q3 2014. The figure is also
For comparison: during the financial crisis, short-time work-       15% below the 10-year average for first quarters.
er applications peaked in July 2009 at just over 61,000. The
difference in the figures illustrates the dramatic macroeco-        None of the seven property strongholds emerged un-
nomic recession we are currently dealing with.                      scathed from the general downturn, which is unusual given

Prime Rental Index and Take-up Big 7

                                                                                                    +4.6 %
                                                                                                 Prime Rent Q1 2020
                                                                                                compared to last year

Office Market Overview | 1st quarter 2020                                                                                         3
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
that the trend has generally been upwards in the past             Vacancies stabilise at a low level
10 years. Munich was again the market leader with take-up         After dropping significantly from quarter to quarter in recent
of 184,000 sqm and a moderate reduction of 6%. Cologne            years, vacancies now seem to have reached a low point: at
and Stuttgart experienced the sharpest declines of 60% and        the end of the first quarter of 2020, a total of 2.85 million
61% respectively. Even Berlin, which has become accus-            sqm was available to companies seeking office space in the
tomed to success, registered a drop of around a quarter to        Big 7. This represents a reduction of more than 11% com-
172,000 sqm.                                                      pared to the previous year. The vacancy rate averaged
                                                                  across all strongholds remains at 3%. Until now, before the
What will happen next?                                            spread of COVID-19, the volume of new office space was the
                                                                  only factor that was expected to influence vacancy levels
More than 50% of companies surveyed for the new JLL-              this year. A drop-off in demand was not part of the plan.
Thermometer that was developed at the end of March fear           This is now likely to change. It can be assumed that vacancy
that the health crisis will have a major and lasting impact       rates will increase in the coming months owing to the di-
on their core business. The possible effects for office mar-      minishing rate of demand. The topic of sub-letting could
kets could be that space requirements are mostly reduced.         also be back on the agenda for office users.
The coronavirus crisis is already having an impact on cur-
rent deliberations about new lease contracts or lease exten-      Completions volume set to fall
sions. More than half of the companies surveyed confirmed         In the first quarter of 2020, office space completions amount-
that decisions were being postponed. Put in positive terms,       ed to a total of almost 220,000 sqm. This still represents only
a postponement does not mean that a relocation or rental          a very moderate new-building volume. The high proportion
plan will fall through. As the crisis progresses, space optimi-   of pre-let space only serves to highlight the need for modern
sation measures are likely to become increasingly impor-          and well-equipped space. Or to put it another way: only 6%
tant, also in view of the fact that home working could be-        of the 220,000 sqm was still available at the time of comple-
come a permanent option for more and more employees.              tion. This demonstrates that the rental market is still on the
This could influence adjustments of existing space, for ex-        move and that new contracts are also being signed. It re-
ample through sublease contracts, as well as price renegoti-      mains to be seen to what extent the positive trend of pre-let-
ations of current tenancy agreements. In the current eco-         ting in office developments will continue. Last but not least, it
nomic situation it should be constantly emphasised that it        also depends on whether planned office developments or
is deemed appropriate for both sides – owners and users —         those under construction are postponed or even put on hold.
to come up with sensible and sustainable solutions.               A ban on personal contact, confinement measures and re-
                                                                  strictions on office work are already having a massive impact
                                                                  on construction processes. For the next three quarters, a total
                                                                  of around 1.55 million sqm is still in the pipeline in all seven
                                                                  strongholds, and is already under construction. The majority
                                                                  of this space is already pre-let, although most contracts were
                                                                  signed well before March 2020. Only around 386,000 sqm or a
                                                                  quarter of the total volume is still available to companies
                                                                  seeking new office space. The pipeline is currently still full for

Office Market Overview | 1st quarter 2020                                                                                         4
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
the next few years. However, we assume that not all new                  during the boom phase up to the financial crisis at the end of
construction projects will be realised. In the event of an               2008, the average vacancy rate in the Big 7 dropped to 8.6%.
overall decrease in demand, pre-letting rates will also fall,            This time, however, the shortage of space is much more ex-
and this can also cause projects to be halted if financing is            treme and thus props up rental prices.
based on such quotas being reached.
                                                                         After the financial crisis, the rental price index declined over
Prime rents remain stable in the Big 7                                   seven quarters before the recovery started. The total decrease
At the end of the first quarter, there was sufficient evidence           was only 5% at that time, with the most pronounced declines
that prime rents in all seven strongholds could be left at the           occurring in 2008-2010 in Berlin (-10%, from €22 to €20) and in
same level as in the last quarter of 2019. The JLL prime rental          Frankfurt (-9%, €37 to €33). The next few weeks will bring more
index remained at 218.1 points on a quarterly basis, which               precise information about the willingness of office tenants to
still represents the highest level since 1992, although year-on-         sign deals, concessions made by landlords in terms of deferrals
year growth was 4.6%. Assuming that the cycle has reached                and the granting of incentives with corresponding consequenc-
its peak, it is worth comparing it to the last cycle peak and the        es for actual rents. Many predominantly smaller companies
subsequent global financial crisis. The current index value is           have already started renegotiating with their landlords. We cur-
as much as 32% above the previous high point in the fourth               rently do not see any such activities at large corporates. Reloca-
quarter of 2008. It could be assumed that there is high poten-           tion issues and the importance of office space are part of a
tial for this to fall. However, it should not be forgotten that          long-term strategy that is not quickly abandoned.

Office Space Take-up incl. Owner Occupier (sqm)
                                             2019               Q1 2019                      Q1 2020                        %
Berlin 1                                     998,500                230,800                    172,000                    -25.5
Düsseldorf    2
                                             549,900                112,100                    108,100                     -3.6
Frankfurt/M 3                                579,500                104,200                    67,600                     -35.1
Hamburg 4                                    530,000                178,500                    98,000                     -45.1
Cologne 5                                    291,300                95,400                     38,500                     -59.6
Munich Region     6
                                             760,000                196,100                    184,000                     -6.2
Stuttgart 7                                  319,000                85,500                     33,100                     -61.3
Total                                       4,028,200           1,002,600                     701,300                     -30.1

Office Market Overview | 1st quarter 2020                                                                                                5
Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
Vacancy incl. Space for subletting
                                                Q4 2019                                     Q1 2019                                     Q1 2020                                   %
                                          m²                Quote (%)                 m²               Quote (%)                  m²               Quote (%)
Berlin    1
                                       376,500                  1.8                387,900                 1.9                 387,500                  1.9                       -0.1
Düsseldorf 2                           526,700                  5.8                598,200                 6.5                 537,800                  5.9                      -10.1
Frankfurt/M 3                          637,300                  5.5                743,300                 6.4                 679,500                  5.8                       -8.6
Hamburg 4                              452,400                  3.0                529,600                 3.5                 372,900                  2.5                      -29.6
Cologne 5                              168,000                  2.2                230,000                 3.0                 167,600                  2.2                      -27.1
Munich Region 6                        478,500                  2.3                537,800                 2.6                 498,600                  2.4                       -7.3
Stuttgart     7
                                       206,700                  2.3                189,000                 2.2                 205,800                  2.3                        8.9

Prime Office Rents (€/sqm/month)
                                                               Q4 2019                               Q1 2019                               Q1 2020                                %
Berlin    1
                                                                  37.00                                 34.00                                 37.00                                8.8
Düsseldorf         2
                                                                  28.50                                 28.00                                 28.50                                1.8
Frankfurt/M 3                                                     41.50                                 40.00                                 41.50                                3.8
Hamburg        4
                                                                  29.00                                 28.00                                 29.00                                3.6
Cologne 5                                                         26.00                                 24.00                                 26.00                                8.3
Munich Region 6                                                   41.00                                 39.50                                 41.00                                3.8
Stuttgart 7                                                       24.50                                 24.00                                 24.50                                2.1

Completions (in sqm)
                                                                 2019                                Q1 2019                               Q1 2020                                %
Berlin 1                                                        237,300                                74,700                                 91,900                              23.0
Düsseldorf 2                                                    115,400                                 1,600                                  1,300                             -18.8
Frankfurt/M 3                                                   130,300                                      0                                21,000                               n/a
Hamburg 4                                                       117,100                                16,500                                 24,200                              46.7
Cologne 5                                                         95,600                                2,000                                 16,600                             730.0
Munich Region 6                                                 335,600                                 4,200                                 59,000                        1,304.8
Stuttgart 7                                                       92,700                               61,300                                  5,500                             -91.0

Office Space Stock (in Mill. sqm)
                                                               Q4 2019                               Q1 2019                               Q1 2020                                %
Berlin    1
                                                                  20.42                                 20.28                                 20.49                               1.0
Düsseldorf         2
                                                                   9.15                                  9.16                                   9.15                              -0.2
Frankfurt/M 3                                                     11.65                                 11.58                                 11.63                               0.5
Hamburg        4
                                                                  15.02                                 14.97                                 15.01                               0.3
Cologne 5                                                          7.79                                  7.71                                   7.79                              1.0
Munich Region          6
                                                                  20.63                                 20.37                                 20.69                               1.5
Stuttgart 7                                                        8.81                                  8.78                                   8.81                              0.4
1
    City Area; 2 City Area incl. Ratingen, Neuss, Erkrath and Hilden; 3 City Area incl. Eschborn and Kaiserlei; 4 City Area; 5 City Area; 6 City Area incl. surrounding areas;
7
    City Area incl. Leinfelden-Echterdingen

Office Market Overview | 1st quarter 2020                                                                                                                                                6
Berlin
                                                                                                                                                                                                  Development of Main Indicators

 Weak start to the year in the federal capital
 The Berlin office letting market began the year with a take-up
 volume of 172,000 sqm. This is a reduction of around 38%
 compared to the previous quarter and 20% lower than the
 five-year average of respective comparative quarters. One of
 the reasons for this weak result was the strong year-end re-
 sult in 2019 with few deals pending completion in 2020. Once
 again, the main drivers of space take-up in the first quarter of
 this year were high volume lettings. While the three largest
 transactions accounted for 20% of total take-up in the first
 quarter of the previous year, they were responsible for 29%                                                                                                                                      alone, the supply of space in this submarket increased by
 in the first three months of the current year. Most of the quar-                                                                                                                                 around 45,000 sqm. In view of the current high level of con-
 terly result was attributed to deals concluded in the > 10,000                                                                                                                                   struction activity there, it can be assumed that this trend will
 sqm size category. On a local level, it is apparent that the                                                                                                                                     continue in the future. At the beginning of the year, the va-
 new and centrally-located “Areal Hauptbahnhof-Europacity”                                                                                                                                        cancy rate in the federal capital was 1.9%. The prime rent
 submarket is attracting an increasing number of tenants.                                                                                                                                         was unchanged at €37.00/sqm/month compared to the pre-
 This can be attributed to the growing attractiveness of the lo-                                                                                                                                  vious quarter, whereas the weighted average rent increased
 cation and the progressing project developments. Last year                                                                                                                                       by 2.6% to €26.36/sqm/month.

 Berlin: Office Space Market Areas with Rental Bands (€/sqm/month)
Berlin: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                                                                               JLL Research 2020/Q1

                                                                                                                 Waidmannslust                     Märkisches
                                                        Heiligensee                                                                                                                                              Französisch                                                                                                    Gesundbrunnen
                                                                                                                                                     Viertel               Rosenthal                                                                                                           Klarahoeh
                                                                                                                                                                                                                                                                                                     Wedding
                                                  Konradshöhe                                                                                                                                                     Buchholz
                                                                                                                                                                                                                                 Blankenburg                                                                                                                         A 10
                                                         Tiergarten                                                            Wittenau                     Wilhelmsruh                                                                                                      Wartenberg                                                                               Prenzlauer
                                                                                                                                                                                                                     A 114
                                                                                                                                                                                                                                                                                                           Area Main Station-Europacity                                  Berg
                                                                                                                                                                                    Niederschönhausen                                            Malchow(Hohensch
                                                                                                                                                                                                                                        Stadtrandsiedlung Malchow                                                 € 28.00-35.50
                                                               Konradsh                                                                                                                                                                                                                                Falkenberg
                                                                                                                                                                                                                                            Malchow
                                                                                                                                                                                                                                                                                                            Moabit
                        Charlottenburg
                                                                                             Reinickendorf                                              Reinickendorf                                                    Heinersdorf                                                                                                                          Mitte
                              Hakenfelde                                                                                                                                                                                                                                       Neu-
                                                                                                                Northern Suburb                                                                         Pankow                                                           Hochenschönhausen                                                                € 21.00-34.00
              Charlottenburg 1A                                  Schöneberg                  Tegel
                                                                                                                 € 11.00-18.00                                                                                       Pankow
                                                                                                                                                                                                                                                                                                                                                 Mitte
                € 23.00-37.00
                                                                                                                         A111
                                                                                                                                                                                                                                          Weißensee                                         Hansaviertel
                                                                                                                                                                                                                                                                                                              Marzahn
                                                                                                       Berlin-Tegel
 Falkensee                                                                                                                                                                                                                                                            Alt-                                                                           Mitte 1A
               Falkenhagener
                        Wilmersdorf
                    Feld                                                                                                                                                                                                                                       Hohenschönhausen                                                                   € 26.00-36.00
                                                                                                                                                                               Gesundbrunnen                                                                         Lichtenberg
                                                               Haselhorst                                                                                        Wedding                                          Prenzlauer                                                                                                                     Hellersdorf
                                                                                                             Charlottenburg-                                                                                                                                                                                   Tiergarten                           Kreuzberg
                                                                                                                  Nord                                                                                               Berg
                                                                                       Siemensstadt                                                                                                                                                                                                                         Area Potsdamer-Leipziger Platz
                                                                                                                                                               Moabit
                                                                                                                                                                                                                Prenzlauer                         Fennpfuhl                               Schöneberg
                                                                                                                                                                                                                                                                                                                                     € 25.00-37.00
                                                 Spandau                                                                                                                           Mitte
    Staaken                      Spandau                                                                                                                                                                    Berg-Friedrichshain                                                                                           Marzahn-Hellersdorf
                                                                                                                                                                                                                                                                    Lichtenberg
                                                                                                                                                                                               Mitte           € 17.50-28.00
                                                                                                                                                                                                                                                                                                    Eastern Suburb
                              Western Suburb                                                                                                      Hansaviertel
                                                                                                                                                                                                                                 Friedrichshain                                                      € 10.00-27.50
                               € 11.50-17.50                                             Westend                   Charlottenburg-Tiergarten
                               Wilhelmstadt                                                                                                                                                                                                                                                                          Biesdorf
                                                                                                                         € 17.00-28.00       Tiergarten                                                 Berlin                  Mediaspree                                        Friedrichsfelde                                                        Mahlsdorf
                                                                               Charlottenburg-Wilmersdorf                          Charlottenburg                                                                                                                                                                                   Kaulsdorf
                                                                                                                                                                                              Friedrichshain-Kreuzberg         € 26.00-35.00               Rummelsburg
                                                                                                                      Wilmersdorf-Schöneberg
                                                                                                                Halensee                                                                     Kreuzberg

   Groß                                                                                                                         € 16.00-29.50                                              Kreuzberg-Tempelhof                      Alt-Treptow
 GlienickeGroßziethen
                                                           Bohnsdorf                                                           Wilmersdorf                                                     € 15.00-30.50                                                                                  Karlshorst
                       Schönefeld                              Grunewald
                   Gatow                                                                                                                                                                                                                                   Plänterwald
                                                                                                                                                           Schöneberg
                             Gatow            Kienberg                                                       Schmargendorf                                                                                                   Neukölln
                                                        A113                                                                                                   A 100
                        Waßmannsdorf                                           A 115                                                      Friedenau
                                       Berlin-Schönefeld
                                                                                                                                                  A 103           Tempelhof-Schöneberg                                                                                                  Oberschöneweide
                                                                Waltersdorf
                                                                                                                                                                                           Tempelhof
                Selchow Berlin-Schönefeld                                                                                                                                                                                                                                                                                                                       Friedrichshagen

          Kladow                                                                                                                                                                                                                                                                                                     Treptow-Köpenick
                                                               Kiekebusch                              Dahlem                                                                                                                                                                                Niederschöneweide
     Glasow                                Rotberg                                                                                           Steglitz
                                                                                                                                                                                                                                                             Baumschulenweg
                                           Nikolassee     Karlshof
                                                                                 Steglitz-Zehlendorf                               Southern Suburb                                                                                Britz                                                                                                  Köpenick
  Kladow                   Tollkrug
                                                                                                                                     € 10.00-26.50                                                                                      Neukölln                                                            Adlershof
                                                                            Zehlendorf
              Area Airport Berlin-Brandenburg                                                                                                                                              Mariendorf                                                              A 113                 Adlershof
                                                                                                                                                                                                                                                                                   Johannisthal
                                                                                                                                                                                                                                                   Buckow
                        € 8.50-18.50                                                                                    Lichterfelde                                                                                                                                                   € 10.00-18.50
                                                                                                                                                          Lankwitz
        Wannsee
      Dahlewitz                                                                                                                                                                                                                                                      Rudow
                             A10                                A13
                                                                                                                                                                                                                                            Gropiusstadt                                                   Altglienicke         Grünau
                                                                                                                                                                     Marienfelde                                             Buckow

  Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                                                                          Berlin
Düsseldorf
                                                                                                                                                                           Development of Main Indicators

  Strong start to the year
  Düsseldorf’s office letting market recorded take-up of
  around 108,000 sqm in the first quarter of 2020, slightly less
  space (4%) than in the same quarter of the previous year
  but above the five- and ten-year averages for first quarters;
  almost 93,000 sqm of this figure was taken up in the Düs-
  seldorf urban area. The number of leases concluded fell
  sharply year-on-year (25%), with most deals affected in the
  < 500 sqm size category. Four deals were registered in the
  > 5,000 sqm size category, two of which were concluded by                                                                                                                which is constructing around 7,600 sqm in Airport City. The
  the public sector which was thereby responsible for around                                                                                                               vacancy rate remained below 6% in the first quarter and
  a third of the total take-up. Although these deals also put it                                                                                                           the figure is just 4.7% in the Düsseldorf urban area. Most
  at the top of the ranking of industrial sectors, this sector’s                                                                                                           vacant space can be found in the peripheral Neuss and Rat-
  average long-term share of take-up was just 7%. Manufac-                                                                                                                 ingen submarkets. The prime rent remained stable in the
  turing companies (19%) and business-related service pro-                                                                                                                 first three months of the year at €28.50/sqm/month and
  viders (12%) followed in second and third place, albeit at                                                                                                               was achieved in the CBD, whereas the weighted average
  some distance behind. One of the four top deals was con-                                                                                                                 rent increased slightly by around 1% to €17.42/sqm/month
  cluded by an owner-occupier, LEG Management GmbH,                                                                                                                        in the same period.

  Düsseldorf: Office Space Market Areas with Rental Bands (€/sqm/month)
Düsseldorf: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                                 JLL Research 2020/Q1

                             Lank-Lat um                        Langst kierst
                                                                                                                                                                                                                                                                                                                     Pempelfort
Fischeln                                                                                                        Kalkum                                 Kalkum
                                                                                                                                                                                                                                                                                                                           Rohdenhaus
                                                                                      Kaiserswerth                                                        A 52                            Ratingen
                                                    Ilverich                                                                                                                                                                                                            Altstadt
                                                                        ein

                                                                                                                                                                                                                                                          Oberkassel
                                                                      Rh

                        Struemp                                                                                    Airport                                                                                                     Ratingen
                                                                                                                € 11.00-17.50                                                                                                € 8.00-15.50                                              CBD Düsseldorf
                                                         A 44                                                                          Lichtenbroich
                                                                                                     Lohausen
                                                                                                                                                                                                                                                                   Carlstadt            € 17.00-28.50 Niederschwarzbach
                                                                                                                                                                                                                                                                                                        Stadtmitte
                                                                                                            Düsseldorf
                                                                                                                                                                                                         A 44                                 A3           Rhein
                                                                                                                                                                                                                                                                                                                   City
                                                                                                                                                                                                                                                                                                              € 9.00-26.00
                                                                                                                          Unterrath                                                                                                                            Government District
                                                                                                                                                                                   Rath                                                            Hafen          € 11.50-21.00
                                                                                                                                                                                                                Knittkuhl
                                                                                   Stockum                                                                    North                                                                                Unterbilk
                                                                                                                                                                                                                                                                                    Met zkausen
                                                                                                                                                           € 8.00-17.00                                                                                                                             Friedrichstadt
                                                                                                     KennedydammDerendorf                                                                                                                                           City-South                                                   Oberbilk
                                                                            Seestern                  € 14.50-23.50                                Mörsenbroich                                                 Ludenberg
                                                                                                                                                                                                                                             Hubbelrath            € 8.00-11.00
                                                                          € 9.50-14.50                                                                                                             Ludenberg
                                                                                 Lörick                          Golzheim                                                                                                                                                                                                 Bilk
           A 57                                    Meerbusch
                                                                                                                                                                                                                                                                                                  Met tmann
                                                                                               Niederkassel
                                                                                                                                                                        Grafenberg                                                                                                                                                Schöller-
                                            A 52                                 Linksrheinisch                                                          Düsseltal
                                                                                                                                                                                                                                                                                                                                   Dornap
                                                                 Heerdt           € 7.00-20.00                                 Pempelfort                               Grafenberg-East
                                                                                             Oberkassel
                                                                                                                                                                          € 9.00-14.50
                                                                                                                    Altstadt                                     Flingern Nord                  Gerresheim
                                                                                                                                      Düsseldorf
Kaarst                                                                                                                            Stadtmitte
                                                                                                                  Carlstadt
                                                                                   Harbour
                                                                                    Hafen                                                              Flingern Süd
                                                                                € 14.50-25.00
                                                                                                            Unterbilk
                                                                                                                          Friedrichstadt                              Lierenfeld            City-East
                                                                                                                                                                                          € 9.50-12.50                                                                                                                           Gruiten
                                                                                              Hamm                             Bilk                                                               Vennhausen
                                                                                                                                                   Oberbilk                                                                                                    Erkrath/
                                           Neuss                                                                                                                                                                                                                                       Erkrath
                                                                                                                                                                                                                                                                Hilden
                                                                                                                                                                                                                            Unterbach
                                     Neuss                                                                                                                                            Eller
                                                                                                                                                                                                                                               Unterf eldhaus
                                  € 7.00-9.50                                                                                                              South                                                             Unterbach
                                                                                                                          Flehe                         € 8.00-11.50
                                                                                             Volmerswerth                                                                                                                             A 46
                                                                                                                                                              Wersten
                                                                                                            Rhein
                                                                                                                                                                                                                                                                                                                       Haan
                                                                                                                                                                                                                Hassels
                      A 46                                                                                                                                                                                                                                     Hilden
                                                                                                                                                                           Holthausen         Reisholz               A 59                                                                                                        Solingen
 Grefrath
                                                                                                                                          Himmelgeist                                                                                                                          A3
                  Holzheim                                                                                                            Himmelgeist Itter                                                                     Benrath                                                   Kalstert

   Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                     Düsseldorf
Frankfurt
                                                                                                                                                                      Development of Main Indicators

 Low space take-up in the first quarter
 Take-up in the first quarter of 2020 was just 67,600 sqm,
 the fourth worst quarterly take-up result for more than
 20 years. This was mainly due to the low deal overhang
 from the previous year, as the fourth quarter of 2019 was
 the third strongest quarter in the last ten years, and to the
 effects of the current coronavirus crisis. In contrast, the
 number of deals was comparatively high, since mainly
 medium and large-sized searches for space were post-
 poned. The vacancy rate rose slightly to 5.8% due to                                                                                                                 infrastructure; these investments will also have an impact
 numerous vacancies resulting from contracts signed in                                                                                                                on space concepts in the medium and long-term. If the
 2018 and 2019. Across the submarkets, prime and average                                                                                                              catch-up effects come in the second half of the year, over-
 rents remained unchanged. In the current economic                                                                                                                    all performance in 2020 could remain strong, provided
 climate, owners and (existing) tenants are engaged in                                                                                                                that there is enough time for deals to be concluded and
 intensive exchanges and solutions are being sought in                                                                                                                that property owners do not put together too attractive
 the form of incentives, subletting or flexible contractual                                                                                                            lease extension packages.
 arrangements. In the short term, many companies will
 focus on creating or improving their remote working

 Frankfurt: Office Space Market Areas with Rental Bands (€/sqm/month)
Frankfurt: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                                 JLL Research 2020/Q1

                                                                                                                                                Kalbach
                                                                Oberhoechstadt/Ts.                                                                                                   Harheim
                                                   Kronberg                                          Oberursel                                               Bonames
             Königst ein                                                                                                                 Kalbach                                  Harheim
                                                                                                                                                 A 661
  Schneidhain
                                                                                                                                                                                                                                                                                                                   Mittelbuchen
      Ts.
                                                                                                                                                                   Frankfurter                                   Bad Vilbel
                                                                                        Steinbach                      Niederursel                                    Berg                   Berkersheim
                                                                                                                              Mertonviertel-Riedberg
                                                                                                                                  € 10.00-15.00                                                                                                                                                         Wachenbuchen

                Altenhain                                                                                                            Heddernheim         Eschersheim                       B3                                               Bergen-
                                                                                                                                                                                         Preungesheim                                       Enkheim
                                                              Schwalbach
                                                                                      Eschborn              A5                                                               Eckenheim
                                                                                                                                                                                                           Other City Locations (North)
                                                                                                                                                                                                                                                                                           Maintal
                                                                                     € 9.00-17.50                 Praunheim                   Ginnheim
                                                                                                                                                               Dornbusch                      A 661;B 3         Seckbach
                                    Bad Soden                                                                                                                                                                                                                 Bischofsheim         A 66
                                                                                 Eschborn
                                                                                                                                                                                                           Seckbach
                                                                                                                                                                North
                                                                                                                                Hausen
 Kelkheim                                                                                                                                                   € 11.50-16.50
                                                                                                                                               A 66
                                                                                                                                                                                                    Bornheim                                                                                   Doernigheim
                                                                                                                                                       Westend-                                                                                                                                                               Hanau
                                                                                             A 648              Rödelheim
                                                                                                             Rödelheim
                                                                                                                                               Frankfurt Nord                                                        Riederwald
                                                                                       Sossenheim                € 9.00-13.50                  am Main                       Nordend-
                                                                                                                                                                              West    Nordend-Ost                        East       Fechenheim
                                                                                                                                 Bockenheim              Westend-Süd                                                € 10.00-18.50                                                           Mühlheim
                                                                                                                                                                            Innenstadt
                                                                                                                                                                                                          Ostend
                                                    Unterliederbach                                                                                        Bahnhofsviertel
                                                                                                                                                                             Altstadt
                                                                                                                              West    Gallusviertel
                                                                                                                                                                                                                     Kaiserlei
                                                                                            Nied                                                                      in                                           € 8.00-16.00
                                                                                                                          € 9.50-28.00 Gutleutviertel              Ma                   Sachsenhausen-Nord
                                                                      Höchst
                                 Zeilsheim
                            Zeilsheim                                                                    Griesheim                                                                                               Oberrad
                                                                                                                                                                                                                 Oberrad                 Of fenbach
                           A 66                            Other City Locations (South)                                                                                                                                                   am Main                                                    Westend-
                                                                                                                                                                                                                                                                                                Laemmerspiel      Nordend-
Hofheim                                                                                                                                                              Sachsenhausen                                                                                                                    Nord         West
                                                                                                                                                                      € 11.50-17.00                                                                                                                                City
            Kriftel                                                                                                                      Niederrad                                                                                                     Bockenheim                                             € 13.00-30.00
                                                                                                                                                                                                                                                                                       Westend
                                         B 40 Sindlingen                              Schwanheim
                                                                                                                      Lyoner Quartier                                                                                                                                               € 16.00-33.00                         Nordend-Ost
                                                                                                                                                                                Sachsenhausen-
                                                                                                                       € 10.00-17.00                                                                                                                     City-West
                      Hattersheim
                                                                                                                                                                                     Süd
                                                                                                                                                                                                                                               êA648
                                                                                                                                                                                                                                                       € 13.00-18.50                                        Innenstadt
                                                                                                                                                                                                                                                                                                     Obertshausen
                                                                                                                                                                                                                                                               Westend-                   Banking District
                                                                                                                                                                                                                                                 A3              Süd
                                                                                                                                                                                                                                                                                           € 19.00-41.50                 Altstadt
                                                   in
                                                Ma
                              Okriftel            Kelsterbach                                   Airport                                                                                                                                                                         Central Station Area
                                                                                                                                                                                                                           Gravenbruch
                                                                                             € 16.00-25.00                                                                                                                                               Gallusviertel             € 12.00-24.00
                                                                                                                                                                                                                                                       Heusenst amm
                                                                                                                                                                           Neu-Isenburg                                                                                                        Bahnhofsviertel
                                                                                     Flughafen
                                                                                                                                                                                                                                                                                        Rembruecken
                                                                                                                                                                                                                                                                                                         Sachsenhausen-
                                                                                                                                                                                                                                                                                                                     Rodgau
      Eddersheim
                                                                                                                                                                                                        A 661
                                                                                                                                                                                                                                                           Gutleutviertel          Westhafen                   Nord
                                                                                      Frankfurt                                                                                                                                                                                  € 18.00-25.50
                                              A3                                      am Main                                                                                                                                                                                                                      Sachsenhausen-
                  Raunheim                                                                                  Zeppelinheim                                                                                                                                                          Main
                                                                                                                                                                                Dreieich                                                                            Niederrad                                           Süd

  Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                    Frankfurt
Hamburg
                                                                                                                                                                                Development of Main Indicators

 Absence of major deals on the letting market
 Around 98,000 sqm of space was let or secured by owner-
 occupiers in the Hamburg office letting market in the first
 quarter, 30% and 20% below the five- and ten-year averag-
 es, respectively. A higher take-up result was not possible due
 to the absence of major contracts: the two largest contracts
 were each concluded for units with less than 6,000 sqm.
 The City Centre and Port Fringe submarkets recorded the
 highest take-up, accounting for over 40% of the total re-                                                                                                                      however, more subleased space is expected to come onto
 sult. In terms of industrial sectors, business-related service                                                                                                                 the market in the near future as a result of the current coro-
 providers (19,000 sqm) assumed first place in the rankings                                                                                                                     navirus crisis. Coupled with a weakening in demand, this
 as usual, followed by three sectors (construction and real                                                                                                                     will lead to a narrowing of the gap between supply and
 estate, education, health and social services, and manu-                                                                                                                       demand in tenants’ favour. Just 15% of the around 190,000
 facturing), all of which accounted for around 10,000 sqm of                                                                                                                    sqm of office space to be completed in 2020 is still available
 take-up. Flexible office space providers rented around                                                                                                                         to the market and even less space will be completed next
 7,000 sqm in three locations, including IWG at Jungfern-                                                                                                                       year, but an increase in the supply pipeline is expected in
 stieg for the Signature brand. The vacancy rate fell to 2.5%                                                                                                                   2022. The prime and average rents remained stable at
 in the first quarter, reflecting the current supply shortage;                                                                                                                   €29.00/sqm/month and €17.74/sqm/month, respectively.

 Hamburg: Office Space Market Areas with Rental Bands (€/sqm/month)
Hamburg: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                                                      JLL Research 2020/Q1

                                                                                                                                                                                                           Hummelsbüttel                                                                              Sasel                     Volksdorf
                                                                                                                                                                                                                                                        Wellingsbüttel
                            A 23

                                           Puet jen                      Schnelsen                                                                                   Hamburg
                                                                                                                                                                  Fuhlsbüttel
                                                                                                                   Niendorf
                                                                                                                                                                                                                 Ohlsdorf
                                                                                                                                                    Airport /
                            Halstenbek                                                                                                            Groß Borstel
                                                                                                                                                  € 9.00-13.50
                                                                                                                                                                                                                                                                     Bramfeld               Farmsen-Berne
                                                            Eidelstedt                                                                          Groß Borstel                    Alsterdorf                                           Steilshoop

                                                                                                                                                                                                                                                                                           Hamburg North-East                   Rahlstedt
       Schenef eld                                                                                                                                                                       City Nord                                                                                            € 9.00-12.50
                                                                                                                                                                                        € 9.50-15.00
                                                                                                                                                                                                                         Barmbek /
                                   Lurup                                                                                Lokstedt
                                                                                                                                                                  Winterhude /                                            Bramfeld
                                                                                                                                                                   Uhlenhorst                Winterhude                 € 10.00-15.50
                                                                                                                                                  Eppendorf
 Iserbrook                                                                           Stellingen                                                                   € 10.00-14.50                                          Barmbek-Nord
                                              Hamburg-West
                                               € 9.00-12.50
                                                                                                                                                                                                                                                                                                 Tonndorf
                                                                                                                                           Hoheluft-Ost                         Hamburg                                                      Dulsberg
                                                                                                                                                  Eppendorf /                                                                                                       Wandsbek
                                                                                                                               Hoheluft-West    Harvestehude /
                                                                                                              Eimsbüttel                                                                                    Barmbek-Süd                                                   Wandsbek
                                                                                                                                                 Rotherbaum
                                                                                                                                                    Harvestehude
              Osdorf                                  Bahrenfeld                                             € 10.00-14.50                                                                                                                                               € 9.00-14.50
                                                                                                                 Eimsbüttel                      € 12.50-22.00                                                                                                                                                      Jenfeld
                                                                                                                                                                                        Uhlenhorst
                                                                                                                                                                                                                                                                                                                                      Barsbüttel
                                                                                                                                                                                                                            Eilbek                                 Marienthal
                                                                                                                                                            Rotherbaum
                                                                                                                                                                                                                                                                                             A 24
                                      Groß Flottbek                                                  Altona-Nord                                                                  East of Alster /
                                                                                                                              Sternschanze                                                Hohenfelde
                                                                   Altona-Ottensen-Bahrenfeld                                                                                       St. Georg
                                                                                                                         St. Pauli                                                € 12.50-21.50
                                                                          € 12.00-17.50                                                             City Centre                   St. Georg
                                                                                                                      € 12.00-22.50
        Nienstedten                                                                                                                 St. Pauli      € 14.50-29.00                                           Borgfelde
                                                                                                                                                                                                            City Süd (Outer  Zone)
                                                                                                                                                                                                                          Hamm
                                            Othmarschen                         Ottensen                                                         Neustadt                                                                                                                Horn
                                                                                                           Altona-                                                  Hamburg-       City Süd                      € 9.00-12.50
                                                               A7                                          Altstadt                                                                                                                                                                Billbrook /
                                                                                                                                                                     Altstadt    (Core Area)
                                                                                                                                           Harbour fringe                                                                                                                         Billwerder /                                   A1
                                           Elbe
                                                                                                                                                                                 € 9.50-16.00
                                                                                                                                                                                        Hammerbrook                                                                                                         Billstedt
                                                                                                                                            € 13.50-22.50                                                                                                                           Billstedt
                                                                                                                                                                     HafenCity                                                                                                    € 6.00-12.50
                                                                                                                                                                 Norder Elb
                                                                                                                                                                                   HafenCity
                                                                                                  Sü

                  Finkenwerder                                                                                                                                             e
                                                                                                                      Steinwerder
                                      Harburg - south ofWaltershof
                                                                                                    der

                                                         the river Elbe                                                                                                                                                Rothenburgsort
                                                                                                                                                                                 € 16.00-26.00                                                                                                                                 Bergedorf
                                                                                                    Elb

                                                € 9.00-14.50                                                                                                                                                                                                                Billbrook
                                                                                                       e

                                                                                                                                                                   Kleiner
                                                                                                                                                                  Grasbrook
                                                                                                                                                                                                                                                                                                                              € 9.00-15.00
                                                                                                                                                                                                  Veddel

  Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                                             Hamburg
Cologne
                                                                                                                                                                           Development of Main Indicators

 Market characterised by a lack of available space
 The Cologne office letting market got off to a very slow
 start to the year, recording take-up of a mere 38,500 sqm
 in the first three months of 2020, 60% lower than in the
 first quarter of last year. The number of deals concluded
 fell by 31% and both the volume of take-up and number
 of deals only managed to reach half of the five-year
 average. This below-average result was not due to weak
 demand from companies, but rather to the lack of available
 and especially modern and high-specification office                                                                                                                       average deal size was 500 sqm. Following a significant
 space. With a current vacancy rate of just 2.2%, many                                                                                                                     increase in 2019, the prime rent remained stable at
 searches for space cannot be satisfied. Just 11% of the                                                                                                                   €26.00/sqm/month in the first quarter of 2020, while the
 available space is of a top quality fit-out specification.                                                                                                                weighted average rent was almost unchanged year-on-year
 No high-volume deals were registered in the first quarter:                                                                                                                at €15.54/sqm/month.
 so far this year, the largest lease was concluded by a
 company from the health sector which signed a contract
 for 4,500 sqm in the Ehrenfeld/Braunsfeld submarket. Just
 eight deals in the four-digit range were concluded; the

 Cologne: Office Space Market Areas with Rental Bands (€/sqm/month)
Cologne: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                                     JLL Research 2020/Q1

                                                              Auweiler                        Heimersdorf                                                                                                                                                Hardt
                                                                                        Lindweiler                                                                                                         A3
                         Pulheim                                             Pesch       A1                                                                                       Flittard
                                                     Esch/Auweiler
                                                                                                                LongerichOssendorf/                                                                                                   Dünnwald
                                                                                                                         Nippes
                                                                                                                      € 6.50-14.00
                                                                                              Köln                                                                                Stammheim                                                                                                Bergisch
                                                                                                          A 57                     Weidenpesch                                                                       Höhenhaus                                                             Gladbach
                                               Bocklemünd/Mengenich
                                                                                        Ossendorf                                                               Niehl

                                                                                                                                    Mauenheim
                               Widdersdorf                                                                            Bilderstöckchen
                                                                                                                                                                                                                                                          Dellbrück
                                       Widdersdorf
                                                                                                                                                                                                  Mülheim                                           Other Locations
Brauweiler                                                                  Vogelsang                                                        Nippes                                                                            Holweide
                                                                                           Bickendorf                                                                   Riehl
                                                                                                                   Neuehrenfeld
                                                                                                                                                                                                            Buchheim
                                                                                                                                                                                                                                                                                                        Bensberg
                                                                                                 Ehrenfeld/
                                   Lövenich
                                                                                                Braunsfeld                               Neustadt-Nord
                                                                                                    Ehrenfeld                                                                                Buchforst
                                                              Müngersdorf
                                                                                                € 6.50-15.50
                                                                                                                                                                                                                                                                                                        A4
                                                                                          Braunsfeld                                                           Deutz/                                           Höhenberg
                                      Weiden                                                                                             Altstadt-Nord                                                                            Merheim                        Brück
                                                                                                                                  City Centre                  Messe                           Kalk          Kalk/
                                                                                                                                                                Deutz
                                        Peripherie West                                                                                                     € 8.00-20.00                                   Mülheim               A 3;A 4
                                                                                                                                  € 9.50-26.00                                                                                              Neubrück
             Buschbell
                                         € 7.00-12.50                                                                                                                                                    € 7.00-16.00
                                                                                                                                         Altstadt-Süd                                                       Vingst
                                                                                            Lindenthal                                                                                       Humboldt-
                                                                                                                                          Rhinebank-West                        L 124
                                                      Junkersdorf                                                                                                                            Gremberg                       Ostheim
                                                                                     Lindenthal/                                           € 13.00-26.00                                                                                                                     Rath/Heumar
                                                   Marsdorf
                                                               A4                        Sülz                                             Neustadt-Süd
                                                                                     € 8.00-15.00                                                                                                                                                                 Rath
                                                                                                         Sülz                                                                     Poll
                Frechen                                                                                                                                                                                                                                                                                            Forsbach
                                                                                                                                           Raderberg
                                                                                                                                                    Bayenthal
                                              A1                                                            Klettenberg     Zollstock                                                                                        Gremberghoven
                                                                                                                                      Bayenthal/
                                                                                                                                                                                                                                                 A 559
                                                                                                                                      Marienburg                                               Westhoven

                                                                                                                                      € 9.00-16.00 Marienburg
                                                                                                                                        Raderthal                                        Rhein                        Ensen                                                    Eil                     A3
                                   Gleuel                                                                                                                                                                                                  Finkenberg            A 59              Porz/                           Rösrath
                                                                                                                                                                                                                                                                             Gremberghoven
                                                                                                                                                                                                                                                                               € 8.50-13.50
                                                                            Hürth
                                                                                                                                                                                    Rodenkirchen                                                                     L 84
                  Berrenrath                                                                                                                                                                                                                Porz
                                                                                                                            Rondorf                                                                                  Weiß                                                                  Grengel
                                                                                                                                                                                                                                                           Urbach
                                                                                                    Konraderhoehe                                                                       Rodenkirchen
                                                                                                                                                        A 555      Hahnwald              € 7.00-11.00
                                                                                                                                                                                                                              Zündorf
                                                                                                                                                                                               Sürth                                                       Elsdorf
                                                                                                                   Meschenich ImmendorfImmendorf                                                                                                                            Wahnheide      Köln/Bonn
                                                                                                                                                                         Godorf

  Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                            Cologne
Munich
                                                                                                                                                                             Development of Main Indicators

  Supply shortage continues to dominate the office market
  Take-up of around 184,000 sqm was recorded as a result
  of lettings or deals by owner-occupiers in the Munich
  office letting market in the first quarter, approx. 27%
  more than in the previous quarter and 6% less than in
  the corresponding period last year. With a total volume
  of around 50,000 sqm, the three largest lettings accounted
  for 27% of the total take-up to date. Although the highest
  number of transactions (approx. 20%) were concluded in
  the City Centre, the East submarket recorded the highest                                                                                                                   expected by the end of the year, with just 40,000 sqm
  volume of take-up of around 63,000 sqm.                                                                                                                                    (14%) of this still available to the market.

  The vacancy rate in the first quarter of 2020 was 2.4%,                                                                                                                    The continuing low and further decline in the supply of
  0.1 percentage points above the level of the previous                                                                                                                      space and sustained high demand in the market has caused
  quarter and was mainly due to an increase in the volume                                                                                                                    rents to rise over many years. In the first quarter of 2020, the
  of space available for subletting. Around 59,000 sqm of                                                                                                                    prime rent was unchanged at €41.00/sqm/month and the
  office space was completed between January and March                                                                                                                       average rent rose to €21.50/sqm/month. In the Munich ur-
  2020 and a further 349,400 sqm of completions are                                                                                                                          ban area, the average rent is currently €23.72/sqm/month.

  Munich: Office Space Market Areas with Rental Bands (€/sqm/month)
Munich: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                               JLL Research 2020/Q1

                                                                            Rothschwaige
                                                                                                                                                                                        A 99                      A9
                                                                                            Karlsfeld                                                                                                                                   Ismaning
                                                                                                                                                                                 Oberschleißheim

Neu-Esting             A8

                                                                                                                         Feldmoching-Hasenbergl
Olching
                                                                                                                                                           North
                      Gröbenz ell
                                                                                                                                                       € 14.00-21.00
                                                                     A 99
                                                                                                                 Olympiapark                                                              Schwabing-Freimann
                                                                             Allach-Untermenzing                                                               Milbertshofen-Am
                                                                                                                 € 14.00-22.00                                        Hart
                                                                                                                                                                                                                                                                       A 99

                                                                                                                    Moosach                                                                                                                                                                  Kirchheim
                                                                                                                                                                                                                                                                                            b. M ünchen
Eichenau
                                                                                                                                                                                                                                                                                                                       Poing
           Puchheim
                                                                                   West                                                                                 North-Schwabing                        Arabellapark                                                                                  Grub

                                                                               € 15.50-23.50                                                                              € 16.50-26.00                        € 17.50-23.50                                                                  Heimstetten
                                    Aubing-Lochhausen-Langwied                                                                                                 Schwabing-West
                                                                                Pasing-Obermenzing
                                                                                                                                                                                                                  Bogenhausen
                                                                                                                      Neuhausen-Nymphenburg                                City Centre
                                                                                                                                                                          € 22.50-41.00
                                                                                                                                                               Maxvorstadt
                                                                                                                                                                                                                                                                                 A 94                           Parsdorf
                                                                                                                                                                                                                                                    Riem
                                                                                                                                                                     München                               Bogenhausen                                       Moosfeld/
                                                                                                                                                                       Altstadt-Lehel
                                                                                                                     Laim
                                                                                                                    Westend             Schwanthalerhöhe                                                   € 20.00-30.00                                       Riem
                                                                                                                                                                                          Au-Haidhausen                                                    € 10.00-17.00      Ot tendichl
                                                                                                               € 16.50-25.00                      Ludwigsvorstadt-Isarvorstadt
                                                                                                                                                                                                                                             Trudering-Riem
                Germering                                                                                                                                                                                       Berg am Laim
                                                                                       A 96
                                                                 Gräfelf ing                                                                                                                                          East
                                                                                                                          Sendling-Westpark                                                                      € 15.50-30.00
                                                                                                                                                    Sendling
                                                                                                      Hadern                                                                                                                                                                   Haar

                                                         Planegg            Martinsried                                                    South
                                                                                                                                                                                      Obergiesing                                                                                                           Vaterstetten
                                                                                                                                       € 12.00-21.00                                                      A8
                                                                                                                                                            Untergiesing-Harlaching                              Ramersdorf-Perlach
                                                                                                             A 95
                                                                                                   Thalkirchen-Obersendling-Forstenried-Fürstenried-Solln                                                               Neuperlach
                                             Stockdorf                                                                                                                                                                 € 12.00-17.50

                                                                                                                                                                                                                                      Neubiberg                                A 99
                                                                                                                                                                                               A 995

                            Gauting
                                                                                                                                                                                                                                       Ot tobrunn
Unterbrunn                                                                                                                                                                                             Unterhaching
                                                                                                                                                    Grünwald

   Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                                     Munich
Stuttgart
                                                                                                                                                              Development of Main Indicators

 Below-average start to the year
 At the beginning of the year, the Stuttgart office letting
 market saw its volume of take-up fall by 61% to 33,100 sqm
 compared to the corresponding period last year. This result
 is around 57% below the five-year average of first quarters,
 but the number of deals is similar to that recorded in the
 same period last year. This is because many large users have
 already secured space with long lease terms and is also due
 to the low supply of available larger premises. As a result, the
 < 500 sqm size category was the most popular, accounting                                                                                                     around 41% of the take-up result. On the supply side, all of
 for around 70% of transactions. The largest transaction was                                                                                                  the approx. 5,500 sqm of the office space completed in the
 concluded by the flexible office space provider REGUS with                                                                                                    first quarter was already occupied and therefore no new
 almost 2,800 sqm in the peripheral Leinfelden-Echterdingen                                                                                                   office space was released onto the market. Despite a slight
 submarket. With a share of around 34%, the City submarket                                                                                                    drop in the volume of vacancies, the vacancy rate remains at
 recorded the highest volume of take-up and accounted for                                                                                                     2.3% and the prime rent is unchanged at €24.50/sqm/month.
 around half of all deals. Vaihingen-Möhringen followed with
 around 23%. The most active demand group by far was
 business-related service providers who were responsible for

 Stuttgart: Office Space Market Areas with Rental Bands (€/sqm/month)
Stuttgart: Office Space Market Areas with Rental Bands (€/sqm/month)                                                                                                                                                                                                                   JLL Research 2020/Q1

                                                                                                      Neuwirtshaus Stammheim                                                                                                             Neustadt
                                                                                                                                                                                                                                      Rems-Murr- Kreis                   Korb
                                         Hirschlanden
                                                                                     Kornt al- Münchingen                          Zuffenhausen                            Mühlhausen

                                                                                                                                   € 10.00-16.50
                                                            Ditz ingen                                                                 Zuffenhausen                                                                                  Waiblingen                            Kleinheppach
                                                                                                                                                                     Münster
                                                                                     Weilimdorf                                                                                                                                                              Beinstein
                             Hoefingen
      Gebersheim
                                                                                Weilimdorf                                                                                     Bad Cannstatt                      Fellbach
Rutesheim
                                                                               € 11.00-16.50                           Feuerbach                      Stuttgart                € 11.00-19.00                                                                                    Weinstadt
                                                                                                                                                                                                                                                                                                 Remshalden
                                                                                                                                                                                                                                              Kernen
                                                                                                                                                                                                                                            im Remst al
                                                                                                                                                                                    Bad Cannstatt
A8                                       A 81              Gerlingen                                                               Stuttgart-North
                             Leonberg                                                              Feuerbach                        € 15.00-20.00
                                                                                                  € 13.50-19.50              Stuttgart-Nord                                                                                                                 Stetten
                                                                                                                                                                                                      Untertürkheim                                                                          Schnait
                                                                                                                                                                                                                                                          im Remst al

                                                                                                    Botnang                               City                    Stuttgart-Ost               Unter-Obertürkheim/                                                   Struempfelbach

                                                                               Stuttgart-West
                                                                                                   Stuttgart-West                    € 15.50-24.50                                            Wangen-Hedelfingen             Obertürkheim
                                                                                                                                                                                                 € 10.50-16.50
                                                                                                    € 15.00-20.00                             Mitte
                                                                                                                                                           Stuttgart-East                  Wangen
             Warmbronn                                                                                                                                     € 10.50-18.00
                                                                                                                        Stuttgart-South
                                                                                                       Stuttgart-Süd     € 10.50-17.00                                                         Hedelfingen

 Magstadt
                                                                                                                                              Degerloch
                                                                                                                                                                          Sillenbuch
                                                                         Vaihingen
                                                                                                                                      Degerloch
                                                A 8;A 81                                                                            € 10.50-20.00                                                                                           Esslingen
                                                                              Vaihingen-Möhringen                                                                                                                                           am Neckar
                                                                                                                                        Hoffeld
                                                             A 831
                                                                                  € 13.50-20.00
                                                                                                                                                                                                    Ostf ildern
                                                                                                                 Möhringen
                                                                                                                                                              Birkach
                                                                                                                                                                                  Kemnat
                                                                         A8
                                                                                                                           Fasanenhof
                   Sindelfingen                                                                                           € 11.50-18.00                 Plieningen                                                                                                                                Plochingen
                                                                                                                                                       € 9.00-11.00
                                                                                                                                                              Plieningen
                              A 81                                                                            Leinfelden-Echterdingen                                                                  A8
Dagersheim                                                                                                                                                                                                                            Denkendorf
                                                                                                                    € 11.00-19.00
                      Böblingen
                                                                                                                                                                                                                                                                                                        Wernau
                                                                                                                                                                   Stuttgart                                 Neuhausen                                                                                 (Neckar)
                                                                                                                   Leinfelden-E chterdingen
                                                                                                                                                                                                              auf den                                                           Wendlingen
                                                                                                                                                                            Bernhausen                         Fildern                                                          am Neckar

  Office Market Overview | 1st quarter 2020                                                                                                                                                                                                                                          Stuttgart
Contacts
                                                                                                                                                      Contact Berlin
Stephan Leimbach                                                           Helge Scheunemann                                                          Gerald Dietzold
Head of Office Leasing Germany,                                            Head of Research Germany                                                   Senior Team Leader Office Leasing
Member of the JLL Strategy Board                                           +49 (0) 40 350011 225                                                      +49 (0) 30 203980 144
Germany                                                                    helge.scheunemann@eu.jll.com                                               gerald.dietzold@eu.jll.com
+49 (0) 69 2003 1245
stephan.leimbach@eu.jll.com

Contact Düsseldorf                                                         Contact Frankfurt                                                          Contact Hamburg
Martin Becker                                                              Markus Kullmann                                                            André Hoffmann
Senior Team Leader Office Leasing                                          Regional Manager Frankfurt                                                 Senior Team Leader Office Leasing
+49 (0) 211 13006 600                                                      +49 (0) 69 2003 1062                                                       +49 (0) 40 350011 352
martin.becker@eu.jll.com                                                   markus.kullmann@eu.jll.com                                                 andre.hoffmann@eu.jll.com

Contact Cologne                                                            Contact Munich                                                             Contact Stuttgart
Andreas Reul                                                               Fritz Maier-Hartmann                                                       Sebastian Treier
Team Leader Office Leasing                                                 Senior Team Leader Office Leasing                                          Team Leader Office Leasing
+49 (0) 221 2775 45                                                        +49 (0) 89 290088 139                                                      +49 (0) 711 900370 36
andreas.reul@eu.jll.com                                                    fritz.maier-hartmann@eu.jll.com                                            sebastian.treier@eu.jll.com

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