MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES Greater area for 2019

Market report on the letting of logistics properties and industrial spaces in the Greater Hamburg area* for 2019 n Start-of-year forecast proved correct: Hamburg >> Take-up logistic property and industrial space in the greater Hamburg area 2019 logistics rental market declines by 27% n Early lease extensions on the horizon n No designation of new space for logistics in the near future n Space allocation: Significant increase in north Hamburg n Only one lease in excess of 10,000 sqm con- cluded n Rents up by only 2 to 5% despite full occu- pancy with a space volume greater than 10,000 sqm In the past twelve months, the locations between was registered in the last twelve months, when Neu Wulmstorf to the south-west and Geesthacht n Forecast for 2020: The situation is set to remain nutwork moved into approx. 28,000 sqm of logis- to the south-east of the A1 accounted for a com- strained, with take-up similar to the low level of tics space in the port of Hamburg. bined 39% of the take-up result at 140,400 sqm. the end of the previous year However, this is down on the previous year (2018: The lack of resources means that users are se- 49%, 240,100 sqm). Our start-of-year forecast sadly proved correct. curing logistics space in Hamburg through long- Space totalling 360,000 sqm was taken up by term lease extensions, not least on account of the The East region took second place with 33% all market participants in the logistics location strong order situation and the well-developed (118,800 sqm), almost exactly the same percent- of Hamburg between January and December connections to outlying areas with close links be- age as the previous year (34%, 166,600 sqm). 2019. Consequently, this logistics region, which tween the location and Europe. boasts one of the most attractive infrastructures By contrast, the North region between Pinneberg in , declined by 27% year-on-year (2018: and saw its share rise substantial- 490,000 sqm). As well as being the weakest take- Take-up by regions ly from just 8% in 2018 (39,200 sqm) to 19% up result in five years, this figure was also 27% (68,400 sqm). As in the previous year, the West below the five-year average of 490,000 sqm. As in the same period of the previous year, the region came last (2019: 9%; 32,400 sqm; 2018: South region posted the highest take-up in 2019. 9%, 44,100 sqm). The industry and logistics sectors have not de- clined in Hamburg. On the contrary, we have seen consistently strong demand, while the world‘s >> Take-up logistic property and industrial space by regions in the greater Hamburg area 2019 highest-performing port and the logistics sector continue to be major employers. By contrast, the shortage of available space – particularly for larg- er units of 10,000 sqm or more in the southern metropolitan region – had a significant impact. These properties are hugely important to a func- tioning economy and the efficient distribution of commodities as part of the flow of goods.

But there is also positive demand for older logis- tics space with a high level of third-party use near the centre – and this means areas of Germany’s largest seaport as well as Billbrook, a district well equipped for trade and industry.

The shortage of space in the attractive north German hub is also apparent from the ranking of concluded leases: the conclusion of just one lease

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Greater Hamburg area for 2019 Take-up by size >> Take-up logistic property and industrial space by size in the greater Hamburg area 2019

In terms of size, the 5,001 to 10,000 sqm brack- et accounted for 39% (140,400 sqm), followed by the under 3,000 sqm size category (28%, 100,800 sqm) and the 3,001 to 5,000 sqm segment (25%, 90,000 sqm). The over 10,001 sqm category had a torrid time in 2019: having ≥ 10,001 sqm 5,001 - 10,000 sqm 3,001 - 5,000 sqm ≤ 3,000 sqm dominated with 34% in the previous year (2018: 166,600 sqm), it registered just one deal in the last 12 months (2019: 8%, 28,000 sqm). >> Take-up logistic property and industrial space by size in the greater Hamburg area 2019

Take-up by industry

In terms of take-up by sector, the logistics ser- vice providers in the Hamburg metropolitan re- gion stand out at just under 57%, with take-up of 205,200 sqm. They focus on micro-locations with multimodal infrastructure facilities, i.e. di- rect access to road, water and rail.

Retail comes next at 22% (79,200 sqm), with wholesale having a much higher share than store-based retail. Retailers are predominantly located in the east of Hamburg and along the A1 >> Prime and average rents of ogistic property and industrial space in the greater Hamburg area 2019 towards Lübeck.

Producers account for 14% (50,400 sqm) of take-up, putting them third in the ranking. This industry is mainly based in Norderstedt and fur- ther north in Kaltenkirchen in the Segeberg dis- trict.

Rental Prices

Whereas rents on the outskirts remained un- changed from the first half of 2019, they devel- oped as follows in the centre of the Hamburg metropolitan region: at EUR 6.90/sqm (+ 1%), prime rents average rents the highest rents are now paid in the West. The minimum in this region increased by 4% to EUR 5.20/sqm. In the North, the maximum rent is >> Relevant deals in 2019 now EUR 6.70/sqm (+ 3%), while the minimum remains unchanged at EUR 5.50/sqm (0%). 1. nutwork Handelsgesellschaft mbH 4. Durstexpress The East posted the highest rental growth of 28,000 sqm (expansion) 8,400 sqm (expansion) 8% to EUR 6.50/sqm; the minimum of 5.80% has increased by 2% in the past six months. In 2. Hertling 5. TCO Transcargo the South, rents paid by tenants ranged from 9,000 sqm (expansion) 8,400 sqm (expansion) EUR 5.80/sqm (+ 2%) to EUR 6.20/sqm (+3%) for high-quality, high-volume contract logistics 3. Trans Service Team space in the Waltershof/Altenwerder area. 8,800 sqm (expansion)

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Greater Hamburg area for 2019 Forecast 2020

Insufficient resources to cover the potential eco- Parx in the Hamburg district of Wilhelmsburg for locations in the suburbs as well as the region nomic growth will again be a defining feature with around 110,000 sqm could ease the situa- further to the north, south and east of Hamburg, in 2020 – the situation remains strained. Conse- tion on the supply market a little by the end of the as they are well connected to the motorway. This quently, we expect the take-up result at the end year. The two-storey logistics property in the port is unlikely to apply much to high-volume com- of this year to be similar to that of 2019. will be available to users from the end of 2020. mercial properties. The construction project of the developer Four In addition, the logistics expert sees potential

Logistics Property Market Hamburg: Rental Prices 2019 (EUR/sqm)

Wacken 7 Burg Kalkhorst Kellinghusen Bad Itzehoe Bad Segeberg Bad Bramstedt 20 Schwartau Brunsbüttel 23 Region North 3.80 - 5.50 21 Lübeck Bad 20 Kaltenkirchen Oldesloe

Region West Barmstedt 4.50 - 5.50 7

Elmshom Quickborn Bargteheide Norderstedt Gadebusch 23 Ratzeburg Hemmoor 1 Sandesneben Ahrensburg Pinneberg North Lamstedt 5.50 - 6.70 Region East West 3.90 - 5.50 Stade 5.20 - 6.90 Barsbüttel 24 East Fredenbeck Jork Roseburg 24 Wittenburg South Hamburg 4.90 - 6.50 Bremervörde 5.80 - 6.20 Büchen Buxtehude Geesthacht Apensen 261 Vellahn Seevetal Lauenburg 1 Winsen

39 Region South 4.50 - 5.00 Sittensen Tostedt Amt Neuhaus 1 Hanstedt Lünesburg Tarmstedt 7 Salzhausen Dahlenburg Scheeßel Fintel Hitzacker

* Greater Hamburg market area Realogis defines as a sub-market the relevant, available warehouse, logistics and production space in the Hamburg region and along the A1 motorway (Lübeck – Bremen), the A7 (Hanover – Flensburg) and the A39 from “Maschener Kreuz” within a radius of approx. 50 km.

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Greater Hamburg area for 2019 REALOGIS Immobilien REALOGIS – REALOGIS – Hamburg GmbH Pioneers in Logistics since 2005 Available to you directly on-site in Hamburg Gotenstraße 21 20097 Hamburg When Realogis was first established in 2005, we We are your point of contact for the letting of in- phone: +49 (0)40 - 54 80 857 - 0 had an ambitious goal: to become the market dustrial and logistics property as well as business fax: +49 (0)40 - 54 80 857 - 29 leader for property lettings in the “industrial and parks in the Hamburg region, and have been the email: [email protected] logistics” segment. The concentration and poo- market leader in this segment since 2012. You’re ling of our know-how into this niche market has looking for a certain type of property? We will www.realogis.de proved successful: in 2015 we again gained define the precise details of your requirements, market leadership in Germany for space take-up enhance your search profile and provide you with in industrial properties, warehouses and logistics exact property matches. Maybe you are looking properties. What’s more, we have also continued for a new tenant for your property. In that case we to expand our share of the European market. will assist you in valuing your property and setting the optimal rental price. We handle the professio- Today, the owner-managed Realogis group, which nal presentation of your property to the public and is headquartered in Munich and also has offices in ensure a prompt letting. Berlin, Dusseldorf, Frankfurt, Hamburg and Stutt- gart, not only offers lettings and consultancy ser- Both tenant and landlord benefit from the many vices but is also a sought-after partner of investors years of specialist market knowledge of our ap- Contact: and institutional investors, to whom we offer our proximately five-strong consultancy team in the Jörg Lojewski (Managing director) comprehensive experience and in-depth regional, region, as well as our market proximity and valu- phone: +49 (0)40 - 54 80 857 - 0 national and international market knowledge. able contacts. We only employ well educated and fax: +49 (0)40 - 54 80 857 - 29 experienced property consultants, and also offer email: [email protected] Extensive consultancy services in the areas of access to an in-house department that can sup- logistics and fulfilment round off our range of port your built-to-suit solutions across Germany. services. With a team of highly motivated and well-trained professionals, we continually strive Please contact us about any decisions relating to to provide long-term support to our customers industrial and logistics property. and enable them to benefit from our position as market leader.

Our services Contact: n Preparation of a detailed and individual requi- n Sound and realistic valuation of your property / Stefan Imken (Managing director) rements profile land phone: +49 (0)40 - 54 80 857 - 0 fax: +49 (0)40 - 54 80 857 - 29 n Targeted offers n Individual marketing concept email: [email protected] n Development of possible alternatives n Advice on optimising property (leasing, purchase) n Strategy consulting to minimise the risk of n Integrated Realogis logistics consultancy to vacancies and defaults define the optimal location and implement internal processes in an existing property n Extensive regional, national and international contact network of potential tenants

Contact: Irina Lysenko (Research Analyst) phone: +49 (0)89 - 51 55 69 - 287 fax: +49 (0)89 - 51 55 69 - 29 email: [email protected] All data in this report come from different sources which we consider reliable but whose validity, exactness and correctness we cannot garantee. Our stetements and forecasts here correspond to our estimations at the time when this report was prepared. This report has been prepared for advertising purposes and does not represent any recommandation or basis for making any decisions about investment or letting property. This market report is the copyright property of REALOGIS. No part of this report may be used in any form or by any means, without the prior permission in writing of REALOGIS. / 16.01.2020

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Greater Hamburg area for 2019