PROPERTY MARKET REPORT 2019 - BUSINESS PROMOTION
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PROPERTY MARKET REPORT 2019 BUSINESS PROMOTION
PROPERTY SUBMARKETS AT A GLANCE
PROPERTY SUBMARKETS AT A GLANCE
OFFICE RETAIL HOTEL LOGISTICS RESIDENTIAL
Hannover’s tourism is growing – the number of overnight
stays in 2018 was again more than 4 million in the city and
region. Nine hotel projects with around 1,350 rooms are
The number of office workers in Hannover will rise to around currently in completion or under construction. A further
153,000 in 2019. This means that the number of office jobs has twelve hotels with at least 1,700 rooms are already planned
increased by around 15,000 people or 11 % over the last five from 2020. The residential property market is dominated by regional
years. The increasing demand for office space is clearly notice- providers and demand from private households. The popula-
able in the office property market. In 2018, the office space The Hannover Region is one of the highest-selling retail locations Hotel The Hannover Region is a European logistics hub and an tion growth in the state capital and the neighbouring districts
turnover amounted to some 180,000 m². in Germany. In 2019, it is estimated that sales in the retail sector important, expandable port hinterland location for the are generating an increasing demand for residential prop-
Number of accommodation establishments 2018 351
will be around €7.9 billion. Hannover’s city centre, with its prime seaports in northern Germany. Commercial and industrial erties. In the last five years (beginning of 2014 to the end of
Hannover city 111
Office locations in the Georgstraße and the Bahnhofstraße, is comple- companies in particular are the customers of the regional 2018), the population of the city has grown by around 20,700
Surrounding area 240
mented by retail market centres, shopping centres, district logistics industry. In recent years, many contract logistics (up 3.9 %) to 545,100 inhabitants. The number of people
Rentaloffice space 2019 in m² MF-G 5.04 m
centres and attractive inner cities in the region. Hotels 2018 164 specialists have established themselves in and around who live in the entire region is 1.18 million (up 3.6 %). During
Hannover city 4.56 m
Hannover city 45 Hannover, providing logistics services to other companies and the same period, only around 4,400 new apartments were
Surrounding towns of Garbsen, Laatzen and Langenhagen 0.48 m
Retail Surrounding area 119 demonstrating high levels of in-house added value. In 2018, completed in Hannover city and a further 7,800 apartments
Office space turnover 2018 in m² MF-G 180,000
Number of beds (all accommodation types) 2018 30,478 hall area sales increased significantly again and amounted to in the surrounding area, so that the current outlook indicates
Hannover city 173,000 Sales area Hannover Region in m² 2.1 million
Hannover city 13,770 around 375,000 m². a considerable need for new housing. Between 2013 and 2018
Surrounding towns of Garbsen, Laatzen and Langenhagen 7,000 Surrounding area 1.2 m
Surrounding area 16,708 Hannover city granted planning permission for around 9,030
Vacancy rate 2019 in m² MF-G 150,000 Hannover city 0.9 m
Beds in hotels 2018 14,889 Logistics new apartments. The Hannover Region reckons that some
Hannover city 125,000 of which inner city Hannover (Hannover Mitte) 285,000 20,500 new apartments need to be built throughout the region
Hannover city 9,118 Logistics area portfolio 2019 in m² 3.13 m
Surrounding towns of Garbsen, Laatzen and Langenhagen 25,000 Retail centrality index 2018 (Germany = 100) to meet demand.
Surrounding area 5,771 of which built after 2009 1.2 m
Vacancy rate 2019 3.0 % Hannover city 121.9
Nights (all accommodation types) 2018 4.05 m Logistics area turnover 2018 in m² 375,000
Hannover city 2.7 % Surrounding area 107 Residential
Hannover city 2.25 m Rents Top locations 2019
Surrounding towns of Garbsen, Laatzen and Langenhagen 5.2 % Purchasing power 2019 in € 8.43 billion
Surrounding area 1.80 m Rents 2019
Prime rental 2019 in €/m² MF-G Top rent in €/ m² 5.10
Hannover city 3.90 b
Nights in hotels 2018 2.29 m New building, prime rent in €/ m² 15.60
City 17.10 Average rent in €/ m² 4.20
Surrounding area 4.53 b
Hannover city 1.46 m New building, average rent in €/ m² 13.20
City periphery 13.80 Net initial yield logistics centres in prime locations 2019 4.5 %
Retail sales 2019 in € 7.90 b
Surrounding area 0.83 m Re-let, prime rent in €/ m² 13.20
Average rent 2019 in €/m² MF-G Hannover city 4.16 b
Arrivals (all accommodation types) 2018 2.22 m Re-let, average rent in €/ m² 9.20
City 11.50 Surrounding area 3.74 b
All values refer to the State Capital Hannover.
Hannover city 1.35 m Home buying 2019
City periphery 9.50 Source: bulwiengesa AG; Surveys of Hannover Region; the area portfolio is a continua-
Rent 2019
tion of the portfolio survey of 2016, data as of mid-2019; data from market players for Owner-occupied apartments, newbuilds, prime group in €/ m² 5,700
Net initial yield in peak city locations 2019 3.8 % Surrounding area 0.87 m
Prime rent in prime city location in €/m²* 185 the middle of 2019
Average length of stay in days Owner-occupied apartments, newbuilds, average in €/ m² 4,400
Source: bulwiengesa AG; Surveys of the Hannover Region; information provided by Average rent in prime city location in €/m²* 145 (all accommodation types) 2018 Multipliers 2019
market players; data on office employees refer to employees subject to social security
Yields 2019 Hannover city 1.7
contributions Apartment blocks/investment properties, newbuilds, prime
28.4
Net initial yield in prime locations* 3.6 % Surrounding area 1.8 group 2019
Cover picture: The area of the former main goods station is centrally located on Net initial yield in specialist retail centres 5.1 % Key figures hotel chains Hannover Apartment blocks/investment properties, newbuilds, average 2019 25.4
the Weiden-damm between the centre and the northern part of the city. In recent (Fairmas) 2018 Apartment blocks/investment properties, stock, prime group 2019 26.9
years, Aurelis Real Estate Service GmbH has extensively rebuilt the goods railway *
Bahnhofstraße, Großer Packhofsltraße, Georgstraße Occupancy rate, average 2018 63.6 % Apartment blocks/investment properties, stock 2019 18.4
yard and the surrounding area on an plot of around 34,000 square metres and has
Source: Retail portfolio surveys commissioned by the Hannover Region (data as of
repositioned the property through a mix of sports, gastronomy, hotel, logistics and Room price, average 2018 in € 104.50
the end of 2016); MB Research 2019; detail estimates provided by market players for
service companies. The project was acquired by BEOS AG in 2019 for its Corporate mid-2019 RevPAR (revenue per room), average 2018 in € 66.40 Values represent the annual average All values refer to the State Capital Hannover.
Real Estate Fund Germany III (CREFG III).
Net initial yield hotel in 2018 4.5 % Source: Lower Saxony State Statistical Office; 2019 Fairmas Source: bulwiengesa AG; data from market players for the middle of 2019
PROPERTY MARKET REPORT 2019 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 6
CONTENTS
FOREWORD
Page 5
INVESTMENT OFFICE RETAIL
MARKET PROPERTY MARKET PROPERTY MARKET
Page 6 Page 16 Page 32
HOTEL LOGISTICS RESIDENTIAL
PROPERTY MARKET PROPERTY MARKET PROPERTY MARKET
Page 42 Page 52 Page 70
IMPRINT MAPS
Page 90 Pages 15, 29, 41, 51, 67, 87
3
THE PROPERTY MARKET IN THE HANNOVER REGION
Dear Readers,
The property market in the Hannover Region is developing dynamically and attracting new users,
project developers and investors, as evidenced by full order books and numerous construction
sites. The property sector is also gearing up to meet the challenges of the future: buildings are
increasingly being thought of in a more ecological, intelligent and flexible way and are thus being
developed, built and operated sustainably in the best sense of the word.
The commercial property market in Hannover stands for yield-secure investments with develop-
ment potential. Hannover is one of Germany’s top shopping addresses; logistics space is in strong
demand throughout the region, and the state capital is Germany’s largest office market directly
after the seven A-locations. The number of hotel beds will rise steadily in the coming years, and
the city and surrounding area are experiencing strong demand for housing.
For all submarkets, Hannover offers attractive investment opportunities and attracts investors
who want to invest in locations that retain their value.
Since 2003, together with 26 well-known partners from the property sector, the regional Business
Promotion department has been compiling core data on all relevant submarkets of the region,
presenting them in a clear and concise manner and ensuring compliance with the standards of
the Gesellschaft für immobilienwirtschaftliche Forschung e. V. (gif - property industry research
corporation). The results of the joint work are reviewed and supplemented by the renowned
consulting firm bulwiengesa AG.
Hannover is perceived as a strong property market location in Germany. The Property Market
Report is an impressive testimony to the committed and trusting atmosphere of cooperation
existing within Hannover’s property business community.
Ulf-Birger Franz Sabine Tegtmeyer-Dette
Head of Business, Transport Head of Business and Environment
and Education Department Department, First Town Councillor
Hannover Region State Capital Hannover
Comprising two single-storey buildings with a wooden facade joined by a sloping wooden roof, the V-shaped entrance building welcomes visitors to the
zoo with its arms wide open. Seen from the outside, the extraordinary building with the warm wooden cladding, the large animal silhouettes and the
striking roof, arouses curiosity about the zoo experience waiting inside. The building and its forecourt were designed by pape+pape architekten (Kassel)
and nsp landschaftsarchitekten (Hannover).
4 PROPERTY MARKET REPORT 2019 FOREWORD 5
INVEST-
MENT
MARKET
The office property Pod|BC is the striking prelude to a new quarter being built on the site of the former Oststadt Hospital. STRABAG Real Estate GmbH The Hannover Region is an innovative indus-
developed the office property Pod|BC alongside Pod|BC green, a residential building with around 90 rental units. Universal-Investment partnered German
property manager Coresis to buy thePod|BC business centre on behalf of its Deutsche Wirtschaftszentren fund, which exclusively invests in office buildings
trial location, service metropolis and logistics
in major German cities. Pod|BC green was sold to Aberdeen Asset Management Deutschland AG.
hub for national and international markets.
The positive development of the regional
economy in recent years has led to sustained
1.18 m 510,000 €874 m demand for property in all submarkets. The
commercial property market in Hannover is
Inhabitants at the beginning Employees subject to social insurance Investment volume in commercial
of 2019 contributions mid-2018 property market 2018
thus consolidating its position as the most
important location after the seven major
A-locations in Germany.
6 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 7
Selected transactions 2018/2019
No. Property name or address Quarter Year Seller Buyer Investor type Area
HANNOVER LOCATION FACT CHECK
Office
World-renowned brands, a strong economy based on With around 325,000 employees, Hannover is the 1 Pod|Bc Q2 2019 STRABAG REAL ESTATE CORESIS Management Special fund 6,500 m²
medium-sized enterprises, and outstanding research central place of work in the region, while some GMBH GmbH/Universal-
institutions are at home in the Lower Saxony state 185,000 employees work in the surrounding areas. Investment GmbH
capital of Hannover and the Hannover Region. 2 Telekom (Gradestraße. 18/20) Q1 2019 Ashtrom Properties/ Hamburg Trust Special fund 25,800 m²
The regional unemployment rate was comparatively Harel Insurance
Around 49,300 companies make Hannover the most low at 6.4 % in June 2019 (down 0.1 % compared with Investments
important economic area in Lower Saxony. June 2018). 3 Office and commercial building Q4 2018 Jpmorgan Getec AG Project developer/ 23,000 m²
Joachimstraße Principal
Nearly 510,000 people were working in the Hannover
4 Office and commercial building Q3 2018 LIST Develop RREEF Investment Ltd. Special fund 25,000 m²
Region in mid-2018.
(Vahrenwalder Straße 11) Commercial
5 Tower 31 Q2 2018 Apollo Global Real Aroundtown SA Real Estate AG/REIT 23,000 m²
Estate
Investment market overview 6 Former Postscheckamt Q2 2018 Postbank BAUM Group/meravis Project developer/ 45,000 m²
2019 remains an exciting year for the German investment has declined significantly and has engendered scepticism (Goseriede) Bauträger GmbH Principal
market. On the one hand, market players can look back on in the wider property investment market. Business
an already unusually long property market cycle, which
7 Office and commercial building Q2 2019 Private investor GlaserProjektInvest Project developer/ 2,000 m²
has had a significant impact on the investment market for On the other hand, the interest rate level, which is
Go.Six Gmbh Principal
a long time. On the other hand, there are increasing signs decisive for the property industry, is still at a historic low.
8 Galerie Luise Q1 2019 Accom Immobilien MOMENI Immobilien Project developer 13,500 m²
that a trend reversal could be in sight in the medium term. A far-reaching turnaround in the interest rate structure
Gmbh Holding GmbH Principal
For example, ongoing trade disputes, new customs barriers has not yet happened. Despite the imminent change at the
and the unclear situation with regard to Brexit are leading head of the European Central Bank, the ECB, the factors 9 Commercial building Q3 2018 Kristensen Properties Project Brühlstraße Gmbh Project developer/ 3,100 m²
to some uncertainty, which is having a negative impact on that led to the long-term low-interest phase remains basi- (Hildesheimer Straße 41-43) A/S Principal
economic development. cally identical in the euro zone. 10 Shopping Centre Q2 2018 Rockspring Property Warburg-HIH Invest Real Special fund 14,500 m²
in Zuckerfabrik Lehrte Investment Managers Estate GmbH
At the same time, social changes and a change in consumer Against this backdrop, the property investment market Llp
behaviour are also having an impact on the property sector. in and around Hannover developed dynamically in 2018, Hotel
For example, the sentiment in the retail property market with the first half of 2019 being a relatively quiet period by
11 H+ Hotel Q4 2018 H-Hotels AG Deutsche Fondsvermö- Asset/Fund manager/ 179 rooms
comparison.
gen AG (DFV) Private equity
Transaction volume of commercial property market
12 IntercityHotel Q3 2018 bauwo Grundstücks- Institutional investor Institutional investor 228 rooms
Distribution according to submarkets 2014 to 2018 gesellschaft mbH
1,000
13 Arcadia Hotel Q1 2018 n/a HR Group Owner-occupier 120 rooms
100
Hannover-Laatzen
90 900
Transaction volume in million €
Share of transaction volume %
80 800 Logistics/production
70 700 14 Former main goods station Q2 2019 Aurelis Real Estate BEOS AG Special fund 19,000 m²
60 600 Hannover Service GmbH
50 500 15 Logistics centre Häfele Lehrte Q1 2019 bauwo Real Estate LIP Invest Ltd. Special fund 22,700 m²
40 400 Company mbH
30 300 16 Amazon Sortation Center Q3 2018 BAUM GROUP OF L’Etoile Properties Asset/Fund manager 34,000 m²
20 200 Garbsen COMPANIES Koramco Private equity
10 100 17 Former Lidl central Warehouse Q2 2018 Lidl Stiftung & Co. KG Garbe Industrial Real Principal 24,000 m²
0 0 Wunstorf (Amazon Distribu- Estate
tion Centre)
2014
2015
2016
2017
2018
18 Sonepar Hannover Q2 2018 Ernst Russ AG n/a Asset/Fund manager 13,000 m²
Office Logistics and industry Volume in € million Private equity
Retail Hotel Other
Source: bulwiengesa AG; Data for the Hannover Region The numbers refer to the map page 15.
8 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 9
Transaction volume of the commercial property market
Distribution according to size classes 2014 to 2018
INVESTMENT The first half of 2019 Higher share of international investors
Already in the first half of 2019, there is once again a The increased activity of international investors outside the
900
VOLUMES IN THE strong interest in office and commercial buildings. With traditional investment foci in the German metropolises is
HANNOVER REGION around €159 million and a share of around 51 %, they also becoming increasingly noticeable in Hannover. As early
800
ROSE IN 2018 BY occupy the top rank of the asset classes being invested in. as 2018, foreign investors invested about €310 million in
Share of the transaction volume in %
By the end of June 2019, €68 million was invested in Hanoverian properties, representing a share of 37 % of the
700
€176 MILLION industrial and logistics properties which again accounts total investment volume. With €218 million, the majority of
600 TO AROUND for the second largest share representing around 22 % these investments went to Hannover city. The remaining
500
€874 MILLION. of transaction volume. €92 million was invested in the surrounding region of the
The investment volume in retail property in 2018 was state capital, preferentially in logistics properties.
more than €100 million hardly played a perceptible role. already exceeded in the first half of 2019 and amounted
400
The two largest individual transactions were the sale of to €56 million by mid-year.
300 the office and commercial building in Joachimstraße in In the hotel segment, no investment activities were
the fourth quarter of 2018 and Podbi Park, both of which recorded in the first six months, although the supply of
200
changed hands for just under €100 million. investment properties is currently high.
100
Shortfall in properties in 2019
0 There are already signs of a certain change in direction in
the first half of 2019. With transaction revenues of almost
2014
2015
2016
2017
2018
€313 million to date, the course of the year has been rather
over € 100 m € 50–100 m € 20–50 m restrained. However, this is not due to a lack of interest,
Capital origin on the commercial property market 2018
€ 10–20 m € 5–10 m up to € 5 m but to a lack of opportunities. For this reason, investors are
Source: bulwiengesa AG; Data for the Hannover Region
again targeting larger projects. Transactions in the medium
size category between €20 and €50 million now account for
58 % of all transactions. Other
The transaction market underlines Hannover’s Bank
importance as an office location and logistics market
For both 2018 and 2019, more than half of the investments Closed-end fund
are accounted for by office property assets, underlining
the importance of Hannover as an office location. Insurance/Pension Fund
Investment volume is approaching the
Buyer types
€1 billion threshold Developments in 2018 Open fund
The increased interest in the property investment market Investments in office and commercial buildings
in Hannover can be clearly seen in the transaction turnover. accounted for around 55 % of total investment volume Real Estate AG/REIT
In 2018, this amounted to around €874 million invested in in 2018. The transaction volume increased from approx.
commercial property in the Hannover Region. Compared 270 million (2017) to approx. 478 million (2018). The Developer/Principal
with 2017, this represents an increase in turnover of €176 majority of the investments were implemented in the
million, while the total volume at that time amounted to second half of the year. Asset/Fund manager/Private equity
€698 million. As a result, the investment volume is already A s in 2017, 2018 again saw strong investment in indus-
well approaching the threshold of €1 billion, cementing trial and logistics properties. In 2018, some €205 million, Special fund
Hannover’s reputation as the largest and strongest representing around a quarter of the total transaction
B-location in Germany in terms of investing in property. volume, was invested in this submarket, more than two
thirds of which were invested in the second half of the year.
The majority of individual transactions in 2018 ranged Investments in hotel (around €71 million) and retail
of which foreign Investors
between €50 million and €100 million, amounting to properties (€39 million) represent only a small share of
around a 44 % share. Transactions below €10 million or total transactions in 2018.
0
50
100
150
200
250
300
350
400
Transaction volume in € million
Buyer Seller
Source: bulwiengesa AG; Data for the Hannover Region
10 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 11
In 2018, the strong presence of internationally operating The status quo leaves yields at their historically lowest
companies was also noted in property sales, with €210 million levels. With a view to the near future, no major changes are
being transacted directly in Hannover city and a further to be expected. By the end of 2019, yields will only weaken
€25 million in properties in the surrounding area. At just over marginally. Due to the lack of supply, it is not expected at
50 % or just under €160 million to date, the first half of 2019 is the moment that new records will be set in terms of total
even more characterised by sales by international investors. transaction volume.
Outlook for 2019: increasing interest as supply declines
Currently, the investment market in Hannover is charac-
terised by the lack of supply. Many potential buyers are
confronted by a small number of commercial properties.
If European and global interest rate policy continues
along the trajectory of current low interest rates – and
there is no sign of a turnaround – it can be assumed that a
lively investment market in Hannover is also on the cards
provided that the adequate supply of properties on the
market allows this. The past development of net initial
yields was already characterised by a strong compression.
On 1,000 m² of floor space, the trend sport bouldering, i.e. climbing
without rope at jumping height, has moved into the main goods station
in Hannover. The Beta Boulder Halle offers state-of-the-art climbing
walls, a training area and an opportunity for snacks and drinks.
Aurelis Real Estate Service GmbH is developing office space and a showroom for the sanitary specialist Bumke on one of the open
spaces at the former main goods station site.
Net initial yield in prime locations 2014 to 2019 Property climate on the German investment market 2008 to 2019
Commercial property market Hannover
180
7
160
6.5
140
6
120
Net initial yield in %
5.5
100
5
80
4.5
60
4 40
3.5 20
0
3
2019*
2008
2009
2016
2018
2010
2017
2014
2015
2018
2016
2019
2014
2015
2012
2013
2017
2011
Logistics Hotel Office Retail Logistics Hotel Office Retail Residential
Source: bulwiengesa AG; yield margins, the lower endpoints are given. Source: bulwiengesa AG; German Hypo; Real estate market index (June 2019 data)
* Forecast
12 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 13
NEUSTADT a. Rbge
B3
Großburgwedel
Selected projects on the investment market
B6
B 442
Steinhuder Meer A 352
Langenhagen
B 441
GARBSEN B 522
WUNSTORF A 37
B 441 B 443
E 30 A2
B 441 Lein
e
1
2
M it
te lla ndkanal
l
B 442
dkana B6
llan B3
Mitte 4
SEELZE
B 441
14 HANNOVER A7
10
7 12
ndk anal 6
Mittella 3
5 8
18
9
B 65
BAD B 443
NENNDORF
B 65
B6 11
STADTHAGEN
In Lehrte, located directly on the A 2, a 22,000 m² shipping centre for the hardware manufacturer Häfele has been completed, which the developer,
bauwo Grundstücksgesellschaft mbH, already sold to LIP InvEst GmbH B 65
from Munich for €20 million in January 2019. B 65
BARSINGHAUSEN GEHRDEN B 217 13
B 443
B3
Lein
e A 37
The Hanoverian property company Glaser-
ProjektInvest GmbH acquired a mixed-use 0 1 2 3 km
Laatzen
N
existing building opposite the Scoreboard
skyscraper from a private community of
heirs as another property for its holdings
portfolio. The property is being repositioned
E 30 as a retail space under the name GO.Six. Office Hotel B 443 Key
B6
WENNIGSEN 1
Pod|BC 11
H+ Hotel * outside the map section
PATTENSEN
2 12
A2 Telekom Intercity Hotel
3 13
Office and commercial building/ Arcadia Hotel Airport
B 442 Joachimstraße
4 B 217 B3
SARSTEDT
Exhibition grounds
Office and commercial building/
Vahrenwalder Straße Logistics Main railway station/long-distance rail
B 494
5
Tower 31 14
Former goods station Hannover Tram
HANNOVER
e
6 E 45
Suburban rail
n
Former Postbank office block 15
Logistics centre Häfele Lehrte*
Lei
CONSOLIDATES
BAD MÜNDER
ITS 16
Amazon Sortation Center Garbsen* City boundary
A7
SPRINGE
B 83
REPUTATION AS THE Retail 17
Former main Lidl warehouse Wunstorf
BIGGEST AND STRONGEST 7
Office and commercial buildings/GO.Six
(Amazon distribution centre)* B6
B-LOCATION IN GERMANY.
18
er
Sonepar Hannover
es
8
W
Galerie Luise
9
Commercial building/
Hildesheimer Straße
B 217
10
Shopping centre Zuckerfabrik Lehrte
B1
HILDESH
B3
B 243
W B 442
14 PROPERTY MARKET REPORT 2019 INVESTMENT MARKET HANNOVER 15
OFFICE
PROPERTY
MARKET
The new DB building in Rundestraße conveys openness: since June, around 950 employees have been working here in the €64 million headquarters in After the seven major A-locations,
Lower Saxony. The building is owned by Savills Investment, which leases the offices to DB. The building was constructed by the Essen-based project
developer KÖLBL KRUSE GmbH according to a design by the Berlin architects Hascher Jehle.
Hannover is the largest and at the same
time one of the most dynamic locations
on the German property market. In
the last five years, around 245,000 m²
€17.10/m² 180,000 m² 3.8 % of office space have been newly built
and a further 115,000 m² have been
Prime rent 2019 Area turnover 2018 Net initial yield 2019
completely renovated. By 2023 a
further 330,000 m² (85,000 m² of
which refurbished) will have been added.
16 PROPERTY MARKET REPORT 2019 17OFFICE MARKET FACT CHECK
Includes Hannover city and towns of Garbsen, Since 2014, an average of 138,000 m² turnover per
Laatzen and Langenhagen. year has been achieved.
5.04 million m² of office space (of which around T he investment risk is low due to the relatively low
4.56 million m² in Hannover city). vacancy rates; the net initial yield in 2019 is 3.8 %.
L argest floor space after the seven A-locations in In 2018, the vacancy rate in Hannover was only 3.1 %
Continental
Germany. while the average vacancy rate in the A-location cities
was 3.7 % and in the B-location cities 3.8 %. In 2019,
153,000 office employees in Hannover city (2019). the vacancy rate in Hannover will fall further to 2.7 %.
T he number of office workplaces has grown by Investment transaction volume was approx.
around 15,000 or 11 % over the last five years. €478 million (2018).
Since 2014, a total of 690,000 m² of office space
has been transacted in the Hannover office
property market. Wabco?
Office space turnover 2014 to 2018 Office property turnover increased noticeably in 2018
The Property Report Project Group Hannover identified
180
some 180,000 m² newly rented owner-occupied office With its new Global Technology and Innovation Center, WABCO is further expanding its global product development and engineering capabilities.
areas in Hannover, Garbsen, Laatzen and Langenhagen Some €25 million have been invested in the 11,500 m² building. It offers modern workplaces for more than 420 employees in Hannover as well as
160 innovatively organised offices to facilitate cooperation with the worldwide product development teams.
during 2018. Turnover climbed year-on-year by 35,000 m²
(plus 24 %) and is approximately 32 % above the average
140
for the years 2014 through 2018 (138,000 m²).
Space turnover in thousand m² MF-G
Waste disposal company aha is planning a new building
120 City periphery and arterial roads report strong turnover for its head office built to passive house standards in
Groß-Buchholz. Designed by Bremen architect’s office
Most turnover for office properties during 2018 were S3, the plans foresee social facilities and offices for
100 registered in the city periphery and the main arterial about 500 waste disposal workers and office staff.
roads: at just under 95,000 m², this figure represents
80 over one half of office space turnover, strongly influenced
by the start of construction of the new head office of
60 Continental AG (around 40,000 m² of office space).
40 Prime rent climbs in city and on arterial roads
Prime rent climbed significantly compared with 2017, at
20
17 €/m² at the end of 2018 – an increase of €1.70. Last
year, the prime rent of 13.50 €/m² was maintained on the
city periphery and the main arterial roads. In previous
0
years the rent/m² was considerably less than €11.
OFFICE PROPERTY
2014
2015
2016
2017
2018
TURNOVER IN 2018
Rent, region Owner-occupied, region
Rent, Hannover Owner-occupied, Hannover
IS 24 % UP ON THE
Source: Hannover Region surveys, details provided by market players
PREVIOUS YEAR.
18 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 19Office space turnover based according to size 2018
3%
4%
10 %
18 % 47 %
18 %
Up to 300 m² 301–500 m² 501–1,000 m²
1,001–2,000 m² 2,001–3,000 m² 3,001 and more m²
Source: Hannover Region surveys; details provided by market players for number of rental contracts (n = 185)
The public sector and industry shape transactions in 2018 The highest rents¹ in 2018 and also up to the middle of
In addition to the ground-breaking ceremony for the new 2019 were noted in the inner-city area – in some cases
Continental AG building in 2018, two major leases in EXPO significantly higher – at up to 19 €/m² for very good new
Park/Kattenbookstrift in Hannover’s south are among construction properties and top refurbished spaces. Even on
the largest deals in 2018: The State of Lower Saxony the outskirts of the city and on arterial roads, prime rents of
has leased 10,000 m² of office space at Expo Plaza and up to 14.50 €/m² can be achieved in very good properties.
FinanzIT has signed a lease agreement for 14,000 m² of
office space in the former IBM building. Office property investments in demand
In recent years, after the prime 7 city locations,
Positive prospects for 2019 Hannover has become one of the most sought-after
By mid-2019, turnover is around 70,000 m². The largest German locations for investments. Due to the low
individual contract is a lease on Hans-Böckler-Allee by the market risk, stable developments and good growth
State of Lower Saxony for the Ministry of Culture (approx. prospects, investors from Germany and abroad are inter-
7,000 m²). Further larger individual deals (> 3,500 m²) ested in properties in Hannover. In 2018, office market
were brokered in the Lahe area and in the Expo Park in transactions with a volume of approx. €478 million were
Hannover’s south. registered in the Hannover Region. The net initial yield
at the end of 2018 was 4.3 %; a further decline to 3.8 %
In view of the projects under construction or just completed is expected in the course of 2019.
in the city centre, the main players on the Hannover office
property market unanimously expect prime rents to remain 1
The maximum rent achieved is the highest nominal rent before service
costs registered in a rental agreement concluded in the respective
at the strong level of the previous year in the course of 2019 reporting period irrespective of the local submarket and the quality and
and to rise slightly to 17.10 €/m². size of the leased space. Not only rental agreements are taken into account
here, but also lease extensions that are not counted as rental income.
At the end of July 2018, the ground-breaking ceremony was held for Continental AG’s new campus. 1,250 jobs will be created at the centrally located Pferdeturm site.
Previously the firm’s business activities were distributed throughout the city. In the future all work will be pooled in the new building and will mark a new chapter in the
history of the company. The design by the Berlin-based architectural firm Henn envisages, inter alia, spanning Hans-Böckler-Allee with an approx. 70-m-long bridge to
link the buildings.
20 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 21Office area turnover according to location 2018
Vacancies continue to fall
2% Despite many completions over the past five years,
1% vacancies have not increased. The new space coming
onto the market is being fully absorbed. At the of 2018,
1% 18 %
the vacancy rate² in Hannover was 3.1 %, some 400 basis
points lower than in 2017. In absolute terms, the rent- Directly opposite the New Town Hall, the BAUM group
able vacancies in Hannover fell by a further 10,000 m² to of companies has completed the extensive revitalisa-
tion of the former adult education centre. The remains
17 % 140,000 m². Market players assume that the vacancy rate of the medieval city wall are preserved in the new
will fall further in 2019 (net minus 15,000 m²) and settle building named Rathaus Kontor. The City of Hannover
has taken out a long-term lease. On the ground floor
at 2.7 %. This is the lowest vacancy rate since the begin-
there is, for example, an extracurricular educational
ning of market reporting for Hannover. In the surrounding space on Hannover’s urban society during the National
area, the vacancy rate remains almost stable at 5.2 %. Socialist era.
9%
Completion volume continues to grow
In the last five years (2015 to year-end 2019), around 245,000
m² of office space has been newly built and a further 115,000
m² has been completely refurbished. By 2023, a further
330,000 m² (85,000 m² of which will be refurbished) will
53 %
be added.
2
The basis is a survey update by bulwiengesa AG at the end of 2015/
beginning of 2016 of its full survey of office space and vacan-
cies. bulwiengesa AG’s forecast and model calculations are now
based on the full inventory surveys for 2009, 2012 and 2015.
City City periphery/arterial roads
Hannover, other locations Expo-Park
Roderbruch/Karl-Wiechert-Allee Lahe
Surrounding area
Source: Hannover Region surveys; data provided by market players, with respect to total areas in m²
Net initial yield in prime locations 2014 to 2019 Office rents in Hannover 2014 to 2019*
6,0 18
17
5,5 16
15
5,0 14
in €/m² MF-G
13
12
in %
4,5
11
4,0 10
9
3,5 8
7
3,0 6
2014
2015
2016
2017
2018
2019
2014
2015
2016
2017
2018
2019
Net initial yield, prime location, office Prime rent, city Prime rent, city periphery
Source: bulwiengesa AG, for yield spreads the respective lower end is given
Average rent, city Average rent, city periphery
Located in the Science and Technology Park Hannover, near the Leibniz University’s new Mechanical Engineering Campus in Garbsen, the Technopark Hannover is a
Source: bulwiengesa AG, Hannover Region surveys, data provided by market players
modern competence centre for approx. 30 companies and research institutions. Modern working areas and innovative working environments are created on up to
* T he values given for 2019 are based on data provided by market players on developments in the 40,000 m² of rental space, which can be flexibly adapted to individual requirements, such as sterile clean rooms for systems development and testing, or workshops
first two quarters 2019.
for product development.
22 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 23Flexible office space and co-working Office vacancy rate 2014 to 2019*
conquer Hannover
350 7%
Flexible office space in Hannover is mainly found in
several classic business centres in the city centre and 300 6%
on the arterial roads in the north and northeast. There
Vacancies in thousand m² MF-G
are also co-working spaces adjacent to the city centre. 250 5%
The best-known example of this market segment is
Vacancy rate in %
Hafven with around 2,000 m² of office and workshop 200 4%
space. Rent24 and Design Offices will open the first
major hybrid locations in 2019 and 2020. The new Design 150 3%
Offices premises on Vahrenwalder Strasse alone will
provide over 300 jobs. By the end of 2020, including the 100 2%
announced projects, there will be a total of 17 flexible
office locations with around 25,000 m² of space and 50 1%
1,600 jobs in Hannover.
0 0%
2014
2015
2016
2017
2018
2019
Vacancies, Hannover Vacancy rate, Hannover
Vacancies, Region* Vacancy rate, Region
* Value for region (Garbsen, Laatzen, Langenhagen)
The vacancy figures are based on office space occupancy surveys in 2008,
2012 and 2015 for the Hannover market area and extrapolated for the
following years. For the surrounding towns, the data is based on a specific
Hafven Hannover is Hannover’s first large co-working location. The Hafven community now houses more than 1,300 persons, including freelancers, vacancy survey carried out as of 2015.
employees, as well as start-ups and established companies. Co-working and maker space is offered on more than 2,000 m², including office workplaces,
Source: bulwiengesa AG, Hannover Region surveys: details provided by
meeting and workshop rooms, a FabLab, wood and metal workshops as well as a separate café. market players
Some two years after the excavation of the
foundations, completion has taken place of the
new administration building at Schützenplatz with
its 200-m-long red brick façade, up to six floors
and 22,000 m² of usable space. Hannover city
Completions in office market 2014 to 2023*
has entered into a 30-year lease agreement with
hanova and calls its new address the "Hannover-
200
ServiceCenter am Schützenplatz".
175
in thousand m² MF-G
150
125
BY 2023 THERE
100
WILL BE A GROWTH
BY THE END OF 2020,
75
OF 330,000 M² OFFICE
THE SUPPLY OF FLEXIBLE 50
SPACE THROUGH
AND CO-WORKING SPACE 25
NEW CONSTRUCTION
WILL INCREASE TO 0 AND RENOVATION.
AROUND 25,000 M².
2020*
2022*
2023*
2019*
2021*
2018
2016
2014
2015
2017
Newbuild completions Hannover Refurbishments Hannover
Newbuild completions Region
* B ased on the spring forecast of bulwiengesa AG; Hannover Region survey, details provided by
market players; data as at Q3/2019
24 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 25Selected office property projects
Investor, Status Investor, Status
No. Property Address Area in m² MF-G No. Property Address Area in m² MF-G
developer or user completion developer or user completion
New builds 21 KraussMaffei Berstorff VGP Park Laatzen VGP Gruppe 18,000 m² Q4/2022
office 37,000 m² production/
Completions
research & development
1 Deutsche Bahn AG Rundestraße/Hamburger Savills KÖLBL KRUSE GmbH 25,000 m² office Q2/2019
22 Faurecia Garbsener Landstraße BAUM Unternehmensgruppe 17,500 m² gross floor area Q4/2021
Allee (former ZOB)
office, social and special
2 Admin building Public Schützenplatz 1 hanova 19,000 m² office Q1/2019 areas 16,000 m² gross floor
Order area production, research and
3 WABCO Engineering Inno- Am Lindener Hafen 21 WABCO Fahrzeug-systeme 11,500 m² office/laboratory Q3/2018 development
vation Center (2nd CP = GmbH Owner-occupation 23 City Gate Nord (2nd CP) Vahrenwalder Straße 236 Projektentwicklung HRG & 11,000 m² gross floor area 2022
construction phase) Delta Bau GmbH & Co. KG office/retail
4 City Gate Nord (1. CP/ Vahrenwalder Straße 236 Projektentwicklung HRG & 9,000 m² office Q2/2018 24 25 Medical building Berliner Allee 20 Ärztekammer Niedersachsen 10,000 m² office for own use 2021
Vodafone) Delta Bau GmbH & Co. KG
25 Siemens AG Werner-von-Siemens- Siemens Real Estate 10,000 m² GFA office Q3/2020
5 Pod|BC Podbielskistraße 382 STRABAG Real Estate GmbH 6,500 m² office Q4/2018
Straße 1, Laatzen for own use
6 Bürohaus am Park Senefelderstraße, Laatzen VALENTIN KLEIN Immobilien 6,500 m² office Q3/2019 26 Büroprojekt MS4 Mailänder Straße 4 Delta Bau AG 9,000 m² office 2022
der Sinne GmbH & Co. KG
27 MTU Münchner Straße, Wirtschaftsförderungs- 6,800 m² GFA office Q2/2021
7 Telekom AG Elfriede-Paul-Allee 15 DIBAG Industriebau AG 5,500 m² office Q3/2018
Langenhagen gesellschaft Langenhagen mbH
8 DHL Freight Münchner Straße 23, DHL Freight GmbH 3,800 m² office Q3/2019 28 Residential and retail Aronstabweg 2-6 Fischer Bau GmbH 5,200 m² office Q4/2020
Langenhagen Deutsche Post DHL Group Owner-occupation building Seelhorster 8,100 m² residential
9 MARQ Marstall Quarree Am Marstall STRABAG Real Estate GmbH 3,020 m² office Q1/2018 Garten
520 m² gastronomy 29 Businesspark Kirchhorster Straße 33/ BOG 21 GmbH 3,700 m² office 2021
700 m² residential Hannover-Lahe corner Im Klingenkampe 46
10 DB Netz AG (Erweiterung) Lindemannallee 3 DB Netz AG 2,500 m² office Q1/2019 30 aha-Zentrale Karl-Wiechert-Allee 60 aha Zweckverband Abfall- 3,400 m² office for own use 2023
wirtschaft Region Hannover
11 Office project Planetenring 39-41, Rahlfs Immobiliengruppe 2,450 m² office/practice Q4/2018
Planetencenter Garbsen 31 Buchholzer Grün Podbielskistraße 386-388 Hanseatic Group 2,400 m² office, 600 m² retail Q4/2020
12 Schindler Boulevard der EU 23 Nebel Immobilien 2,000 m² office Q3/2018 32 Residential and retail Willi-Blume-Allee HOCHTIEF Infrastructure 4,800 m² residential Q4/2020
building Steinbruchsfeld GmbH Building Hannover 1,900 m² office/practice
13 B6 Office Bremer Straße 29, Garbsen Langwost 1,700 m² office Q3/2018
Wohnen im Steinbruchsfeld 790 m² gastronomy/ retail
Unternehmensgruppe (in part owner-occupation)
GmbH trade
14 State office of health Roesebeckstraße Land Niedersachsen 1,100 m² office/laboratory Q2/2019
33 Assure Consulting Chicago Lane assure consulting GmbH 1,600 m² office (co-working) 2021
(extension) Owner-occupation
Co-Working
15 LIVIN Am Marstall/Am Hohen HOCHTIEF Infrastructure GmbH 2,600 m² residential Q3/2018
34 Bumke Am Weidendamm Aurelis Real Estate Service 1,500 m² office 850 m² Q2/2020
Ufer 5 a/b Building Hannover, hanova 920 m² gastronomy
GmbH warehouse 600 m² exhibition
750 m² office
Concrete planning
Under construction/in preparation
35 Sky City Hannover Airport Flughafenstraße , BAUM Unternehmensgruppe 25,000 m² GFA office
16 Continental AG Hans-Böckler-Allee 30/49 Continental AG 46,000 m² GFA office 2021
Langenhagen
Zentralverwaltung Owner-occupation
36 Office ensemble B 3/corner Weetzener FIH Fürst Immobilien 18,000 m² GFA office/practice/ 2022
17 Taurus Technopark Hollerithallee 18 Taurus Holding 40,000 m² GFA office/ Q4/2021
Hemmingen Landstraße, Hemmingen Hannover GmbH retail/ gastronomy
laboratory/workshop
37 Office project Marktstraße, Laatzen VALENTIN KLEIN Immobilien 14,000 m² GFA office 2022
18 Office and commercial Vahrenwalder/Ecke LIST Develop Commercial 25,000 m² GFA office/retail/ Q4/2020
Laatzen-Mitte GmbH & Co. KG
building Vahrenwald Philipsbornstraße GmbH & Co. KG gastronomy/services/hotel
38 Ratsquartier Bruchmeisterallee BAUM Unternehmensgruppe 12,000 m² GFA office 2021
19 Business Park Vahrenwalder Straße 321 bauwo 20,000 m² BGF office 2021
Hannover-Nord Grundstücksgesellschaft mbH 39 State criminal police Waterlooplatz 11 State of Lower Saxony 10,100 m² GFA office Own- 2022
20 enercity head office Glockseestraße 33 enercity AG 20,000 m² GFA office 2021 agency er-occupation
Owner-occupation 40 Chicago Lane Office Chicago Lane chicago lane office suites en- 10,000 m² office 2021
Suites twicklungsgesellschaft mbH
26 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 27Großburgwedel
A 352
Selected office projects
Investor, B6
Status New builds
No. Property Address B 442 Area in m² MF-G
developer or user completion 1
Deutsche Bahn AG 39
Forensic Institute
Steinhuder Meer
41 Expo Campus Boulevard der EU/Boule-
vard de Montréal
Wohnkompanie Nord GmbH,
i Live Group GmbH
6,000 m² office Q3/2023
35
2
3
Administration building Public Order 40
41
Chicago Lane Office Suites
B
WABCO Engineering Innovation Center Expo Campus
42 Office project Hanomag Marianne-Baecker-Allee/ DIBAG Industriebau AG 5,400 m² office
4 42
plot Hanomagstraße City Gate Nord (Vodafone) Office project Hanomag grounds
Langenhagen
5 43
43 Admin building Region Akazienstraße Region Hannover 5,000 m² office owner- 2022 Pod|BC Administration offices Hannover Region
8
27
Hannover occupier 6
Office building am Park der Sinne 44
Office project "Anna"
Langenhagen centre
44 Office project "Anna" Anna-Zammert-Straße Aurelis Real Estate Service 4,500 m² GFA office 2021 B 522 7
Telekom AG 45
Swiss Life Career Campus
Wunstorf
GmbH A 37
Garbsen
8 46
DHL Freight Office project Freundallee
45 Swiss Life Career Campus Swiss-Life-Platz Swiss Life AG 3,800 m² office/seminar 2021/2022 Garbsen 9
MARQ Marstall Quarree 47
Expo Gate B 443
B 441 Owner-occupier centre
13 10 48
650 m² conference DB Netz AG (extension) Office project WA 27
11 49
46 Office project Freundallee ARTIS Hannover II GmbH 3,500 m² office 2021 Office project Planetencenter Office project VS319
A2
E 30 Lahe 12 50
Schindler Office project Laatzen
Medium-term planning 11
19
Vahrenwalder Straße
B 441 Lein 13
B6 Office 51
Office project KWA62
47 Expo Gate Kronsbergstraße / Vastint 43,000 m² GFA office/hotel e 17
22
49
29
4 45 14 52
Münchner Straße, Laatzen Landesgesundheitsamt (extension) Office project Main goods station
M ittellandkanal
23 5 31
15
48 Office project WA 27 Weltausstellungsallee Delta HRG 22,000 m² office/hotel 2023/2024 LIVIN
Podbielskistraße
16
Continental AG head office Refurbishments
B6
49 Office project VS319 Vahrenwalder Straße 319 B 442
Delta HRG 15,000 m² office/hotel 2023/2024 B3 17
Taurus Technopark 53
Rathaus Kontor
30
50 Office project Laatzen Erich-Panitz-Straße/ phoenix Holding GmbH 10,000 m² GFA office 18
Office and commercial building Vahrenwald 54
KRH Training Academy
al
18
d ka n
32
n
51
a
Karlsruher Straße, Laatzen
51
l l
e project KWA62 Karl-Wiechert-Allee 62
MittOffice Delta HRG 9,000 m² office/hotel 2024/2025
B 441 34
56
HANNOVER
19
20
Business Park Hannover-Nord 55
Ludwig-Fresenius Schools
enercity head office 56
List Lofts
52
1 Karl-Wiechert-Allee
52 Office project Former Paulstraße/Gertrud- Aurelis Real Estate 7,500 m² GFA office 2023/2024 60
21
KraussMaffei Berstorff 57
Office building Siemensstraße
main goods station Knebusch-Straße Service GmbH
20
City 58
9 24 22
15 16 Faurecia 58
Joachims Carrée
Refurbishments 3 59
23
53 City Gate Nord (2nd CP) 59
Hans-Böckler-Allee Office and commercial building Osterstraße
Completions 2
City centre periphery 39
38
43 44 46 24
Ärztekammer Niedersachsen 60
Quartier Goseriede (former Postbank site)
53 Rathaus Kontor Theodor-Lessing-Platz BAUM Unternehmensgruppe 4,200 m² office Q4/2018 14 10 25
Siemens AG
1-2/Ebhardtstraße 1
42
57 26
KRH Bildungsakademie Schützenallee 5 meravis Bauträger GmbH 3,700 m² office/seminar Q1/2018 Office project MS4
54
7 B 65
27
MTU Completions
55 Ludwig-Fresenius-Schu- Schützenallee 1 E&H Grundbesitz GmbH 3,500 m² office/seminar Q1/2019 Hildesheimer Straße 28
B 443
len
Bad
28
Office and retail building Seelhorster Garten Under construction/in preparation
B 65
56 List Lofts Drostestraße 14/16 BAUM Unternehmensgruppe 3,100 m² office Q2/2019 29
Businesspark Hannover-Lahe Concrete Planning
Nenndorf
55
Office building Siemensstraße 10 Schramm & Schön 2,500 m² office Q3/2018 B6 30
57
Expo-Park aha head office Mid-term planning
54
31
Under construction/in preparation Buchholzer Grün
58 Joachims Carrée Joachimstraße 8 Joachims Carrée GmbH 2,000 m²
B 65
2021 32
Office and residential building
Steinbruchsfeld
Key Sehnde
59 Office/commercial Osterstraße 44-46/ BAUM Unternehmensgruppe 12,000 m² GFA office/ retail 2020 33 Airport
building Breitestraße 10 (basement/loft)
B 217 36
47 41
Assure Consulting Co-Working
Laatzen 26
34 Exhibition grounds
Bumke
Medium-term planning Centre 40
48
33 35 B 443
Sky City Hannover Airport
Main station/main line trains
60 Goseriede quarter (former Goseriede, Brüderstraße BAUM Unternehmensgruppe, 45,000 m² office (currently) B3
50
25 6 12
Postbank site) meravis Bauträger GmbH 19,000 m² plot including resi- 36 Tram
Büroensemble Hemmingen
Lein
Laatzen
37
dential/hotel in the planning e 21
37
Office project Laatzen-Mitte
Suburban rail
38 City boundary
Ratsquartier
0 0,5 1 1,5 km
N
28 PROPERTY MARKET REPORT 2019 29 PROPERTY MARKET REPORT 2019 OFFICE PROPERTY MARKET 29 OFFICE PROPERTY MARKET 30Subzones of Hannover’s office property market (see also map of office projects on page 29):
The Hannover office market with approx. 5.04 million m² of office space (MF-G) comprises Hannover city and
the surrounding towns of Garbsen, Langenhagen and Laatzen, which border directly on the state capital to the
north and south respectively and are functionally closely linked to it.
Map Subzones location Office Number Of which
space in of office > 10,000 m²
m² MF-G buildings
RETAIL
City centre: Bordered by the city ring road. This area comprises Georgstraße, 1.18 m 220 20
Georgsplatz, Raschplatz, Friedrichswall, Aegidientorplatz and Schiffgraben.
City centre peripheral locations and arterial roads: High-quality office 1.88 m 323 37
locations are situated in the north and southeast of the city centre with the main
traffic axes comprising Vahrenwalder Straße in the north, Podbielskistraße in the
PROPERTY
northeast, Marienstraße/Hans-Böckler-Allee in the east and Hildesheimer Straße
in the south and extends west towards the HANOMAG area
City periphery 584,000 145 4
Podbielskistraße 546,000 50 17
Vahrenwalder Straße 343,000 59 7
MARKET
Hildesheimer Straße 238,000 42 4
Hans-Böckler-Allee 165,000 27 5
Office centre Karl-Wiechert-Allee: With direct access to the expressway this 322,000 36 9
location hosts the large sites and facilities of the Hannover Medical School and
the adjacent Medical Park, and in particular owner-occupied office complexes
for groups involved in the finance, insurance and tourism sectors.
EXPO Park: High-quality office buildings oriented towards IT, design and media, 148,000 14 6
partially comprising some of the original buildings and open spaces constructed
for the EXPO 2000 World Exposition. The buildings constructed on the nearby
Kronsberg (Kattenbrookstrift) are exceptional examples of modern architecture.
Office centre Lahe: Location in the north-east of Hannover boasting excellent 95,000 20 2
transport connections to the A 2 and to the tram system. A number of rezoning
and restructuring activities offer considerable scope for further developing the
potential at this location.
City of Langenhagen: Office buildings concentrated in the town centre 217,000 44 0
In November 2018, the Westphalian trading company Manufactum opened its eleventh store, occupying 600 m² and three floors. The company Hannover and its environs offer many
and around the LRT station Langenhagen-Mitte. Also, excellent transport primarily offers high-quality products, manufactured in small batches and often by hand. The branch offers an add-on gastronomy area.
connections to the motorways and the airport. Additional office properties
attractive retail opportunities. The
in Godshorn and Airport business parks. Georgstraße in Hannover is one of
Stadt Garbsen: Office buildings concentrated around the centre of the city 121,000 36 0 Germany’s busiest shopping streets.
and the new Mechanical Engineering Campus of Leibniz University. Excellent
The Hannover Region itself also offers
2.1 m m² €185/m² 3.6 %
transport connections including light rail transit, and direct proximity to the A
2 and B 6 roads. many attractive shopping opportunities,
City of Laatzen: Office buildings concentrated around the centre of Laatzen. 128,000 22 1 drawing shoppers from beyond the
Directly adjacent to the Hannover Exhibition Grounds and the A 37/A 7 motor- Retail sales area Prime rent 2018 Net initial yield 2018
ways, excellent local public transport connections.
region’s borders.
OFFICE PROPERTY MARKET 31 32 PROPERTY MARKET REPORT 2019 33Purchasing power and turnover 2014-2019
9,000
RETAIL FACT CHECK
8,000 Turnover Hannover
Turnover Region
Hannover’s Georgstraße has been ranked amongst The towns of Laatzen, Langenhagen, Isernhagen- 7,000
Purchasing power relevant to retail, Hannover
Germany’s ten best shopping streets for many years Altwarmbüchen and Garbsen all offer strong shopping 6,000
Purchasing power relevant to retail, Region
now and is one of the nation’s top locations in terms centres and retail centres and are successful
5,000
of pedestrian frequency and prime rent. on a supra-regional level. Source: MB-Research 2019
In € m
4,000
The centrality of Hannover city and the region is high, In 2018, retail properties were sold for around 3,000
with a catchment area stretching far beyond Lower €39 million. 2,000
Saxony’s border in the west through to the state of
1,000
North-Rhine Westphalia.
0
The sales floor total area in the Hannover Region is
2014
2015
2016
2017
2018
2019
approximately 2.1 million m², of which some
285,000 m² are located in Hannover’s city centre.
The region is one of the country’s
top retail locations for turnover Outstanding centrality Region offers over 2.1 million m² sales floor area
Despite the increasing market share now enjoyed by Hannover is a retail location which is very much in The total sales floor area for the Hannover Region as a whole
e-commerce in retail sales in Germany, local retail demand. Compared with cities of a similar size, such as is estimated at 2.1 million m². The sales floor area available
turnover has remained stable or even risen slightly. Bremen, Dortmund, Nuremberg, Essen and Leipzig, the in Hannover is approximately 885,000 m². Overall, the city
According to MB-Research, retail sales in the Hannover rents achieved in Hannover’s inner-city shopping streets centre (district Mitte) offers approx. 285,000 m² sales floor
Region topped €7.9 billion during 2019. The Hannover are much higher. Hannover boasts excellent centrality and area.3 The top four prime sites (Bahnhofstraße, Georg-
Region continues to rank amongst those German actually beats metropolises such as Berlin, Hamburg and straße, Große Packhofstraße and Karmarschstraße) have a
towns and cities with the highest turnover levels. Munich in this regard. combined sales floor area of approx. 190,000 m².
3
Data for Hannover Region, acquired as part of the develop-
ment of the Regional Retail Concept. Data as at 2016
Retail indexes 2014 to 2019
Pedestrian frequency prime location Hannover to 2019
130
125 Turnover index, Hannover Ø Hourly frequency Range Ø Hourly frequency Range
Turnover index, Region Road
Tuesday for Germany Saturday for Germany
120
Centrality index, Hannover
115 Centrality index, Region Georgstraße 4,877 2 7,650 3
Germany = 100
Purchasing power index, Hannover Karmarschstraße 2,341 16 4,168 18
110
Purchasing power index, Region
Große Packhofstraße 2,286 17 4,498 16
105
Source: MB-Research, 2019
100
Source: Engel & Völkers Hannover Commercial, hystreet.com GmbH. Average hourly value during the observation period from 10-20 hours on all Tuesdays or Saturdays in May 2019.
95 Bahnhofstraße was not counted for technical reasons. The rank nationwide reflects the placement among a total of 55 shopping streets examined
90
2014
2015
2016
2017
2018
2019
34 PROPERTY MARKET REPORT 2019 RETAIL PROPERTY MARKET 35You can also read
