INVESTMENT/OFFICE LETTING COMMERCIAL PROPERTY … · 2016. 2. 3. · Spokesman for German Property...

LOCAL EXPERTISE – ACROSS GERMANY

WWW.GERMANPROPERTYPARTNERS.DE

INVESTMENT/OFFICE LETTING

COMMERCIAL PROPERTY MARKETGERMANY/TOP 7 2015/Q1-4

Dear Readers,

2015 will be remembered as one of the most successful years on the markets for office lets and property invest-ments in Germany’s top 7 real estate locations since the record year of 2007.

This market survey provides a review of the year 2015 as it played out on Germany’s top 7 markets. In addition to drawing comparisons between the top 7 markets, we offer a detailed look at the investment and office letting markets in Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt/Main, Stuttgart and Munich.

GERMANY/TOP 7 ............................................................ 4HAMBURG ...................................................................... 8BERLIN ......................................................................... 10DÜSSELDORF ............................................................... 12COLOGNE ...................................................................... 14FRANKFURT ................................................................. 16STUTTGART .................................................................. 18 MUNICH ........................................................................ 20

Each of us is a leading commercial real estate company in our respective regions, and we have joined together to form a Germany-wide real estate network. Previously, the four of us were strong partners.

In Northern Germany, Grossmann & Berger offers its real estate services out of its locations in Hamburg and Berlin, while Ellwanger & Geiger covers Southern Germany from its bases in Stuttgart and Munich. ANTEON Immobilien is the firm to contact for property matters in Düs-seldorf and its environs, while GREIF & CONTZEN are your eyes and ears in the metropolitan region of Cologne.

The process of preparing and interpreting the data was made possible thanks to a partnership between four of the leading service providers specialized in commercial prop-erties based in north, central and south Germany - the nationwide network German Property Partners (GPP). Our knowledge of local markets is as broad as it is deep, giving us access to data on the entire market, the top 7 locations and the sub-markets within each one.

The present survey offers you a general view of the market. We would be happy to hold personal talks with you and answer your specific questions about property matters.

Kind regards

Björn HolzwarthSpokesman for German Property Partners

We have founded German Property Partners with the aim of providing our special services in all of Germany’s major real estate centres. That way, whatever your commercial real estate requirements, wherever you are in Germany, you can obtain your advice from a single provider, and that is us. Via our network and thanks to our respective market positions, we can offer you outstanding local knowledge and preferential market access throughout Germany. The many years of service our employees have put in, and the affiliation of the two founding partners Grossmann & Berger and Ellwanger & Geiger with reputable regional banks, makes German Property Partners a reliable partner for long-term collaboration in the fields of commercial real estate and finance.

LOKALE KOMPETENZ – DEUTSCHLANDWEIT


MARKTBERICHT INVESTMENT/BÜROVERMIETUNG 2015/Q1-2

LOCAL EXPERTISE – ACROSS GERMANYGERMAN PROPERTY PARTNERS

ABOUT USTHE PARTNERS

Grossmann & BergerA real estate consultant with experience stretching back for over 80 years, Grossmann & Berger is one of the leading service providers for the sale and letting of commercial and residential real estate in Northern Germany, and is an affiliate in the HASPA-Gruppe of companies.

ELLWANGER & GEIGERELLWANGER & GEIGER Real Estate offers a full range of services in connection with commercial property assets. With the resources of the parent company’s private banking business, this service provider has over 100 years of expe-rience.

ANTEON ANTEON is an own-er-managed real estate consultancy firm that spe-cializes in brokering lets and investments in res-idential and commercial properties. In addition, as one of the market leaders, ANTEON offers property marketing, project support and research services.

GREIF & CONTZEN This owner-managed company with over 40 years of expe-rience in the Cologne region provides consultancy, valu-ation, brokerage and com-mercial property management services. Services offered by this real estate specialist range across the entire value chain of the property business.

Partner



MARKET SURVEY INVESTMENT/OFFICE LETTING 2015/Q1-4

2 3

0 % 20 % 40 % 60 % 80 %

Munich

Stuttgart

Frankfurt

Cologne

Düsseldorf

Berlin

Hamburg 25.1 % Open-end/specialized funds

22.2 % Open-end/specialized funds

37.9 %

39.0 %

16.2 %

64.2 %

Open-end/specialized funds

Funds

Pension funds

Open-end/specialized funds

61.4 % Open-end/specialized funds

0 % 10 % 20 % 30 % 40 % 50 %

Munich

Stuttgart

Frankfurt

Cologne

Düsseldorf

Berlin

Hamburg 18.7 % Public administration

27.3 % IT/telecommunications

26.9 %

22.0 %

18.5 %

17.9 %

IT/telecommunications

Public administration

Services to business

IT/telecommunications

41.4 % Industrial companies

FACTS & FIGURES

Key figures top 7

Hamburg Berlin Düsseldorf Cologne Frankfurt1) Stuttgart Munich Top 7

Take- up of space [m²] 540,000 810,000 420,000 290,000 389,000 290,000 755,000 3,494,000

Year-on-year change +2.9 % +28.6 % +76.5 % +11.5 % +5.9 % +4.3 % +29.3 % +21.2%

Average rent [net €/m²/mth] 14.50 14.90 15.25 12.50 19.00 12.50 15.00 -

Year-on-year change 0.0 % +12.9 % +10.5 % +2.5 % -2.6 % 0.0 % +2.7 % -

Premium rent [net €/m²/mth] 25.00 24.00 26.00 21.25 38.50 22.80 32.50 -

Year-on-year change +2.0 % +6.7 % 0.0 % 0.0 % +1.3 % +6.0 % -5.5 % -

Vacant space [m²] 698,000 810,000 730,000 440,000 1,358,000 270,000 917,000 5,223,000

Year-on-year change -12.6 % -10.0 % -11.6 % -13.7 % -6.6 % -16.9 % -30.6 % -

Vacancy rate [%] 5.2 % 4.3 % 9.6 % 5.7 % 11.8 % 3.5 % 4.0 % 5.8 %

Year-on-year change[percentage points (pp)] -0.7 pp -0.5 pp -1.3 pp -0.9 pp -0.8 pp -0.8 pp -1.7 pp -1.0 pp

Transaction volume [million €] 4,000 7,800 2,727 1,900 5,690 1,705 5,450 29,272

Year-on-year change +9.6 % +95.0 % +42.6 % +46.2 % +13.5 % +70.5 % +9.7 % +34.0%

Premium yield Office [%] 4.00 3.90 4.50 4.40* 4.50 4.50 3.50

Share of asset class Office [%] 66 60 55 38 87 62 78 68

Investment: strongest buyer groups by location Office letting: strongest industries by location

KEY FIGURES 2015/Q1-4

GERMANY/TOP 7

(share of transaction volume) (share of take-up of space)

1) Data: Colliers International Deutschland

* Net initial return

“New record turnover figures for investments in Berlin, Düsseldorf and Cologne. And new record take-up of office space in Berlin and Stuttgart. Overall, the results for the top 7 locations narrowly missed equalling the record figures returned for office lets and investment activity in the year 2007.”

Björn Holzwarth, spokesman for German Property Partners

1) Data: Colliers International Deutschland

KEY FIGURES OFFICE LETTING/INVESTMENT:

Take-up of space (year-on-year change)

Premium rent (year-on-year change)

Average rent (year-on-year change)

Vacancy rate (year-on-year change)

Transaction volume (year-on-year ch.)

Premium return office (year-on-year ch.)

HAMBURG 540,000 m² (+2.9 %)

25.00 €/m² (+2.0 %)

14.50 €/m² (0.0 %)

5.2 % (-0.7 pp)

€4.0bn (+9.6 %)

4.00 % (-0.5 pp)

COLOGNE 290,000 m² (+11.5 %)

21.25 €/m² (0.0 %)

12.50 €/m² (+2.5 %)

5.7 % (-0.9 pp)

€1.90bn (+46.2 %)

4.40 % (-0.3 pp)

STUTTGART 290,000 m² (+4.3 %)

22.80 €/m² (+6.0 %)

12.50 €/m² (0.0 %)

3.5 % (-0.8 pp)

€ 1.71bn (+70.5 %)

4.50 % (-0.5 pp)

DÜSSELDORF 420,000 m² (+76.5 %)

26.00 €/m² (0.0 %)

15.25 €/m² (+10.5 %)

9.6 % (-1.3 pp)

€ 2.73bn (+42.6 %)

4.50 % (-0,25 pp)

BERLIN 810,000 m² (+28.6 %)

24.00 €/m² (+6.7 %)

14.90 €/m² (+12.9 %)

4.3 % (-0.5 pp)

€ 7.8bn (+95.0 %)

3.90 % (-0.85 pp)

FRANKFURT1)

389,000 m² (+5.9 %)

38.50 €/m² (+1.3 %)

19.00 €/m² (-2.6 %)

11.8 % (-0.8 pp)

€ 5.69bn (+13.6 %)

4.50% (-0.25 pp)

MUNICH 755,000 m² (+29.3 %)

32.50 €/m² (-5.5 %)

15.00 €/m² (+2.7 %)

4.0 % (-1.7 pp)

€ 5.45bn (+9.7 %)

3.50 % (-0.5 pp)




4 5

2015 saw a greater volume of transactions in Germany’s top 7 locations than any year since 2007 (€31.85bn). At the end of 2015 the volume of investment transactions in commercial real estate (not including buy to rent res-idential) totalled €29.27bn. Berlin, Düsseldorf and Co-logne posted new record turnover, Stuttgart came within a whisker of the city’s best-ever result.

TRANSACTION VOLUMEThree of the top 7 locations reported record turnover in 2015. In 2015 Berlin became the capital of property in-vestment in Germany. Commercial real estate valued at €7.8 billion - more than a quarter of the overall volume - was traded in the city. The result was thus well beyond the €6.45bn attained in the previous record year of 2007. Munich proved to be the second biggest-grossing city for commercial property investments in 2015, registering transactions totalling €5.45bn. Year on year, Munich posted growth of about 10%. Totalling €5.69bn, Frank-furt’s result was also higher than the prior year’s, rising by some 14 %. With five agreements for sums in the hundreds of millions, Hamburg closed with a transaction volume of €4.0bn, thus bettering the result in 2014 by 10 %. With transactions totalling €2.72bn, Düsseldorf surpassed its record result of 2007 (€2.3bn). Cologne, too, succeeded in beating its old 2007 record (€1.8bn) with a total of €1.9bn. Stuttgart posted a transaction volume of €1.71bn, thus coming very close to its best ever result of €1.8bn seen in 2007. Stuttgart reported a growth rate of 70.5 %, the sec-ond-highest of the top 7 locations after Berlin.

INVESTORS AND VENDORSThe interest of international investors in commercial real estate in Germany’s top 7 locations was appreciably higher in 2015, up by some 50 per cent compared with the prior year. International players invested some €14.9bn in com-mercial properties. Mirroring the position at the end of 2014, open-end and specialist fund managers were the most active buyers and vendors in the top 7 real estate markets during the year 2015.

RETURNSCompared with 2014 the premium return on office prop-erties had declined further in each of the top 7 locations by the end of 2015. Yields varied from a mere 3.50 % (Munich) to 3.90 % (Berlin), 4.0 % (Hamburg) and 4.40 % (Cologne) up to a maximum of 4.50 % (Düsseldorf, Frankfurt and Stuttgart). Yields fell most steeply in Berlin, where returns dropped 85 basis points.

OUTLOOKExcess liquidity, more demand than supply, a scarcity of properties and low yields will probably dictate what happens on the investment market for commercial prop-erties in Germany’s top 7 locations over the coming months. The Fed’s decision to raise interest rates could perhaps halt the downward spiral of premium returns on office properties, and uncertainty about how China’s economy will develop might create even more demand from interna-tional and institutional investors. In view of these factors, a transaction volume of around €24.0bn is seen as a realistic forecast for 2016.

INVESTMENT OFFICE LETTING

AVAILABLE SPACE AND VACANCIESThanks to a brisk 4th quarter, the volume of empty space in the top 7 office property locations declined further and the year closed with some 5.2m m² of vacant space, 14.9 % below the level at the end of 2014. Based on a total stock of office space of 89.5m m², the average vacancy rate is thus 5.8 %. In Munich vacancies fell more steeply than elsewhere. Around 917,000 m² of space stood empty, a decline of some 31 %. In 2015 around 1.0 million m² of new-build office space in 85 projects was completed. The highest levels of construction activity were registered in Berlin (304,000 m²) and Munich (240,000 m²). However, 110,000 m² of Berlin’s total is attributable to the new BND (German intelligence service) building. The volume of com-pletions in the top 7 locations is set to be slightly higher in 2016, at some 1.13m m². The pre-letting rate for new-build space is between 50 and 60 % in most of the cities. The volume of new buildings on the open market thus remains modest. Occupants are found for large, contiguous new-build office suites within a very short time.

OUTLOOKEconomic research institutes offer positive forecasts on the growth of the German economy. The only scenario that might affect the German economy is if global eco-nomic growth were to falter unexpectedly, especially as a result of a worsening situation in China. In 2016 the good employment figures, the highly confident mood of trade and industry bosses and their willingness to hire new em-ployees will have a positive impact on the office markets in the top 7 locations. Forecast take-up of office space for 2016 is about 3.0m m².

Take-up of office space in Germany’s top 7 locations fell only very slightly short of the record results of 2007 (3.52m m²). The total take-up of office space in 2015 was 3.49m m², which translates into a year on year increase of 21.2 %. In the 4th quarter alone about 1.2m m² of office space was newly let. As in the prior year, owner-occu-piers accounted for around 9 % of the total. Whereas Berlin and Stuttgart posted new record results, Düs-seldorf came within a whisker of its 2007 record. This strong growth was produced by a high number of IT com-panies taking large amounts of space

TAKE-UP OF SPACETwo of the top 7 locations returned record take-up figures, and four posted double-digit growth rates. The biggest increase was noted in Düsseldorf, where the final figure of 420,000 m² represented year on year growth of some 77 %. Munich saw take-up rise by around 30 %. Some 755,00 m² of office space was let in the city during 2015. In Berlin take-up of space rose by 29 % to reach a record level of 810,000 m². Cologne posted an increase of roughly 12 % compared with 2014. Take-up of space here totalled some 290,000 m². Growth was also noted in Stuttgart where take-up of space rose by a good 4 % year on year to a total of 290,000 m². Total take-up of 389,000 m² in Frankfurt translated into a 6 % increase compared with 2014. Take-up of office space in Hamburg totalled 540,000 m² or 2.9 % more than the figure at the end of 2014.

RENTSThe highest average rents for office space were paid in Frankfurt, at €19.00/m²/month, followed by Düsseldorf (€15.25/m²/month) and Munich (€15.00/m²/month). Nearly identical average rents were paid in Hamburg (€14.50/m²/month) and Berlin (€14.90/m²/month). In Cologne and Stuttgart the average rents were €12.50/m²/month. The greatest price increase was the 13 % rise registered in Berlin, attributable above all to leases for large amounts of space in new-build projects commanding high rates.

As far as premium rents are concerned, Frankfurt heads the field with €38.50/m²/month, followed by Munich with €32.50/m²/month. Premium rents stood at €26.00/m²/month in Düsseldorf, €25.00/m²/month in Hamburg and €24.00/m²/month in Berlin. Top rates in Stuttgart and Cologne peaked at €22.80 and €21.25/m²/month respec-tively. The biggest rise in premium rents - 6 % - was seen in Stuttgart.

GERMANY/TOP 7

Logistics (3 %)Other (3 %)

9 %

14 % 68 %Retail Office

Hotel

Undeveloped land (3 %)

0

5

10

15

20

25

30

2010 2011 2012 2013 2014 2015

11.43 12.39 15.37 17.26 21.84 29.27

5-year average (2011-2015):ca. €19.26bn

Transaction volume Germany/top 7 Transaction volume by asset classes Germany/top 7

(in bn €)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

2010 2011 2012 2013 2014 2015

2.93 3.29 3.06 2.90 2.88 3.49

5-year average (2011-2015):ca. 3.13 million m2

(in 000s m2, incl. owner-occupiers)

Take-up of space Germany/top 7

(in %)




6 7

INVESTMENTHAMBURG

By the end of the year the volume of investment trans-actions on the Hamburg property market had reached a new high of €4.0 billion. This figure was second only to the total seen in 2007. Compared with the prior year, the result increased by 10 %.

INVESTMENT PROPERTIESAs in the prior year, office properties were the most traded assets, accounting for 66 % of the total. Portfolio trades valued at some €1.2bn made up about 30 % of the total volume, whereas in 2014 they accounted for only about €430m. Four sizeable office property packages were sold in 2015. Considerably more was invested in hotel real estate, some €540m compared with about €250m in 2014. One of the major hotel transactions was the sale of the “Radisson Blue” at Dammtor (Marseiller Strasse 2, Alster West) which Azure Hotels bought back from Invesco for a sum in the three-digit millions. Year on year, Hamburg saw premium returns decline appreciably to the lowest levels registered to date. Yields on office and retail assets slipped from 4.5 to 4.0 %.

INVESTORS AND VENDORSIn 2015 international players took a livelier interest in the market for investments in commercial real estate in Hamburg than national investors, and accounted for about 57 % of the total volume of transactions. Most of the investors came from the UK, France and Switzerland. The biggest single group of investors was comprised of open-end/specialist funds with a share of some 25 % (about €1.0bn) of the transaction volume. Asset man-agers/portfolio holders took the second-highest share with €560m, or 14 % of the total. And open-end/specialist funds were also the most active group of vendors, selling

commercial real estate in Hamburg for around €1.3bn, and accounting for the biggest share (32 %) of the transaction volume. Developers and builders followed in second place with a share of some 14 % (€572m ).

OUTLOOKThe investment environment is set to remain favourable in 2016. However, it is rather unlikely that the volume of trans-actions will continue on a record-breaking track because there is a shortage of suitable investment properties for sale. The volume of transactions is expected to close at a figure somewhere between the totals for 2014 and 2015.

Transaction volume Hamburg

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2010 2011 2012 2013 2014 2015

1.9 2.2 1.9 2.8 3.7 4.0


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

20112010

23.0023.50 24.00 24.00

24.50 25.00

13.00

14.5014.00 14.00

14.50 14.50

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015

506 540 430 440 525 540

5-year average (2011-2015):ca. 495,000 m2

An agreement for a large amount of space pushed take-up in the 4th quarter to 185,000 m², the highest quarterly result of last year. A total of 540,000 m² of office space was taken up in the Hamburg market, a year on year rise of about 3 %. With owner-occupiers accounting for around 15 % of the total (80,000 m²) the 460,000 m² of new lettings was 34,000 m² higher than in 2014.

TAKE-UP OF SPACEOverall in 2015 appreciably fewer agreements for 5,000 m² or more were noted - eleven as opposed to 16 in 2014. However, five of these eleven contracts for space in excess of 5,000 m² fell into the 15,000 m² or more cat-egory, a welcome development on the Hamburg market. The largest contract recorded in the year was an insurance company’s decision to take 39,000 m² in a project devel-opment at Gassstrasse in Bahrenfeld district. First and second places were occupied by City and City South which accounted for about 29 % and 14 % of total take-up re-spectively.

RENTSIn the 4th quarter several expensive agreements caused the premium rent to rise year on year by 50 cents to €25.00/m²/month. Weighted by amount of space taken, the av-erage rent was stable at €14.50/m²/month.

AVAILABLE SPACE AND VACANCIESCompared with 2014 the amount of space standing empty fell from around 798,000 m² to the current figure of about 698,000 m². By the end of the year the vacancy rate had fallen to a mere 5.2 %. In 2015 around 120,000 m² of office space was completed. Around 86 % of this space has been

let already. In all likelihood the volume of completions in 2016 and 2017 will be some 334,000 m². Less than half of this volume (around 48 %) will go on the market as specu-lative space.

OUTLOOKThe underlying mood on the market is positive. The service industry is optimistic and planning to hire more staff. Thus all the signs point to a good year on the letting market. However, we do not expect the year’s take-up of space to rise above 500,000 m² because fewer agreements for large units are anticipated. One of the reasons for this is that fewer alternatives will be available to customers looking for office space.

TOP 3 SUB-MARKETS (take-up of space / average rent)

CITY / 155,800 m² / €18.30/m²/month CITY SOUTH / 74,200 m² / €11.20/m²/month HAFENCITY / 30,800 m² / €18.30/m²/month

TOP 3 CONTRACTS

1. INSURANCE COMPANY Gasstr. / ca. 39,000 m² 2. COUNCIL OFFICE Caffamacherreihe 3 / ca. 32,000 m² 3. BANK Lübeckertordamm 5 / ca. 19,700 m²

OFFICE LETTINGHAMBURG

Take-up of space Hamburg Rents Hamburg

(in 000s m2, incl. owner-occupiers) (net in €/m2/mth) premium rent

average rent




8 9

INVESTMENTBERLIN

The investment market for commercial properties in Berlin closed the year 2015 with a new record. Essentially, this was due to one portfolio sale and numerous trans-actions valued at over €100m each. The total volume of transactions was €7.8bn, whereby the 4th quarter alone saw commercial real estate change hands for a total of €3.4bn. The volume of transactions was some €1.3bn higher than the old record of 2007.

INVESTMENT PROPERTIESThe largest transaction was Savills Fund Management’s sale of the ensemble of buildings at Potsdamer Platz for some €1.3bn to Brookfield, an asset manager, acting in a joint venture with an Asian pension fund. Overall, not counting this portfolio trade, the city registered 15 trans-actions each costing upwards of €100m. Of all single transactions announced, the largest was the sale of “The Q” (“Quartier 205”), a shop and office building for which Tishman Speyer paid Inditex/Banco Santander some €335m. In 2015 investors continued to focus on office buildings, which accounted for 60 % of the total volume of transactions. Last year was marked by considerable yield compression, driving the premium returns on office and retail properties down to 3.9 % and 3.7 % respectively by the end of the year.

INVESTORS AND VENDORSAccounting for 22 % of the total, open-end/specialist funds were more active on the buying side than asset managers (about 17.9 %) and REITs (about 12.7 %). When it came to selling, asset managers led with a 27 % share of the total, followed by project developers with 18 %. In 2015 an above-average proportion of both vendors and buyers on the market for commercial investment properties in

Berlin came from outside Germany. Although international investors were the purchasers of some 58 % of the volume traded, they sold slightly more, namely around 60 % of the total.

OUTLOOKIn 2015 Berlin repeatedly demonstrated that it is an at-tractive target for international investors. In 2016, however, it is to be assumed that fewer large properties will be on sale than in 2015 so that - if the environment remains fa-vourable - the year 2016 is expected to close with a trans-action volume of €4.5bn.

Transaction volume Berlin

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2010 2011 2012 2013 2014 2015

3.1 2.2 3.9 3.4 4.0 7.8


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

20112010

20.50

21.50 22.00 22.00 22.50

24.00

12.30 12.5013.20

12.3013.20

14.90

0

200

400

600

800

1000

2010 2011 2012 2013 2014 2015

541 568 630 521 630 810

5-year average (2011-2015):ca. 631,800 m2

In 2015 take-up of office space in Berlin reached a new all-time high of some 810,000 m², smashing the prior year’s record turnover of 630,000 m². Numerous agree-ments for large amounts of space led to this very good result.

TAKE-UP OF SPACE19 contracts were signed for over 5,000 m² of space, a result similar to the prior year’s (18 contracts); nine lets and/or owner-occupier transactions passed the 10,000 m² mark. The largest contract of the year was the 4th-quarter pre-let agreement signed by Allianz for some 50,000 m² of office space by the Adlershof train station. Other major leases noted in 2015 were concluded by Zalando (42,500 m²) and Rocket Internet (22,000 m²). A list of take-up by district starts with 13.2 % in Friedrichshain, followed by 12.7 % in Mitte, 12 % in Kreuzberg and 11.1 % in Tiergarten. Firms in the information and telecommunica-tions industry were the most active players on the market, with 27 % of take-up.

RENTSDue to the growing shortage of available real estate in Berlin - driven by high levels of turnover and, at the same time, little speculative new-build activity - the premium and average rents both rose appreciably. Year on year the premium rent increased by €1.50/m² to €24.00/m²/month. Efforts to avoid high prices by moving to the periphery, where rents are presumed to be lower, led to an increase in rates here, so that the average rent for the entire area within city limits rose by about 13 % to €14.90/m²/month.

AVAILABLE SPACE AND VACANCIESFrom its 2014 level the volume of empty space fell by 10 % to about 810,000 m². With the total stock of office space standing at 19.0m m², the vacancy rate was only 4.3 % or 0.5 percentage points lower than a year ago. The va-cancy rate is likely to dip below the 4.0 % mark in 2016. In 2015 some 304,000 m² of office space was completed, of which 110,000 m² is attributable to the new building for the German intelligence service BND. The construction volume in 2016 will comprise 180,000 m² of office space in 16 pro-jects.

OUTLOOKThe general situation continues to look positive for Berlin in 2016 in view of the good economic outlook and the booming TMT sector in Berlin. Take-up of space in 2016 could therefore be slightly higher than the ten-year average of 590,000 m².


FRIEDRICHSHAIN / 41,000 m² / €16.50/m²/month MITTE / 103,000 m² / €15.90/m²/month KREUZBERG / 97,000 m² / €14.60/m²/month

TOP 3 CONTRACTS

1. ALLIANZ Rudower Chaussee / ca. 50,000 m² 2. ZALANDO Mühlenstr. / ca. 42,700 m² 3. ROCKET INTERNET “GSW highrise”, Kochstr. 22 / ca. 22,000 m²

OFFICE LETTINGBERLIN

Take-up of space Berlin Rents Berlin


average rent




10 11

INVESTMENTDÜSSELDORF

In 2015 the volume of investment transactions on the Düsseldorf market rose by a massive 42.6 % year on year for a total result of €2.73bn. This figure topped the pre-vious records set in 2006 (€2.09bn) and 2007 (€2.3bn).

INVESTMENT PROPERTIESOffice properties were the preferred assets on the Düsseldorf investment market, where they made up 54.9 % of the total volume. The largest known trans-action and biggest agreement of the year was the sale of the Kaufhof retail portfolio (Carsch-Haus, Kaufhof König-sallee, Kaufhof am Wehrhahn including the sports arena) for some €225m to a joint venture formed by the Hudson’s Bay Company and Simon Property Group. Portfolio sales totalled around €939.6m, which translates into a share of 34.5 %. The premium return for offices fell by 0.25 per-centage points to 4.5 %.

INVESTORS AND VENDORSEven if the market for commercial properties was domi-nated by domestic investors, players from other countries accounted for a very sustantial share of trading - about €1.3bn or 48.4 %. Open-end retail and specialist funds were the biggest single group of investors, accounting for 37.9 % (about €1.03bn). On the selling side, corporates/owner-occupiers/non-properties predominated with a share of 22.3 % (about €608m).

OUTLOOKIt might well be that the top result of 2015 on the Düs-seldorf investment market could be more or less repeated in 2016. Since a number of new-builds scheduled for completion in 2016 are due to come onto the market, the shortage of trophy and core investment products should ease slightly, and the transaction volume is thus expected to be as before at €2.5bn. Premium yields on office prop-erties are still being squeezed, although the situation will ease a little. A sideways drift is to be expected, in no small part thanks to the Federal Reserve’s decision to raise the base interest rate.

Transaction volume Düsseldorf

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2010 2011 2012 2013 2014 2015

1.4 1.1 1.0 1.8 1.9 2.7


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

30.00

20112010

23.50 23.00

26.00

27.50

26.00 26.00

14.4013.40

14.10 14.9013.80

15.25

0

100

200

300

400

500

2010 2011 2012 2013 2014 2015

334 304 308 347 238 420

5-year average (2011-2015):ca. 323,400 m2

In 2015 take-up of office space in Düsseldorf was some 420,000 m², which represented an enormous year on year surge of 76.5 % (2014: 238,000 m²). Only in the record year of 2007 was a better result posted (436,000 m²). Various large-scale agreements were instrumental in producing this result.

TAKE-UP OF SPACEIn 2015 leases for 5,000 m² or more added up to 160,000 m² of the total space let. Six of the biggest eight leases within city limits were signed for premises in new project devel-opments. Contributing more than 50,000 m² each, the other size categories also played their part in realizing the total result. The largest agreement was the lease signed by Uniper to take 28,000 m² in the MedienHafen, which was also the largest amount of space ever taken by a single tenant in Düsseldorf. The most popular sub-market was Linksrheinisch/Seestern where total lets came to 80,000 m², followed by MedienHafen (about 75,900 m²) and City (about 68,600 m²). Accounting for a share of 26.9 % of take-up, the newly reviving information and telecommu-nications industry was the biggest group of new tenants.

RENTSThe premium rent remained stable at €26.00/m²/month. On average, companies in Düsseldorf paid €15.25/m²/month in rent, or €1.45 more than a year previously. For some 130,000 m² of space covered by the six biggest lets of the year alone, the average rent charged was about €17.00/m²/month, which effectively raised the overall level on the market.

AVAILABLE SPACE AND VACANCIESFrom its 2014 level of 826,000 m², the amount of empty space has fallen to 730,000 m². Based on a total stock of offices of 7.57m m², this amount represents a vacancy rate of 9.6 %, a year on year drop of 1.3 percentage points. In 2015 completions totalled 65,000 m², falling below the figure for the prior year of 89,000 m². 2016 could see a rise in available properties. On completion, ten projects are set to add a further 79,000 m².

OUTLOOKIn view of the excellent rally at the end of the year, the outlook for Düsseldorf’s office market is positive. But it will be a struggle in 2016 to match the performance of the ex-ceptional year 2015 because many tenants requiring large office suites had already made their decisions by the year’s end.


WEST RHINE/SEESTERN / 80,200 m² / €11.30/m²/month MEDIA PORT / 75,900 m² / €19.83/m²/month CITY / 68,600 m² / €12.90/m²/month TOP 3 CONTRACTS

1. UNIPER „FLOAT“, Franziusstr. / ca. 28,000 m² 2. TELEKOM Am Seestern 3 / ca. 28,000 m² 3. TRIVAGO Speditionstr./Kesselstr. / ca. 25,900 m²

OFFICE LETTINGDÜSSELDORF

Take-up of space Düsseldorf Rents Düsseldorf


average rent




12 13

INVESTMENTCOLOGNE

Commercial real estate transactions in the municipality of Cologne reached a value of some €1.9bn in 2015, a year on year increase of 46 %. This result surpassed the pre-vious record of €1.8bn posted in 2007. Over the course of the year premium returns have seen a significant decline in all segments.

INVESTMENT PROPERTIESAccounting for a share of 38 % of the investment market for commercial properties in Cologne, office buildings were the most-traded asset. Mixed-use properties fol-lowed with a share of 32 %, but hotel and retail properties also became more popular, each with an 11 % share of the total. By far the biggest transaction, with a €440m price tag, was the sale of the multifunction LANXESS Arena in-cluding the Stadthaus (seat of Cologne city administration) and ancillary buildings. An office complex on Kaiser-Wil-helm-Ring, the Kaufhof department store at Hohe Strasse, the mixed-use “Barthonia Forum” in the Ehrenfeld district and one other apartment and commercial building each changed hands for sums in the treble-digit millions.

Year on year the premium return on office properties sof-tened by 0.3 percentage points to 4.4 %. The premium yields on retail properties also slipped by 0.2 percentage points to 3.8 %. The best yields on logistics real estate were noted at 5.6 %, a year on year reduction of 0.9 per-centage points.

INVESTORS AND VENDORSThe most active players on the Cologne market in 2015 were property funds, accounting for about 40% of the sales volume and 39% of purchases. Capital investment from overseas comprised 53% of the volume of transactions.

Asian and Canadian investors were especially keen buyers in 2015.

OUTLOOKIn view of the prevailing conditions on the capital market and the dearth of safe investment opportunities, real estate remains very much in demand overall, even if yields have already fallen. The lack of available properties in the core category could prove a limiting factor. The best op-portunities to purchase real estate arise during the early stages of project developments and whenever holders seek to restructure their portfolios.

Transaction volume Cologne

0.0

0.5

1.0

1.5

2.0

2010 2011 2012 2013 2014 2015

0.8 1.0 0.8 0.8 1.3 1.9


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

20112010

21,00 21,00 21,00 21,25 21,25 21,25

10,80 11,20 11,40 11,90 11,9012,50

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015

230 330 270 280 260 290

5-year average (2011-2015):ca. 286,000 m2

Around 290,000 m² of office space was taken up in Co-logne in 2015 - some 12 % more than in 2014. This figure is slightly higher than the 5-year average of 286,000 m².

TAKE-UP OF SPACEThe largest lease of 2015 was signed by HRS (Hotel Res-ervation Service) to rent about 11,000 m² in the “Coeur Cologne” project (Breslauer Platz). As a result of several agreements for large amounts of space signed by the Federal Labour Agency, the Bundeswehr (German army) and Cologne Municipality, the “public administration” sector accounted for some 22 % of the total take-up of space. On Cologne’s right-hand bank of the Rhine, the “Malteser” charity decided to take some 10,000 m² in the “EQUILO” new-build project. This provided an added boost to the up and coming Kalk sub-market.

RENTSDespite the growing shortage of available properties, rents barely rose in 2015. Year on year the weighted average rent rose by 2.5 % to €12.50/m²/month. The premium rent stayed as it was in the prior year at €21.25/m²/month. Al-though isolated contracts were agreed for rates higher than €24.00/m²/month, their share of total take-up was not yet big enough to make a difference in the figures.

AVAILABLE SPACE AND VACANCIESIn 2015 Cologne registered the lowest volume of comple-tions since 2001, with 49,000 m² of new office space in 10 projects. Moreover, at the end of 2015 only 440,000 m² of office space, or 5.7 % of the total stock, stood empty, which translates into some 14 % fewer available offices. Potential tenants, especially those seeking large amounts

of space who have specific requirements in terms of lo-cation and fit-out, are finding their choice increasingly limited and decisions about new premises can be no-ticeably delayed.

OUTLOOKIn its economic report Cologne’s Chamber of Trade and In-dustry (IHK) notes that local firms are less optimistic about the future, despite their present good business situation. Nevertheless, no changes have been made to plans for capital expenditure and recruitment. Several tenants are known to be seeking large office suites in Cologne. Overall take-up of space in 2016 is forecast to be as in the year just ended. If the insurance company Zurich Versicherung were to sign its anticipated lease in MesseCity Cologne, the result for the year would probably be higher.


DOWNTOWN NORTH / 58,000 m² / €15,00/m²/month EHRENFELD / 25,000 m² / €10.50/m²/month RINGS OF COLOGNE / 22,000 m² / €15.00/m²/month

TOP 3 CONTRACTS

1. HRS - HOTEL RESERVATION SERVICE “Coeur Cologne”, Breslauer Platz / ca. 11,000 m² 2. HR DEPARTMENT OF THE BUNDESWEHR Militärringstr. 1000 / ca. 11,000 m² 3. MALTESER HILFSDIENST “Equilo”, Erna-Scheffler-Str. 2 / ca. 10,000 m²

OFFICE LETTINGCOLOGNE

Take-up of space Cologne Rents Cologne


average rent




14 15

INVESTMENTFRANKFURT

Year on year the volume of investment transactions in-volving commercial real estate in Frankfurt rose by 13.5% to some €5.7bn. However, this fell short of the record set in 2007 (€8.3bn).

INVESTMENT PROPERTIESThe excellent result was mainly due to three huge transac-tions that together totalled more than €1.25bn. The largest of these was the sale of the “Trianon” (Mainzer Landstr. 16), for which NorthStar Realty Finance paid Madison In-ternational Realty €540m in the 2nd quarter. The sec-ond-biggest transaction - likewise in the 2nd quarter - was conducted by RFR Holding which sold its majority stake in the “Eurotower” (Kaiser Strasse 29) to a German pension fund for about €450m. In the 1st quarter Tishman Speyer sold the “MainZero” (Mainzer Landstr. 13-17) to the South Korean National Pension Service (NPS) for some €250m.

In 2015 demand for investment properties was concen-trated on office buildings, which accounted for about 87% of the total. Compared with the prior year the core and core-plus segments lost a noticeable share of the market; instead more money was poured into developments/re-furbishments, value-add and opportunistic properties. Location remained an important factor, but there was a willingness to accept short-term contracts or the need for asset management services. Year on year the premium return on office properties sof-tened by 0.25 percentage points to 4.5%. The premium yields on retail properties slipped by 0.15 percentage points to 4.05%. Top yields on logistics properties reached 6.0%.

INVESTORS AND VENDORSInternational investors were very active in Frankfurt, fig-uring as buyers in 54% of total transactions. The three largest property transactions were also traded almost ex-clusively by international investors. Only the “Eurotower” was bought by a domestic investor, a German pension fund.

OUTLOOKPressure to find investment opportunities and demand for commercial properties will continue to characterize the market in 2016. Following the good result posted in 2015, the range of core properties now available in Frankfurt is appreciably smaller, and the volume of transactions will thus probably be about €5.0bn in 2016.

Transaction volume Frankfurt

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2010 2011 2012 2013 2014 2015

1.8 2.8 2.9 3.4 5.0 5.7


(in bn €)

2012 2013 2014 201515.00

20.00

25.00

30.00

35.00

40.00

20112010

38.00

35.00 35.00

38.00 38.00 38.50

20.00

17.50 17.5018.50 19.50 19.00

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015

472 444 515 448 368 389

5-year average (2011-2015):ca. 432,600 m2

Take-up of office space on the Frankfurt market (in-cluding Eschborn and Offenbach Kaiserlei) totalled some 390,000 m². This translates into 5.9 % higher take-up than in the same period the year before.

TAKE-UP OF SPACEAgain in 2015, a lack of large-scale agreements had an impact on Frankfurt’s result for the year. This was bal-anced by a large number of leases for less than 1,000 m² of space, which added up to some 180,000 m². The largest agreement concluded in 2015 and the only one for over 10,000 m², was the purchase of a 32,000 m² office block in the main station/Westhafen sub-market at Windmühlen Strasse 14; the new owner of the building, formerly the head office of Dresdner Bank, is financial consultancy Deutsche Vermögensberatung (DVAG) which will use the offices itself. The second-biggest agreement was a lease for 7,000 m² of space space signed by FIAT (Hanauer Land-strasse 150, followed by a 6,800 m² lease in Eschborn taken by the German Society for International Cooperation (GIZ) at Ludwig-Erhard Strasse 30-34. Consultancies and the banking/finance sectors led the take-up statistics with a share of some 18 % of the total each.

RENTSThe rental agreements signed for space in prestigious buildings such as the “Taunusturm” and the “Opernturm” resulted in premium rents in Frankfurt rising by 50 cents year on year to €38.50/m²/month. Over the course of the year 2015 the average rent fell from €20.00 to €19.00/m²/month due to large agreements in more peripheral sub-markets. Only two of the nine leases for more than 5,000 m² related to space in the CBD.

AVAILABLE SPACE AND VACANCIESDuring the past 12 months the market has shed nearly 100,000 m² of empty space. The vacancy rate fell by 0.8 percentage points to 11.8 %. Completions in 2015 totalled some 110,000 m² of office space in 16 projects. In 2016 the volume will rise to about 164,000 m² in some 20 projects. Developers are once again starting to build speculative projects; these include the “Metzler Areal”, the “Marien-insel” and “Westend Sky”.

OUTLOOKWith the volume of completions in Frankfurt due to rise in 2016, the stage is set for future turnover. Fuelled by the good economic environment, take-up of office space will total some 400,000 m² in 2016.


FINANCIAL DISTRICT / 65,700 m² / €31.00/m²/month MAIN STATION / WESTHAFEN / 56,600 m² / €15.40/m²/m. CITY / 56,500 m² / €21.10/m²/month

TOP 3 CONTRACTS

1. DEUTSCHE VERMÖGENSBERATUNG (DVAG) Windmühlstr. 14 / ca. 32,000 m² 2. FIAT Hanauer Landstr. 150 / ca. 7,000 m² 3. GIZ Ludwig-Erhard-Str. 30-34, Eschborn / ca. 6,800 m²

OFFICE LETTINGFRANKFURT

Take-up of space Frankfurt Rents Frankfurt


average rent

Data: Colliers International Deutschland Data: Colliers International Deutschland




16 17

INVESTMENTSTUTTGART

With the trade in commercial properties reaching a total of around €1.7bn, Stuttgart’s investment market came within a whisker of matching the record result of 2007 (€1.8bn). Year-on-year, the transaction volume rose by 70.5 %. Four transactions with price tags in the tre-ble-digit millions were instrumental in producing this strong result.

INVESTMENT PROPERTIESAbout 75 transactions were posted in 2015, of which only 45 % related to properties sold for prices in the single-digit millions. Office buildings were the main focus of investor interest, with a 62 % share of the total volume of trans-actions, followed by retail properties with some 22 % and hotels with about 8 % of the trading volume. One reason for the high proportion of office properties is the “Zeppe-lin-Carré” transaction, which alone accounted for some €160m. A combination of short supply and strong demand has depressed the premium return on office properties in Stuttgart from 5.0 % to 4.5 %.

INVESTORS AND VENDORSIn 2015 open-end/specialist funds were the most active in-vestors in commercial real estate in Stuttgart, accounting for some 61 % of the total. Private investors/family offices took a 14 % share of the transaction volume. They were fol-lowed by project developers/builders with a share of about 6 %. All other groups of buyers played only a minor role.

On the selling side of the equation, the 2015 market was dominated by project developers/builders and open-end/specialist funds, whose shares of the total volume of trans-actions were about 30 % and 23 % respectively. Corporates and banks were also very active as vendors, accounting

for about 15 % of sales. Unlike last year, the proportion of overseas buyers on the market has fallen back. These in-vestors accounted for only 17 % in 2015. When it came to selling properties, overseas players featured in 38 % of the volume traded, a proportion similar to that in 2014.

OUTLOOKFor 2016 continuing dynamic trading activity is forecast on the investment market for commercial real estate in Stuttgart, with a final total well above €1.0bn.

Transaction volume Stuttgart

0.0

0.5

1.0

1.5

2.0

2010 2011 2012 2013 2014 2015

0.5 0.4 1.2 0.9 1.0 1.7


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

20112010

17.50

18.8020.00 20.00

21.5022.80

11.0011.60

12.4012.00

12.50 12.50

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015

194 285 192 258 278 290

5-year average (2011-2015):ca. 260,500 m2

2015 ended with take-up of office space in Stuttgart standing at some 290,000 m², narrowly beating the pre-vious record of 2011.

TAKE-UP OF SPACEThe excellent result was partly owing to ten agreements for more than 5,000 m² of space. Owner-occupiers ac-counted for some 64,000 m² of take-up. The largest single transaction was the construction start of the roughly 30,000 m² “Bosch IT Campus”. The largest rental agreement was signed by Porsche AG for about 29,800 m² in the Weilimdorf industrial estate in northern Stuttgart. Stuttgart City was the top-ranking sub-market with about 65,700 m² of take-up. Comprising the two biggest leases signed In the City sub-market, pharmaceuticals firm Ce-lesio AG took 10,500 m² in the “Europe Plaza” new-build project and Robert Bosch GmbH took some 9,300 m² in the “Zeppelin Carré”. Industrial companies, above all the car industry, were the biggest clients for office space in Stuttgart, accounting for 41 % of the total take-up. It must be added, however, that for many years the diversity of businesses in Stuttgart has created stable demand for office space, especially for smaller units.

RENTSBy the end of 2015 a number of agreements signed for space in new-build projects in Stuttgart’s City district had pushed the premium rent to the record level of €22.80/m²/month. The average rent remained stable at €12.50/m²/month.

AVAILABLE SPACE AND VACANCIESNow 3.5 %, the vacancy rate is on course for a new record

low. Based on a total stock of about 2.63m m² this rate translates into 270,000 m² of empty offices. At about 40 %, the decrease was largest in central Stuttgart. By the end of the year a mere 38,200 m² or so was available in the centre. A large part of the 74,900 m² of office space com-pleted in 2015 has been let already. A further 169,000 m² of office space will be completed in 2016, of which only about 20,500 m² will come onto the open market.

OUTLOOKGood forecasts for the economy mean that the take-up of space in 2016 may reach 230,000 m². Rents will remain stable. The small range of available properties could result in the activation of projects that have been on hold for quite a long time. This applies in particular to Suttgart’s peripheral locations.


CITY / 65,700 m² / €15.90/m²/month VAIHINGEN/MÖHRINGEN / 56,300 m² / €11.10/m²/month FEUERBACH / 53,500 m² / €12.40/m²/month TOP 3 CONTRACTS 1. ROBERT BOSCH GMBH “Bosch IT Campus”, Stuttgart Feuerbach / ca. 30,000 m² 2. PORSCHE AG Mittlerer Pfad / ca. 29,800 m² 3. CELESIO AG “Europe Plaza”, A 1 Areal S-City / ca. 10,500 m²

OFFICE LETTINGSTUTTGART

Take-up of space Stuttgart Rents Stuttgart


average rent




18 19

INVESTMENTMUNICH

Again in 2015 the investment year closed with a very good result in Munich. Total trading in the commercial prop-erties sector was about €5.45bn, a year on year increase of around 10 %. 15 transactions with price tags in excess of €100m, some appreciably so, together accounted for more than 40 % of total turnover.

INVESTMENT PROPERTIESAs in the past, office properties were the biggest-selling asset class, comprising over 78 % of the total. In the first half of the year Amundi paid over €200m for the “north88” (Riesstrasse) and for a similar price AXA acquired the “Elisenhof” (Elisenstrasse). In the second half of the year, the sale of “Kustermann Park” to Ares Management for a price of some €170m and the “Bayer Post” hotel to Deka for €180m made a major contribution to the result. As had been expected, the premium return on office prop-erties slipped further and by the end of the year it stood at 3.5 %. Core properties remain in demand, but are increas-ingly difficult to obtain. Investors have thus focussed more and more attention on value-add properties in repu-table and well-established locations. Therefore a growing squeeze of initial returns on value-add properties became apparent.

INVESTORS AND VENDORSNational investors accounted for about 64 % of the volume of transactions. Large transactions were concluded by well-known national players such as DEKA (Bayer Post), Real I.S. (Haidenauplatz) and Wealthcap (Olof-Palme Strasse) as well as by international firms such as Amundi (north88), various Asian state funds and, last but not least, insurance companies like Swiss Life. As in the past, open-end/specialist/pension funds took the lion’s share

of the market on both the buying and selling sides of the equation.

OUTLOOKIn Munich, 2016 will be another year of rapid movement on the investment market. Large amounts of cash, in-terests rates stuck at low levels and a lack of alternative investment opportunities will continue to drive investor activity. Some big-ticket transactions that could not be completed by the end of 2015 will be agreed in the first two quarters of 2016, so that trading figures are set to be similar to those of 2015. Turnover between €5.0bn and €5.5bn is forecast for the year overall.

Transaction volume Munich

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2010 2011 2012 2013 2014 2015

1.7 2.9 3.6 4.2 5.0 5.5


(in bn €)

2012 2013 2014 201510.00

15.00

20.00

25.00

30.00

35.00

20112010

28.0029.80

32.00 32.5034.45

32.50

14.00 14.40 14.90 15.10 14.60 15.00

0

200

400

600

800

1000

2010 2011 2012 2013 2014 2015

578 860 717 608 584 755

5-year average (2011-2015):ca. 704,840 m2

In 2015 take-up of office space totalled 755,000 m². After two rather quiet years, take-up surged upwards, sur-passing the 700,000 m² mark for year on year growth of about 30 %.

TAKE-UP OF SPACEThe number of contracts involving over 5,000 m² rose to 20, a year on year increase of over 40 %. The proportion of owner-occupiers was higher than in recent years. For example, the two biggest agreements, in terms of space, involved owner-occupiers; the Criminal Justice Centre at Leonrodplatz (about 39,000 m²) and Rohde & Schwarz in east Munich (about 15,000 m²). In the 4th quarter the com-puter and software manufacturer IBM took an additional 15,000 m² in the “HighLight Tower” in Schwabing Park-stadt. Registering 21 % of the total, the Centre West sub-market ranked first, but City North was hard on its heels with a share of about 20 %. The Centre sub-market was again a popular location, with a share of about 14 %. Com-puter and IT firms took up about 137,000 m² of space, more than any other sector of trade or industry.

RENTSIn most new leases the agreed rates were between €15.00 and €20.00/m²/month. The weighted average rent thus rose slightly to €15.00/m²/month, a year on year increase of 3 %. Several agreements were also signed at the top end of the market too, where rents over €25.00 are paid, although few exceeded €35.00. In consequence, the premium rent slipped by nearly 6 % to its current rate of €32.50/m²/month.

AVAILABLE SPACE AND VACANCIESYear on year the volume of empty space fell from 1,322,000 m² to about 917,000 m². The stock of available space also fell by about 1 % to 22.7m m². This drop was because some office buildings were converted into apart-ments and hotels or turned into refugee shelters. Despite the lower total stock of space, the vacancy rate fell to 4 %.

OUTLOOKSome large transactions will ensure the Munich market starts the year well. Shortage of space in central locations will cause some firms to opt for premises on the periphery of the city. A growing shortage of available space could lead to higher rents. With demand remaining at a constant level, take-up of office space in Munich is expected to be around 700,000 m² in 2016.


DOWNTOWN WEST / 156,000 m² / €17.39/m²/month CITY NORTH / 136,000 m² / €16.26/m²/month DOWNTOWN / 103,000 m² / €23.76/m²/month

TOP 3 CONTRACTS

1. STRAFJUSTIZZENTRUM (CRIMINAL JUSTICE CENTRE) Leonrodplatz / ca. 39,000 m² 2. IBM Mies-van-der-Rohe-Str. 4-8 / ca. 15,000 m² 3. RHODE & SCHWARZ Mühldorfstr. / ca. 15,000 m²

OFFICE LETTINGMUNICH

Take-up of space Munich Rents Munich


average rent




20 21

LOKALE KOMPETENZ – DEUTSCHLANDWEIT

VACANCIESVacancies include all office space that is available to new tenants within three months. Sub-let space is counted as vacancy.

TRANSACTION VOLUMEThe transaction volume is the sum of the purchase prices of all transactions during the period under review in-asmuch as these are known to and recorded by the market. The closing date of the transaction determines at which point it is included in the statistics. A property is allocated to an asset class according to the predominant way space is used at the time of closing. Commercial transactions involving investment in residential properties are not in-cluded in the transaction volume.

PREMIUM RETURNSThe premium return is the (gross) initial return on excel-lently appointed top quality properties in the very best lo-cations of the specific property market.

TAKE-UP OF SPACETake-up of space is the total of all space let plus that sold to, or finished by or for an owner-occupier during the period under review. The operative date for inclusion in the sta-tistic is the date on which the lease or purchase agreement was signed. Lease renewals are not counted as take-up. Areas are stated on the basis of the guide for calculating the rental area in commercial leases (MF/G). PREMIUM RENTThe premium rent relates to the top 3 % of the market for new lets (not counting owner-occupiers) during the 12 months just ended and is stated as the average of such rents.

AVERAGE RENTThe average rent is calculated by taking the individual rents agreed in all leases signed over the past 12 months, weighting them by the amount of space rented and com-puting the mean value. Figures refer to nominal net rents ex services.

GLOSSARYGERMAN PROPERTY PARTNERS


We draw your attention to the fact that all statements made here are non-binding. Most of the information is based on third-party reports. The sole intention of this

market survey is to provide general information for our clients.

Grossmann & Berger GmbH • Immobiliendienstleister • Bleichenbrücke 9 (Bleichenhof) • D-20354 Hamburg

Tel.: +49 (0)40 / 350 80 2 - 0 • Fax: +49 (0)40 / 350 80 2 - 36 • [email protected] • www.grossmann-berger.de

Managing directors: Holger Michaelis, Andreas Rehberg, Lars Seidel, Axel Steinbrinker

Chairman of the Supervisory Board: Dr. Jörg Wildgruber • Entered in the commercial register: Hamburg B 25866

Supervisory authority: Borough Council Hamburg-Mitte, Department of Consumer Protection, Commerce and the Environment, Klosterwall 2, 20095 Hamburg

VAT identification number pursuant to Section 27a German Turnover Tax law: DE 118 556 939

ELLWANGER & GEIGER Real Estate GmbH • Börsenplatz 1 • D-70174 Stuttgart

Tel.: +49 (0)711 / 2148-300 • Fax +49 (0)711 / 2148-290 • [email protected] • www.ellwanger-geiger.de

Managing directors: Mario Caroli, Björn Holzwarth

Competent supervisory authority: Amt für öffentliche Ordnung, Gewerbe- und Gaststättenbehörde, Eberhardstraße 37, 70173 Stuttgart

Commercial register and no. of entry: Registered in Stuttgart (Amtsgericht) HRB 733293

Responsible under Section 55 par. 2 of the Interstate Broadcasting Agreement (RStV): Björn Holzwarth, managing director


ANTEON Immobilien GmbH & Co. KG • Ernst-Schneider-Platz 1 • D-40212 Düsseldorf

Tel.: +49 (0)211 / 58 58 89 - 0 • Fax: +49 (0)211 / 58 58 89 - 88 • [email protected]

Managing partners: Guido Nabben, Heiko Piekarski, Jens Reich, Dirk Schäfer, Marius Varro

Trading licence: a licence pursuant to Section 34 c of the German Industrial Code/GewO was granted with no restrictions by the Municipal Government of the State

Capital Düsseldorf, Department 32, Tel.: +49 (0)211 / 89 - 23 223. • ANTEON Immobilien GmbH & Co. KG • Registered office in Düsseldorf, entered in the Commer-

cial Register of Düsseldorf under HRA 19934 • General Partner ANTEON Verwaltungsgesellschaft mbH, registered office in Düsseldorf, entered in the Commercial

Register of Düsseldorf under HRB 58418


Greif & Contzen Immobilien GmbH • Pferdmengesstraße 42 • D-50968 Köln

Tel.: +49 (0)221 / 93 77 93 - 0 • Fax: +49 (0)221 / 93 77 93 - 77 • [email protected]

Managing directors: Mr Theodor J. Greif, Rainer Krauß

Amtsgericht (lower court) Registered in: Cologne, Company Register no. 11414

Supervisory authority: City of Cologne, Ordnungsamt, P.O. Box 103564, 50475 Köln


Naturally enough, when doing real estate business in Germany, you would like to work with a partner who can provide you with expert professional support in all issues relating to commercial property.

Our spectrum of services covers both real estate invest-ments and commercial letting. We are conversant with all risk classes and types of property. For investors we offer a Germany-wide service extending to the purchase and sale of office, hotel, warehousing, logistics and retail real estate, as well as apartment buildings, both as individual properties or in portfolios. We are also ready to support you with preparation for development projects.

SERVICESGERMAN PROPERTY PARTNERS

Across Germany Services

» Hamburg» Berlin» Düsseldorf» Cologne» Frankfurt a.M.» Stuttgart» Munich

» Real estate investments» Commercial letting» Corporate real estate management» Research» Banking and financial services» Equity financing for development projects» Fund and asset management» Real estate management

Due to the banking background of our founding partners, we are familiar with the workings of the financial in-dustry. We are also well placed to assist you in your search for office, retail, industrial, warehousing and logistics premises, as well as special uses, in the process bringing to bear our in-depth local knowledge and outstanding re-gional contacts.

In addition, we offer you corporate real estate management (CREM), as well as research tailored to your specific project. Further services in the fields of finance, fund man-agement, asset management and administration mean that you can obtain everything needed from us to secure the effective long-term advancement of your project.




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Grossmann & Berger GmbH German Property PartnersLocations: Hamburg, BerlinContact: Andreas Rehberg Bleichenbrücke 9D-20354 Hamburg

Tel.: +49 (0)40 / 350 80 2 - 0Fax: +49 (0)40 / 350 80 2 - 36Mail: gpp@grossmann- berger.de

ELLWANGER & GEIGER Real Estate GmbH German Property PartnersLocations: Stuttgart, MunichContact: Björn Holzwarth Börsenplatz 1 D-70174 Stuttgart

Tel.: +49 (0)711 / 21 48 - 300Tel.: +49 (0)89 / 17 95 94 - 0Mail: gpp@ellwanger- geiger.de

ANTEON Immobilien GmbH & Co. KG German Property Partners Location: DüsseldorfContact: Guido Nabben Ernst-Schneider-Platz 1 D-40212 Düsseldorf

Tel.: +49 (0)211 / 58 58 89 - 0Fax: +49 (0)211 / 58 58 89 - 88Mail: [email protected]

GREIF & CONTZEN Immobilien GmbH German Property Partners Location: CologneContact: Theodor J. GreifPferdmengesstraße 42D-50968 Köln

Tel.: +49 (0) 221 / 93 77 93 - 0 Fax: +49 (0)221 / 93 77 93 - 77Mail: [email protected]

Contact

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