PROPERTY MARKET REPORT HANNOVER 2017 - BUSINESS PROMOTION - Hannover.de
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PROPERTY MARKET REPORT
HANNOVER 2017
BUSINESS PROMOTION
3
HANNOVER: PROPERTY SUBMARKETS AT A GLANCE 1
Office rents in Hannover 2010 to 2017*
16
14
In €/m2 MF-G
12
10
8
6
10
11
12
13
14
15
16
17
20
20
20
20
20
20
20
20
Prime rent city Prime rent city centre periphery
OFFICES
Prime rent office centres Average rent city
T he location includes approx. 4.95 million m2 office * T he average values for 2017 are based on details provided by market participants on developments in the
first six months of 2017
space (of which 4.49 million m in Hannover City). 2
Source: bulwiengesa AG; Hannover Region surveys; details provided by market players
Hannover therefore has the largest office property
inventory after the seven A-locations in Germany. Office space turnover 2010 to 2016
Since 2010 an average of 905,000 m2 office turnover
150
has been achieved in Hannover, Langenhagen, Laatzen
In thousand m2 MF-G
and Garbsen.
An average turnover of around 130,000 m 2 has been 100
achieved every year since 2010 – a figure more than
double that of the average of B-cities.
50
As a result of the relatively low vacancy rates (2016:
4.5 % vacancy rate in Hannover, 6.1 % average for
A-cities and 5.1 % B-cities) and the high level of market 0
transparency, the investment risk is lower: whereby the
10
11
12
13
14
15
16
20
20
20
20
20
20
20
net initial yield was 4.5 % in 2017.
The investment transaction volume in the office property ■ Rental SCH ■ Rental surrounding towns
market amounted to approx. € 185 million in 2016. ■ Owner-occupied SCH ■ Owner-occupied surrounding towns
Source: bulwiengesa AG; Hannover Region survey; details provided by market players
Office space portfolio 2016 in m2 MF-G* 4.95 m
Of which Hannover City 4.49 m
Office vacant space 2010 to 2016**
Of which surrounding towns of Garbsen, Laatzen and
Langenhagen 0.46 m 300
Office space turnover 2016 in m 2 MF-G* 120,000 250
In thousand m2 MF-G
City of Hannover 115,000 200
Surrounding towns of Garbsen, Laatzen and Langenhagen 5,000
150
Vacancy rate 2016 in m 2 MF-G* 229,000
100
City of Hannover 205,000
50
Surrounding towns of Garbsen, Laatzen and Langenhagen 24,000
Vacancy rate 2016 in %* 4.5 % 0
City of Hannover 4.5 %
10
11
12
13
14
15
16
20
20
20
20
20
20
20
Surrounding towns of Garbsen, Laatzen and Langenhagen 5.1 %
■ State Capital Hannover ■ Surrounding towns*
Prime office rent city centre 2017 in €/m MF-G 2
15.30
Prime office rent, city centre periphery 2017 in €/m2 MF-G 11.50
Net initial yield in prime locations, city centre 2017 4.5 %
* Value for Hannover and surrounding towns (Garbsen, Laatzen, Langenhagen)
** Vacant space figures based on office space full surveys in 2008, 2012 and 2015 for the Hannover
market area and extrapolated in the following years. For the surrounding towns, the survey is
* Value for Hannover and surrounding towns (Garbsen, Laatzen, Langenhagen) based on a specific vacancy rate from 2015. Based on the portfolio in surrounding towns alone,
Source: bulwiengesa AG; Hannover Region surveys; details provided by market players the vacancy rate in 2016 was 5.1 %.
MF-G Standard method for calculating commercial rental space Source: bulwiengesa AG; Hannover Region survey; details provided by market players
1
S ource for all further details (unless explicitly stated): bulwiengesa AG; calculations by Hannover
Region; verified details of market participants from property market report group Region Hannover
HANNOVER: PROPERTY SUBMARKETS AT A GLANCE
RETAIL HOTELS
Hannover’s Georgstraße has for many years now been The city of Hannover boasts 40 hotels offering 8,357
r anked amongst Germany’s Top 10 most attractive beds, within a total of 103 accommodation establish-
shopping streets and amongst the nation’s prime ments with a total of approx. 13,400 beds.3
locations in terms of pedestrian flow and prime rent. O ver half of the hotels are located in Hannover’s
The centrality of the city and the Region is high , with 2
city centre and in the immediate vicinity of the
the catchment area extending westwards over the i nternational fair grounds.
Lower Saxony border into North-Rhine-Westphalia. The number of overnight stays has climbed from 2010
Sales floor in Hannover Region is approx. 2.14 million m2 to 2016 by around 16.4 % to a total of 2.24 million over-
in area, of which some 285,000 m 2 are located in night stays.4
Hannover’s city centre. The rise in overnights has been significantly more dynamic
➢Within the Region there are strong shopping centres since 2010 than the equivalent figure for beds (plus 0.8 %).
of supra-regional importance as well as retail m
arket B ased on current planning, by 2022 nine new hotel
centres (Laatzen, Langenhagen, Isernhagen-Altwarm projects will have joined the hotel market with an
büchen, G
arbsen) and a number of smaller inner cities additional 1,800 rooms.
and district centres which customers also find attractive. In 2016, Hannover hotels had a transaction volume worth
In 2016, turnover in retail properties in the Region around € 51 million.
amounted to € 134 million.
3
Lower Saxony state statistical office, 2017 (monthly surveys in tourism, table K7360412)
4
Lower Saxony state statistical office, 2017 (monthly surveys in tourism, table K7360151)
2
According to GfK, centrality metric is 125.3 (city) and 109.8 (region) in 2017 (D = 100)
Sales floor Hannover Region 2016/2017 in m2 2.14 m Number of accommodation
103
Hannover Region (without Hannover city) 1.25 m establishments 2016
Hannover city 885,000 of which hotels 40
Hannover city centre 285,000 Number of beds (all accommodation
13,394
Retail centrality index 2017 (Germany = 100, GfK) types) 2016
Hannover city 125,3 of which beds in hotels 8,357
Region (including Hannover city) 109,8 Arrivals 2016 1.33 m
Purchasing power 2017 (in € per resident, GfK) Overnights 2016 2.24 m
Hannover city 22,667 of which in hotels 1.43 m
Region (including Hannover city) 23,006 Average duration in days 1,7
Retail turnover 2017 (in € per resident, GfK) Occupation rate average 2016 63.8 %
Hannover City 6,567 Room price average 2016 in € 98.70
Region (including Hannover city) 5,802 RevPar average in 2016 in € 63.00
Prime rent city prime location 2017 in €/m 2* 195 Net initial yield hotels in 2016 5.4 %
Average rent city prime location 2017 in €/m * 2
145
Net initial yield in prime locations 2017* 4.15 % All values with respect to State Capital Hannover
Source: Lower Saxony state state statistical office, Fairmas (Sample hotel chain)
Net initial yield specialist retail centres 2017 5.95 %
* Bahnhofstraße, Große Packhofstraße, Georgstraße
Source: Retail portfolio surveys on behalf of Hannover Region (data status 2017): GfK 2017; details provided
by market players
LOGISTICS RESIDENTIAL
Hannover Region is a key logistics and seaport hinterland hub. Population growth in both the State Capital Hannover and
Hannover is second only to Hamburg as the most important several neighbouring communities is pushing up demand for
logistics location in North Germany. residential properties.
Hannover Region boasted around 2.5 million m2 of hall space in O ver the last 10 years the population in the city of Hannover
2016, comprising approx. 270 properties suitable for logistics, of has climbed by approximately 32,700 people (plus 6.4 %) to
which alone 1.8 million m2 – some 135 buildings – were erected around 540,700: at the end of 2016, 1.17 million people lived
after 2000. 5
in the Region (plus 3.5 %).
In 2016, turnover in logistics properties in the Region achieved In the same period, only some 6,080 new apartments were
a total value of around 96 million. completed in Hannover such that there is and will continue
to be a considerable demand for new homes.
5
Estimate based on hall area full survey at end of 2015/early 2016 by bulwiengesa. Only those properties greater than Over the last five years, around 800 new apartments had
1,000 m 2 utility space were considered. An estimate to represent smaller areas was not added. The office space share
of the overall logistics space also represents an additional 5 % or 130,000 m 2. been completed annually on average. 6
In 2016, turnover in apartments and houses in the Hannover
Region had a total value of around € 2,134 billion (plus 9.4 %).7
6
A comparison of the years 2012 to 2016 (3,093 housing unit completions). Source: calculations of Hannover Region
based on Lower Saxony state statistical office figures, 2017 (completion of new residential and non-residential
b uildings, not including residential homes, time series M8100116)
7
With respect to the total property movements in the residential and partial ownership submarkets, detached,
single and double-occupancy houses, terraced houses and semi-detached houses and apartment blocks (old
and new buildings). Expert panel for property values Hameln-Hannover, 2017.
Logistics area portfolio 2016 in m 2 2.5 m Residential rent, new builds 2017, prime rent in €/m2 15,00
Logistics space turnover 2016 in m 2
175,000 Residential rent, new builds 2017, average rent in €/m 2
11,60
Prime rent (new builds with excellent building 4.60 Residential rent, re-let property 2017, prime rent in €/m 2 11,80
services and optimal transport connections) 2017 Residential rent, re-let property 2017, average rent in €/m2 8,20
in €/m 2
Purchase price for owner-occupied apartments, new 5,500
Average rent 2017 in €/m 2 3.70 builds, prime group 2017 in €/m 2
Net initial yield logistics centres in prime sites 2017 5.8 % Purchase price for owner-occupied apartments, new 3,800
builds, average 2017 in €/m2
All values refer to Hannover Region. Multiplier for apartment blocks/investment 25,0
properties, prime group 2017
Multiplier for apartment blocks/investment 22,0
properties, average 2017
Multiplier for apartment blocks/investment 22,7
properties, inventory, prime group 2017
Multiplier for apartment blocks/investment 17,6
properties, inventory, average 2017
All figures refer to Hannover Region.
PROPERTY MARKET REPORT 2017
CONTENTS
FOREWORD
Page 5
LOCATION OFFICE PROPERTY RETAIL PROPERTY
HANNOVER REGION MARKET MARKET
Pages 6–21 Pages 22–35 Pages 36–45
HOTEL PROPERTY LOGISTICS RESIDENTIAL
MARKET PROPERTY MARKET PROPERTY MARKET
Pages 46–53 Pages 54–69 Pages 70–85
HANNOVER IN IMPRINT MAPS
COMPARISON
Page 87 Page 88 Pages 21, 34–35, 45, 53, 68–69, 85
3
“Coloropolis”: photograph of an installation by the artist duo “Quintessenz” of Hannover and Berlin. It is currently on loan in the Hafven Open Space. The artists Thomas
Granseuer and Tomislav Topic have been working together since 2008 on projects from the fields of film, installation and painting. The abstract “image worlds” by the
artist duo are simultaneously maps and sketch books, an interplay of colours, materials, image motifs, places and forms.
4 PROPERTY MARKET REPORT 2017
THE HANNOVER REGION PROPERTY MARKET
Dear Readers,
The Hannover Region is still very much on the ball, not only in the German Bundesliga from the
2017/2018 season onwards.
Hannover also enjoys its role as a rising star in the property sector, very much treading on the toes
of top ranking players in the property premiership. The commercial property market in Hannover
stands for robust yields on investments with development potential. Hannover city is amongst
Germany’s top shopping addresses. The area’s logistics spaces enjoy a very high demand. The
office market in the state capital has established itself as the largest B-location in Germany. The
hotel market is set to grow significantly in the city in the years ahead and, as a residential location,
the Hannover Region is currently enjoying a strong and hard to satisfy demand for housing.
One thing applies to all submarkets: the Hannover Region is interesting for investors seeking to
invest in core properties outside of A-locations.
Working together with 20 partners from the property industry, the regional business promotion
organisation has been proactive since 2003 in collating core data on all the relevant submarkets
in the Region, presenting them in a transparent and interesting way while ensuring compliance
with the high standards of the Gesellschaft für immobilientwirtschaftliche Forschung e. V.
(gif e. V. – property industry research corporation). The results of these collaborative efforts are
reviewed and supplemented by bulwiengesa AG, the well-known consultancy.
This report is manifest proof of the lively and committed cooperation existing in Hannover’s
property business community. The open and honest exchange of information amongst locally
active market players is a factor which has helped Hannover evolve into one of Germany’s
strongest property locations.
Ulf-Birger Franz Sabine Tegtmeyer-Dette
Head of Business, Transport and Head of the Business and Environment
Education Department Department, First Town Councillor
Region Hannover State Capital Hannover
VORWORT 5
LOCATION
HANNOVER REGION
The Hannover Region is an innovative industrial location, service
centre and logistics hub for both national and international markets.
The positive economic development experienced by the regional
economy during recent years has generated a sustainable demand
for properties in all submarkets. The commercial property market in
Hannover has consolidated its position as a key location following
Germany’s seven major A-cities.
In October 2016, “96 – DIE AKADEMIE” opened – the new sports centre for young football talents from the Bundesliga team Hannover 96.
The approx. 130,000 m2 ground next to the Eilenriede forest include an admin building and boarding house. The new sports facilities and new
seating in the listed Eilenriedestadion stadium structure are built to a high standard to create the ideal conditions for training.
6 PROPERTY MARKET REPORT 2017
7
Hannover’s office market has a total area of around 5.06 million m2. In Hannover’s city centre, between Friedrichswall,
Aegidientorplatz, Schiffgraben, Raschplatz and Klagesmarkt, the city boasts some 1.19 million m2 office space.
8 PROPERTY MARKET REPORT 2017Lower Saxony’s key economic area Employment growth is dynamic and sustainable
Hannover is a trade fair city open to the world: it inspires ideas Almost 490,000 people – including 60,000 more people
for new developments in key technologies and intends to be working and paying social security contributions than in
a front runner in digitalisation. Brands famous throughout the 2010 – had jobs in the Hannover Region in mid-2016. A central
world, a business community characterised by strong SMEs role in the Region is played by the State Capital Hannover,
and outstanding research organisations are all at home in offering approx. 313,000 jobs, with a further approx. 175,000
Lower Saxony’s State Capital Hannover and the Hannover working in the surrounding areas. The regional unemploy-
Region. Some 50,000 business enterprises help make ment rate in June 2017 was relatively low at 7.1 % (down 0.4 %
Hannover Lower Saxony’s most important economic area. compared with June 2016).
It is the motor for innovation and growth.
BRANDS FAMOUS
THROUGHOUT THE WORLD,
A BUSINESS COMMUNITY
CHARACTERISED BY STRONG
SMES AND OUTSTANDING
RESEARCH ORGANISATIONS
ARE AT HOME IN THE
LOWER SAXONY STATE
CAPITAL HANNOVER AND
THE HANNOVER REGION.
1.17 million
Inhabitants in the
Hannover Region
The Coworking project Hafven kicked off in Hannover’s Nordstadt in September 2016.
One of the concept’s many unusual features is the inclusion on the premises, in addition
to offices, of an integrated maker space with workshops for wood and metal working.
HANNOVER REGION LOCATION 9The Gesellschaft für Bauen und Wohnen Hannover mbH (GBH) and The Honold Logistik Gruppe of Neu-Ulm has completed the building
the union-boden GmbH joined forces at the end of 2016 to create the in Barsinghausen-Bantorf of a new, 14,300 m 2 large tyre depot for
hanova organisation and have moved into open plan working areas at the Continental AG. The facility is an investment of € 10 million on
the new group HQ on the Klagesmarkt in Hannover. an overall 30,000 m 2 plot, and commenced operations at the end of
September 2016.
All regional property submarkets have benefited sustainably Logistics: The Hannover Region is widely known as a vital
from the area’s positive economic developments. European logistics and key hinterland hub with a great po-
tential for seaports in northern Germany. Every sixth job in
Offices: The number of people employed in offices in Lower Saxony’s logistics industry is located in the Hannover
Hannover city rose during 2017 to a figure of around 176,100. Region. The logistics industry directly employs around 43,800
This means the number of office employees has climbed people (paying social insurance contributions) with a further
since 2010 by around 18,600, equivalent to 11.8 %. The 28,000 jobs secured indirectly by the logistics sector.8 It is
growth in demand for office space has impacted the office above all commercial and manufacturing enterprises which
property market. New contracts for rental office space are raising regional demand for logistics services. In the recent
totalled around 120,000 m2 in 2016. past, many contract service providers have settled in the area,
rendering services for other businesses and generating their
own high value chains. The turnover in logistics hall space has
settled at the same level as last year at around 175,000 m2.
Retail: The long-term trend in which the share of over-the-
counter sales of consumer spending by individual consumers
is falling, continued in 2017. Nonetheless, the Hannover
Region remains one of Germany’s five highest turnover retail
locations. In 2017, over-the-counter sales are anticipated to
reach some € 6.86 billion. In addition to Hannover city centre
with its prime sites of Georgstraße and Bahnhofstraße, the
specialist retail parks and shopping centres in the area sur-
rounding Hannover city continue to attract customers.
8
Comparison of Hannover Region (2016): labour market monitor logistics sector (location information
The Ernst-August Galerie mall opened in 2008 with some 30,000 m 2 sales floor: it is 1-2016)
Hannover’s largest inner-city shopping centre. New arrivals amongst the approx. 150
shops during 2017 included Danish label Søstrene Grene.
10 PROPERTY MARKET REPORT 2017Playful interior designs in pop-art colours reminiscent of the 1960s and Gundlach, a hannover-based developer, has completed its “Wohnen
1970s pop culture: this is the design concept introduced by prizeotel to am Yachthafen” project directly on the Mittelland canal. Next to the
Hannover in 2015. Last year the new 212-room hotel on the Hamburger yachting harbour, some 60 owner-occupied apartments have been
Allee was acquired by the Tamara Hospitality Group. built on a 7,000 m 2 plot in the List district.
Hotels: Tourism is on the up in Hannover – the number of Residential: The residential property market is character
overnight stays has risen by around 16.4 % to 2.24 million ised by regional providers and the demand from private
in the period from 2010 to 2016. City tourism offers the households. In 2016 apartments and houses with a total
most potential here, whereas in the past Hannover was value of around € 2,134 billion changed hands in the Region.
mainly the stopping-off point for business travellers visiting Population growth in the State Capital Hannover and a
Hannover’s major international flagship fairs. The hike in number of adjacent communities has created a lively de-
overnight stays has been significantly more dynamic since mand which is impacting the residential property market.
2010, with city tourists attracted by highlights such as In the last 10 years, Hannover’s population has risen by
Hannover’s Adventure Zoo and the fireworks competition some 32,700 (a plus of 6.4 %) to approx. 540,700. Over
in Herrenhausen. The recent rise in the number of beds the same period, only around 6,080 new homes were com-
has been somewhat subdued (a plus of 0.8 %) but is now pleted in Hannover city, such that a considerable demand
catching up. Today’s figures indicate that by 2022 new hotel for new housing exists, both now and in the future. Working
projects will introduce some 1,800 new rooms to Hannover’s together with the housing industry, Hannover intends to
hotel market. issue building rights for at least 500–700 new units per
annum and see around 1,000 apartments built every year.
A further challenge being faced by the municipalities, and
the respective housing markets, is that of providing long-
term accommodation for refugees. In July 2017, some 3,680
refugees were living in accommodation provided by the
State Capital Hannover.
THE POSITIVE ECONOMIC
DEVELOPMENT HAS GENERATED
SUSTAINABLE DEMAND FOR
PROPERTIES IN ALL SUBMARKETS.
HANNOVER REGION LOCATION 11THE STATE OF LOWER SAXONY IS
FOCUSING ON UNIVERSITY SITES IN
THE HANNOVER REGION. THE NEW
MECHANICAL ENGINEERING CAMPUS
IN GARBSEN REPRESENTS A
Science and research:
€ 149 MILLION INVESTMENT. Work starts on Garbsen campus
The symbolic ground-breaking ceremony in December
2015 at the new Campus Maschinenbau in Garbsen was
followed in May 2017 by the topping out ceremony. By the
time the winter semester starts in 2019/2020, Hannover
Region’s second largest municipality will be host to eight
buildings for teaching and research providing premises to
11 institutes of the mechanical engineering faculty and the
DEW dynamics in energy conversion research centre.
The state of Lower Saxony and the federal government are
investing approx. € 149 million in the campus, which will
ultimately comprise a useful area of approx. 20,000 m 2.
Some 5,300 employees and students of the Leibniz Uni-
versity will teach, research and learn on the campus. Seven
institutes have been located at the site in the production
technical centre (PZH) since 2004. The concentration of
mechanical engineering at the new campus in the Region
is creating a future-proof environment for teaching and
research at a top international level. Areas are available
in the direct vicinity, both in Garbsen as well as at the
s cience and technology park in Hannover-Marienwerder,
for business enterprises.
The construction of the Hannover institute for technology
(HITec) will be completed in the Callinstraße by the end
2017. Leibniz University Hannover has created a research
The globally active MSD pharmaceuticals company is expanding the product portfolio infrastructure that for the first time in Europe unifies basic
at its site in Burgwedel near Hannover and modernising facilities compliant with research, applied research and technological developments
latest safety standards.
in the fields of quantum physics and geodesics under one
single roof. The research building at Leibniz University is an
approx. € 30 million investment. Probably the most spectac-
ular, single research building is the Einstein-Elevator, a 40-m
high freefall simulator which creates a four-second time
window of zero gravity for experimental activities.
Businesses investing in research and
development centres
The Hannover Region is also an investment location for
research and development centres by business organisa-
tions. In order to create the necessary preconditions for the
production of the world’s first Ebola vaccine, the globally
active MSD pharmaceuticals company has commenced
Foundation stone laid in May 2017: Kirsch Pharma Health Care is investing more than the modernisation and expansion of its Burgwedel site
€ 20 million in expanding its site in Bissendorf. Behind the company’s representative
office building, with space for administration and quality assurance departments
as well as an analytical laboratory, a production hall is under construction including
warehousing for pharmaceutical products.
12 PROPERTY MARKET REPORT 2017New building for the Leibniz School of Education: an orange brick facade over the light concrete facing of the ground floor helps
build a link between the existing 19th century Gründerzeit houses and the university.
near Hannover. The company intends to invest around € 60 Leibniz School of Education
million over a two-year period in, for example, a new sepa By 2020 the teacher training departments previously
rate production area, creating around 50 attractive new spread around the town will be clustered together in
jobs in the process. May 2017 marked the foundation laying a new building at the Leibniz University. The Leibniz
ceremony in Bissendorf for a new subsidiary of the Kirsch School of Education was established at the end of 2016
Pharma Health Care. The Salzgitter-based pharmaceutical as a home for six of the LUH’s nine faculties, where some
company is investing some € 20 million at its new site in the 5,000 students will be qualified as teachers. The new
Wedemark, and from spring 2018 onwards it will be de- building is a € 15 million investment.
veloping and producing finished medicinal products (solid
formulations), vitamin mixtures and food supplements at Investments at Hannover Medical School
the site. During the next few years, vital sections of Hannover
Medical School (MHH) need to be rebuilt. These include
From 2018, the WABCO Engineering Innovation Center in the main central clinic with the wards, the A&E department
Hannover-Linden will host some 450 staff on an 11,500 m2 and the surgical facilities as well as other infrastructure
plot working on the latest technologies and systems for such as the multi-storey car park. A roadmap for the reali
commercial vehicles the world over. In addition to labora- sation of the bundle of building measures is to be finalised
tories and test rooms, the premises will include innova- during 2017 and will effect major parts of the university
tively organised office space to help make collaboration clinic buildings originating from the 1960s. The state will
between the various product development teams even provide long-term funding totalling around € one billion by
more efficient. The automotive industry supplier is invest- way of special funds, making some € 300 million available
ing around € 25 million in building the development centre. to the MHH over the short term.
HANNOVER REGION LOCATION 13HANNOVER IS A TRADE FAIR CITY
OPEN TO THE WORLD: IT INSPIRES
IDEAS FOR NEW DEVELOPMENTS
IN KEY TECHNOLOGIES
Leibniz University Hannover, in collaboration with the office of “state
construction management Hannover”, is presently converting a brick
building originating from 1888 into a centre for meetings between
culture and science: the royal stables will provide space for concerts,
presentations and exhibitions, congresses, seminars and lectures. The
project is being financed by building maintenance funds and donations.
Royal stables as meeting place
In the Nordstadt the plan to convert the royal stables
into a central place of communication and meeting for
Just a stone’s throw from the Expo-whale, the first two of four buildings making up a students the Leibniz University is turning into reality. The long brick
r esidential facility were completed on Chicago Lane. The architectural competition for the facade building in the Appelstraße (Nordstadt) was built in 1888:
design was won by architects sabo ARCHITEKTEN BDA PmbB of Hannover. The apartments are an
attractive choice particularly for students at the Hochschule Hannover, the lecture theatres of which LUH currently uses the rooms as a laboratory and for
are a mere kilometre away at the Expo Plaza. teaching. The overall costs for the conversion are approx.
€ 4.9 million.
Refurbishing existing university infrastructures
The state of Lower Saxony is also investing in infrastructure Room for innovations – refurbishment as new chance
at other university sites. The Leibniz University, the Hoch- for Expo Pavilion
schule Hannover, the University of Veterinary Medicine The Dutch pavilion, built for the EXPO 2000 World Expo-
Hannover and the Hannover University of Music, Drama sition in Hannover, acclaimed as the “stacked landscape”
and Media are to receive € 39 million for building projects. is to be refurbished in the next few years. Wohnkompanie
The funding is intended primarily for smaller new builds, Nord is the project developer which plans to combine it
rebuilds and extensions in order to provide an immediate with a bridge to create students residences. The tower of
improvement to the quality of study and teaching. One the Netherlands pavilion is to be revitalised and utilised for
example at the Leibniz University Hannover is, for example, university purposes. The draft for the overall project origi-
a physics lecture theatre refurbishment in the historic main nates from MVRDV, the same Dutch architects’ office which
building. The main building of the Hannover University of enjoyed international acclaim for its design of the pavilion
Music, Drama and Media on Emmichplatz is to be refur at the time of EXPO 2000. Hannover town is collaborating
bished while at the University of Applied Sciences and Arts with the developers and is already in the process of chang-
(Hochschule Hannover), the institute building for biological ing the development plan.
processing technologies in Ahlem needs to be renewed.
Wohnkompanie Nord is a property developer seeking to work closely
with State Capital Hannover to revitalise the Dutch Expo pavillion and
rededicate it for university use. The concept was presented in June 2017
and includes a building directly adjacent providing 380 micro-apart-
ments for students and lecturers.
14 PROPERTY MARKET REPORT 2017After the zoo administration and the animal clinic completed
their move into the new common building at the end of
The AKADEMIE building for the new Hannover 96 youth training 2016, work is now continuing at Hannover Adventure Zoo.
centre offers, for example, room for the youth team as well as office As part of the Masterplan 2025+, Hannover Adventure
and meeting rooms including options for video analysis and scouting.
The boarding house section of the facility has 12 single and two double Zoo will be investing heavily in the years ahead both in the
rooms plus all requisite supervisory staff and common rooms. zoo’s worlds of adventure as well as in the infrastructure.
Afi Mountain opened in summer 2017. The building work on
the zoo’s new entrance zone is scheduled for completion in
summer 2018. Further investments are planned through to
Other area-defining building projects 2025, including for example on the elephant enclosure.
The grounds of the Eilenriedestadion arena, now home to
the new youth training centre of the Hannover 96 football From November 2017 onwards, the Panorama am Zoo will
team, was completed at the end of 2016: the first b
oarders complement the zoo’s other offers. Berlin-based artist Yadegar
moved into the facility in early 2017. The Bundesliga team Asisi builds the world’s largest 360° panoramas, with heights
has invested a total of € 18 million in building the new of up to 32 m and circumferences of up to 110 m. The
AKADEMIE for its up and coming football talents. Part of Amazonian panorama in Hannover presents the diversity
the project involved restructuring the sports facilities and of tropical rain forests. The 360-panoramic images give
refurbishing the listed main southern spectator structure visitors on the viewing platform, with seating at heights of
built in 1928. 6, 12 and 15 metres, a range of different perspectives.
The PANORAMA AM ZOO is scheduled to open its doors in autumn 2017, a new high The implementation of “Masterplan 2025+” is moving forward. The new rain forest
light in Hannover. The round building, built as a stand-alone directly adjacent to world at Hannover Adventure Zoo is called “Afi Mountain” and opened its doors in
Hannover’s Adventure Zoo, will present for the first time in North Germany the giant August. The visitors move though a wet savannah, then a rain forest and up mountain
360° images of Berlin panorama artist Yadegar Asisi – starting with the AMAZONIA tracks to the peak of Afi Mountain – walking past chimpanzees, drills, Brazza monkeys,
panorama and to be followed by more panoramic views of nature. colourful birds from Africa and the always impressive gorillas.
HANNOVER REGION LOCATION 15KUPPELSAAL, ZOO, REGIONAL
PARLIAMENT – HANNOVER IS
ALSO INVESTING IN IMAGE-
DEFINING BUILDINGS.
The refurbishment and conversion of Lower Saxony’s regional parliament building in
Hannover seeks to realise the principles of transparency and closeness to its citizens.
After refurbishment, the previously windowless plenary hall will feature high windows
along the building’s long side. The exterior facade includes the listed building’s original
1960s facade.
Symbol of open and transparent democracy
The Lower Saxony parliament building plenary hall has been work in
progress since summer 2014: a total refurbishment. The overall building
area is some 11,200 m2. The state is investing approx. € 58 million in the
refurbishment/conversion scheduled for completion in October 2017. The
new plenary hall will be lighter and more transparent than the origi-
nal building despite complying with the tough requirements specified
by the historic building protection authorities to protect the original
listed building built in 1962. Amongst other changes, a 7.5 m high inner
glass facade will separate the plenary hall across the 27 metres of the
building’s width from the historical Porticus Hall in the Leine palace.
Work in progress in May 2017 on the plenary hall roof of the Lower Saxony
parliament building.
16 PROPERTY MARKET REPORT 2017Investment summary Office and retail properties dominate
The fundamental boundary conditions of today’s capital investment demand
markets have not changed significantly compared with Hannover city is a location which above all is characterised
last year. Both European and German economies are by activities requiring considerable office space. It is the
impacted by the historically low interest rates. An often domicile of major administrative and educational organi-
predicted change, for example triggered by the Brexit sations as well as a number of insurance companies, such
decision or the results of various elections, has simply that in Hannover city it is traditional for a large fraction of
not happened. As a result, the interest of investors in the overall investment volume to be dedicated to office
property market acquisitions remains unbroken. Reflect- and commercial buildings. At the of end 2016, this volume
ing the situation that yield compression has continued amounted to 38.5 % (€ 185 million). Retail properties, the
over a number of years, classic investment targets and second largest class, accounted for 27.9 % (€ 134 million).
asset classes are already too expensive for more than a Industry and hotel properties – two classes which in pre-
few investors. As a consequence they are shifting their vious years enjoyed high levels of demand – currently play
focus to B-locations and alternative asset classes, such a more subordinate role.
as corporate properties. This is where Hannover Region
stands to gain because of its attractive offers and highly On the other hand, the hotel and industry/logistics markets
profitable structures. are important for both the city and the Hannover Region:
both of which are dynamic. It is therefore anticipated that
Investment volumes curtailed by lack of offers these two segments will over the longer term gain a higher
2016 saw almost half a billion Euro invested in commercial priority in the investment market. In today’s market phase,
properties: some 35 % in medium-sized transactions of logistics and industrial properties are very much in demand.
between € 20 to € 50 million. Larger single projects were very In both cases these tend to be large in volume and are fre
much the exception. Volumes above € 100 million are in fact quently constructed directly by owner-occupiers and hence
very untypical for B-cities. Similarly for Hannover, no such only play a minor role as an investment product in the
transactions took place in 2016. During the first six months marketplace itself. Although the offers available are limited,
of 2017 transaction turnover amounted to just over € 135 investors continue to have a high level of interest in this
million. However, the activities in the investment market segment – with demand outreaching supply. This develop-
have significantly livened up since the middle of the year such ment can be seen in the figures for the first six months of
that it is now predicted that the level of 2016 will again be 2017: logistics, currently responsible for 45 % and on par with
reached. The first six months of 2016 were also marked by a the office segment, also 45 %, with a transaction volume
slow market. of € 60 million. In recent years hotel projects have again
enjoyed greater levels of investor interest, also thanks to
the well-stocked project pipeline that reflects the fact that
the number of hotel properties on offer has actually gone
down in recent years due to the consolidation process.
ALMOST HALF A BILLION EURO
INVESTED IN COMMERCIAL
PROPERTIES IN 2016.
HANNOVER REGION LOCATION 17Hannover Region investment market 2016
Volume in €
Type of building Share
million
Retail properties 134 27.9 %
Having said that, 2016 was a year characterised in particular
Office and commercial
185 38.5 % by a certain hesitancy among international players. This is
buildings
also due to extremely active German investors who were
Industry and logistics 65 13.6 % able to play their hands in a more flexible and effective
Hotels 51 10.6 % fashion in part due to their proximity to the market and
greater access. This situation is reflected in particular by
Others 45 9.4 %
Hannover city’s core market. Only few buyers (1.5 %) or sellers
Total 480 100 % (4.6 %) were foreign-based. Surrounding areas painted a
different picture in 2016. Almost 50 % of purchasers were
international, with sellers only 7.6 %. Specialist retail centres
and office properties were high on the investors’ shopping lists.
9.4 %
During 2017 international players came increasingly to the
fore. Worthy of particular mention here is the acquisition of
10.6 % 27.9 % industrial-platform Logicor (Blackstone) by the China Invest
ment Corporation (CIC). Some older portfolio buildings of
this portfolio transaction are also located in Hannover Region.
Portfolio transactions are not unusual for international
Investments in
Hannover Region players. Investors seek to avoid excessive due diligence costs
13.6 %
incurred by individual investments. Portfolio transactions
allow them speedy entry into the market and the opportunity
to invest a large volume of capital in a single transaction.
The deal referred to above, raised the quota of international
players in the Region during the first six months of 2017 once
more to a level of almost 50 %.
38.5 %
In the Region, the fraction of international investors also
reached almost 21.3 % by mid-term 2017. This increase
is also due to the portfolio transaction referred to above
■ Retail properties ■ Industry and logistics plus a number of others including logistics and commercial
■ Commercial and business ■ Hotels properties. Given the situation that this type of property is
building ■ O ther presently considered more acceptable outside of Germany,
industrial properties are seen as being an attractive commod-
ity despite their high facility management requirement. For
Capital sources increasingly diverse example, industrial properties often change hands between
Only in the past 5 to 10 years have international investors various inernational market players. The focus here is less
been actively focused on the German property investment on keeping the commodity in the portfolio over the long
market. Initially the focus was on A-locations; recently term. This also has to do with the fact that the international
this has shifted increasingly towards smaller markets. The players often originate from the private equity sector.
Hannover Region stands out in the property investment
market by having an attractive mix on offer from all asset
classes. In particular corporate and logistics properties have
joined office properties as being popular acquisition choices
in recent years.
18 PROPERTY MARKET REPORT 2017Selected transactions 2016/2017
Building
Property name and/or
Quarter Year Vendor Purchaser Investor type area/land
address
area in m 2
Office
Office building Savills IM SEB Goldman Sachs Asset/fund manage-
Q2 2017 8,270 m 2
(Im Heidkampe 9-11) (Immoinvest) International ment/private equity
TriTower Warburg-HIH Invest
Q2 2017 Local investor Special fund 12,000 m2
(Schiffgraben 30–32) Real Estate GmbH
Office Center Plaza DIC Asset
Q3 2016 Foreign investor Immobilien AG/Reit 17,700 m2
(Mailänder Str. 2) (DIC Office Balance II)
R+V Hochhaus Ensima Investment
Q3 2016 Local investor Private 12,200 m2
(Niedersachsenring 13) Amsterdam
Retail
Kurt Krieger Liegen- Redevco Services Asset/fund manage-
A2 Center Q4 2016 35,000 m2
schaften GmbH Deutschland GmbH ment/private equity
City Carré FIM Immobilien Asset/fund manage-
Q2 2016 Cerberus 20,550 m 2
(Kaufland Rundestraße) Holding GmbH ment/private equity
Logistics
Union Investment Real
Logistics centre Burgwedel
Q3 2017 FIEGE Gruppe Estate Austria AG Open fund 48,600 m2
(FIEGE/Rossmann)
(immofonds 1)
Logistics centre Garbsen Patrizia Immobilien AG
Panattoni Europe
(Haase household Q1 2017 (Patrizia Logistik-Invest Special fund 11,400 m 2
Properties
appliances logistics) Europe I)
RLI investors
Logistics centre Lehrte- bauwo Grundstücks-
Q4 2016 (RLI Logistics Fund – Special fund 27,300 m2
Sievershausen (Wellpack) gesellschaft mbH
Germany I)
Hotel
Adapt-Hotel am Pferde- Realique Unter- BPD Immobilien
Q2 2017 Project developer 200 rooms
turm (Roepckestraße) nehmensgruppe entwicklung GmbH
Tamara Hospitality Asset/fund manage-
prizeotel Q3 2016 prizeotel 212 rooms
(THIG) ment/private equity
HGA-Immobilien-
Radisson Blu Hotel BNP Paribas REIM
Q1 2016 fonds Hamburg- Special fund 250 rooms
Expo Plaza Germany
Hannover GmbH
As part of a portfolio deal, the Patrizia Immobilien AG
acquired a package including a logistics centre in G
arbsen
for a special property fund from project developer Panattoni.
The premises are used by contract logistics services
provider Haase, which is responsible for deliveries in
Germany and Austria for the Polish-based household
a ppliance manufacturer Amica Wronki.
HANNOVER REGION LOCATION 19Redevco acquired a package including the A2 Center in Isernhagen-Altwarmbüchen in the Hannover Region from Krieger-Bau-Gruppe.
The shopping centre underwent a major refurbishment and conversion programme and reopened at the end of 2014. A number of prominent
tenants have outlets on the 35,000 m 2 site including a real supermarket, C&A, Deichmann, Saturn, Reno and Esprit. Directly adjacent, the
Krieger-Gruppe opened a Höffner furniture store at the end of 2015.
Outlook for 2017 and 2018
There is no major change to interest rates imminent. None-
theless the German economy is still demonstrating dynamic
development. The pressure on investments therefore
remains high, as is the interest in property investments.
This notwithstanding, the current property cycle is already
very long lived. A number of economists therefore forecast
a downswing by the end of 2017, at the latest by the end
of 2018. This does not, however, mean that there will be a
seachange with eroding prices, but rather that the upwards
spiral will slowly cease. After that returns are no longer an-
ticipated to suffer further yield compression.
PRESSURE ON INVESTMENTS
REMAINS HIGH, AS DOES
THE LEVEL OF INTEREST IN The Prinzenareal project is a capital investment project in which the
PROPERTY INVESTMENTS VGH insurance company, as owner, is demonstrating its loyalty to the
Hannover business location. A total of € 33 million is being invested in
IN HANNOVER. the new build and a refurbishment on the Prinzenstraße. One of the key
tenants is auditing firm KPMG.
20 PROPERTY MARKET REPORT 2017Selected projects in the submarkets
22
9
15
21
19
17 20
11
18 3 2 12
5 4 14
6
13 7
1
23
8
10
16
1 km 2 km 3 km N
Hotel Retail Public buildings, sports and culture Logistics
1 8 12 20
me and all Hotel Mömax Wülfel Adventure Zoo Hannover Revitalisation main goods station
2 9 13 21
prizeotel Neue Mitte Garbsen (fashion park Röther) Lower Saxony parliament bauwo logistics centre Hannover
3 14 22
Star Inn Premium Hotel by Quality Youth training centre Hannover 96 DHL freight
23
Verdion Logistics centre (extension)
Offices Residential Research and science
4 10 15
Deutsche Bahn Kronsberg-Süd Mechanical engineering campus International Airport
5 11 16
hanova Wasserstadt Limmer Expo pavilion Hannover exhibition grounds
6 17
MARQ HITec Central station/intercity
7 18
Prinzenareal Leibniz School of Education
19
Masterplan Hannover Medical School
HANNOVER REGION LOCATION 21OFFICE
PROPERTY MARKET
H annover is and will remain one of the largest, most dynamic
locations in Germany’s property market after the seven major
A-cities. During the last five years some 185,000 m2 office space
has been built from new and a further 170,000 m2 fully refurbished.
By 2020 the outlook is for a further 270,000 m2 (of which 70,000 m2
refurbished) to be added.
Continental’s new corporate HQ will offer space for central corporate units currently spread across the city to come together in one location:
it will upgrade the Pferdeturm road intersection to being the eastern gateway into Lower Saxony’s State Capital Hannover.
22 PROPERTY MARKET REPORT 201723
The BAUM group is currently building the Rathaus Kontor directly opposite the town hall on Friedrichswall in the former
premises of the Volkshochschule. The outstanding feature of the project: the ground floor will feature the listed remnants,
Hannover’s old city wall, re-integrated into the new building after refurbishment and partial demolition.
24 PROPERTY MARKET REPORT 2017Hannover leads Germany’s B-cities Office property turnover remains at high level
Since 2010, turnover of office space in Hannover, Langen- The Hannover panel housing experts determined some
hagen, Laatzen and Garbsen has totalled 905,000 m 2. 120,000 m 2 re-let office space in the areas of Hannover,
On average, in the years since 2010 approx. 130,000 m 2
Garbsen, Laatzen and Langenhagen during 2016. The
turnover has been achieved per annum – this is almost total turnover therefore dropped year-on-year by around
double the average of B-cities. The location includes approx. 5,000 m2 (4 %) and is some 7.7 % below the annual aver-
4.95 million m office property space (of which some 4.49
2
age between the years 2010 to 2015 (130,000 m2). These
million m2 in the State Capital Hannover). Hannover accord- figures are, however, very much dominated by major scale
ingly boasts the largest office space area in Germany after owner-occupied projects originating in the years 2010
the country’s seven A-locations. through 2014. 2016 is the second year in sequence in which
only rental space turnover was registered.
In 2017 around 176,000 employees worked in offices in
Hannover city (up 11.8 % since 2010). This growth is also Above average rental space turnover
reflected in the office property market, coupled with a If one considers only the average rental space turnover,
significant increase in investor interest. then for two years now Hannover has been significantly
above the rental turnover reported over comparable
periods in this sector (108,000 m 2, 2010–2015). Market
players consider this development to be positive despite
the otherwise lack of dynamism – they consider it more
important in terms of everyday business to focus on new
rental contracts and associated project developments.
Owner-occupied properties are in effect not available to
HANNOVER HAS THE the open market; users build specifically for their own use.
LARGEST OFFICE SPACE
City periphery and arterial roads report
PORTFOLIO AFTER strong turnover
GERMANY’S S EVEN There was a focus during 2016 on the inner-city periphery
A-LOCATIONS. and the arterial roads, where market experts report turn
over of approx. 68,000 m 2 – some 28,000 m 2 up year-on-
year. In the inner city, turnover of about 20,000 m 2 was
registered, a significant downswing compared with the
previous year (minus 45,000 m 2).
New arrival on the Hanomag-Areal: DIBAG Industriebau AG of Munich
is currently constructing a new office building on the revitalised former
industrial site in Linden to be completed by mid-2018 for Telekom. The
call centre will provide work to 400 to 500 employees.
OFFICE PROPERTY MARKET 25Distinctive new building projects on
Klagesmarkt: the new seven-storey
office building of Hannover-based
housing company “hanova”. The elegant,
vertical lines of the hanova HQ facade
contrast with the DGB high-rise and
join the famous Anzeigerhochhaus
and the Christuskirche as the defining
buildings of this part of the city.
120,000 m2
Office space
turnover 2016
Public spending dominates rental deals 2016
One of the major rental deals of 2016 is the public order
building on the Schützenplatz (20,000 m 2). The building,
which hanova is scheduled to complete by 2019, is to be
used in a long-term rental contract by the State Capital
Hannover and will provide space for a number of different
offices which are currently spread around the city. These
include the car registration office, lost-and-found and
the industry and veterinary authority. Hannover Region
Grundstücksgesellschaften (HRG) and Delta Bau AG are
constructing a new building on a site known as City Gate
Nord. Completion is scheduled for 2018: Vodafone is leasing
the 7,000 m2 office space.
The demolition in July 2017 of the former weather station operated by Deutsche
Wetterdienst created space at Hannover Airport in Langenhagen, directly in the The state of Lower Saxony entered into a rental contract in
airport’s entrance area. The plan is to construct up to 25,000 m 2 GFA office and
commercial premises in various building phases. The land is fully developed, Q4/2017 for the approx. 6,000 m2 TriTower on Schiffgraben.
ready for building and available as of now. The unit was built in 1992, fully refurbished in 2016 and
acquired in early 2018 by Warburg-HIH Invest as part of an
asset deal.
ALONG THE CITY PERIPHERY
AND THE ARTERIAL ROADS,
RENTS OF OVER 13 €/M 2
ARE POSSIBLE IN
OUTSTANDING PROPERTIES.
26 PROPERTY MARKET REPORT 2017Office space portfolio 2010 to 2017 (in thousand m 2 MF-G)
5,000
4,000
3,000
Prime rents 9 were considerably above this both during
2,000 2016 and also in the first six months of 2017 in the city
centre, reaching 15 to 18 €/m2 in very good new builds and
1,000 high quality refurbishments. Along the city periphery and
arterial roads very good buildings are currently achieving
0
rents of over 13 €/m 2.
2017 ***
2015 *
2012 *
2010
2016
2014
2013
2011
For projects currently under construction or recently
finalised in the city, Hannover’s market players agree that
■ Office market Hannover** ■ of which Hannover city the prime rent could climb to 15.30 €/m 2. The fact that
* Year of a full office space survey by bulwiengesa AG and Basner Stadtplaner GmbH considerably higher prime rents have not been reached
** With Garbsen, Laatzen and Langenhagen *** Forecasts Source: bulwiengesa AG
in the past is due to the situation that in recent years there
has been a lack of offers for top quality space in central
Total office employees 2010 to 2017 in thousands office locations.
City of Region
Year Ratio** Ratio**
Hannover Hannover***
2010 157.5 40.8 63.1 26.8
2011 159.4 40.8 64.8 27.1
€ 185 million 15.30 €/m2
2012 163.4 42.0 65.8 26.5
Transaction Prime rent for
2013 165.6 41.3 67.2 27.4
volume office city centre office
2014 168.9 41.0 67.5 27.5
market 2016 space 2017
2015* 169.0 40.9 69.3 28.1
2016* 171.6 41.0 68.8 27.4
2017* 176.1 41.5 69.7 27.4
2018* 178.2 41.6 70.3 27.3
* Forecast based on reports provided by the Lower Saxony state statistical office
** Ratio of office employees to total workforce in %
*** Region without state capital
Office property investments
Source: bulwiengesa AG
Hannover has recently developed into one of the more
sought after German locations for investments after the
top seven. Factors including the low market risk, stable
Prime rents rising developments and good growth prospects mean Hannover
Prime rents in the city rose slightly during 2016 (plus 20 is an interesting option for investors from both Germany and
cents), and reached a value of 15 €/m2 at the end of 2016 abroad. 2016 saw registered office property transactions
(compared with € 14.80 in 2015). Noteworthy here is that almost exclusively in Hannover city (€ 185 million). The largest
prime rents of € 11.50 were achieved also at the city single project 2016 was undoubtedly the acquisition of the
periphery and arterial roads – the value was previously Office Center Plaza at Expo-Park Hannover. DIC Asset AG
considerably below the € 11 mark. acquired the property built in 2002 for a price of € 32 million
in September 2016 from a private investor.
9
The maximum rent achieved is the first maximum registered net rent excluding utility bills,
independent of local submarkets, qualities and size of the let area, as concluded during the
respective reported period. This not only takes into account letting contracts concluded, but
also inncludes letting contract extensions which are not part of letting turnover.
OFFICE PROPERTY MARKET 27Hannover office market completions 2010 to 2019 (in thousand m 2)
100
90
80
70
60
50
40
30
20
10
0
2018*
2019*
2017*
2010
2016
2014
2015
2012
2013
2011
■ New build completions Hannover ■ Refurbishments Hannover ■ New build completions Region
* Based on the spring forecast of bulwiengesa AG; Hannover Region survey; details provided by market players; data status Q3/2017
Lower Saxony’s largest insurance company, the VGH, has
invested some € 33 million in the Prinzenareal project
on Schiffgraben. Space was created for newbuilds by
demolishing the former Casper bank and two post-war
buildings. The former police station, a listed building, has
been integrated in the new facade of Schiffgraben. One
of the main tenants for the office space premises is the
auditing firm KPMG
Vacancies continue to fall Current projects completed
Despite the many completions in the years 2014 to 2016, the Hannover’s municipally-owned property organisation,
volume of vacancies has not increased, with new spaces hanova, completed its new HQ on the Klagesmarkt
joining the market being apparently fully absorbed. The (5,280 m2 offices) at the end of 2016. The Prinzenareal
vacancy rate10 closed at 4.5 %, 70 base points lower than (6,330 m2), in which the VGH insurance has invested some
2015. In absolute terms, rentable vacancies in Hannover € 33 million, was completed in mid 2017. The main tenant
city fell by some 32,000 m to 205,000. In a comparison
2
of the approx. 3,500 m2 office space is KPMG.
with A-locations (vacancies 2016 on average 6.1 %) and
G ermany’s largest regional locations (vacancies 2016 on The Marstall plaza is host to a project approaching comple-
average 5.1 %) this value may be considered as low. Bearing tion in autumn 2017. The MARQ building (2,700 m2 offices)
in mind that in 2017 comparably little office space (30,000 has signed rental contracts with the SAE institute (1,500 m2),
m2) was completed in either new builds or refurbished, the software and consulting firm TEBIS (280 m2) and the DKB
vacancy rate is anticipated to continue falling. bank (180 m2).
10
Estimate based on an updated full survey of office space inventory and vacancies by
Dynamic completion volume bulwiengesa AG, end 2015/early 2016.
Over the last five years around 185,000 m2 office space has The forecast and model calculations of bulwiengesa AG are based on the total inventory
surveys of 2009, 2012 and 2015.
been newly built plus a further 170,000 m2 fully refurbished.
By 2020 it is forecast that an additional 270,000 m 2 (of
which 70,000 m 2 refurbished) will be added.
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