Retail City Profile

Hanover | Full year 2017 Published in September 2017

Retail Market Georgstrasse for the forth time in a row the busiest shopping street, with more than 10,000 passers-by per hour Around 7% rise in the overnight stays over the past five years Above-average retail sales index of 123.0 Overview of prime retail location(s)

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G o s e r ie d e H e le r i s e c M h r S e te l s Ernst-August-Galerie is t L r a Hannover Hbf ß e ® ÅÅDB U S

Kurt-Schum raße Ernst August Galerie ® acher-St e U ß a tr S r Das neue e d Steintor ro rn e F Mehlstraße ®U ®Steintor Galeria Kaufhof e U ß W a tr s z n e ü ß M a Karstadt tr s J G Karstadt f oa e o ch ße o W im tra rg h s es st tr eth ra n aß Go ße h e a B Galerie Luise

e Kß röpcke ® a U Mitte r t s f e o ß h a HANNOVER k r t c s a h P c s e r G ß a Opernhaus o e r m o r Galeria Kaufhof G r a g s K t W r a ß e

Ballhof S c h m ie d e s t ra Börse ß e

Marktkirche e ß a tr s h c rs a rm a K L e ib n iz O u Markthalle/Landtag s f t e e G r r ®U s e n t o e r r b a g ß a s r e t r Nord/LB g a f f ß i 0 100 200 e h c

S Markthalle

Einzelhandel / Retail Einkaufzentren /Shopping Centres

1a-Lage / Highstreet S Shopping Center / Shopping Centre W Warenhaus / Department Store

OpenStreetMap & Contributors, JLL Research 2017

Retail City Profile Hanover | September 2017 2 Demographic data and retail figures

Demographic data Retail figures

Ranking* Ranking*

Population as per January 01, 2016 532,163 12 Retail-relevant purchasing power index 2017 Population trend 2012-2016 (in %) +1.0 – per inhabitant 101.0 14

Number of visitors 2016 Purchasing power index 2017 per inhabitant 101.9 14 (overnight reservations) 2,240,346 11 Retail sales index 2017 per inhabitant 123.0 15

Number of employed persons Centrality index 2017 121.7 13 as per June 30, 2016 313,018 8 Chain store penetration ratio 2016, Employment trend 2012-2016 (in %) +8.4 – total prime location (%) 71.4 –

Unemployment rate 2016 Strongest pedestrian traffic Ø per hour (annual average in %) 7.5 – Place of counting: Georgstraße 31-33 Saturday, May 06 2017 from 1.00 p.m. to 4.00 p.m. 11,905 5 Business tax per inhabitant 2015 (in Euro) 884 5 Rent in prime location 100 sqm retail store 2017** (in Euro/sqm) 190 9

Rent in prime location 1,000 sqm retail store 2017*** (in Euro/sqm) 50 12

Employment structure by lines of industry 2016 Business sector structure 2016 in prime location

❚ Textiles 27.2% ❚ Shoes/Leather goods 7.0% ❚ Health/Beauty 12.2% ❚ Manufacturing 16.9% ❚ Jewellers 7.5% ❚ Trade/Transport 17.4% ❚ Food/Restaurants, ❚ Business Services 32.8% etc. 19.2% ❚ Public administration 32.9% ❚ Telecommunications/ Home electronics 5.2% ❚ Furnishings/Décor 1.5% ❚ Books/Stationery 0.9% ❚ Sports/Outdoor 1.5% Age structure (population) per 01.01.2016 ❚ Others 17.8%

❚ 0 up to 16 years 13.7% ❚ 16 up to 30 years 19.7% * Ranking among 25 cities, of which JLL Retail City Profiles exist. ❚ 30 up to 50 years 28.7% ** Net rent for a virtual shop, 100 sqm sales space ground floor, without steps and ❚ 50 up to 65 years 19.0% columnfree frontage approximatly 6 m. In case of serveral price levels, the rental of the highest potential street is mentioned. ❚ 65 up to 70 years 4.6% *** Net rent for a virtual shop, 500 sqm of ground level space, ten metres front and ❚ Older than70 years 14.3% 500 sqm in the first floor.

Retail City Profile Hanover | September 2017 3 Rental price development and value development

Rental price development in prime location Value development in prime location

Index value 2008=100 Index value 2008=100

Prime rent Hanover * Basis: 185 cities Peak value Hanover * Basis: 185 cities Development between H1 2007-H1 2017: 18.8 % Development between H1 2007-H1 2017: 27.8 % Average prime rent* Average peak value* Development between H1 2007-H1 2017: 14.6 % Development between H1 2007-H1 2017: 15.2 % Infl ation Infl ation Development between H1 2007-H1 2017: 14.0 % Development between H1 2007-H1 2017: 14.0 %

High street prime rent in Hanover Multiplier in prime location Hanover (in Euro/sqm/month) 2012 185 2012 19.50 2013 185 2013 20.00 2014 195 2014 20.50 2015 200 2015 21.00 2016 200 2016 22.00 H1 2017 190 H1 2017 23.00

Retail City Profi le Hanover | September 2017 4 Shopping Centres / Retail Parks

City-Center A7 Shopping A352 Centrum Plaza A2-Center Stelle Burgdorf S Kohake Altwarmbüchen Garbsen Langenhagen A37 SF Einkaufspark Nord West F S F Zentrum Klein-Buchholz

Planetencenter F HANNOVER A2 Ernst August Galerie

S Hannover City Carré S ■▤ Ihme Zentrum■▤ FMZ F Südbahnhof

Hemmingen

Leine-Center S Laatzen

Wennigsen () FMZ Pattensen Pattensen F

0 2 4

Sarstedt

Einkaufszentren / Shopping Centres Stadtgrenze / City Limits

S Shopping Center / Shopping Centre Hauptgeschäftszentrum / City Centre

F Fachmarktzentrum / Retail Park In Planung, Bau / planned, under construction Dargestellt■▤ sind Shopping Center und Fachmarktzentren >=10.000 m² (Vkf) Displayed are Shopping Centres and Retail Parks >=10.000 m² Net Leasable Area (NLA) infas Geodaten, OpenStreetMap and contributers, JLL Research 2017

Retail City Profile Hanover | September 2017 5 List of references

JLL Research: Business sector structure in prime locations, calculation of chainstore penetration and rental price of the listed streets, overview of prime retail locations, rental price development, value development, shopping centres

Regional and Federal Statistics Offices: Population, visitor numbers, business tax, age structure, inflation rate

Federal Employment Agency: Persons employed, employment structure, rate of unemployment

IFH Retail Consultants: Retail purchasing power index, sales index, centrality index, pedestrian frequency

GfK Geomarketing: Purchasing power index

EHI-Shopping-Center-Report/German Council of Shopping Centers e.V.: Information about existing and planned shopping centres

Consensus Economics: Prediction inflation rate

Retail City Profile Hanover | September 2017 6 Contacts

Jörg Ritter Dirk Wichner Sandra Ludwig Management Board – Retail Head of Retail Leasing Germany Head of Retail Investment Germany Frankfurt Berlin Hamburg tel +49 (0) 69 2003 2316 tel +49 (0) 30 203980 118 tel +49 (0) 40 350011 207 [email protected] [email protected] [email protected]

Anke Kaukars Helge Scheunemann Head of Shopping Center Services Head of Research Germany Germany Hamburg Frankfurt tel +49 (0) 40 350011 225 tel +49 (0) 69 2003 1154 [email protected] [email protected]

jll.de Information regarding JLL and our services jll.de/research All research reports on current market fi gures and special topics jll.de/research/einzelhandel Request further Retail City Profi les of other cities here jll.de/immo Commercial real estate properties for sale or to let throughout Germany

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