Main Regional Real Estate Markets in Germany 2021

A research publication by DZ HYP | March 2021 MAIN REGIONAL REAL ESTATE MARKETS IN GERMANY 2021

Attractive office space still much in demand

dzhyp.de

Main Regional Real Estate Markets in Germany 1 2021

TABLE OF CONTENTS

02 Preface

03 Office and retail: post-covid reset 04 Office property: Will working from home turn a space shortage into an oversupply? 13 Retail property: City centre retail fights for survival

21 Augsburg

24 Berlin

26 Bremen

29 Cologne

31 Darmstadt

34 Dresden

37 Düsseldorf

39 Essen

42 Frankfurt

44 Hamburg

46 Hannover

49 Karlsruhe

52 Leipzig

55 Mainz

58 Mannheim

61 Munich

63 Münster

66 Nuremberg

69 Stuttgart

71 Locations at a glance

74 Glossary

75 Imprint

79 DZ HYP addresses 2 Main Regional Real Estate Markets in Germany 2021

PREFACE

Dear readers,

In a challenging market environment such as that we are currently faced with, detailed information on real estate market developments is of great importance. As a leading real estate bank in Germany, DZ HYP contributes to higher transpar- ency by publishing regular analyses of the markets on which we are active. These not only include Germany’s largest cities but also regional locations, which are shifting more and more into investors’ focus due to their attractive yields. Each spring we publish a report, to better assess trends and risks in these markets. For this purpose, we investigate developments in the office and retail property segments for the twelve regional centres of Germany – Augsburg, Bremen, Darmstadt, Dresden, Essen, Hanover, Karlsruhe, Leipzig, Mannheim, Mainz, Munster and Nuremberg, comparing them to Germany’s top seven locations.

The COVID-19 pandemic has also left its mark on the real estate market. In the office property segment, the take-up of space declined by a third compared to the previous year, with the top locations harder hit (-37 per cent) than the regional centres (-27 per cent). In contrast, top rents and rental yields remained stable. The vacancy rate increased only a little, remaining at a low 3.5 per cent. What was severely affected, however, was of course the retail sector – except for super- markets, bicycle dealers and DIY stores, all of which benefited from the crisis. The year-long trend of falling retail property rents has accelerated even further due to the pandemic and, after hitting the regional centres, has now also arrived at the top locations.

This report on “Regional Real Estate Markets 2021” – the twelfth in this series – supplements “The German Real Estate Market” – our series of specialist publications published in the autumn of each year. In addition, we analyse the commercial real estate markets in individual German federal states: a report on Baden-Württemberg will be published in July, followed by a report on Hesse, Rhineland-Palatinate and Saarland in November. An overview of DZ HYP’s real estate market reports to date is available on our website https://www.dzhyp.de/en/about-us/market-research/.

Yours sincerely,

DZ HYP

March 2021 Main Regional Real Estate Markets in Germany 3 2021

2)),&($1'5(7$,/3267&29,'5(6(7

7KHILUVWUHSRUWVDERXWFRURQDYLUXVHPHUJHGLQ-DQXDU\$WWKDWWLPHQRRQH 8QSUHFHGHQWHG KDGDQ\LGHDRIKRZIDUUHDFKLQJWKHFRQVHTXHQFHVZRXOGEH7KHORFNGRZQRI *OREDOORFNGRZQRISXEOLFOLIHLQ SXEOLFOLIHDQGHFRQRPLFDFWLYLW\WRFRQWDLQWKHKLJKULVNRILQIHFWLRQLVXQSUHFHGHQWHG ILJKWDJDLQVWFRURQDYLUXV $VDUHVXOW*HUPDQHFRQRPLFRXWSXWIHOOE\DURXQGSHUFHQWLQQHDUO\DV VWHHSO\DVLQDIWHUWKHILQDQFLDOPDUNHWFULVLV

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

%<7+(%(*,11,1*2)$87801(9(5<21( :+2:$176 &28/'%(9$&&,1$7('±%87 &29,'5(/$7('5(675,&7,216$5(/,.(/<725(0$,1,13/$&()25/21*(5

SOXV -RKQVRQ -RKQVRQ SOXV $VWUD =HQHFD

%LR17HFK 0RGHUQD LQFO VXSSOHPHQWDU\ DJUHHPHQW UHPDLQLQJ \HDUV SRSXODWLRQ SRHSOHYDFFLQHGRHVHVLQPLOOLRQ 4 4 4 4

6RXUFH)HGHUDO0LQLVWU\RI+HDOWK %0* 6WDQGLQJ&RPPLWWHHRQ9DFFLQDWLRQ 6W,.R '=%$1.

,QWKLVUHSRUWZHDQDO\VHWKHPDUNHWWUHQGLQWKHVHLPSRUWDQWVHJPHQWVRIWKHSURS WKHGLWLRQRIRXU³5HJLRQDO HUW\PDUNHW3ULPHUHQWVLQWKHRIILFHPDUNHWUHPDLQHGVWDEOHLQZLWKORZ SURSHUW\FHQWUHV´PDUNHWUHSRUW YDFDQF\UDWHV&RQYHUVHO\WKHGRZQZDUGUHQWWUHQGLQWKHUHWDLOVHFWRUZKLFKKDG SURYLGHVDQXSGDWHRQWKHRIILFH DOUHDG\VWDUWHGKDVDFFHOHUDWHG,QWKLVWZHOIWKHGLWLRQRIRXUPDUNHWUHSRUWZHIRFXV DQGUHWDLOVHJPHQWVRIUHJLRQDO RQFHDJDLQRQWUHQGVLQWZHOYHUHJLRQDOFHQWUHVWKURXJKRXW*HUPDQ\&RQGLWLRQV FHQWUHVDQGWRSORFDWLRQV LQWKHVHORFDWLRQVKDYHUHPDLQHGIDLUO\VWDEOHLQUHFHQW\HDUVDQGWKH\KDYHEHHQ FRQVSLFXRXVE\WKHLUFRPSDUDWLYHO\KLJKUHQWDO\LHOGV2XUUHSRUWVXSSOHPHQWVWKH IDLUO\IUDJPHQWDU\LQIRUPDWLRQDYDLODEOHRQWKHVHORFDWLRQV:HDOVRUHYLHZWKHVHYHQ WRSORFDWLRQVLQ*HUPDQ\DQGFRPSDUHWKHWZRFDWHJRULHV 4 Main Regional Real Estate Markets in Germany 2021

29(59,(:2)/2&$7,216

5HJLRQDO&HQWUHV 7RS/RFDWLRQV ,QGH[5HJLRQDO ,QGH[7RS

&LW\ )HGHUDOVWDWH &LW\ )HGHUDO6WDWH &LW\ )HGHUDO6WDWH $XJVEXUJ %DYDULD /HLS]LJ 6D[RQ\ %HUOLQ %HUOLQ 1RUWK5KLQH %UHPHQ %UHPHQ 'UHVGHQ 6D[RQ\ &RORJQH :HVWSKDOLD 5KLQHODQG3DODW 1RUWK5KLQH 'DUPVWDGW +HVVH 0DLQ] 'VVHOGRUI LQDWH :HVWSKDOLD 1RUWK5KLQH (VVHQ 0DQQKHLP %DGHQ:UWWHPE)UDQNIXUW +HVVH :HVWSKDOLD 1RUWK5KLQH +DQQRYHU /RZHU6D[RQ\ 0QVWHU +DPEXUJ +DPEXUJ :HVWSKDOLD .DUOVUXKH %DGHQ:UWWHPE1XUHPEHUJ %DYDULD 0XQLFK %DYDULD 6WXWWJDUW %DGHQ:UWWHPE

,QWKHQH[WFKDSWHUZHDQDO\VHWKHRIILFHPDUNHWVRIWKHORFDWLRQVFRYHUHG6WDUW LQJRQSDJHZHWKHQSURYLGHDPDUNHWRYHUYLHZRIWKHUHWDLOVHFWRU)URPSDJH WKHLQGLYLGXDOORFDWLRQVDUHFRQVLGHUHGLQDOSKDEHWLFDORUGHU3DJHVWRFRQWDLQ WDEOHVVXPPDULVLQJWKHPRVWLPSRUWDQWPDUNHWGDWD

2IILFHSURSHUW\:LOOZRUNLQJIURPKRPHWXUQDVSDFHVKRUWDJHLQWRDQ RYHUVXSSO\"

:KLOHWKHKRXVLQJVKRUWDJHLQPDQ\ODUJHFLWLHVDWWUDFWVFRQVLGHUDEOHPHGLDLQWHUHVW :RUNLQJIURPKRPHLVDKRWWRSLF DVKRUWDJHRIRIILFHVSDFHJHQHUDOO\RQO\IHDWXUHVLQVSHFLDOLVWSXEOLFDWLRQV0RVW QRWRQO\LQWKHRIILFHPDUNHW SHRSOHDUHOLNHO\WREHXQDZDUHWKDWYLUWXDOO\QRRIILFHVSDFHLVQRZDYDLODEOHLQPDQ\ *HUPDQFLWLHV7KHSUHYDLOLQJYLHZPLJKWLQVWHDGEHWKDWZRUNLQJIURPKRPHZLOO VRRQPDNHRIILFHVLUUHOHYDQW7KHUHODWLYHDGYDQWDJHVDQGGLVDGYDQWDJHVKDYHEHHQ WKHVXEMHFWRIYLJRURXVGHEDWHLQUHFHQWPRQWKV$ULJKWWRZRUNIURPKRPHKDVHYHQ EHHQPHQWLRQHG

2IILFHZRUNHUVDQGHPSOR\HUVKDYHJDLQHGH[WHQVLYHH[SHULHQFHRIZRUNLQJIURP +\EULGZRUOGRIZRUN2IILFHVDQG KRPHLQUHFHQWPRQWKV:HGRQRWLQWHQGWRUHH[DPLQHWKHSURVDQGFRQVKHUH:H ZRUNLQJIURPKRPHZLOOFRPSOHPHQW H[SHFWDK\EULG³RIILFHZRUNLQJIURPKRPH´PRGHOWREHFRPHHVWDEOLVKHGDQGWKLVLV HDFKRWKHULQIXWXUH DOUHDG\FXUUHQWO\EHLQJGHYHORSHGE\PDQ\FRPSDQLHVDQGLQVWLWXWLRQV:RUNLQJIURP KRPHFRXOGEHXVHGWRIRFXVRQFRQFHQWUDWHGWDVNVZKLOHRIILFHZRUNSODFHVZRXOG KDYHDGYDQWDJHVLQWHUPVRIFRPPXQLFDWLRQDQGWHDPZRUN2QEDODQFHWKLVVKRXOG

&2521$9,586&5,6,6$1':25.,1*)520+20((1' «$1''5,9(9$&$1&<5$7(683)257+(),5677,0( 5(17*52:7+« ,1$/21*3(5,2' 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(,13(5&(17

35 11 10 30 9 25 8 7 20 6 5 15 4 10 3 2 5 1 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 regional property centres top locations regional property centres top locations

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 5 2021

JUDGXDOO\GDPSHQRIILFHGHPDQGZKLOHWKHGHPDQGIRUDWWUDFWLYHVSDFHZLOOFRQWLQXH 7KHOD\RXWRIRIILFHV±IHZHUVPDOORIILFHVPRUHVSDFHIRUFRPPXQLFDWLRQ±FRXOG DOVRFKDQJH

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

0DUNHWFRQGLWLRQVLQWKHRIILFHPDUNHW

7KHHFRQRPLFEDVLVIRUWKHRIILFHPDUNHWVKDGDOUHDG\GHWHULRUDWHGLQDVWKH ,QVWHDGRIPRGHUDWHJURZWKFRYLG HFRQRPLFHQJLQHVORZHG+RZHYHULQVWHDGRIWKHPRGHUDWHPDFURHFRQRPLFJURZWK KDVSOXQJHGWKH*HUPDQHFRQRP\ RIDURXQGRQHSHUFHQWZKLFKZHZHUHVWLOOIRUHFDVWLQJIRUDWWKHHQGRI LQWRDGHHSUHFHVVLRQ WKHFRURQDYLUXVSDQGHPLFWULJJHUHGDGHHSUHFHVVLRQ,QWKHVHFRQGTXDUWHURI ODUJHDUHDVRIWKH*HUPDQHFRQRP\FDPHWRDVWDQGVWLOODQGWKHILYHSHUFHQWIXOO \HDUGHFOLQHLQ*'3FDQWKHUHIRUHEHUHJDUGHGDVPLOG

6+2577,0(:25.,1*35(9(17667((3(55,6(,1 )8//,03$&72)(&2120,&5(&29(5<:,//21/<%()(/7$6 81(03/2<0(17 9$&&,1$7,216,1&5($6(

6 6.1 6.2 6.3 6.4 6.2 6.0 5.9 5.9 6.3 4.8 5.8 4.1 5.3 5.3 3.7 3.7 5.1 4 3.3 4.9 2.6 2.2 2.2 2.7 1.7 2 1.2 1.1 1.3 0.7 0.5 0.5 0.4 5,995 5,715 0 IRUH 4,452 0.0 FDVW -2 -0.7 3,306 2,535 2,227 2,059 2,259 2,580 133 134 -4 -5.6 -6 -5.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e Jul 20 Jan 20 Jan 21 Jun 20 20 Oct Feb 20 Feb Sep 20 21 Feb Apr 20 Dec 20 Dec Nov 20 Nov Mar 20 Mar Aug 20 May 20 May employees on short-time working in thousands unemployment rate in % GDP yoy in %

6RXUFH)HGHUDO(PSOR\PHQW$JHQF\ 6RXUFH(XURVWDW'=%$1.IRUHFDVWDVRI)HEUXDU\

7KHVDPHDSSOLHVWRWKHODERXUPDUNHW,Q-DQXDU\WKHQXPEHURISHRSOHLQ 8QHPSOR\PHQWUDWHURVHE\DERXW ZRUNZDVGRZQRQO\VOLJKWO\\HDURQ\HDUIURPPWRP7KHXQHPSOR\PHQW KDOIDSHUFHQWDJHSRLQWLQ UDWHURVHIURPSHUFHQWWRSHUFHQWZKLFKLVVWLOOUHODWLYHO\ORZ)URPWR WKHEHJLQQLQJRIWKLVILJXUHZDVFRQVLVWHQWO\DQGXVXDOO\VLJQLILFDQWO\KLJKHU +RZHYHUVKRUWWLPHZRUNLQJKDVSUHYHQWHGDVWHHSHULQFUHDVHLQXQHPSOR\PHQW ,Q$SULOQHDUO\PLOOLRQSHRSOHZHUHLQVKRUWWLPHZRUNFRPSDUHGWRDURXQG PLOOLRQLQ1RYHPEHU

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ain Regional Real Estate Markets in Germany 2021

,)2,167,787(¶6%86,1(66&/,0$7(,03529(6$*$,16/,*+7/< (&2120,&(;3(5766859(<('%<=(:6/,*+7/<025( 237,0,67,&$%287(&2120,&287/22.

110 100 105 80 100 60 40 95 20 90 0 85 -20 80 -40 75 -60 70 -80 65 -100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 expectations ifo business climate business conditions economic sentiment economic situation

6RXUFHLIR,QVWLWXWHDVRI)HEUXDU\ 6RXUFH=(:DVRI)HEUXDU\

:KLOHWKHVHFRQGZDYHRIWKHSDQGHPLFKDG(XURSHILUPO\LQLWVJULSDWWKHHQGRI %UH[LWGHDODQGHOHFWLRQRI%LGHQ EHJLQQLQJRIWKHUHZHUHSRVLWLYHGHYHORSPHQWVLQWHUPVRILQWHUQDWLRQDO DVWK86SUHVLGHQWSURYLGHGD UHODWLRQV,QWKHILQDOGD\VRIODVW\HDUDQDJUHHPHQWZDVUHDFKHGEHWZHHQWKH8. JOLPPHURIKRSHDWWKHWXUQRI DQGWKH(XURSHDQ8QLRQWKXVDYHUWLQJPDMRUGLVUXSWLRQWRELODWHUDOWUDGH$QGWKH WKH\HDU HOHFWLRQRI-RVHSK5RELQHWWH%LGHQ-UDVWKSUHVLGHQWRIWKH8QLWHG6WDWHVKDV PDGHFRQVWUXFWLYHWUDQVDWODQWLFFRRSHUDWLRQSRVVLEOHDJDLQ

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

(FRQRPLFUHFRYHU\LVOLNHO\WROHDGWRDPDUNHGLQFUHDVHLQODERXUGHPDQG+RZ (PSOR\PHQWJURZWKVORZHGE\ HYHUORZELUWKUDWHVZLOOFDXVHWKHODERXUVXSSO\WRFRQWUDFWVKDUSO\LQWKHFRPLQJ GHPRJUDSKLFV \HDUVVLQFHWKHQXPEHURIFKLOGUHQEHLQJERUQLVQRZVLJQLILFDQWO\ORZHUWKDQGXULQJ WKHHUDRIWKHHFRQRPLFPLUDFOHLQ*HUPDQ\7KHODVW\HDUZKHQWKHQXPEHURIOLYH

*(50$1%,57+5$7(/$67(;&(('('0,//,21,1 327(17,$/:25.)25&(:,//&2175$&76+$53/<%< 180%(52)3(23/(,1µ

1,400,000

1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020e life-born one million WR\HDUV \HDUV \HDUV

6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH 6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH WKFRRUGLQDWHGSRSXODWLRQSUR MHFWLRQXSWR³PRGHUDWH´VFHQDULR Main Regional Real Estate Markets in Germany 7 2021

ELUWKVH[FHHGHGPLOOLRQZDV:LGHVSUHDGXVHRIWKHFRQWUDFHSWLYHSLOOKDVUH GXFHGWKHQXPEHURIELUWKVWRZHOOEHORZWKLVOHYHO$IWHUUHXQLILFDWLRQRQDYHUDJH DSSUR[LPDWHO\FKLOGUHQZHUHERUQHDFK\HDU&RQYHUVHO\EHWZHHQDQG WKHDQQXDOWRWDOZDVFORVHWRPLOOLRQ

7KLVZLOOOHDGWRDFRQWLQXRXV³UHWLUHPHQWZDYH´ODVWLQJLQWRWKHPLGGOHRIWKHQH[W (FRQRPLFDOO\DFWLYHSRSXODWLRQ GHFDGH6LQFHVXEVHTXHQWDJHFRKRUWVZHUHPXFKVPDOOHUWKHODERXUIRUFHLVOLNHO\ VHWWRFRQWUDFWVKDUSO\E\ WRFRQWUDFWVKDUSO\,QWKHJUDSKDERYHULJKWWKH³HFRQRPLFDOO\DFWLYH´SRSXODWLRQLV UHGXFLQJRIILFHGHPDQG GHILQHGDVWKRVHDJHGWR±FXUUHQWO\DURXQGPLOOLRQSHRSOH$FFRUGLQJWRD GHPRJUDSKLFIRUHFDVWIURPWKH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFHE\WKLV QXPEHUZLOOKDYHGHFOLQHGE\PLOOLRQ7KLVLQFOXGHVDQHVWLPDWHGDURXQGPLOOLRQ HFRQRPLFDOO\DFWLYHSHRSOHDERXWDWKLUGRIZKLFK±PLOOLRQ±DUHRIILFHZRUNHUV 7UXHUHWLUHPHQWFDQEHGHIHUUHG+RZHYHULQUHDOWHUPVWKHGHPRJUDSKLFWUHQGLV OLNHO\WRVLJQLILFDQWO\UHGXFHWKHFXUUHQWILJXUHRIDURXQGPLOOLRQRIILFHHPSOR\HHV DQGFRUUHVSRQGLQJO\GHPDQGIRURIILFHVSDFH

2)),&(%8,/',1*3(50,76(;&(('&203/(7,216 025(7+$1+$/)2)2)),&(6$/5($'<025(7+$1<($562/' )/22563$&(,1640 7+528*+287*(50$1< 2)),&(672&.%$6('21<($52)&216758&7,21,13(5&(17

7,000 58.0 59.5 6,000

5,000

4,000

3,000

2,000 11.5 10.9 8.3 8.6 7.8 7.3 1,000 5.0 4.3 4.8 4.1 5.2 4.7

0 bis 1990- 1995- 2000- 2005- 2010- ab 1989 1994 1999 2004 2009 2014 2015 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020e building permits completions A cities B cities

6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD

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

2IILFH0DUNHWWUHQGLQWKHORFDWLRQVFRYHUHG

7KHORFDWLRQVUHYLHZHGLQWKLVPDUNHWUHSRUWKDYHWRWDORIILFHVSDFHRIPLOOLRQ 0DUNHWUHSRUWFRYHUVDOPRVWDWKLUG PQHDUO\DWKLUGRIWKHWRWDORIILFHVSDFHDYDLODEOHIRUUHQWLQ*HUPDQ\7KHOLRQ¶V RI*HUPDQRIILFHVSDFH VKDUH PLOOLRQP LVLQWKHVHYHQWRSORFDWLRQVUDQJLQJIURPDOPRVWPLOOLRQPLQ 'VVHOGRUIWRQHDUO\PLOOLRQPLQ%HUOLQ7KHUHJLRQDOFHQWUHVDFFRXQWIRUPLO OLRQP7KHVL]HRIORFDWLRQVH[WHQGVIURPPLOOLRQPLQ$XJVEXUJWRPLOOLRQ PLQ+DQQRYHU 8 Main Regional Real Estate Markets in Germany 2021

)52060$//72/$5*(±2850$5.(75(3257&29(567+()8// '(63,7($1,1&5($6(9$&$1&<5$7(6,17+(2)),&( 5$1*(2)*(50$12)),&(/2&$7,216 0$5.(7$5(/2: 9$&$1&<5$7(,13(5&(17

12.8 13.0 18 9.6 9.6 8.4 8.1 7.9 7.4 7.2 7.1 7.0 5.5 5.3 4.6 4.5

2.8 15 0.5 0.3 0.0 12 9 6 19.9

3 6.8 6.2 6.1 14.1 13.9 5.1 4.7 4.3 4.2 10.1 8.0 7.8 7.7 3.7 3.7 3.5 3.4

0 3.3 3.3 3.0 3.0 2.9 4.6 2.3 3.7 3.2 1.8 2.8 2.7 2.7 2.6 1.5 2.2 2.2 1.7 1.6 1.4 Essen Köln Berlin Mainz Essen Berlin Leipzig Mainz Munich Bremen Leipzig Dresden Münster Cologne Bremen Stuttgart Dresden Münster Hamburg Frankfurt Karlsruhe Augsburg Hannover Stuttgart Hamburg München Frankfurt Darmstadt Karlsruhe Düsseldorf Nürnberg Augsburg Hannover Mannheim Nuremberg Darmstadt Düsseldorf Mannheim office space in million sqm 2020 change from 2010 to 2020 in % 2020 2010

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD

'HVSLWHWKHVWHDG\GHFOLQHLQYDFDQF\UDWHVJURZWKLQVSDFHKDVUHPDLQHGZLWKLQ 3ULPHRIILFHUHQWVXSE\PRUHWKDQ OLPLWVLQDOOORFDWLRQVVLQFHDWDURXQGSHUFHQW&RQYHUVHO\LQWKHWHQ SHUFHQWVLQFH SUHYLRXV\HDUVJURZWKZDVYLVLEO\VWURQJHUDWSHUFHQWGHVSLWHPXFKKLJKHU YDFDQF\UDWHV$WWKHHQGRISHUFHQWRIWRWDORIILFHVSDFHZDVOHW,Q RQO\DERXWSHUFHQWRIRIILFHZDVRFFXSLHG$VDUHVXOWRIWKHRQJRLQJVKRUW DJHRIDYDLODEOHRIILFHVSDFHVLQFHSULPHRIILFHUHQWVLQFUHDVHGVLJQLILFDQWO\± E\PRUHWKDQSHUFHQWEHWZHHQDQG

7KHPDLQUHDVRQIRUWKHVKRUWDJHRIRIILFHVSDFHLVWKHVWURQJJURZWKLQRIILFHHP 2IILFHHPSOR\PHQWJUHZVWURQJO\ SOR\PHQWIURPWR7KHFRURQDYLUXVFULVLVEURXJKWWKLVJURZWKWRDQHQG XSWR FDXVLQJDPLQRUVHWEDFN7KHVSDFHVKRUWDJHFDQDOVREHLOOXVWUDWHGE\WKHWKHRUHWL FDOYROXPHRIRIILFHVSDFHSHURIILFHHPSOR\HH%DVHGRQWKHWRWDORIILFHVWRFNLQ DURXQGPZDVDYDLODEOHIRUHDFKRIILFHZRUNHU±WKHORZHVWILJXUHVLQFHWKH EHJLQQLQJRIWKHV,QWKHILJXUHZDVDJRRGP+RZHYHUWKLVUDWLRLV RIRQO\OLPLWHGVLJQLILFDQFHJLYHQWKHJURZLQJLPSRUWDQFHRIZRUNLQJIURPKRPH

7KHVKRUWDJHRIDYDLODEOHVSDFHKDVLQFUHDVHGWKHQHHGIRUQHZRIILFHFRQVWUXFWLRQ 0RUHRIILFHVSDFHEXLOWDJDLQ *LYHQWKHVWHDG\LQFUHDVHLQUHQWVWKHVSHFXODWLYHGHYHORSPHQWRIRIILFHVSDFHKDV VLQFH DOVREHFRPHPRUHLPSRUWDQW7KHYROXPHRIQHZVSDFHKDVLQFUHDVHGDJDLQVLQFH )URPWRDQQXDOQHZVSDFHLQDOOWKHORFDWLRQVDFFRXQWHGIRUSHU FHQWRIH[LVWLQJVSDFH&RQYHUVHO\WKHILJXUHZDVSHUFHQWLQDQG

%<7+(180%(52)2)),&(-2%6+$'/21*%((1*52:,1* 7+(25(7,&$/2)),&(63$&(3(52)),&((03/2<((+$6)$//(1 )$67(57+$12)),&(63$&( 72$&203$5$7,9(/

3,800 120 38 3,600 115 37 3,400 110 36 35 3,200 105 34 3,000 100 33 2,800 95 32 2,600 90 31 2,400 85 30 2,200 80 29 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office workers in thousand (lhs) office space per office worker in sqm (rented office space) office space in milion sqm (rhs) office space per office worker in sqm (total office space)

6RXUFHEXOZLHQJHVD6FRSH 6RXUFHEXOZLHQJHVD'=%$1. Main Regional Real Estate Markets in Germany 9 2021

21$9(5$*(/,77/(',9(5*(1&(%(7:((11(:2)),&(63$&(,1 /$5*(',))(5(1&(6,15(/$7,9(1(:63$&( 5(*,21$/&(175(6$1'723/2&$7,216 1(:2)),&(63$&($63(5&(17$*(2)2)),&(672&. 1(:2)),&(63$&($63(5&(17$*(2)2)),&(672&. $118$/$9(5$*()52072

4.0 3.5 3.3 3.0 2.5 2.2 2.0 2.0 1.6 1.7 1.4 1.5 1.5 1.5 1.1 1.2 1.2 1.2 1.2 0.9 0.9 1.1 1.0 0.8 0.8 0.4 0.5 0.0 Essen Berlin Mainz Leipzig Munich Bremen Dresden Cologne Munster Stuttgart Hamburg Frankfurt Karlsruhe Hannover Augsburg Darmstadt Dusseldorf Mannheim UHJLRQDOSURSHUW\FHQWUHV WRSORFDWLRQV Nuremberg

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD

7KHUDQJHLVZLGHGHSHQGLQJRQWKHORFDWLRQ,QWHUHVWLQJO\WKHORZHVWYROXPHRIQHZ VSDFHZDVLQWKHORFDWLRQZLWKWKHORZHVWYDFDQF\UDWH 0QVWHU 7KHKLJKHVWJURZWK LQRIILFHVSDFHUHODWLYHWRWKHRIILFHVWRFN±PRUHWKDQWZRSHUFHQW±ZDVLQWKHRIILFH PDUNHWVRI%HUOLQ0DQQKHLPDQG.DUOVUXKH

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±DVKDSSHQHGDIWHUWKHPLOOHQQLXP

,QFRQWUDVWWRRIILFHUHQWVDQGYDFDQF\UDWHVWKHFRURQDYLUXVFULVLVKDVKDGDPDMRU 7DNHXSGRZQE\DERXWDWKLUGRQ LPSDFWRQWDNHXS&XPXODWLYHDQQXDOWDNHXSLQWKHORFDWLRQVUHYLHZHGLQFOXGLQJ WKHSUHYLRXV\HDULQ QHZOHWVLQSDUWLFXODUIHOOE\DERXWDWKLUGRQWKHSUHYLRXV\HDUWRPLOOLRQP &RQYHUVHO\EHWZHHQDQGFXPXODWLYHDQQXDOWDNHXSZDVLQWKHUHJLRQRI WRPLOOLRQP7KHSHUFHQWDJHGHFOLQHLQRIILFHWDNHXSFRPSDUHGWR UDQJHVIURPSHUFHQWLQ/HLS]LJWRSHUFHQWLQ'DUPVWDGW7KHSDQGHPLFKDVKDG DJUHDWHURYHUDOOLPSDFWRQRIILFHPDUNHWVLQWKHWRSORFDWLRQV±ZKLFKKDYHVHHQDQ DYHUDJHGHFOLQHRISHUFHQW±WKDQRQWKHUHJLRQDOFHQWUHV±ZKHUHOHYHOVDUH GRZQE\SHUFHQW

7KHJHQHUDOO\PXFKKLJKHUWDNHXSLQWKHWRSORFDWLRQVUHODWLYHWRWRWDORIILFHVSDFH 7DNHXSLQUHJLRQDOFHQWUHVEURDGO\ ZDVVLPLODUWROHYHOVLQWKHUHJLRQDOFHQWUHVLQ,QERWKPDUNHWVHJPHQWVDOPRVW LQOLQHZLWKORQJWHUPDYHUDJHLQ SHUFHQWRIWKHRIILFHVWRFNZDVQHZO\OHWLQ7KLVLVDKLVWRULFDOO\ORZILJXUHIRU WKHWRSORFDWLRQV2QDYHUDJHIURPWRDQQXDOUHODWLYHWDNHXSZDVDURXQG SHUFHQW,QFRQWUDVWWKHORQJVWDQGLQJDYHUDJHRISHUFHQWLQWKHUHJLRQDO FHQWUHVEDUHO\H[FHHGHGWKHILJXUH 10 Main Regional Real Estate Markets in Germany 2021

7$.(83)(//6+$53/<'8(72&2521$9,586&5,6,6 :,'(',9(5*(1&(,1'(&/,1(,17$.(83 7$.(83)52072 7$.(83$63(5&(17$*(2)2)),&(672&.

6 6

5 5

4 4

3 3

2 2

1 1 1.9 1.7 1.7 2.0 2.1 2.4 2.8 3.2 3.9 3.4 2.7 2.7 3.0 3.5 4.2 3.0 3.5 4.0 3.5 3.5 4.2 4.5 5.0 4.7 4.8 3.1 2.6 3.6 3.6 0 0 Essen Berlin 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mainz Leipzig Munich Bremen Dresden Münster Cologne

all locations: office space take-up in million sqm Stuttgart Hamburg Frankfurt Karlsruhe Augsburg Hannover Darmstadt Düsseldorf Mannheim

top locations: in % of the total office space Nuremberg regional property centres: in % of the total office space average from 2017 to 2019 2020

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD

'HVSLWHWKHVWHHSIDOOLQWDNHXSSULPHRIILFHUHQWVKDYHUHPDLQHGVWDEOHFRPSDUHG 3ULPHRIILFHUHQWVGLGQRWZHDNHQLQ WR7KHVWHHSIDOOLQUHQWVZKLFKZDVDIHDWXUHRIHDUOLHUHFRQRPLFFULVHVKDV GHVSLWHHFRQRPLFFULVLV IDLOHGWRPDWHULDOLVH7KLVLVSUREDEO\EHFDXVHRIWKHORZYROXPHRIDYDLODEOHVSDFH GHVSLWHWKHGHFOLQHLQGHPDQGFRPSDUHGWR$VLQSUHYLRXV\HDUVYLUWXDOO\WKH RQO\RSWLRQRSHQWRFRPSDQLHVDQGLQVWLWXWLRQVLQWHUHVWHGLQODUJHVFDOHFRQWHPSR UDU\RIILFHVSDFHKDVEHHQH[SHQVLYHVSDFHIURPSURMHFWGHYHORSPHQWVZKLFKDUHHL WKHUXQGHUFRQVWUXFWLRQRUDWWKHSODQQLQJVWDJH1HDUO\DOOWKHODUJHUHQWDOFRQWUDFWV FRQFOXGHGLQZHUHLQWKLVFDWHJRU\

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

%(5/,167$1'6287:,7+<($55(175,6( /2:9$&$1&<5$7(6/2:65(17'(&/,1( 35,0(2)),&(5(176,1&5($6()52072,13(5&(17 35,0(2)),&(5(176&203$5('7235(9,286<($5,13(5&(17

90 15 12 9 6 47 43 44 3 39 41 43 33 35 0 28 28 23 24 26 26 -3 17 18 18 20 20 -6 3 -9 -12 -15 Essen Top-7 Berlin Mainz Leipzig Munich Bremen Dresden Cologne Münster 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stuttgart Frankfurt Hamburg Karlsruhe 2021e Augsburg Hannover Darmstadt Düsseldorf Mannheim Nuremberg Regional-12 all locations top locations regional property centres

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW Main Regional Real Estate Markets in Germany 11 2021

5$1*(2)2)),&(5(176+$6:,'(1('6,*1,),&$17/<6,1&( 35,0(2)),&(5(176,1(853(5640 &,7<&(175(/2&$7,216

45 40 35 41.0 39.5 30 39.0

25 33.7 30.0 20 26.5 24.0 15 23.5 18.0

10 16.8 16.0 15.5 15.3 15.3 15.0 14.8 14.5 14.3 13.2 13.2 5 13.1 12.8 11.0 11.0 12.2 11.5 12.5 10.5 11.0 11.9 11.5 12.5 13.3 12.8 20.0 16.3 21.5 22.5 23.4 20.5 27.7 33.0 0 Bre- Augs- Darm- Mainz Karls- Mün- Dres- Leip- Reg- Nurem- Essen Mann- Hann- Colog- Stutt- Düssel- Ham- Top- Ber- Mu- Frank- men burg stadt ruhe ster den zig 12 berg heim over ne gart dorf burg 7 lin nich furt 2020 2010

6RXUFHEXOZLHQJHVD

3ULPHRIILFHUHQWVFXUUHQWO\UDQJHIURP(85WRSHUP$XJVEXUJ%UHPHQDQG 3ULPHUHQWVLQUHJLRQDOFHQWUHV 'DUPVWDGWDUHDWWKHORZHUHQG7KHPRVWH[SHQVLYHUHJLRQDOFHQWUHVDUH(VVHQ UDQJHIURP(85WRSHUP 0DQQKHLPDQG+DQQRYHUZKHUHSULPHUHQWVUDQJHIURP(85WRSHUP7KH UDQJHRIUHQWVLQWKHWRSORFDWLRQVVWDUWVDWDURXQG(85SHUPLQ&RORJQHDQG 6WXWWJDUW%HUOLQ)UDQNIXUWDQG0XQLFKDUHDWWKHWRSHQGZLWK(85SHUP

,QVRPHUHJLRQDOFHQWUHVVOLJKWO\KLJKHUUHQWVDUHDFKLHYHGLQ³RIILFHRQO\´SHULSKHUDO 5HQWVKLJKHUWKDQLQWKHFLW\FHQWUH ORFDWLRQVFRPSDUHGWRWKHSULPHFLW\FHQWUHUHQWVGHSLFWHGKHUH2IWKHORFDWLRQVZH LQVRPHSHULSKHUDORIILFHORFDWLRQV KDYHUHYLHZHGWKLVLVWUXHRI$XJVEXUJ%UHPHQ'DUPVWDGW0DLQ]DQG0QVWHU +RZHYHUZLWKWKHH[FHSWLRQRI$XJVEXUJUHQWVLQRIILFHFHQWUHVVKRZDQXSZDUG GLYHUJHQFHRIFRQVLGHUDEO\OHVVWKDQ(85SHUP&RQYHUVHO\UHQWVIRUQHZ RIILFHRQO\ORFDWLRQVLQ$XJVEXUJDUHQHDUO\(85SHUPPRUHH[SHQVLYHWKDQ KLJKYDOXHFLW\FHQWUHRIILFHVSDFH

6LPLODUWRSULPHUHQWVLQLWLDOUHQWDO\LHOGVIRURIILFHEXLOGLQJVLQFHQWUDOORFDWLRQV 5HQWDO\LHOGIRURIILFHVSDFH UHPDLQHGXQFKDQJHGODVW\HDU+RZHYHUDOWKRXJKUHQWDO\LHOGVKDYHQRWIDOOHQDQ\ UHPDLQHGVWDEOHLQ IXUWKHUWKHJURZLQJXQFHUWDLQW\DVVRFLDWHGZLWKRIILFHSURSHUW\KDVDOVRSUHYHQWHG WKHPIURPLQFUHDVLQJ7ZRDUJXPHQWVLQSDUWLFXODUDSSO\KHUH:LWKERQG\LHOGVUH PDLQLQJORZWKHPDVVLYHSUHVVXUHRQLQYHVWRUVWRLQYHVWLVSUHYHQWLQJUHQWDO\LHOGV

2)),&(<,(/'667233(')$//,1*,1 0($*5(5(78516<,(/'62)$5281'3(5$7+,1*2)7+(3$67 2)),&(6,1&(175$//2&$7,216,1,7,$/5(17$/<,(/',1 2)),&(6,1&(175$//2&$7,216,1,7,$/5(17$/<,(/',1

7.0 6.5

6.0 4.5 4.1 4.0 4.0 4.0 3.9 3.8 3.8 3.8 3.8

5.5 3.6 3.6 3.6 3.2 3.1 3.0 2.8 2.8 2.8

5.0 2.7 2.6 4.5 4.0 3.5 3.0 Essen Berlin Mainz Leipzig Munich Bremen Dresden Cologne 2.5 Münster Stuttgart Frankfurt Hamburg Karlsruhe Augsburg Hannover Darmstadt Düsseldorf Mannheim Nuremberg top locations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

top locations regional property centres regional centres

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 12 Main Regional Real Estate Markets in Germany 2021

IURPLQFUHDVLQJ$QGLWVKRXOGVWLOOEHIDLUO\HDV\WROHWWKHRIILFHSURSHUWLHVLQFHQWUDO ORFDWLRQVFRQVLGHUHGKHUHLIRYHUDOOGHPDQGIRURIILFHVSDFHZHDNHQVIRUH[DPSOH DVDUHVXOWRIZRUNLQJIURPKRPH

7KHUDQJHRILQLWLDOUHQWDO\LHOGVIRUFHQWUDORIILFHORFDWLRQVH[WHQGVIURPSHUFHQW (DVW*HUPDQORFDWLRQVWRSRIWKH LQ%HUOLQWRSHUFHQWLQ%UHPHQ7KHDYHUDJHUHQWDO\LHOGIRUWRSORFDWLRQVLV OHDJXHIRURIILFH\LHOGV SHUFHQWZKLOHWKHFRUUHVSRQGLQJILJXUHIRUWKHUHJLRQDOFHQWUHVLVDERXWSHUFHQW DJHSRLQWKLJKHUDWSHUFHQW7KHORZHVWRIILFHUHQWDO\LHOGVRISHUFHQWIRUUH JLRQDOFHQWUHVDUHLQ'UHVGHQ/HLS]LJDQG1XUHPEHUJ*LYHQWKHLUSHDNSRVLWLRQVLQ WKH\LHOGUDQNLQJVWKHWKUHHHDVW*HUPDQORFDWLRQVFRYHUHGLQWKLVPDUNHWUHSRUW± %HUOLQ'UHVGHQDQG/HLS]LJ±DUHRISDUWLFXODULQWHUHVWWRLQYHVWRUV

2IILFH&RQFOXVLRQDQGIRUHFDVW

7KHRIILFHPDUNHWLVXQGHUJRLQJUDGLFDOFKDQJH0DQ\HPSOR\HUVDQGRIILFHZRUNHUV :RUNLQJIURPKRPHDQG SUHIHUWRZRUNIURPKRPHIRUDPXFKODUJHUSURSRUWLRQRIWKHLUWLPHWKDQEHIRUHWKH GHPRJUDSKLFVGDPSHQGHPDQGIRU FRURQDYLUXVFULVLV%XWRIILFHEXLOGLQJV±ZKLFKKDYHDGYDQWDJHVIRUFRPPXQLFDWLRQV RIILFHVSDFH DQGWHDPZRUN±DUHE\QRPHDQVVXSHUIOXRXV+RZHYHUWKHQXPEHURIGHVNVDQG WKXVWKHYROXPHRIRIILFHVSDFHFDQQHYHUWKHOHVVEHVLJQLILFDQWO\UHGXFHG:HEH OLHYHWKDWWKHK\EULGRIILFHDSSURDFKGHVFULEHGDWWKHEHJLQQLQJ±ZLWKWDVNVZKLFKUH TXLUHDKLJKGHJUHHRIIRFXVEHLQJFDUULHGRXWLQWKHKRPHRIILFHDQGWHDPZRUNLQ WKHRIILFH±ZLOOSUHYDLODQGWKDWRYHUDOOGHPDQGIRURIILFHVSDFHLVJUDGXDOO\ZHDNHQ LQJ7KHVLWXDWLRQZLOOEHFRPSRXQGHGE\GHPRJUDSKLFV$QDJHLQJSRSXODWLRQZLOO OHDGWRDUHGXFWLRQLQIXWXUHHPSOR\PHQWSRWHQWLDODQGZLOODOVRWKHUHIRUHGDPSHQ GHPDQGIRURIILFHVSDFH

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

2)),&(±)25(&$676)2535,0(5(176$1'9$&$1&<5$7(6

H UHJLRQDOFHQWUHV 3ULPHUHQWVLQ(85Pð YVSUHYLRXV\HDULQ 9DFDQF\UDWHLQ YVSUHYLRXV\HDULQSRLQWV WRSORFDWLRQV 3ULPHUHQWVLQ(85Pð YVSUHYLRXV\HDULQ 9DFDQF\UDWHLQ YVSUHYLRXV\HDULQSRLQWV

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVWDOODYHUDJHVDUHVSDFHZHLJKWHG 3ULPHUHQWVUHSUHVHQWWKHDYHUDJHRIWKHWRSWRSHUFHQWRIPDUNHWUHQWDOVDQGWKHVWDWHGILJXUHGRHVQRW WKHUHIRUHFRUUHVSRQGWRWKHDEVROXWHWRSUHQW Main Regional Real Estate Markets in Germany 13 2021

5HWDLOSURSHUW\&LW\FHQWUHUHWDLOILJKWVIRUVXUYLYDO

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

+RZHYHUWKLVZLOOQRWVROYHWKHSUREOHPVIDFLQJFLW\FHQWUHUHWDLOHUV7KHFXUUHQWFUL 6WUXFWXUDOFKDQJHLQUHWDLOVWDUWHG VLVLVDVVRFLDWHGZLWKDUDGLFDOVWUXFWXUDOVKLIWIRULQVWRUHUHWDLOZKLFKVWDUWHGSUH SUHFRURQDYLUXV±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

0$5.(76+$5(2),16725(5(7$,/)$//,1*67($',/<)25 6$/(6,1'(3$570(176725(6$1')$6+,21&+$,16)(// <($56 6+$53/<,1 5(7$,/0$5.(76+$5(6,13(5&(17 120,1$/5(7$,/6$/(69635(9,286<($5,1

580 14 total retail 5.1 540 12 food, beverages, tobacco 8.1 500 10 non-food 3.6 460 8 thereof 420 6 textiles, fashion, shoes -23.2 380 4 department stores -11.9 340 2 other retail, e.g. books 1.0 300 0 pharmacies, cosmetics 2.8

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 furniture/DIY stores 5.9 online retail sales in EUR bn (lhs) e-commerce/mail order 24.8 brick and mortar retail sales in EUR bn (lhs) online retail sales in % of total retail sales (rhs)

6RXUFH+'( 6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH

$VDUHVXOWRIORVWVDOHVPDQ\UHWDLOHUVDUHILJKWLQJWRVXUYLYH5HFHQWPRQWKVKDYH 0DQ\UHWDLOHUVILJKWLQJIRUVXUYLYDO VHHQZHOONQRZQIDVKLRQFKDLQVVXFKDV$GOHU%RQLWD'LHOPDQQ(VSULW+DOOKXEHU 6LQQDQG7DOO\:HLMODVZHOODVUHVWDXUDQWFKDLQVILOLQJIRULQVROYHQF\6XUYLYDORIWHQ HQWDLOVWKHUDGLFDOSUXQLQJRIEUDQFKQHWZRUNV$IWHULQVROYHQF\DQGWKHFORVXUHRID TXDUWHURILWVEUDQFKHVWKH*DOHULD.DUVWDGW.DXIKRIVWRUHFKDLQKDGUHFRXUVHWR JRYHUQPHQWDVVLVWDQFHRI(85P

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ain Regional Real Estate Markets in Germany 2021

&RQYHUVHO\SURSHUW\RZQHUVLQWKHORFDOVXSSO\VHFWRUKDYHQRVHULRXVFRQFHUQV DVXFFHVVIXO\HDUIRUVXSHUPDU 6XSHUPDUNHWVDQGGUXJVWRUHVUHSRUWHGVROLGVDOHVJURZWKLQ$VDUHVXOWRI NHWVELNHVKRSVDQG',

0DUNHWFRQGLWLRQVLQWKHUHWDLOVHFWRU

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

$FFRUGLQJWRVWDWLVWLFVIURPWKH*HUPDQ5HWDLO)HGHUDWLRQ +'( KLJKVWUHHWVWRUHV (FRPPHUFHPDUNHWVKDUHLQFUHDVHV DQGRQOLQHVKRSVJHQHUDWHGERWWRPOLQHVDOHVRI(85EQLQDQLQFUHDVHRI WRDJRRGSHUFHQW (85EQRQ2QOLQHUHWDLOEHQHILWHGSDUWLFXODUO\ZLWKVDOHVXSIURP(85EQ WRDURXQGEQ7KLVUHSUHVHQWVDPDUNHWVKDUHRIDJRRGSHUFHQWDQLQFUHDVH RISHUFHQWDJHSRLQWVFRPSDUHGWR

5(&25'*52:7+,15(7$,/6$/(6,1 5(7$,/)227)$//$/62/2:2876,'(/2&.'2:13+$6(6 5(7$,/6$/(69635(9,286<($5,13(5&(17 '(&/,1(,1)227)$//&203$5('72,13(5&(17

6 10 5 0 4 -10 3 -20 2 -30 1 -40 0 -50 -1 -60 -2 -70 -3 -80 -90 -4 -100 -5 -6 KW01 KW03 KW05 KW07 KW09 KW11 KW13 KW15 KW17 KW19 KW21 KW23 KW25 KW27 KW29 KW31 KW33 KW35 KW37 KW39 KW41 KW43 KW45 KW47 KW49 KW51 KW53

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 customer frequency deviation per calendar week nominal price-adjusted average 2020

6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH 6RXUFH&URVVFDQ

7KHKLJKOHYHORIUHWDLOVSHQGLQJLVQRWRQO\VXUSULVLQJLQYLHZRIWKHZHDNHUODERXU &RQVXPHUFRQILGHQFHSOXPPHWHG PDUNHWFRQGLWLRQV&RQVXPHUVHQWLPHQWKDVIDOOHQWRLWVORZHVWSRLQWIRU\HDUV LQ« 7KH*I.FRQVXPHUFOLPDWHVOLSSHGLQWRQHJDWLYHWHUULWRU\DJDLQLQ0D\IRUWKH ILUVWWLPHVLQFH,WWKHQUHFRYHUHGIURPWKHVWHHSGRZQWXUQRI0D\-XQH EHIRUHWXUQLQJYHU\QHJDWLYHDJDLQDVDUHVXOWRIWKHWXUQRIWKH\HDUORFNGRZQ

7KHXQFHUWDLQW\IHOWE\FRQVXPHUVKDVEHHQDFFRPSDQLHGE\DSKHQRPHQDOLQFUHDVH «ZKLOHXQFHUWDLQW\OHGWRDVXUJHLQ LQWKHSURSHQVLW\WRVDYH7KHVDYLQJVUDWLRZKLFKRQDYHUDJHH[FHHGHGSHUFHQW WKHVDYLQJVUDWLR EHWZHHQDQGKDVQRZLQFUHDVHGWRSHUFHQW7KHDQQXDODYHUDJHLQ ZDVSHUFHQW7KLVWUDQVODWHVLQWRDQLQFUHDVHRIPRUHWKDQ(85EQLQ VDYLQJVFRPSDUHGWRDOWKRXJKPRVWIXQGVKDYHEHHQSODFHGLQVKRUWWHUP GHSRVLWDFFRXQWVUDWKHUWKDQLQYHVWHGORQJWHUP Main Regional Real Estate Markets in Germany 15 2021

&21680(563(1',1*+,*+,1'(63,7(9,6,%/( 6$9,1*65$7,2+$612:'28%/(''8(72+,*+/(9(/ '(7(5,25$7,21,1&21680(5&/,0$7( 2)81&(57$,17< *).&21680(5&/,0$7(,132,176 6$9,1*65$7,2,13(5&(176($621$//<$'-867('

25 22

20 20 15 18 10 5 16 0 14

-5 12 -10 10 -15 -20 8 -25 6 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

6RXUFH*I.DVRI)HEUXDU\ 6RXUFH*HUPDQ)HGHUDO6WDWLVWLFDO2IILFH

7KHFRURQDYLUXVFULVLVDQGVSHFLILFDOO\WKHSKDVHVRIORFNGRZQKDYHWDNHQDKHDY\ )DVKLRQUHWDLOVXIIHULQJIURP WROORQFLW\FHQWUHIDVKLRQUHWDLO7KLVLPSRUWDQWUHWDLOVHJPHQWKDVVXIIHUHGDGGLWLRQ FRURQDYLUXVDQG« DOO\EHFDXVHPDQ\RIWKHVSHFLDORFFDVLRQVIRUZKLFKFXVWRPHUVW\SLFDOO\EX\QHZ RXWILWVVXFKDVKROLGD\VIDPLO\FHOHEUDWLRQVDQGYLVLWVWRWKHWKHDWUHDQGRSHUDKDYH EHHQFDQFHOOHG/HLVXUHZHDUUDWKHUWKDQIRUPDOEXVLQHVVDWWLUHDOVRWHQGVWREHZRUQ ZKHQZRUNLQJIURPKRPH+RZHYHUWKHSUREOHPVDIIOLFWLQJWKHLQVWRUHIDVKLRQVHJ PHQW±KLWKHUWRWKHPRVWLPSRUWDQWXVHURIFLW\FHQWUHUHWDLOVSDFH±KDGDOUHDG\ VWDUWHGSUHFRYLG

)DVKLRQVDOHVZKLFKUHDFKHGDFRPELQHGWRWDORI(85EQIURPLQVWRUHDQG «SHUVLVWHQWO\ZHDNJURZWK RQOLQHUHWDLOLQDUHYLUWXDOO\VWDJQDWLQJ%HWZHHQDQGDQQXDOQRPL QDOVDOHVJURZWKUHDFKHGDOPRVWSHUFHQWZKLOHWRWDOUHWDLOVDOHVLQFUHDVHGE\PRUH WKDQWKUHHWLPHVWKLVUDWH)URPWRLQIODWLRQZDVKLJKHUWKDQWKHQRPLQDO JURZWKLQIDVKLRQVDOHVDQGIDVKLRQUHWDLOKDGWKHUHIRUHDOUHDG\FRQWUDFWHGLQUHDO WHUPVEHIRUHWKHFRURQDYLUXVFULVLV7KDQNVWRHFRQRPLFJURZWKORZXQHPSOR\PHQW GHPRJUDSKLFJURZWKDQGERRPLQJWRXULVPLQFLWLHVFRQGLWLRQVZHUHEHWWHUWKDQDW DOPRVWDQ\WLPHSUHYLRXVO\

/RZVDOHVJURZWKDQGDVLPXOWDQHRXVLQFUHDVHLQWKHSURSRUWLRQRIRQOLQHVDOHVDUH ,QVWRUHIDVKLRQVDOHVFRXOG DOVROHDGLQJWRDQRPLQDOGHFOLQHLQWKHYROXPHRIVDOHVJHQHUDWHGIURPLQVWRUH GHFOLQHDJDLQVKDUSO\

)$6+,216$/(6*52:6/2:(57+$1,1)/$7,216,1&( 21/,1(3523257,212))$6+,215(7$,/&28/'*52:)857+(5 6$/(675(1')$6+,215(7$,/ 6$/(6)$6+,215(7$,/,1(85%1

66.0 65.1 65.5 64.2

4.6 63.5 6.4 62.2 10% 15.0 23% 29.0 40% 39.6 50% 60.5 5.3 9% 59.2 59.3 57.8 2.9 2.3

2.0 2.0 57.2 90% 52.2 91% 51.0 77%

1.4 43.6 60%

1.2 39.6 50% 1.1 2.5 2.2 1.6 0.8 0.7 0.4 1.7 0.6 1.9 0.4 1.4 0.1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 total retail sales in fashion yoy in % inflation rate (HICP) in % 2010 2015 2019 2025 2030 total retail sales in fashion in EUR bn fashion retail - brick and mortar fashion retail - e-commerce

6RXUFH.30*(+, )DVKLRQUHSRUW (XURVWDW 6RXUFH.30*(+, )DVKLRQUHSRUW 16 Main Regional Real Estate Markets in Germany 2021

IDVKLRQUHWDLO'DWDIURPWKH³)DVKLRQ´UHSRUWSXEOLVKHGE\.30*(+,DQGWKH *HUPDQWH[WLOHLQGXVWU\DVVRFLDWLRQ %7( VKRZWKDWLQVWRUHIDVKLRQVDOHVGHFOLQHG IURPDURXQG(85EQLQWR(85EQLQZKLOHWKHRQOLQHSURSRUWLRQ JUHZIURPWRSHUFHQW7KHUHSRUWH[SHFWVWKLVWUHQGWRFRQWLQXHDQGWKHSUR SRUWLRQRIRQOLQHIDVKLRQVDOHVWRLQFUHDVHWRSHUFHQWE\7KLVPHDQVWKDW LQVWRUHIDVKLRQVDOHVZRXOGGHFOLQHWRDURXQG(85EQ

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

7KHVLWXDWLRQLVEHLQJFRPSRXQGHGIXUWKHUE\WKHH[SDQVLRQRIFLW\FHQWUHVDOHV 6LWXDWLRQFRPSRXQGHGE\H[SDQVLRQ VSDFHLQUHFHQW\HDUV8QWLORQO\DIHZ\HDUVDJRGHPDQGIRUSULPHUHWDLOVSDFHXVX RIFLW\FHQWUHVDOHVVSDFH DOO\H[FHHGHGVXSSO\GULYLQJSULPHUHQWVXSVKDUSO\7KH³JROGHQ\HDUV´IRUODQG ORUGVRIFLW\FHQWUHUHWDLOSURSHUWLHVZHUHEDVHGRQWKHVWUDWHJ\DGRSWHGE\PDQ\ IDVKLRQFKDLQVRIH[SDQGLQJERWKWKHLURQOLQHRIIHUDQGWKHLUFLW\FHQWUHSUHVHQFHZLWK GHQVHEUDQFKQHWZRUNV(FRQRPLFJURZWKDQLQFUHDVLQJSRSXODWLRQDQGIORXULVKLQJ WRXULVPUDLVHGKRSHVRISRVLWLYHVDOHV7KHSURSHUW\PDUNHWUHDFWHGZLWKDZKROHVH ULHVRIFLW\FHQWUHSURMHFWGHYHORSPHQWV

63$&('(0$1''529(835(7$,/5(176%()25(%5$1&+ '()<,1*7+(21/,1(6+233,1*75(1'6$/(663$&(+$6 &/2685(65('8&('7+(0$*$,1 &217,18('72*52: 35,0(5(176,1(853(5640 180%(5$1'6$/(663$&(2)*(50$16+233,1*&(175(6

350 -6% 298 483 489 282 476 479 479 463 300 +59% 453 460 435 444 250 428 414 15.8 187 399 15.4 15.4 15.4 15.7 200 384 14.8 372 14.3 14.4 +26% 135 -8% 13.9 150 123 13.5 13.7 107 13.0 12.6 12.1 100 11.7 50

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

regional property centres top locations retail space in million sqm number of shopping centres

6RXUFHEXOZLHQJHVD 6RXUFH+'(

7KHDGYDQWDJHRIWKH³K\EULG´VDOHVVWUDWHJ\ZHKDYHGHVFULEHGLVWKDWSURGXFWVDUH +LJKFRVWVDGLVDGYDQWDJHRIK\EULG HDVLO\DFFHVVLEOHERWKRQOLQHDQGRQDVKRSSLQJWULS±ZKHQWKH\FDQDOVREHWULHG VDOHVVWUDWHJ\ RXWDQGWDNHQKRPHLPPHGLDWHO\:KHUHWKHVDOHVDUHXOWLPDWHO\JHQHUDWHGLVOHVV FUXFLDO7KHGLVDGYDQWDJHRISDUDOOHOVDOHVFKDQQHOVLVKLJKUHQWVDQGVWDIILQJFRVWV IRUEUDQFKHVDQGWKHFRVWVRIDSURIHVVLRQDORQOLQHVKRSZKLFKVKRXOGQRWEHXQGHU HVWLPDWHG

+LJKVDOHVFRVWVFRPSDUHGWRWKHFRVWVRIDSXUHO\RQOLQHUHWDLOSUHVHQFHDUHIRUFLQJ 6WUDWHJLFVKLIWWRZDUGVVWUHDPOLQHG FKDLQVWRUHVWRFKDQJHFRXUVH5HWDLOHUVKDGDOUHDG\VWDUWHGWRWKLQRXWWKHLUEUDQFK EUDQFKQHWZRUNDOUHDG\VWDUWHGSUH QHWZRUNVSUHFRURQDYLUXV3ULPHUHQWVLQWRSORFDWLRQVDQGUHJLRQDOFHQWUHVKDYH FRYLG WKHUHIRUHEHHQVWDJQDWLQJRUIDOOLQJVLQFH7KHJUDGXDOGHFOLQHLQIDVKLRQUHWDLO KDVEHHQPLWLJDWHGE\UHVWDXUDQWFKDLQVDQGORFDOVXSSOLHUVVXFKDVGUXJVWRUHVWDN LQJRYHUYDFDQWVKRSV7KHSDQGHPLFSHUSHWXDWHGWKHGRZQZDUGUHQWWUHQGLQ Main Regional Real Estate Markets in Germany 17 2021

+RZHYHUJLYHQWKHGLIILFXOWLHVRIWKHFLW\FHQWUHUHWDLOHQYLURQPHQWWKHUDWHDWZKLFK UHQWVKDYHIDOOHQUHPDLQVPRGHUDWH2YHUDOOSULPHUHQWVKDYHGHFOLQHGE\OHVVWKDQ SHUFHQW

7KHFRQWUDFWLRQSURFHVVLQFLW\FHQWUHORFDWLRQVZRXOGSUREDEO\KDYHFRQWLQXHGHYHQ (YHQZLWKRXWWKHSDQGHPLFWKH ZLWKRXWFRYLGJLYHQWKHJURZLQJSURSRUWLRQRIRQOLQHVDOHVRIIDVKLRQMHZHOOHU\DQG UHWDLOVHFWRUZRXOGSUREDEO\KDYH HOHFWURQLFV7KHPRQRWRQ\RIWKHKLJKVWUHHWUHWDLORIIHUDVDUHVXOWRIWKHSUROLIHUDWLRQ FRQWLQXHGWRFRQWUDFWJUDGXDOO\ RIEUDQFKHVKDVDOVRKDGDQHJDWLYHLPSDFWRQWKHVHFWRU,QVRPHSULPHORFDWLRQV UHWDLOFKDLQVDFFRXQWIRUPRUHWKDQSHUFHQWRIVKRSV&RQYHUVHO\ORFDOUHWDLOZLWK VSHFLDOLVWVKRSVUXQE\WKHRZQHUVSOD\VYLUWXDOO\QRUROH

5HWDLO0DUNHWWUHQGLQWKHORFDWLRQVFRYHUHG

$IWHUSURORQJHGUHQWJURZWKSULPHFLW\FHQWUHUHWDLOUHQWVDUHQRZIDOOLQJDFURVVWKH 3ULPHUHWDLOUHQWVIDOOLQJHYHU\ZKHUH ZKROHPDUNHW,QDOOWKHORFDWLRQVZHKDYHUHYLHZHGSULPHUHQWVZHUHEHORZWKH PD[LPXPOHYHOVDFKLHYHGLQWKHSHULRGIURPWRODVW\HDU3ULPHUHQWVLQ UHJLRQDOFHQWUHVJHQHUDOO\IHOOPRUHVKDUSO\3ULPHUHQWVLQ(VVHQVKRZHGWKHVWHHS HVWGHFOLQHGRZQE\SHUFHQWIURPSHDNOHYHOV&RQYHUVHO\WKHFRUUHVSRQGLQJ ILJXUHLQ)UDQNIXUWZDVRQO\DERXWSHUFHQW

35,0(5(176)$//,1*(9(5<:+(5(±%8772$/(66(5(;7(1762)$5,1723/2&$7,216 ',9(5*(1&(2)35,0(5(176,1)5200$;,080$&+,(9(')52072,13(5&(17

-1.8 -1.7 -2.9 -3.8 -3.5 -5.9 -5.6 -5.6 -5.3 -8.1 -7.7 -7.5 -9.0 -8.3 -9.8 -9.1

-13.0 -12.3 -14.0

-18.6

-21.8

Essen Karls- Stutt- Augs- Mainz Mann- Dres- Darm- Reg- Ber- Leip- Hann- Colog- Mün- Top- Nurem- Bre- Ham- Munich Düssel- Frank- ruhe gart burg heim den stadt 12 lin zig over ne ster 7 berg men burg dorf furt

6RXUFHEXOZLHQJHVD

3ULPHUHQWVUDQJHIURPMXVWVK\RI(85SHUPLQ(VVHQWRDPD[LPXPRI(85 5HWDLOUHQWVIHOOIDVWHULQWKDQ SHUPLQ0XQLFK7KHGHFOLQHLQUHQWVKDVDFFHOHUDWHGVLQFH2QDYHUDJH DWDQ\WLPHVLQFH RYHUDOOORFDWLRQVSULPHUHQWVIHOOE\SHUFHQWODVW\HDUWKHVWHHSHVWIDOOLQFLW\FHQ WUHUHWDLOUHQWVVLQFH7KHUDWHDWZKLFKUHQWVIDOOWKLV\HDULVOLNHO\WREHVLPLODU WRODVW\HDU

,QFRQWUDVWWRWKHSUHYLRXVGHFDGHSHUFDSLWDVDOHVVSDFHKDVUHPDLQHGYLUWXDOO\XQ $URXQGVTPRISHUFDSLWD FKDQJHGVLQFHUHODWLYHWRSRSXODWLRQVL]HLQWKHORFDWLRQVDQDO\VHG3HUFDSLWD VDOHVVSDFH VDOHVVSDFHDFURVVWKHZKROHUHWDLOVHFWRULVMXVWEHORZPDFURVVDOOORFDWLRQV7KH UDQJHRIORFDWLRQVH[WHQGVIURPPWRPSHUFDSLWD*URZWKLQUHODWLYHVDOHV VSDFHKDVEHHQEUDNHGE\GHPRJUDSKLFJURZWKLQUHFHQW\HDUV%HWZHHQDQG WKHSRSXODWLRQVRIWKHORFDWLRQVDVDZKROHLQFUHDVHGE\PLOOLRQRU DURXQGSHUFHQWWRMXVWRYHUPLOOLRQSHRSOH 18 Main Regional Real Estate Markets in Germany 2021

35,0(5(176,1723/2&$7,216025(7+$17:,&($6+,*+$6,1 5(17'(&/,1(&28/'$&&(/(5$7($*$,1,1 5(*,21$/&(175(6 35,0(5(176&203$5('7235(9,286<($5,13(5&(17 35,0(5(176,1(853(5640

335 8 295 285 282 280 275 6 240

215 4 185

168 2 142 138 125

124 0 120 100 100 100 92 91 86 -2 -4 -6 -8 -10 Essen Top-7 Berlin Mainz Leipzig Munich Bremen Dresden Cologne Münster 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stuttgart Hamburg Frankfurt Karlsruhe Augsburg Hannover 2021e Darmstadt Düsseldorf Mannheim Nuremberg Regional-12 all locations top locations regional property centres

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

2QO\DIUDFWLRQRIWKHWRWDOUHWDLOVSDFHRIPLOOLRQPLQWKHORFDWLRQVLVLQFLW\ /RFDOVXSSOLHUVXQDIIHFWHGE\ FHQWUHVDOWKRXJKWKH\KDYHORQJEHHQWKHPDLQIRFXVRILQWHUHVW,QWHQVLILHGE\WKH LQWHUQHWVRIDU FRURQDYLUXVFULVLVWKLVIRFXVKDVKRZHYHUVKLIWHGWRZDUGVVSHFLDOLVWVWRUHVORFDO VXSSOLHUVDQGVHFRQGDU\ORFDWLRQV7KHH[FHVVVDOHVVSDFHZHKDYHGHVFULEHGDVD UHVXOWRIWKHJURZWKLQRQOLQHUHWDLOLVQRW\HWUHIOHFWHGKHUH%XWWKLVFRXOGFKDQJHLQ IXWXUH7KHSURSRUWLRQRIRQOLQHVDOHVLQWKHJURFHU\VHJPHQWLVYHU\VPDOOVRIDUDW DERXWSHUFHQWEXWLVJURZLQJIDLUO\UDSLGO\

&LW\FHQWUHVZLOOKDYHWRUHFDOLEUDWHWKHLUUHWDLORIIHU7KHFRQWLQXLQJORVVRIVDOHVGXH &LW\FHQWUHUHWDLOZLOOKDYHWR WRHFRPPHUFHLVWKHPDLQIDFWRUKHUHEXWQRWWKHRQO\RQH7KHDWWUDFWLRQVRIFLW\ EHUHSXUSRVHG FHQWUHVKDYHVRIDUEHHQEDVHGRQWKHLUDSSHDOLQODUJHFDWFKPHQWDUHDVZLWKODUJH QXPEHUVRIFRPPXWHUVIUHTXHQWO\KLJKSXUFKDVLQJSRZHUGHPRJUDSKLFJURZWKDQG RIWHQERRPLQJWRXULVP*URZLQJFXVWRPHUSRWHQWLDOKDVFXVKLRQHGWKHLPSDFWRI RQOLQHVKRSSLQJ7KHRSSRVLWHFRXOGQRZEHWKHFDVHHFRPPHUFHLVOLNHO\WRDFFHO HUDWHIXUWKHUZKLOHFXVWRPHUSRWHQWLDOLVGHFOLQLQJ

5(/$7,9(6$/(663$&( $///2&$7,216 +$6/$5*(/<67$*1$7('6,1&( 6$/(663$&(3(5&$3,7$,1640

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Essen Berlin Mainz Leipzig Munich Bremen Dresden Munster Cologne Stuttgart Frankfurt Hamburg Karlsruhe Hannover Augsburg Darmstadt Dusseldorf Mannheim Nuremberg top locations

2000 2005 2010 regional centres 2015 2020

6RXUFH6FRSH Main Regional Real Estate Markets in Germany 19 2021

+,*+(67385&+$6,1*32:(5,1723/2&$7,216 3238/$7,21*52:7++$66/2:('&216,'(5$%/< 385&+$6,1*32:(5,132,176 6,=(2)3238/$7,21&203$5('7235(9,286<($5,13(5&(17

1.8 1.5 1.2 federal average = 100 0.9 0.6 0.3 0.0 100 103 105 105 107 108 105 110 114 114 118 135 86 91 93 96 96 96 99 92 116 -0.3 -0.6 Essen Berlin Mainz Leipzig

Munich -0.9 Bremen Dresden Munster Cologne Stuttgart Hamburg Frankfurt Karlsruhe Augsburg Hannover Darmstadt Dusseldorf Mannheim Nuremberg 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 top locations

regional centres top locations regional property centres

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD

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±ZKLFK KDVEHFRPHDPDMRUVDOHVIDFWRU±LVOLNHO\WRUHFRYHU+RZHYHUWKHQXPEHURIEXVL QHVVWUDYHOOHUVFRXOGIDOOFRPSDUHGWRWKHSUHFRYLGHUDLIWUDGHIDLUVDQGPHHWLQJVLQ FUHDVLQJO\PRYHRQOLQH

'HVSLWHDOOWKHQHJDWLYHIDFWRUVLQLWLDOUHQWDO\LHOGVLQWKHUHWDLOVHFWRUKDYHLQFUHDVHG ,QFUHDVLQJO\GLIILFXOWHQYLURQPHQW VOLJKWO\,QFRQWUDVW\LHOGVIRUVKRSSLQJFHQWUHVKDYHULVHQPRUHVKDUSO\,QWKHUH IRUFLW\FHQWUHUHWDLOQRWUHIOHFWHGLQ JLRQDOFHQWUHVWKHDYHUDJHLQLWLDOUHQWDO\LHOGIRUUHWDLOSURSHUWLHVLQFHQWUDOORFDWLRQV UHQWDO\LHOGV ZDVSHUFHQWODVW\HDU SHUFHQW 5HQWDO\LHOGVLQWKHWRSORFDWLRQV ZHUHDURXQGEDVLVSRLQWVORZHUDWDQXQFKDQJHGSHUFHQW

7285,67612:$1,03257$17&86720(5*5283 ,1$'',7,21727+(723/2&$7,216/(,3=,*185(0%(5*$1' 180%(52)29(51,*+767$<6 '5(6'(1%(1(),73$57,&8/$5/<)520+,*+9,6,725180%(56 180%(52)29(51,*+767$<63(5,1+$%,7$176

130,000,000 16,000 120,000,000 14,000 110,000,000 100,000,000 12,000 90,000,000 10,000 80,000,000 70,000,000 8,000 60,000,000 6,000 50,000,000 4,000 40,000,000 30,000,000 2,000 20,000,000 0 10,000,000 0 Essen Top-7 Berlin Mainz Leipzig Munich Bremen Dresden Münster Cologne Stuttgart 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Hamburg Frankfurt Karlsruhe Augsburg Hannover Darmstadt Düsseldorf Mannheim

regional property centres top locations Nuremberg Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH

20 Main Regional Real Estate Markets in Germany 2021

5HWDLO&RQFOXVLRQDQGIRUHFDVW

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

5(7$,/5(17$/<,(/'6836/,*+7/<,1$)7(5$ 7+(0267(;3(16,9(5(7$,/3523(57,(6$021*7+(5(*,21$/ /21*'(&/,1( &(175(6$5(,10h167(5$1'185(0%(5* &(175$/5(7$,//2&$7,216,1,7,$/5(17$/<,(/',1 &(175$/5(7$,//2&$7,216,1,7,$/5(17$/<,(/',1

7.0

6.5 4.7 4.5 4.5 4.4 4.3 4.2 4.1 6.0 4.1 3.9 3.9 3.8 3.7 3.5

5.5 3.3 3.1 3.0 3.0 2.9 2.8 2.7

5.0 2.6 4.5 4.0 3.5 3.0 Essen Berlin Mainz Leipzig

2.5 Munich Bremen Dresden Cologne Münster Stuttgart Hamburg Frankfurt Karlsruhe Hannover Augsburg Darmstadt Düsseldorf Mannheim Nuremberg 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 top locations

top locations regional property centres regional centres

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD

,IWKHSDUWLDOZLWKGUDZDOE\UHWDLOHUVDVDUHVXOWRIHFRPPHUFHLVQRWWROHDGWRSHU :KDWGRHVWKHIXWXUHKROGIRUFLW\ PDQHQWO\YDFDQWSURSHUWLHVDQGGHVHUWHGFLW\FHQWUHVPXQLFLSDODXWKRULWLHVSURSHUW\ FHQWUHUHWDLO" RZQHUVDQGUHWDLOHUVZLOOKDYHWRDJUHHFRQFHSWVWRFUHDWHYLEUDQWDQGPRUHDWWUDFWLYH FLW\FHQWUHVZLWKOHVVWUDIILFDQGQRUHWDLOPRQRFXOWXUHV7KHUHDUHPDQ\SRWHQWLDO XVHVIRUFLW\FHQWUHORFDWLRQV±KRXVLQJFXOWXUHHGXFDWLRQRIILFHVRUORJLVWLFV+RZ HYHURQO\WLPHZLOOWHOOZKLFKFLW\FHQWUHFRQFHSWVDUHXOWLPDWHO\VXFFHVVIXO

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

5(7$,/±)25(&$676)2535,0(5(176

H UHJLRQDOFHQWUHV 3ULPHUHQWVLQ(85Pð YVSUHY\ULQ WRSORFDWLRQV 3ULPHUHQWVLQ(85Pð YVSUHY\ULQ

$8*6%85*

3238/$7,21*52:7+ 81(03/2<0(175$7(

$XJVEXUJ 5HJLRQDO 7RS $XJVEXUJ 5HJLRQDO 7RS

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³EXUVWLQJDWWKH VHDPV´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¶VGHYHORSPHQW7KHFRQVWUXFWLRQRIDQHZXQLYHUVLW\ FOLQLFLVJHQHUDWLQJJURZWKLQWKHVFLHQWLILFVHFWRU

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

70,000

65,000 60,000 55,000 50,000 45,000 40,000

35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Augsburg Regional-12 Top-7 $XJVEXUJ 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 22 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ$XJVEXUJ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H $XJVEXUJ 5HJLRQDO 7RS $XJVEXUJ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\FHQWUHORFD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW WLRQV

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¶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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

125

120 115 110 105 100

90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers $XJVEXUJ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD'=%$1.,QGH[ Main Regional Real Estate Markets in Germany 23 2021

5HWDLOVSDFHLQ$XJVEXUJ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

140 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations $XJVEXUJ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD

7KDQNVWRLWVVXSSO\IXQFWLRQIRUDFDWFKPHQWDUHDRIDURXQGSHRSOH$XJV 'HVSLWHWKHUHFHQWFLW\FHQWUH EXUJKDVKLJKVDOHVVSDFHSHUFDSLWDRIPRUHWKDQP:LWKQRVKRSSLQJORFDWLRQRI UHQRYDWLRQ$XJVEXUJUHWDLOVHFWRU VLPLODULPSRUWDQFHFORVHWRWKHFLW\KDOIZD\EHWZHHQ0XQLFKDQG8OP$XJVEXUJ¶V DOUHDG\IDFHGSUREOHPVEHIRUHWKH FHQWUDOLW\YDOXHLVIDLUO\JRRGDWSRLQWV+RZHYHUSXUFKDVLQJSRZHULVEHORZDY SDQGHPLF HUDJHDWSRLQWVSDUWO\GXHWRWKHODUJHQXPEHURIVWXGHQWV2QHSRVLWLYHIDFWRUIRU WKHUHWDLOVHFWRULVVWURQJGHPRJUDSKLFJURZWK7KHFLW\FHQWUHZDVXSJUDGHGLQ ZKHQWKHIRUPHU)XJJHUVWDGW&HQWUHQHDUWKHVWDWLRQUHRSHQHGDV³+HOLR´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¶V KLVWRULFDOZDWHUV\VWHP

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

30,000 10,000 28,000 9,000 26,000 8,000 24,000 7,000 22,000 6,000 20,000 5,000 18,000 4,000 16,000 3,000 14,000 2,000 12,000 1,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Augsburg Regional-12 Top-7 Augsburg Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 24 Main Regional Real Estate Markets in Germany 2021

%(5/,1 2IILFHVSDFHLQ%HUOLQ 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H %HUOLQ 7RS 5HJLRQDO %HUOLQ 7RS 5HJLRQDO

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\FHQWUHORFD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW WLRQV 7KHXSWXUQLQ%HUOLQKDVFUHDWHGVWURQJLPSHWXVIRUWKHRIILFHPDUNHWRIWKHFDSLWDO &RURQDYLUXVFULVLVHDVHVSUHVVXUH FLW\7UXHRIILFHUHQWVKDYHULVHQQHDUO\HYHU\ZKHUHEXWQRZKHUHQHDUDVG\QDPL RQ%HUOLQRIILFHPDUNHW FDOO\DVLQ%HUOLQ,QSULPHUHQWVVWLOOVWRRGDWDURXQG(85SHUP7HQ\HDUV ODWHUWKH\KDGDOPRVWGRXEOHGZKLOHSULPHUHQWVLQWKHWRSORFDWLRQVVKRZHGPXFK ZHDNHUDYHUDJHJURZWKRIDURXQGSHUFHQW5HQWJURZWKZDVGULYHQE\KLJKGH PDQGIRURIILFHVSDFHDVDUHVXOWRIDQLQFUHDVHLQWKHQXPEHURIRIILFHMREVZLWKD FRQFXUUHQWWKLQQLQJRXWRIDYDLODEOHVSDFH$VDUHVXOWRIWKHSUHYLRXVO\ZHDNPDUNHW WUHQGDQGUHQWVZKLFKDUHORZIRUDODUJH(XURSHDQFDSLWDOYLUWXDOO\QRQHZRIILFH VSDFHKDVEHHQGHYHORSHGLQ%HUOLQ&RQVHTXHQWO\WKHYDFDQF\UDWHKDGIDOOHQWR MXVWRYHUSHUFHQWE\WKHEHJLQQLQJRI+LJKRIILFHGHPDQGLVUHIOHFWHGLQWDNH XSZKLFKKDVUHDFKHGDOPRVWPLOOLRQP$IWHU%HUOLQLQLWLDOO\EHFDPHWKHORFDWLRQ RIFKRLFHIRUPDQ\,7DQGHFRPPHUFHVWDUWXSVDJURZLQJQXPEHURIHVWDEOLVKHG FRPSDQLHVKDYHDOVRQRZEDVHGWKHLURSHUDWLRQVWKHUH2QHRIWKHVHLV6LHPHQV ZKLFKSODQVWRLQYHVW(85PLQ³6LHPHQVVWDGW´$VDUHVXOWRIWKHFRURQDYLUXV FULVLVWDNHXSKDVIDOOHQE\PRUHWKDQDWKLUGZKLOHSULPHUHQWVKDYHUHPDLQHGVWD EOH7KHSDQGHPLFZRUNLQJIURPKRPHDQGDODUJHYROXPHRIQHZVSDFHFRXOGH[HUW GRZQZDUGSUHVVXUHRQSULPHUHQWVWKLV\HDU+RZHYHUDVWHHSHUGHFOLQHLQUHQWVLV XQOLNHO\VLQFHRIILFHVSDFHLQWKHFDSLWDOFLW\XOWLPDWHO\UHPDLQVLQVKRUWVXSSO\ %HUOLQZLOODOVRUHPDLQDVRXJKWDIWHUORFDWLRQIRUFRPSDQLHV

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e %HUOLQ 7RS 5HJLRQDO Berlin average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 25 2021

5HWDLOVSDFHLQ%HUOLQ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(176,135,0(6(&21'$5

350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations %HUOLQ 7RS 5HJLRQDO

6RXUFHEXOZLHQJHVD6FRSH'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 7KHUHWDLOVHFWRUKDVEHQHILWHGFRQVLGHUDEO\IURPWKHXSWXUQLQ%HUOLQ7KHXQHPSOR\ %HUOLQRQHRIWKHOHDGLQJVKRSSLQJ PHQWUDWHZKLFKZDVVWLOOH[WUHPHO\KLJKDURXQG\HDUVDJRDWQHDUO\SHUFHQW GHVWLQDWLRQVLQ(XURSH KDGKDOYHGE\&XVWRPHUSRWHQWLDOKDVDOVRLQFUHDVHGVLJQLILFDQWO\7KHFDSL WDO¶VSRSXODWLRQKDVLQFUHDVHGE\PRUHWKDQZLWKLQWHQ\HDUV,WVVXEXUEV KDYHDOVRJURZQ7KLVJLYHVWKHFLW\E\IDUWKHODUJHVWFDWFKPHQWDUHDLQ*HUPDQ\RI QHDUO\PLOOLRQSHRSOH7RXULVPZDVDOVRIORXULVKLQJXQWLOWKHRXWEUHDNRIFRURQD YLUXV,QWKHUHZHUHDURXQGPLOOLRQRYHUQLJKWVWD\V9LVLWRUVSOD\DQHYHQ PRUHLPSRUWDQWUROHKHUHWKDQLQRWKHUWRSORFDWLRQVEHFDXVH%HUOLQHUVKDYHUHODWLYHO\ ORZSXUFKDVLQJSRZHU$SDUWIURPLWVVL]HWKH%HUOLQUHWDLOVHFWRULVQRWDEOHIRUVHY HUDOJHRJUDSKLFDOO\GLVWLQFWSULPHORFDWLRQV7KHVHLQFOXGH.X¶GDPPDQG7DXHQW]L HQVWUDHZKLFKKDYHWKHKLJKHVWSULPHUHQWV$OH[DQGHUSODW]ZLWKLWVKLJKIRRWIDOO DQG)ULHGULFKVWUDH7KHWUHQG\+DFNHVFKHU0DUNWLVDOVRZHOOSRVLWLRQHG7KHFLW\ DOVRKDVDURXQGVKRSSLQJFHQWUHVRIZKLFKWKHODUJH0DOORI%HUOLQLVDSURPLQHQW H[DPSOH5HFHQWDGGLWLRQVLQZHUHWKH6FKXOWKHLVV4XDUWLHU±WKHILUVWVKRSSLQJ FHQWUHLQWKH0RDELWGLVWULFW±DQGWKH(DVW6LGH0DOO3ULPHUHQWVZKLFKLQFUHDVHGWR (85SHUPLQKDYHEHHQIDOOLQJVLQFHPLG7KHVWHHSHVWGHFOLQHLQ UHQWVZDVLQ)ULHGULFKVWUDH$WWKHHQGRISULPHUHQWVLQ%HUOLQZHUHVWLOO (85SHUP7KHUHDUHVLJQVRIUHQWVIDOOLQJIXUWKHUWKLV\HDU+RZHYHUWKLVZLOO QRWGHWUDFWIURP%HUOLQ¶VOHDGLQJUROHLQWKH*HUPDQUHWDLOVHFWRUSDUWO\EHFDXVHWKH FDSLWDOFLW\ZLOOUHPDLQDPDJQHWIRULQWHUQDWLRQDOYLVLWRUV

3(5&$3,7$385&+$6,1*32:(5,1(85µ 180%(52)29(51,*+767$<63(5,1+$%,7$176

28,000 12,000 26,000 11,000 10,000 24,000 9,000 22,000 8,000 7,000 20,000 6,000 18,000 5,000 16,000 4,000 3,000 14,000 2,000 12,000 1,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Berlin Top-7 Regional-12 Berlin Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH 26 Main Regional Real Estate Markets in Germany 2021

%5(0(1

3238/$7,21*52:7+ 81(03/2<0(175$7(

%UHPHQ 5HJLRQDO 7RS %UHPHQ 5HJLRQDO 7RS

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± IRUPHUO\-DFREV8QLYHUVLW\±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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000

60,000

55,000

50,000

45,000

40,000

35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Bremen Regional-12 Top-7 %UHPHQ 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 27 2021

2IILFHVSDFHLQ%UHPHQ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H %UHPHQ 5HJLRQDO 7RS %UHPHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\FHQWUHORFD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW WLRQV

%UHPHQ¶VRIILFHPDUNHWKDVMXVWRYHUPLOOLRQPRIVSDFH7HQ\HDUJURZWKLV ,PSRUWDQWRIILFHPDUNHWLQ1RUWK FRPSDUDWLYHO\VWURQJDWSHUFHQWDOWKRXJKRIILFHHPSOR\PHQWKDVJURZQVOLJKWO\ :HVWZLWKKLJKOHYHORIPDUNHW IDVWHU9DULRXVRIILFHSURSHUWLHVKDYHEHHQFUHDWHGPDLQO\LQSHULSKHUDOORFDWLRQV DFWLYLW\ VXFKDVWKH$LUSRUW&LW\WKH7HFKQRORJ\3DUNDQGWKHhEHUVHHVWDGW0RGHUQLVDWLRQ KDVEHQHILWHGWKHRIILFHPDUNHWEHFDXVHPDQ\FLW\FHQWUHRIILFHEXLOGLQJVDUHQRZ RXWGDWHG7KHKLJKHVWRIILFHUHQWVDUHQRWWKHUHIRUHDFKLHYHGLQWKHFLW\FHQWUHEXWLQ WKHhEHUVHHVWDGWZKHUHSULPHUHQWVUHFHQWO\UHDFKHG(85SHUP3ULPHFLW\ FHQWUHUHQWVDUHVOLJKWO\ORZHUDW(85P%HFDXVHRI%UHPHQ¶VORFDWLRQLWVRI ILFHPDUNHWLVWKHPRVWLPSRUWDQWLQWKH1RUWK:HVWDQGWKLVLVUHIOHFWHGLQKLJKOHY HOVRIPDUNHWDFWLYLW\,QUHFHQW\HDUVQHDUO\SHUFHQWRIRIILFHVSDFHKDVFKDQJHG KDQGVHDFK\HDU,QWKLVFRUUHVSRQGHGWRDQQXDOWDNHXSRIDURXQG P(YHQLQWKHSDQGHPLF\HDURIDODUJHYROXPHRIPZDVWUDQVDFWHG ZLWKRXWDQ\ODUJHYROXPHFRQWUDFWV±WKHODUJHVWVLQJOHFRQWUDFWZDVIRUP 7KHYDFDQF\UDWHKDVIDOOHQPRUHVORZO\WKDQLQPRVWUHJLRQDOFHQWUHVLQUHFHQW \HDUVGXHWRDORZVWDUWLQJOHYHODQGVWURQJHURIILFHFRQVWUXFWLRQ+RZHYHUWKHYD FDQF\UDWHFRXOGLQFUHDVHWRPRUHWKDQSHUFHQWLQWKH\HDUDKHDG,QDGGLWLRQWR WKHFRQVHTXHQFHVRIWKHHFRQRPLFFULVLVDQGZRUNLQJIURPKRPHDQDERYHDYHUDJH YROXPHRIFRPSOHWLRQVZLOOFRPHRQWRWKHPDUNHWLQ2IILFHUHQWVFRXOGWKHUH IRUHZHDNHQVOLJKWO\

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

135 130 125 120 115 110 105 100

95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers %UHPHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 28 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ%UHPHQ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD *LYHQWKHLPSRUWDQFHRILWVORFDWLRQUHWDLODFWLYLW\LQ%UHPHQKDVEHHQVORZWRGH :KDW¶VKDSSHQLQJZLWKWKH YHORS7KHVKRSSLQJGHVWLQDWLRQEHQHILWVIURPDODUJHFDWFKPHQWDUHDRIPRUHWKDQ UHGHYHORSPHQWRI%UHPHQFLW\ PLOOLRQSHRSOH3XUFKDVLQJSRZHULVKRZHYHUEHORZDYHUDJHDWSHUFHQW7RXU FHQWUH" LVPLQWKHDWWUDFWLYHFLW\FHQWUHVWLOOKDVJURZWKSRWHQWLDO+RZHYHUWKHIDFWRUVZKLFK DUHKDPSHULQJUHWDLODUHHVVHQWLDOO\³KRPHPDGH´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¶VDWWUDFWLRQV7KHXQFHUWDLQIXWXUHRIFLW\ FHQWUHUHWDLOLVKDPSHULQJSURMHFWVVXFKDVWKHUHGHYHORSPHQWRIWKH/OR\GKRIDQG SDUWLFXODUO\WKH³&LW\*DOHULH´WREHEXLOWRQWKHVLWHRIWKH0LWWHFDUSDUNDQGZKLFK ZLOODOVRLQFRUSRUDWHWKH.DUVWDGW.DXIKRIEXLOGLQJ7KHJORRP\UHWDLORXWORRNLVOLNHO\ WRGDPSHQVSDFHGHPDQGDQGWRDFWDVDGUDJRQUHQWVWKLV\HDU

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

28,000 10,000 26,000 9,000 24,000 8,000 7,000 22,000 6,000 20,000 5,000 18,000 4,000 16,000 3,000 14,000 2,000 12,000 1,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Bremen Regional-12 Top-7 Bremen Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 29 2021

&2/2*1(

2IILFHVSDFHLQ&RORJQH 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

35 12

30 10 25 8 20 6 15

10 4

5 2

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2021e Cologne Top-7 Regional-12 Cologne Top-7 Regional-12

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±WKHWHQDQWVDUH.30*$2.DQG WKHFXVWRPVRIILFH$IWHUDVOLJKWLQFUHDVHLQWKHDYDLODELOLW\RIQHZVSDFHLQWKH YROXPHIHOOEDFNVKDUSO\DJDLQLQDQGWKHVDPHLVH[SHFWHGLQ7KH YDFDQF\UDWHLQFUHDVHGWRSHUFHQWLQ7KHSULPHUHQWVKRXOGUHPDLQODUJHO\ VWDEOHLQYLHZRIDSHUVLVWHQWWLJKWVXSSO\+RZHYHUWKHYDFDQF\UDWHZLOOSUREDEO\ LQFUHDVHVOLJKWO\IXUWKHU

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

6 320,000 280,000 5 240,000 4 200,000 3 160,000 120,000 2 80,000 1 40,000

0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e Cologne Top-7 Regional-12 Cologne average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 30 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ&RORJQH 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

320 300

280 250 240 200 200 150 160 100 120 80 50 40 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e prime rent 1B locations Cologne Top-7 Regional-12

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pKDVEHHQUHQDPHG4XLQF\DQGQRZWDUJHWVD\RXQJVKRSSHU)DLUO\ DPSOHDYDLODELOLW\RIUHWDLOVSDFHLQ&RORJQH VFLW\FHQWUHKDVVORZHGGRZQWKHULVHLQ SULPHUHQW,QDGGLWLRQHYHQLQWKHSDVWYDFDQWVWRUHVKDYHEHHQDUHFXUUHQWIHDWXUH 1RZWKHWUHQGLVOLNHO\WREHFRPSRXQGHGE\WKHLPSDFWRIWKHSDQGHPLFDQGVWUXF WXUDOFKDQJHLQUHWDLO7KHSULPHUHQWIHOOWR(85SHUPLQWKLV\HDULW FRXOGIDOOE\DVPDOOHUDPRXQW

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

28,000 11,000 10,000 26,000 9,000 24,000 8,000 22,000 7,000 6,000 20,000 5,000 18,000 4,000 3,000 16,000 2,000 14,000 1,000 12,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cologne Top-7 Regional-12 Cologne Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH Main Regional Real Estate Markets in Germany 31 2021

'$5067$'7

3238/$7,21*52:7+ 81(03/2<0(175$7(

'DUPVWDGW 5HJLRQDO 7RS 'DUPVWDGW 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

'DUPVWDGWLVWKHVPDOOHVWFLW\LQWKLVPDUNHWUHSRUWZLWKDSRSXODWLRQRIKRZ ³&LW\RI6FLHQFH´DUDSLGO\JURZLQJ HYHULWLVDOVRRQHRIWKHPRVWUDSLGO\H[SDQGLQJ*HUPDQFLWLHVZLWKWHQ\HDUGHPR EXVLQHVVDQGUHVHDUFKORFDWLRQ JUDSKLFJURZWKRISHUFHQW7HDFKLQJDQGUHVHDUFKSOD\DYHU\LPSRUWDQWUROHLQ WKH³&LW\RI6FLHQFH´ZLWKDWRWDORIDURXQGVWXGHQWVDWWHQGLQJVHYHUDOKLJKHU HGXFDWLRQLQVWLWXWLRQV3URPLQHQWUHVHDUFKLQVWLWXWLRQVDUHWKH(XURSHDQ6SDFH2SHU DWLRQV&HQWUH (62& DQGWKH³)$,5´SDUWLFOHDFFHOHUDWRUIDFLOLW\FXUUHQWO\XQGHUFRQ VWUXFWLRQ'DUPVWDGWDOVREHQHILWVIURPLWVORFDWLRQRQWKHVRXWKHUQHGJHRIWKHHFR QRPLFDOO\VWURQJ5KLQH0DLQUHJLRQZLWKDZRUNLQJSRSXODWLRQRIPRUHWKDQ &RUHVHFWRUVDUH,7FKHPLFDOVSKDUPDFHXWLFDOVELRWHFKPHFKDQLFDOHQJLQHHULQJ VSDFHWHFKQRORJ\DQGFRVPHWLFV,PSRUWDQWFRPSDQLHVLQFOXGH'HXWVFKH7HOHNRP WKH0HUFNFKHPLFDOVDQGSKDUPDFHXWLFDOVJURXSWKHPHFKDQLFDOHQJLQHHULQJFRP SDQ\6FKHQFNWKHVSHFLDOW\FKHPLFDOVFRPSDQ\(YRQLN5|KPDQGWKHFRVPHWLFV FRPSDQLHV*ROGZHOO.DRDQG:HOOD0DQ\VWDUWXSVDUHEDVHGDWWKH7HFKQRORJ\ DQG,QQRYDWLRQ&HQWUHRIWKH7HFKQLFDO8QLYHUVLW\+LJKGHPDQGIRUKRXVLQJDQG FRPPHUFLDOVSDFHPDNH'DUPVWDGWDVRXJKWDIWHUSURSHUW\ORFDWLRQ([WHQVLYHFRQ YHUWHGVSDFHIUHHGXSE\WKHZLWKGUDZDORIWKH$PHULFDQIRUFHVSURYLGHVVFRSHWR GHYHORSQHZXUEDQDUHDVVXFKDVWKH/LQFROQUHVLGHQWLDOVFKHPHDQGWKH/XGZLJV K|KYLHUWHORQWKHVLWHRIWKH&DPEUDL)ULWVFK%DUUDFNV-HIIHUVRQ9LOODJH+RZHYHU KRXVLQJLVLQVKRUWVXSSO\5HVLGHQWLDOUHQWVDUHWKHUHIRUHDOPRVWDVKLJKDVLQWKH WRSORFDWLRQV$OWKRXJKLWKDVLQFUHDVHGDVDUHVXOWRIWKHFRURQDYLUXVFULVLVWKHXQ HPSOR\PHQWUDWHLVPRGHUDWHDWDURXQGSHUFHQW

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

70,000

65,000 60,000 55,000 50,000 45,000 40,000

35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Darmstadt Regional-12 Top-7 'DUPVWDGW 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 32 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ'DUPVWDGW

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 'DUPVWDGW 5HJLRQDO 7RS 'DUPVWDGW 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\FHQWUHORFD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW WLRQV

+LJKHPSOR\PHQWLQ'DUPVWDGWUHTXLUHVDFRUUHVSRQGLQJO\ODUJHRIILFHPDUNHW7KH 5HODWLYHO\ODUJHRIILFHPDUNHWZLWK RIILFHVWRFNRIPLOOLRQP±EURDGO\VLPLODUWR$XJVEXUJDQG0DLQ]ZLWKWKHLUPXFK PRGHUDWHYDFDQF\UDWHDQGVWDEOH ODUJHUSRSXODWLRQV±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¶V ZRUNHUV7KLVFRXOGGDPSHQIXWXUHRIILFHGHPDQGDOWKRXJKWKHRIILFHPDUNHWVKRXOG EHDEOHWRDEVRUEWKLVLIWKHFLW\FRQWLQXHVWRJURZVWURQJO\

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

135 130 125 120 115 110 105 100

95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers 'DUPVWDGW 5HJ L R Q DO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ Main Regional Real Estate Markets in Germany 33 2021

5HWDLOVSDFHLQ'DUPVWDGW 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

120

100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations 'DUPVWDGW 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD

7KHUHWDLOFOLPDWHLQ'DUPVWDGWLVJHQHUDOO\JRRG3RVLWLYHDVSHFWVDUHVWURQJGHPR 'DUPVWDGWUHWDLOUHQWVIDOOLQJ JUDSKLFJURZWKJRRGHPSOR\PHQWOHYHOVDQGKLJKSXUFKDVLQJSRZHURISRLQWVIRU VLQFH DXQLYHUVLW\FLW\3UHSDQGHPLFYLVLWRUQXPEHUVZHUHDOVRVROLG'HVSLWHDODUJH FDWFKPHQWDUHDRIDURXQGSHRSOHWRWKHVRXWKRI'DUPVWDGWWKHFHQWUDOLW\ ILJXUHLVIDLUO\ORZDWSRLQWV1HJDWLYHIDFWRUVDUHFRPSHWLWLRQIURPRWKHUVKRS SLQJGHVWLQDWLRQV7KHVHLQFOXGH)UDQNIXUWZKLFKLVNLORPHWUHVDZD\DQGQHLJK ERXULQJ:HLWHUVWDGWZLWKLWVYDULRXVVSHFLDOLVWVWRUHV±LQ1RYHPEHUWKHODUJHVW EUDQFKRI'HFDWKORQLQ*HUPDQ\RSHQHGKHUH±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ȕHDQG (UQVW/XGZLJ6WUDHWZRVKRSSLQJFHQWUHV±/XLVHQ&HQWHUDQG&DUUHH'DUPVWDGW± DQGDZLGHUDQJHRIFDIHVDQGUHVWDXUDQWV+RZHYHUWKHGHFOLQHLQGHPDQGIRUVDOHV VSDFHFDXVHGE\RQOLQHVKRSSLQJLVOLNHO\WRGULYHUHQWVGRZQIXUWKHU

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Darmstadt Regional-12 Top-7 Darmstadt Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 34 Main Regional Real Estate Markets in Germany 2021

'5(6'(1

3238/$7,21*52:7+ 81(03/2<0(175$7(

'UHVGHQ 5HJLRQDO 7RS 'UHVGHQ 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

'UHVGHQLVWKHWKLUGODUJHVWFLW\LQHDVWHUQ*HUPDQ\ZLWKDSRSXODWLRQRIDURXQG &DSLWDORI6D[RQ\JURZLQJVWURQJO\ 7KHFDSLWDORI6D[RQ\ZLWKLWVUDSLGO\JURZLQJSRSXODWLRQ±ZKLFKKDVLQ DQGHFRQRPLFDOO\VXFFHVVIXO FUHDVHGE\SHUFHQWZLWKLQWHQ\HDUV±LVWKHWKPRVWSRSXORXVFLW\LQ*HUPDQ\ 2QJRLQJPLJUDWLRQLVVXSSRUWHGE\WKHKLJKTXDOLW\RIOLIHDQGVXVWDLQHGHFRQRPLF VXFFHVVRIWKLVDWWUDFWLYHFLW\7KHFLW\¶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³6LOLFRQ6D[RQ\´WKHKLJKWHFKORFDWLRQRI'UHVGHQ$URXQGSHRSOH DUHHPSOR\HGLQWKHPLFURHOHFWURQLFVFOXVWHU9HKLFOHFRQVWUXFWLRQDYLDWLRQOLIHVFL HQFHVQDQRWHFKQRORJ\QHZPDWHULDOVPHFKDQLFDOHQJLQHHULQJDQGSODQWFRQVWUXF WLRQDOVRFRQWULEXWHWRWKHFLW\¶VG\QDPLFHFRQRPLFGHYHORSPHQW7KHFXOWXUDODQG FUHDWLYHVHFWRUVDUHDOVRVLJQLILFDQW7KHEDURTXHFLW\ZLWKLWVDUWWUHDVXUHVKDVDOVR EHFRPHDWRXULVPKRWVSRWZLWKQHDUO\PLOOLRQRYHUQLJKWVWD\VHDFK\HDUEHIRUHWKH SDQGHPLF7KLVFRUUHVSRQGVWRRYHUQLJKWVWD\VSHULQKDELWDQWVDQGLV WKHKLJKHVWOHYHODPRQJWKHUHJLRQDOFHQWUHVUHYLHZHG

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21

65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dresden Regional-12 Top-7 'UHVGHQ 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 35 2021

2IILFHVSDFHLQ'UHVGHQ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 'UHVGHQ 5HJLRQDO 7RS 'UHVGHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\FHQWUHORFD 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW WLRQV

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±GHVSLWHEHLQJERRVWHGE\DQLQGLYLGXDODJUHHPHQWIRUPIRU 6DFKVHQ(QHUJLH,QSUHYLRXV\HDUVILJXUHVZHUHVLJQLILFDQWO\KLJKHUDWWR P7KHYDFDQF\UDWHLVOLNHO\WRLQFUHDVHDJDLQVOLJKWO\WKLV\HDU:LWKQHZ RIILFHVSDFHLQVKRUWVXSSO\SULPHUHQWVDUHOLNHO\WRUHPDLQVWDEOHRUWRIDOOVOLJKWO\

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

135 130 125 120 115 110 105 100

95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers 'UHVGHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 36 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ'UHVGHQ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

120

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD

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±3UDJHU6WUDH6HHVWUDH$OWPDUNWDQG1HXPDUNW±WKHUHDUHWZRODUJH VKRSSLQJFHQWUHVZLWKMRLQWVDOHVVSDFHRIP6DOHVVSDFHKDVDOVREHHQ FUHDWHGLQVPDOOHUSURMHFWGHYHORSPHQWVVXFKDVWKH35$*(5&$55e(ZKLFK RSHQHGLQ:KDWZLOOWKHIXWXUHKROGIRUUHWDLOLQ'UHVGHQ"7RXULVPVKRXOGUH FRYHUEXWZLOOEHZHDNHUWKLV\HDUDQGSUREDEO\DOVRLQWKDQLQ7KHSRS XODWLRQLVDOVROLNHO\WRFRQWLQXHWRJURZ7KLVZLOODWOHDVWFXVKLRQWKHVWUXFWXUDOVKLIW FDXVHGE\HFRPPHUFHIRUWKH'UHVGHQUHWDLOVHFWRU:HDNHUGHPDQGIRUVDOHV VSDFHDQGEXVLQHVVFORVXUHVDVDUHVXOWRIWKHSDQGHPLFZLOOQHYHUWKHOHVVKDYHD QHJDWLYHLPSDFWRQFLW\FHQWUHUHQWDOEXVLQHVVDQGWKHGRZQZDUGWUHQGLQSULPH UHQWVZKLFKVWDUWHGLQLVWKHUHIRUHOLNHO\WRFRQWLQXHWKLV\HDU

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Dresden Regional-12 Top-7 Dresden Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 37 2021

'h66(/'25) 2IILFHVSDFHLQ'VVHOGRUI 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 'VVHOGRUI 7RS 5HJLRQDO 'VVHOGRUI 7RS 5HJLRQDO

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±HDFKRIZKLFKZDVIRUPRUHWKDQP±FRQ WULEXWHGUHQWHGVSDFHRIPRUHWKDQPLQ&RQYHUVHO\WKHUHZHUHRQO\ WZRODUJHFRQWUDFWVLQ±IRUWHQDQWV$OOWRXUVDQGWKH5HJLRQDO)LQDQFH2IILFH± ZLWKDWRWDORIP7KHSXEOLFVHFWRULVLQDQ\FDVHDQLPSRUWDQWFXVWRPHULQ WKHRIILFHPDUNHWRIWKH1RUWK5KLQH:HVWSKDOLDVWDWHFDSLWDO,QWKHSDQGHPLF\HDU RIWKHYDFDQF\UDWHLQ'VVHOGRUILQFUHDVHGRQO\PDUJLQDOO\WRSHUFHQW +RZHYHURIILFHFRQVWUXFWLRQKDVJDLQHGPRPHQWXPVOLJKWO\DQGWKHYDFDQF\UDWH VKRXOGWKHUHIRUHSLFNXSVRPHZKDWWKLV\HDU3ULPHUHQWVFRXOGZHDNHQVOLJKWO\

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 'VVHOGRUI 7RS 5HJLRQDO Düsseldorf average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 38 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ'VVHOGRUI

35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

300

250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations 'VVHOGRUI 7RS 5HJLRQDO

6RXUFHEXOZLHQJHVD6FRSH'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 'VVHOGRUIKDVFOHDUO\GHYHORSHGVXFFHVVIXOO\DVDVKRSSLQJORFDWLRQ7KHEDVLVIRU 0DMRU³'VVHOGRUI&LW\FRQVWUXFWLRQ WKLVLVDFDWFKPHQWDUHDRIPLOOLRQSHRSOHDQGKLJKSXUFKDVLQJSRZHUZKLFKLV SURMHFWQHDUVFRPSOHWLRQ QHDUO\SHUFHQWKLJKHUWKDQDYHUDJHIRU*HUPDQ\'VVHOGRUIFLW\FHQWUHZLWKLWV IDPRXV³.|´VKRSSLQJERXOHYDUGLVDOVRV\QRQ\PRXVZLWKIDVKLRQDQGOX[XU\ 7KDQNVWRH[WHQVLYHXUEDQGHYHORSPHQWDQGLFRQLFUHWDLOGHYHORSPHQWVVXFKDVWKH .|%RJHQ,DQG,,DQGWKHUHQRYDWHG.|*DOHULHWKHFLW\FHQWUHQRZSURYLGHVDQDS SURSULDWHEDFNGURS/DUJHLQIUDVWUXFWXUHEXLOGLQJSURMHFWVVXFKDVWKHGHPROLWLRQRID IO\RYHUDURDGWXQQHODQGWKHQHZXQGHUJURXQGOLQHKDYHEHHQFRPSOHWHG+RZHYHU HYHQDIWHUWKHFRPSOHWLRQRI.|%RJHQ,,VRPHFLW\FHQWUHEXLOGLQJSURMHFWVDUHVWLOO RQJRLQJ7KHILQDOHOHPHQWZLOOEHWKHH[WHQVLRQRIWKHSHGHVWULDQ]RQHLQWKHSULPH VKRSSLQJORFDWLRQRI6FKDGRZVWUDH$QRWKHUKLJKOLJKWFRXOGEHDEUDQFKRI .D'H:HLQ&DUVFKKDXVLQ'VVHOGRUIFLW\FHQWUHLQDOOLWVQHZVSOHQGRXU VKRXOGEHFRPSDUDWLYHO\ZHOOSUHSDUHGIRUWKHFRQWLQXLQJVWUXFWXUDOFKDQJHLQWKHUH WDLOVHFWRU7KHJRRGTXDOLW\RIVWD\ZKLFKEHQHILWVIURPWKHH[WHQVLYHUDQJHRIFDIHV DQGUHVWDXUDQWVLQWKH.|VXFFHVVIXOO\SDYHVWKHZD\IRUFRQWLQXLQJKLJKFLW\FHQWUH IRRWIDOO7KHVDPHDSSOLHVWRWRXULVPZKLFKVKRXOGFRQWLQXHWRSURYLGHVWURQJ VXSSRUWIRUUHWDLOVDOHVLQWKHFLW\FHQWUHDIWHUWKHUHFRYHU\7KHOHYHORILQWHUHVWIURP UHWDLOHUVFOHDUO\UHPDLQVPRUHRUOHVVXQFKDQJHG3ULPHUHQWVIHOORQO\VOLJKWO\LQ WR(85SHUP:KLOHWKHUHZDVDSRVLWLYHWUHQGLQWKH.|UHQWVLQ 6FKDGRZVWUDHDQG)OLQJHUVWUDȕHFOHDUO\ZHDNHQHG7KHHFRQRPLFFRQVHTXHQFHV RIWKHSDQGHPLFFRXOGOHDGWRDVOLJKWO\VKDUSHUGHFOLQHLQSULPHUHQWVZKLFKKDYH UHPDLQHGODUJHO\VWDEOHVRIDUWKLV\HDU

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

32,000 12,000 30,000 11,000 10,000 28,000 9,000 26,000 8,000 24,000 7,000 22,000 6,000 5,000 20,000 4,000 18,000 3,000 16,000 2,000 14,000 1,000 12,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Düsseldorf Top-7 Regional-12 Düsseldorf Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH Main Regional Real Estate Markets in Germany 39 2021

(66(1

3238/$7,21*52:7+ 81(03/2<0(175$7(

(VVHQ 5HJLRQDO 7RS (VVHQ 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

(VVHQ VSRSXODWLRQKDVVWDELOLVHGLQWKHODVWIHZ\HDUV$IWHUDPDUNHGH[RGXVLQWKH 8SWXUQLQ(VVHQSRSXODWLRQ ZDNHRIWKHFRDODQGVWHHOLQGXVWU\FULVLVWKHFLW\QRZKDVQRWTXLWHLQKDELW KDVVWDELOLVHGXQHPSOR\PHQW DQWV±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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000

60,000

55,000 50,000 45,000 40,000 35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Essen Regional-12 Top-7 (VVHQ 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 40 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ(VVHQ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H (VVHQ 5HJLRQDO 7RS (VVHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFHQWUDOORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

(VVHQLVDPDMRURIILFHORFDWLRQLQ*HUPDQ\DQGDWWKHVDPHWLPHWKHOHDGLQJRIILFH /HDGLQJRIILFHORFDWLRQLQWKH5XKU ORFDWLRQLQWKH5XKURQDFFRXQWRIWKHPDQ\FRPSDQ\KHDGRIILFHVEDVHGWKHUH,W DUHDSURYLQJUHVLOLHQWGXULQJWKH KDVDVXUIDFHDUHDRIPLOOLRQPDQGDSDUWIURPWKHWRSORFDWLRQVRQO\+DQQRYHU FRURQDYLUXVFULVLV 1XUHPEHUJDQG%RQQKDYHDODUJHURIILFHVWRFN7KH(VVHQRIILFHPDUNHWKDVGRQH ZHOOLQGLIILFXOWHFRQRPLFFRQGLWLRQVDFKLHYLQJLWVKLJKHVWWDNHXSWRGDWHLQDW P/DVW\HDUKRZHYHUEHFDXVHRIWKHFRURQDYLUXVFULVLVWDNHXSIHOO VKDUSO\WRMXVWXQGHUPíLWVORZHVWOHYHOVLQFHíUHIOHFWLQJWKHDEVHQFH RIILYHILJXUHOHWWLQJV6XFKWUDQVDFWLRQVDORQHDFFRXQWHGIRUDURXQGPLQ 7KHELJJHVWWUDQVDFWLRQLQZDVIRUPWKHQHZWHQDQWLV7h91RUG ,QFRQWUDVWWKHSULPHUHQWLQZDVVOLJKWO\KLJKHUVWLOOWKDQLWZDVWKHSUHYLRXV \HDUDW(85SHUPUHIOHFWLQJQRWOHDVWWLJKWHUVXSSO\DWDWLPHRIOLYHO\GHPDQG IRURIILFHVSDFHZKLFKKDVEHHQVWDJQDWLQJVLQFH6WURQJGHPDQGOHGWRDGH FOLQHLQWKHYDFDQF\UDWHWRMXVWRYHUSHUFHQWE\LWUHPDLQHGVWDEOHLQ LQVSLWHRIWKHSDQGHPLF)RXURIWKHWHQELJJHVWOHWWLQJV±LQFOXGLQJWKDWRI7h9±LQ YROYHGQHZRIILFHVXQGHUFRQVWUXFWLRQ7KHVXSSO\RIRIILFHVSDFHLVVHWWRUHPDLQ IDLUO\WLJKWWKLV\HDUDVZHOOVLQFHWKHUHDUHQRVLJQVRIDQ\PDMRUFRPSOHWLRQV)RU WKLVUHDVRQWKHYDFDQF\UDWHDQGSULPHUHQWVKRXOGQRWEHDIIHFWHGWRRPXFKE\WKH HFRQRPLFFRQVHTXHQFHVRIWKHFRURQDYLUXVFULVLV$ODUJHURIILFHGHYHORSPHQWFRXOG VSULQJXSRQWKHVLWHRIWKHIRUPHU5:(KHDGRIILFHZKLFKLVFXUUHQWO\EHLQJSXOOHG GRZQ

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

130 125 120 115 110 105 100 95

90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers (VVHQ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ Main Regional Real Estate Markets in Germany 41 2021

5HWDLOVSDFHLQ(VVHQ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

160 140 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations (VVHQ 5HJLRQDO 7RS

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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Essen Regional-12 Top-7 Essen Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 42 Main Regional Real Estate Markets in Germany 2021

)5$1.)857

2IILFHVSDFHLQ)UDQNIXUW 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H )U DQ N I X U W 7RS 5HJLRQDO )U DQ N I X U W 7RS 5HJLRQDO

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ðEXWZDVVWLOO H[FHHGHGLQVRPHFDVHVDWHXURVSHUPð+RZHYHUDVKDUSIDOOLQUHQWLVXQOLNHO\ LQYLHZRIWKHVKRUWDJHRIVSDFHLQLQQHUFLW\ORFDWLRQV,QWKHQH[WIHZ\HDUV)UDQN IXUW VVN\OLQHZLOOEHHQKDQFHGE\QHZSURMHFWVVXFKDV7RZHU21(RUWKH(QVHPEOH )285

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e )U DQ N I X U W 7RS 5HJLRQDO Frankfurt average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 43 2021

5HWDLOVSDFHLQ)UDQNIXUW 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

30,000 16,000 28,000 14,000 26,000 12,000 24,000 10,000 22,000 8,000 20,000 6,000 18,000 4,000 16,000 2,000 14,000 12,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Frankfurt Top-7 Regional-12 Frankfurt Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH 44 Main Regional Real Estate Markets in Germany 2021

+$0%85*

2IILFHVSDFHLQ+DPEXUJ 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H +DPEXUJ 7RS 5HJLRQDO +DPEXUJ 7RS 5HJLRQDO

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFHQWUDOORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW $IWHU%HUOLQWKHRIILFHPDUNHWVLQ+DPEXUJDQG0XQLFKDUHYLUWXDOO\QHFNDQGQHFNDW 6ROLGPDUNHWSULPHUHQWLQ+DPEXUJ DURXQGPLOOLRQP7KHXSWUHQGLQWKH+DPEXUJRIILFHPDUNHWZKLFKKDVEHHQ KDVLQFUHDVHGIXUWKHUGXULQJWKH GULYHQE\DEURDGO\GLYHUVLILHGHFRQRP\FRQWLQXHGLQ7DNHXSIURPWR SDQGHPLF ZDVKLJKDWDQDYHUDJHRIPSHUDQQXP7KHYDFDQF\UDWHKDGIDOOHQ WRXQGHUSHUFHQWE\IURPDWZRGLJLWILJXUHWHQ\HDUVDJR%HFDXVHRIWLJKW VXSSO\±WKHYDFDQF\UDWHLQWKHFLW\FHQWUHLVORZHU±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

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e +DPEXUJ 7RS 5HJLRQDO Hamburg average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 45 2021

5HWDLOVSDFHLQ+DPEXUJ

35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

300

6RXUFHEXOZLHQJHVD6FRSH'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD

+DPEXUJVFRUHVDVWKHOHDGLQJVKRSSLQJGHVWLQDWLRQLQQRUWKHUQ*HUPDQ\ZLWKD $WWUDFWLYHVKRSSLQJGHVWLQDWLRQ FDWFKPHQWDUHDRIPLOOLRQSHRSOHVWURQJSRSXODWLRQJURZWKDQGKLJKSXUFKDVLQJ ZLWKDEURDGRIIHUUDQJLQJIURP SRZHU$VDUXOHWRXULVWVDQGFUXLVHVKLSSDVVHQJHUVDUHDQLPSRUWDQWFRQVXPHU PDVVPDUNHWWROX[XU\JRRGV JURXS:KDWPDNHV+DPEXUJ VFLW\FHQWUHDWWUDFWLYHIURPWKHSRLQWRIYLHZRIFXVWRP HUVLVWKHEURDGUDQJHRIVKRSVRQRIIHUUDQJLQJIURPFRQYHQWLRQDOKLJKVWUHHWORFD WLRQVVXFKDVWKH6SLWDOHUVWUDHDQG0|QFNHEHUJVWUDHDOOWKHZD\WRWKHOX[XU\HQG RIWKHPDUNHWLQWKH1HXHU:DOO,QEHWZHHQWKHWZRWKHUHLVWKH(XURSD3DVVDJH WKHRQO\ODUJHFLW\FHQWUHVKRSSLQJPDOO2YHUDOOWKRXJKUHWDLOVSDFHLQWKHFLW\FHQ WUHLVUDWKHUWLJKWIRUDPDMRUFLW\RIPLOOLRQLQKDELWDQWVDWMXVWP7KHUH KDVEHHQDQLQFUHDVHLQUHWDLOVSDFHWKURXJKYDULRXVVPDOOHUGHYHORSPHQWVDOEHLW WKHSDFHRIH[SDQVLRQKDVEHHQVORZ7KH0|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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

30,000 12,000 28,000 11,000 10,000 26,000 9,000 24,000 8,000 7,000 22,000 6,000 20,000 5,000 18,000 4,000 3,000 16,000 2,000 14,000 1,000 12,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Hamburg Top-7 Regional-12 Hamburg Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH 46 Main Regional Real Estate Markets in Germany 2021

+$1129(5

3238/$7,21*52:7+ 81(03/2<0(175$7(

+DQQRYHU 5HJLRQDO 7RS +DQQRYHU 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

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|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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Hannover Regional-12 Top-7 +DQQRYHU 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 47 2021

2IILFHVSDFHLQ+DQQRYHU

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H +DQQRYHU 5HJLRQDO 7RS +DQQRYHU 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFHQWUDOORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

116

112

108

104

100

92 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers +DQQRYHU 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 48 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ+DQQRYHU 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

225 200 175 150 125 100 75 50 25 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations +DQQRYHU 5HJLRQDO 7RS

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|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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Hannover Regional-12 Top-7 Hannover Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 49 2021

.$5/658+(

3238/$7,21*52:7+ 81(03/2<0(175$7(

.DUOVUXKH 5HJLRQDO 7RS .DUOVUXKH 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

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í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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Karlsruhe Regional-12 Top-7 .DUOVUXKH 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 50 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ.DUOVUXKH

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H .DUOVUXKH 5HJLRQDO 7RS .DUOVUXKH 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

$VDQDGPLQLVWUDWLYHFHQWUHVHUYLFHKXEDQGVFLHQFHDQGUHVHDUFKORFDWLRQ 3URMHFWGHYHORSPHQWVKDYHEURXJKW .DUOVUXKHQHHGVDODUJHRIILFHPDUNHWRIDOPRVWPLOOLRQP$VWURQJULVHLQWKH PRGHUQRIILFHVSDFHWR.DUOVUXKHLQ QXPEHURIRIILFHZRUNHUVKDVOHGWRDPDUNHGLQFUHDVHLQRIILFHVSDFH2IDOOWKH WKHUHFHQWSDVW RFDWLRQVXQGHUFRQVLGHUDWLRQ.DUOVUXKHVKRZVWKHKLJKHVWLQFUHDVHLQRIILFHVSDFH RYHUWHQ\HDUVDWSHUFHQW7KLVPRVWO\UHIOHFWHGLQFUHDVHVIURPWRí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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

140 135 130 125 120 115 110 105 100 95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers .DUOVUXKH 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ Main Regional Real Estate Markets in Germany 51 2021

5HWDLOVSDFHLQ.DUOVUXKH 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

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±PLQXVSHU FHQWVLQFHWKHWXUQRIPLOOHQQLXP±WRQRZ(85SHUPLVWKHUHIRUHOLNHO\WR FRQWLQXHQRWOHDVWDOVRLQYLHZRIRQJRLQJEXLOGLQJZRUN2QWKHSOXVVLGH.DUVWDGW 6SRUWVKDVHVFDSHGFORVXUHDIWHUQHJRWLDWLRQVZLWKWKHODQGORUG

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Karlsruhe Regional-12 Top-7 Karlsruhe Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 52 Main Regional Real Estate Markets in Germany 2021

/(,3=,*

3238/$7,21*52:7+ 81(03/2<0(175$7(

/HLS]LJ 5HJLRQDO 7RS /HLS]LJ 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

8QWLOMXVWDIHZ\HDUVDJR*HUPDQ\ VHLJKWKODUJHVWFLW\ZLWKDURXQGLQKDELW (FRQRPLFXSWXUQDQGVWURQJ DQWVZDVV\QRQ\PRXVIRUSDLQIXOORVVHVLQWKHSURSHUW\PDUNHW7RGD\WKHERRP SRSXODWLRQJURZWKKDYHGULHGXS WRZQLVDVRXJKWDIWHUORFDWLRQZLWKKLJKGHPDQGIRUFRPPHUFLDOUHDOHVWDWHDQG YDFDQFLHVLQWKHERRPLQJFLW\ DERYHDOOKRXVLQJ7KHUHKDVEHHQDUDSLGZKLWWOLQJGRZQRIIRUPHUYDFDQWVSDFH 7KHHFRQRPLFXSWXUQLQDFLW\ULFKLQKLVWRULFDOEXLOGLQJVDQGKLJKTXDOLW\RIOLIHKDV OHGWRDQLQFUHDVHLQWKHSRSXODWLRQE\RYHUDILIWKZLWKLQWKHVSDFHRIWHQ\HDUV±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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Leipzig Regional-12 Top-7 /HLS]LJ 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 53 2021

2IILFHVSDFHLQ/HLS]LJ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H /HLS]LJ 5HJLRQDO 7RS /HLS]LJ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW'DWDIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

140 135 130 125 120 115 110 105 100 95 90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers /HLS]LJ 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 54 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ/HLS]LJ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD :LWKLWVDWWUDFWLYHFLW\FHQWUH/HLS]LJLVWKHWKLUGJRWRVKRSSLQJGHVWLQDWLRQLQHDVW /HLS]LJFLW\FHQWUHKDVEHQHILWHG HUQ*HUPDQ\DORQJZLWK%HUOLQDQG'UHVGHQ&RQGLWLRQVIRUWKHUHWDLOVHFWRUKDYH IURPVWURQJSRSXODWLRQJURZWKDQG EHHQSRVLWLYHVRIDUQRWOHDVWLQYLHZRIDFDWFKPHQWDUHDRIPLOOLRQSHRSOH$OW ODUJHYLVLWRUQXPEHUV KRXJKSXUFKDVLQJSRZHULVEHORZDYHUDJHDQLQFUHDVHRILQKDELWDQWVVLQFH WKHFHQVXVRIKDVOHGWRDPDUNHGLQFUHDVHLQFRQVXPSWLRQ0RUHRYHUXQHP SOR\PHQWKDVIDOOHQVKDUSO\8SXQWLOGHPDQGJRWDVXEVWDQWLDODGGLWLRQDOERRVW IURPDVKDUSLQFUHDVHLQWRXULVPDQGWKHPDQ\WUDGHIDLUYLVLWRUV$FFHVVWRWKHFLW\ FHQWUHIURPQHLJKERXULQJDUHDVKDVLPSURYHGFRQVLGHUDEO\ZLWKWKHFRPSOHWLRQLQ RIWKH&LW\WXQQHODQGOLQNXSWRWKHRYHUJURXQG 6%DKQ 9LVLWRUVWRWKHFLW\ FHQWUHKDYHWKHFKRLFHEHWZHHQVHYHUDOSULPHORFDWLRQVVXFKDVWKH3HWHUVVWUDH DQG*ULPPDLVFKH6WUDHDQGWKHWZRVKRSSLQJFHQWUHV +|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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Leipzig Regional-12 Top-7 Leipzig Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 55 2021

0$,1=

3238/$7,21*52:7+ 81(03/2<0(175$7(

0DLQ] 5HJLRQDO 7RS 0DLQ] 5HJ L R Q DO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

0DLQ] VDGYDQWDJHRXVORFDWLRQRQWKH5KLQHDQG0DLQZDVDOUHDG\SUL]HGLQ5RPDQ 5KLQHODQG3DODWLQDWHFDSLWDO WLPHV7RGD\WKHFDSLWDORIWKH5KLQHODQG3DODWLQDWHDOVREHQHILWVIURPLWVORFDWLRQLQ H[SHULHQFLQJVWURQJJURZWKí WKHHFRQRPLFDOO\VWURQJ5KLQH0DLQDUHD$VDXQLYHUVLW\WRZQRIIHULQJDKLJKTXDOLW\ DOVRDPDMRUPHGLDFHQWUHLQ RIOLIH0DLQ]KDVH[SHULHQFHGVWURQJSRSXODWLRQJURZWKWRDURXQGLQKDELW WKH5KLQH0DLQDUHD DQWVPRVWUHFHQWO\±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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000

60,000

55,000 50,000 45,000 40,000 35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mainz Regional-12 Top-7 0DLQ] 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 56 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ0DLQ]

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 0DLQ] 5HJLRQDO 7RS 0DLQ] 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

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±)+0DLQ] P DQGWKH&HQWHUIRU )XQGDPHQWDO3K\VLFV P ,QDQGODUJHUOHWWLQJVPRVWO\LQYROYHG QHZEXLOGSURMHFWV7KHKLJKSUHOHWWLQJOHYHOVKRXOGODUJHO\SUHYHQWDQLQFUHDVHLQ YDFDQF\7KHSULPHUHQWFRXOGQHYHUWKHOHVVGHFOLQHVOLJKWO\DWEHVWLWLVOLNHO\WR UHPDLQVWDEOH

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

120

115

110 105 100

95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers 0DLQ] 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ Main Regional Real Estate Markets in Germany 57 2021

5HWDLOVSDFHLQ0DLQ] 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

120

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|PHUSDVVDJH2QWKHRWKHU KDQG0DLQ] VFLW\FHQWUHRIIHUVDJRRGUDQJHRIVKRSVLQLWVWKUHHPDLQVKRSSLQJ VWUHHWV$P%UDQG6FKXVWHUXQG6WDGWKDXVVWUDH0DLQ] VUHWDLOVHFWRUVWDQGVRQD VROLGIRRWLQJDFFRUGLQJWRDUHFHQWDQDO\VLVFDUULHGRXWE\WKH*HVHOOVFKDIWIU0DUNW XQG$EVDW]IRUVFKXQJDOWKRXJKDVUHJDUGVSURGXFWUDQJHWKHVWXG\KLJKOLJKWVDSRRU FKRLFHRIVSRUWVJRRGV7KHFLW\FRXOGEHFRPHHYHQPRUHDWWUDFWLYHLQWKHQH[WIHZ \HDUV7KHORQJSODQQHGUHGHYHORSPHQWRIWKH/XGZLJVWUDH /X FDQQRZEHJLQ DIWHUWKHFORVXUHRI.DUVWDGWLQ2FWREHU±WKHUHLVVWLOORQHGHSDUWPHQWVWRUHOHIW ZLWK.DXIKRI7KHFRQFHSWVRXQGVFRQWHPSRUDU\LQVWHDGRIDSXUHUHWDLOVSDFHLWZLOO RIIHUDPL[WXUHRIVKRSVIRRGDQGGULQNRXWOHWVKRWHODQGFXOWXUH&RQWUDU\WRWKH WUHQGHOVHZKHUHWKHUHZDVRQO\DVPDOOLQFUHDVHLQWKHSULPHUHQWLQ0DLQ]XSXQWLO EXWLWGLGNHHSSDFHZLWKWKHXSWUHQGZKLFKIROORZHG7KHUHWDLOVHFWRUZDV DOUHDG\KLWSULRUWRWKHFRURQDYLUXVRXWEUHDNDVLOOXVWUDWHGE\HPSW\VWRUHV0RVWUH FHQWO\WKHSULPHUHQWVWRRGDW(85SHUP:HH[SHFWLWWRIDOOIXUWKHUWKLV\HDU

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Mainz Regional-12 Top-7 Mainz Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 58 Main Regional Real Estate Markets in Germany 2021

0$11+(,0

3238/$7,21*52:7+ 81(03/2<0(175$7(

0DQQKHLP 5HJLRQDO 7RS 0DQQKHLP 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

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íWKHIRXUWKFRQYHUVLRQRID86EDVHRIWKLVNLQG 3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000

60,000

55,000 50,000 45,000 40,000 35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Mannheim Regional-12 Top-7 0DQQKHLP 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 59 2021

2IILFHVSDFHLQ0DQQKHLP

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 0DQQKHLP 5HJLRQDO 7RS 0DQQKHLP 5HJ L R Q DO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

130 125 120 115 110 105 100 95

90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers 0DQQKHLP 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 60 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ0DQQKHLP 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

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|PD[EXLOGLQJ±DQG.DUVWDGWEHIRUHWKDW±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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Mannheim Regional-12 Top-7 Mannheim Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 61 2021

081,&+

2IILFHVSDFHLQ0XQLFK 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

45 12 40 10 35 30 8 25 6 20 15 4 10 5 2

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±WKH\HDU EHIRUHWKDWLWZDV$SSOH±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

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

7 500,000 450,000 6 400,000 5 350,000 300,000 4 250,000 3 200,000 150,000 2 100,000 1 50,000 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e Munich Top-7 Regional-12 Munich average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 62 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ0XQLFK 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

360 400 320 350 280 300 240 250 200 200 160 150 120 100 80 50 40 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e prime rent 1B locations Munich Top-7 Regional-12

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|KHLQWKHIRUPHU ;;;/XW]$QRWKHUSURMHFWLQYROYHVWKH$OWH$NDGHPLHFRPSOHWLRQLVVFKHGXOHGIRU 7KHSODQQHGFORVXUHRIWKH.DXIKRIDP6WDFKXVKDVEHHQSRVWSRQHGXQWLO $QRWKHUPDMRUSURMHFWLQWKHSLSHOLQHLQYROYHV.DUVWDGWEHWZHHQWKHPDLQUDLO ZD\VWDWLRQDQG6WDFKXV3ODQVIRUWKHQHZFRPSOH[ZKLFKZLOOEHPDGHXSRIH[LVW LQJDQGQHZEXLOGLQJVHQYLVDJHDQXQGHUJURXQGVKRSSLQJDUFDGHRYHUVHYHUDO KXQGUHGPHWUHV,QYLHZRI0XQLFK VVWUHQJWKDVDVKRSSLQJGHVWLQDWLRQSULPHUHQWLQ WKHFLW\VKRXOGUHPDLQZHOODERYHWKH(85SHUPPDUN,QLWRQO\GLSSHG PRGHUDWHO\WR(85SHUP

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

34,000 14,000 32,000 12,000 30,000 28,000 10,000 26,000 8,000 24,000 6,000 22,000 20,000 4,000 18,000 2,000 16,000 14,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Munich Top-7 Regional-12 Munich Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH Main Regional Real Estate Markets in Germany 63 2021

0h167(5

3238/$7,21*52:7+ 81(03/2<0(175$7(

0QVWHU 5HJLRQDO 7RS 0QVWHU 5HJLRQDO 7RS

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

8QOLNHPDQ\WRZQVLQ1RUWK5KLQH:HVWSKDOLD:HVWSKDOLDQ0QVWHUKDVQHLWKHUD 0DMRUFHQWUHIRUVFLHQFHDQG GZLQGOLQJSRSXODWLRQQRUKLJKXQHPSOR\PHQW8QHPSOR\PHQWKDVIDOOHQLQVSLWHRI WHFKQRORJ\ZLWKDIORXULVKLQJ VWURQJSRSXODWLRQJURZWK(YHQDIWHUWKHEHJLQQLQJRIWKHFRYLGFULVLVLWRQO\URVHWR 60(ELDVHGHFRQRP\ MXVWDERYHSHUFHQWLQ7KHQXPEHURILQKDELWDQWVKDVLQFUHDVHGE\LQ WKHVSDFHRI\HDUV,WVXUJHGDIWHUMXPSLQJIURPDURXQGWR PRVWUHFHQWO\+RZHYHUWKHJURZWKUDWHKDVQRZVORZHGGRZQLQ0QVWHUDVZHOO $OWKRXJKTXDOLW\RIOLIHUHPDLQVKLJKDJURZLQJVKRUWDJHRIKRXVLQJFRXOGKDYHD GHWULPHQWDOLPSDFW0QVWHUKDVDORQJWUDGLWLRQDVDXQLYHUVLW\WRZQZLWKPDQ\UH VHDUFKDQGKLJKHUHGXFDWLRQLQVWLWXWLRQV7KUHHTXDUWHUVRIDWRWDORIRYHURI WKRVHVWXG\LQJLQWKHFLW\DUHHQUROOHGDWWKH:HVWIl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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000

60,000

55,000

50,000

45,000

40,000

35,000 30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Münster Regional-12 Top-7 0QVWHU 5HJLRQDO 7RS

6RXUFH6FRSH 6RXUFH6FRSH 64 Main Regional Real Estate Markets in Germany 2021

2IILFHVSDFHLQ0QVWHU

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 0QVWHU 5HJLRQDO 7RS 0QVWHU 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

7KHRIILFHPDUNHWLQ0QVWHUEHQHILWVIURPKLJKGHPDQGIRUVSDFHIURPWKHPDQ\HG 6XSSO\LQWKHRIILFHPDUNHWVWLOOWLJKW XFDWLRQLQVWLWXWLRQVDQGDGPLQLVWUDWLRQERGLHVLQWKHFLW\7KHQXPEHURIRIILFHZRUN HUVKDVLQFUHDVHGE\DURXQGSHUFHQWVLQFH%\FRPSDULVRQWKHDPRXQWRI DYDLODEOHRIILFHVSDFHKDVRQO\LQFUHDVHGDWDPXWHGSDFHRISHUFHQWQRWOHDVWEH FDXVHRIILFHSURMHFWVLQ0QVWHUDUHUDUHO\VSHFXODWLYH&RPSOHWLRQVLQDQG IHOOWRDQKLVWRULFDOORZ7KLVKDVPHDQWWKDWRIILFHVXSSO\UHPDLQVWLJKWDQGWKLV KDVOHGWRDIDOOLQWKHYDFDQF\UDWHWRMXVWRYHUSHUFHQWE\7KHILJXUHKDVLQ FUHDVHGPDUJLQDOO\GXULQJWKHFRYLGFULVLVEXWHYHQZLWKWKHODWHVWYDFDQF\UDWHRI SHUFHQWLWLVSURYLQJGLIILFXOWWROHDVHODUJHUVSDFHVIURPWKHDYDLODEOHRIILFH VWRFN&RQVHTXHQWO\PRVWODUJHUWUDQVDFWLRQVLQDQGLQYROYHGQHZRIILFH SURMHFWVíLQWKHWHFKQRORJ\SDUNIRUH[DPSOH7KHKLJKHVWUHQWOHYHOEHLQJDFKLHYHG LQSXUHRIILFHORFDWLRQVLVFXUUHQWO\(85SHUPZKLOHWKHSULPHUHQWIRUFLW\ ORFDWLRQVLVVOLJKWO\ORZHUDW(85SHUP6LQFHWDNHXSKDVEHHQEHORZ WKHW\SLFDODQQXDOILJXUHIRUWKHRIILFHPDUNHWRIWRPSHUDQQXPí DIWHUDOOWKHUHLVKDUGO\DQ\VSDFHOHIWWRUHQW7KHUHLVQRVLJQRIDQ\DGGLWLRQDO FRYLGOHGGHFOLQHLQWDNHXSLQZLWKDILJXUHRIP)URPWKLV\HDURQ ZDUGVZHFDQH[SHFWDVOLJKWO\KLJKHUFRPSOHWLRQYROXPHHJWKURXJKRIILFH SURMHFWVLQWKHSRUWDUHD+RZHYHUWKLVVKRXOGQRWEHLQWHUSUHWHGDVDIXQGDPHQWDO VLJQRILPSURYHPHQWLQWKHWLJKWVXSSO\5HQWVDUHOLNHO\WRVWDJQDWHLQ

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

150

140

130

120

110

100

90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers 0QVWHU 5HJLRQDO 7RS

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ Main Regional Real Estate Markets in Germany 65 2021

5HWDLOVSDFHLQ0QVWHU 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

200 180 160 140 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations 0QVWHU 5HJLRQDO 7RS

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p$KLJKSULPHUHQWRI(85SHUPPRVWUHFHQWO\ LVWHVWDPHQWWRWKHFLW\ VDWWUDFWLRQDVDVKRSSLQJGHVWLQDWLRQ,QVSLWHRIEHLQJDERYH DYHUDJHLWKDVRQO\GLSSHGUHODWLYHO\PRGHUDWHO\+RZHYHUWKHSULPHUHQWLVOLNHO\WR GHFOLQHIXUWKHULQ

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Münster Regional-12 Top-7 Münster Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD 66 Main Regional Real Estate Markets in Germany 2021

185(0%(5*

3238/$7,21*52:7+ 81(03/2<0(175$7(

120 16 14 116 12 112 10 108 8 6 104 4 100 2 96 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nuremberg Regional-12 Top-7 Nuremberg Regional-12 Top-7

6RXUFH6FRSH,QGH[ 6RXUFHEXOZLHQJHVD%$'=%$1.IRUHFDVW

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

3(5&$3,7$*'3,1(85 :25.,1*3238/$7,21 <($5

65,000 125

60,000 120 55,000 115 50,000 110 45,000

40,000 105

35,000 100

30,000 95 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Nuremberg Regional-12 Top-7 Nuremberg Regional-12 Top-7

6RXUFH6FRSH 6RXUFH6FRSH Main Regional Real Estate Markets in Germany 67 2021

2IILFHVSDFHLQ1XUHPEHUJ

35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

35 12

30 10 25 8 20 6 15 4 10

5 2

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2021e Nuremberg Regional-12 Top-7 Nuremberg Regional-12 Top-7

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW

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

7$.(83$63(5&(17$*(2)2)),&(63$&( 75(1',12)),&(63$&($1'(03/2<0(17

6 125

5 120 115 4 110 3 105 2 100

1 95

0 90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 office space office workers Nuremberg Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFH6FRSHEXOZLHQJHVD,QGH[ 68 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ1XUHPEHUJ 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

320 160 280 140 240 120 100 200 80 160 60 120 40 80 20 40 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e prime rent 1B locations Nuremberg Regional-12 Top-7

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

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

Nuremberg Regional-12 Top-7 Nuremberg Regional-12 Top-7

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD Main Regional Real Estate Markets in Germany 69 2021

67877*$57

2IILFHVSDFHLQ6WXWWJDUW 35,0(2)),&(5(176,1(853(5640 9$&$1&<5$7(

H H 6W X W W J D U W 7RS 5HJLRQDO 6W X W W J D U W 7RS 5HJLRQDO

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW)LJXUHVIRUFLW\ORFDWLRQV 6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6WXWWJDUW VHFRQRP\GLIIHUVIURPWKDWRIWKHRWKHUPRUHVHUYLFHRULHQWHGWRSORFDWLRQV 6KDNHXSLQWKHFDULQGXVWU\ WKURXJKDUHODWLYHO\KHDY\ELDVWRZDUGVLQGXVWU\í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

7$.(83$63(5&(17$*(2)2)),&(63$&( 1(:2)),&(63$&(,1640

320,000 280,000 240,000 200,000 160,000 120,000 80,000 40,000

0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 6W X W W J D U W 7RS 5HJLRQDO Stuttgart average 1995-2020

6RXUFHEXOZLHQJHVD'=%$1.IRUHFDVW 6RXUFHEXOZLHQJHVD 70 Main Regional Real Estate Markets in Germany 2021

5HWDLOVSDFHLQ6WXWWJDUW 35,0(5(7$,/5(176,1(853(5640 5(7$,/5(17635,0(6(&21'$5

280 240 200 160 120 80 40 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 prime rent 1A locations average rent 1A locations H prime rent 1B locations 6W X W W J D U W 7RS 5HJLRQDO

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|QLJVWUDHORFDWLRQSURPSWHGWKHGHYHORSPHQWRIPDMRUFLW\FHQWUHUHWDLOSUR MHFWVZKLFKLQFUHDVHGUHWDLOVSDFHLQWKHFHQWUHE\DJRRGSHUFHQWDWDVWURNH 7KHWZRLQQHUFLW\VKRSSLQJFHQWUHV0,/$1(2DQG*(5%(5ZKLFKKDYHFRPELQHG UHWDLOVSDFHRIDURXQGPRSHQHGDOPRVWVLPXOWDQHRXVO\DWRSSRVLWHHQGVRI WKHLQQHUFLW\LQ,WVHHPVWKDWWKLVZDVWRRPXFKRIDJRRGWKLQJZKLOHWKH 0,/$1(2KDVEHHQDEOHWRHVWDEOLVKDVROLGIRRWLQJWKH*HUEHUKDVEHHQEHVHWZLWK SUREOHPVPDLQO\LQYROYLQJLWVWRSIORRUíKHQFHWKHGHFLVLRQWDNHQLQWRUH PRGHOWKHFHQWUH7KHSODQLVWRFRQYHUWWKHWRSIORRUIRURIILFHDQGKRWHOXVH,QYLHZ RIWKHFRYLGFULVLVWKHIDOOLQUHQWVDOUHDG\PHQWLRQHGFRQWLQXHGLQ3ULPHUHQW IHOOWR(85SHU(XURSHUPíWKHOHYHORI$IWHUWKLVDOUHDG\VKDUS IDOOLQUHQWVWKHUHFRXOGEHVLJQVRIVWDELOLVDWLRQWKLV\HDU:HH[SHFWDPRGHUDWH IDOOVWDEOHSULPHUHQW

3(5&$3,7$385&+$6,1*32:(5,1(85 180%(52)29(51,*+767$<63(5,1+$%,7$176

28,000 11,000 10,000 26,000 9,000 24,000 8,000 22,000 7,000 6,000 20,000 5,000 18,000 4,000 16,000 3,000 2,000 14,000 1,000 12,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stuttgart Top-7 Regional-12 Stuttgart Top-7 Regional-12

6RXUFHEXOZLHQJHVD 6RXUFHEXOZLHQJHVD6FRSH Main Regional Real Estate Markets in Germany 71 2021

/2&$7,216$7$*/$1&(

6758&785$/'$7$

,QKDELWDQWV 3HU&DSLWD'LVSRV ,QKDELWDQWV *'3 3HU&DSLWD*'3 DEOH,QFRPH 8QHPSOR\PHQW (85P (85 (850RQWK $XJVEXUJ %UHPHQ 'DUPVWDGW 'UHVGHQ (VVHQ +DQQRYHU .DUOVUXKH /HLS]LJ 0DLQ] 0DQQKHLP 0QVWHU 1XUHPEHUJ 5HJLRQDOFHQWUHPHDQ Total 4,975 254,701 %HUOLQ &RORJQH 'VVHOGRUI )UDQNIXUW +DPEXUJ 0XQLFK 6WXWWJDUW 7RSORFDWLRQPHDQ Total 10,127 588,540

6RXUFH6FRSH%$RZQFDOFXODWLRQV 0HDQVDUHLQKDELWDQWDQGVSDFHZHLJKWHG

72 Main Regional Real Estate Markets in Germany 2021

2)),&(63$&(

7RWDO2IILFH6SDFH 3ULPH5HQW &KDQJHLQ3ULPH5HQW 9DFDQF\5DWH 'DWD (85Pð \R\ SHU2IILFH WR Pð :RUNHU H H H LQPð $XJVEXUJ %UHPHQ 'DUPVWDGW 'UHVGHQ (VVHQ +DQQRYHU .DUOVUXKH /HLS]LJ 0DLQ] 0DQQKHLP 0QVWHU 1XUHPEHUJ 5HJLRQDOFHQWUHPHDQ Total 31,313 %HUOLQ &RORJQH 'VVHOGRUI )UDQNIXUW +DPEXUJ 0XQLFK 6WXWWJDUW 7RSORFDWLRQPHDQ Total 81,476

6RXUFHEXOZLHQJHVD6FRSH'=%$1.IRUHFDVW 0HDQVDUHVSDFHZHLJKWHG7KHSULPHUHQWLQGLFDWHGE\EXOZLHQ*HVDUHSUHVHQWVWKHPHDQRIWKHWKUHHWRSWKUHHWRIRXUSHUFHQWRIWKHUHQWDOPDUNHWZKLFKPHDQV WKDWWKHSULPHUHQWJLYHQLVQRWWKHVDPHDVWKHDEVROXWHWRSUHQW)RUWKLVUHDVRQWKHKLJKHUUHQWILJXUHVIRULQGLYLGXDOORFDWLRQVVRPHRIZKLFKDUHTXRWHGLQDOWHUQD WLYHPDUNHWUHSRUWVDUHIXQGDPHQWDOO\QRWFRQWUDGLFWRU\

Main Regional Real Estate Markets in Germany 73 2021

5(7$,/63$&(

7RWDO5HWDLO6SDFH 5HQWLQ3ULPH/RFDWLRQ &KDQJHLQ5HQW 5HWDLO5HQW 'DWD LQ(85Pð \R\ 'DWD (85Pð SHU WR 3ULPH $YHUDJH 3ULPH Pð &DSLWD H H 5HQW 5HQW 5HQW LQPð 6HF 3ULPH 3ULPH RQGDU\ /RFD /RFDWLRQ /RFD WLRQ WLRQ $XJVEXUJ %UHPHQ 'DUPVWDGW 'UHVGHQ (VVHQ +DQQRYHU .DUOVUXKH /HLS]LJ 0DLQ] 0DQQKHLP 0QVWHU 1XUHPEHUJ

5HJLRQDOFHQWUHPHDQ

Total 10,557 %HUOLQ &RORJQH 'VVHOGRUI )UDQNIXUW +DPEXUJ 0XQLFK 6WXWWJDUW

7RSORFDWLRQPHDQ

Total 17,629

6RXUFHEXOZLHQJHVD6FRSH'=%$1.IRUHFDVW 0HDQVDUHVSDFHZHLJKWHG7KHSULPHUHQWLQGLFDWHGE\%XOZLHQ*HVDUHSUHVHQWVWKHPHDQRIWKHWKUHHWRSWKUHHWRIRXUSHUFHQWRIWKHUHQWDOPDUNHWZKLFKPHDQV WKDWWKHSULPHUHQWJLYHQLVQRWWKHVDPHDVWKHDEVROXWHWRSUHQW)RUWKLVUHDVRQWKHKLJKHUUHQWILJXUHVIRULQGLYLGXDOORFDWLRQVVRPHRIZKLFKDUHTXRWHGLQDOWHUQD WLYHPDUNHWUHSRUWVDUHIXQGDPHQWDOO\QRWFRQWUDGLFWRU\

74 Main Regional Real Estate Markets in Germany 2021

*/266$5<

7DNHXS 2IILFHVSDFHLQDVSHFLILFORFDWLRQQHZO\RFFXSLHGWKURXJKOHWWLQJRURZQHURFFXSD WLRQGXULQJDRQH\HDUSHULRG7KLVGRHVQRWLQFOXGHFRQWUDFWH[WHQVLRQV7DNHXSLV FRXQWHGIURPWKHWLPHRIVLJQLQJRIWKHWUDQVDFWLRQUDWKHUWKDQWKH WLPHWKHQHZRFFXSDQWDFWXDOO\PRYHVLQ

1HZVSDFH 1HZO\EXLOWRIILFHVSDFHFRPSOHWHGLQWKHUHVSHFWLYH\HDU

9DFDQF\UDWH 3URSRUWLRQRIYDFDQWRIILFHVSDFHLQWKHUHVSHFWLYHORFDWLRQLQUHODWLRQWRDYDLODEOH VSDFH

3XUFKDVLQJSRZHULQGH[ 3XUFKDVLQJSRZHULVUHOHYDQWIRUWKHUHWDLOVHFWRUVLQFHLWGHILQHVWKHGLVSRVDEOH LQFRPHRIKRXVHKROGVLHWKHLUDELOLW\WREX\SURGXFWVDQGVHUYLFHV7KHSXUFKDVLQJ SRZHUVFRUHPHDVXUHVWKHILQDQFLDODELOLW\WREX\JRRGVDQGVHUYLFHVLQDVSHFLILF ORFDWLRQLQUHODWLRQWRWKH*HUPDQZLGHDYHUDJHZKLFKLVVHWDWSRLQWV

1HWLQLWLDO\LHOG 7KHLQLWLDOUHQWDO\LHOGIRURIILFHDQGUHWDLOVSDFHLVWKHUDWLRRIQHWDQQXDOUHQWDO LQFRPHDQGWRWDOSXUFKDVHSULFHWDNLQJLQWRDFFRXQWH[SHQVHV

5HJ5HJLRQDO 6SDFHZHLJKWHGLQGH[PDGHXSRIWKHUHJLRQDOFHQWUHVDQDO\VHGLQWKLVUHSRUW QDPHO\$XJVEXUJ%UHPHQ'DUPVWDGW'UHVGHQ(VVHQ+DQRYHU.DUOVUXKH /HLS]LJ0DLQ]0DQQKHLP0QVWHUDQG1XUHPEHUJ

3ULPHUHQW 7KHSULPHUHQWUHSUHVHQWVDPHDQRIWKHWRSRIDOOOHWWLQJVLQDPDUNHWDQG WKHILJXUHJLYHQLVWKHUHIRUHQRWWKHDEVROXWHWRSUHQWUHDOLVHG

7RS 6SDFHZHLJKWHGLQGH[PDGHXSRIWKHWRSVHYHQORFDWLRQVQDPHO\%HUOLQ 'VVHOGRUI)UDQNIXUW+DPEXUJ&RORJQH0XQLFKDQG6WXWWJDUW

&HQWUDOLW\LQGH[ &HQWUDOLW\LVFDOFXODWHGE\GLYLGLQJUHWDLOVDOHVLQDORFDWLRQE\SXUFKDVLQJSRZHU UHOHYDQWWRWKDWORFDWLRQPXOWLSOLHGE\$ILJXUHRIPRUHWKDQSRLQWVLQGLFDWHV WKDWUHWDLOVDOHVDUHKLJKHUWKDQWKHUHOHYDQWSXUFKDVLQJSRZHUDQGWKHORFDWLRQ WKHUHIRUHDWWUDFWVDGGLWLRQDOSXUFKDVLQJSRZHU

6RXUFHEXOZLHQJHVD'=%$1.

Main Regional Real Estate Markets in Germany 75 2021

I. Imprint

This study has been carried out by DZ BANK AG, Research and Economy Division, on behalf of and in cooperation with DZ HYP AG

Published by: DZ HYP AG

Hamburg Head Office Rosenstrasse 2, 20095 Hamburg Phone +49 40 3334-0

Münster Head Office Sentmaringer Weg 1, 48151 Münster Phone +49 251 4905-0

Homepage: www.dzhyp.de E-Mail: [email protected]

Represented by the Board of Managing Directors: Dr. Georg Reutter (Chairman), Sabine Barthauer, Jörg Hermes

General Executive Managers: Markus Wirsen

Chairman of the Supervisory Board: Uwe Fröhlich

Head office of the company: Registered as public limited company in Hamburg, Commercial Register HRB 5604 and Münster, Commercial Register HRB 17424

Competent supervisory authorities: DZ HYP AG is subject to the supervision of the Federal Financial Supervisory Authority (60439) and the European Central Bank (ECB).

VAT ident. no.: DE 811141281

Protection schemes: DZ HYP AG is a member of the officially recognised BVR Institutssicherung GmbH and the additional voluntary Sicherungs- einrichtung des Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V. (Protection Scheme of the National Association of German Cooperative Banks): www.bvr-institutssicherung.de www.bvr.de/SE

Responsible for the contents: Anke Wolff, Head of Communications, Marketing & Events

This document may only be reprinted, copied or used in any other way with the prior consent of DZ HYP AG

76 Main Regional Real Estate Markets in Germany 2021

II. Mandatory Disclosures for Other Research Information and further Remarks

1. Responsible Company 1.1 This Other Research Information has been prepared on behalf of and in cooperation with DZ HYP AG by DZ BANK AG Deutsche Zentral-Genossenschafts- bank, Frankfurt am Main (DZ BANK) as an investment firm. Other Research Information is independent client information which does not contain any investment recommendations for specific issuers or specific financial instruments. Such information makes no allowance for any individual investment criteria. 1.2 The mandatory disclosures for Research Publications (Financial Analyses and Other Research Information) as well as further remarks, especially regarding the Conflicts of Interest Policy of DZ BANK Research, used methods, procedures and statistics, can be read and downloaded free-of-charge under www.dzbank.com/disclosures.

2. Competent Supervisory Authorities DZ BANK is supervised as a credit institution and as an investment firm by: – European Central Bank - www.ecb.europa.eu Sonnemannstrasse 20 in 60314 Frankfurt / Main and – Federal Financial Supervisory Authority (BaFin) - www.bafin.de Marie-Curie-Strasse 24 - 28 in 60349 Frankfurt / Main

3. Independent Analysts 3.1 The Research Publications (Financial Analyses and Other Research Information) of DZ BANK are independently prepared by its employed analysts or by competent analysts commissioned in a given case on the basis of the binding Conflicts of Interest Policy. 3.2 Each analyst involved in the preparation of the contents of this Other Research Publication confirms that – this Research Publication represents his independent specialist evaluation of the analysed object in compliance with the Conflicts of Interest Policy of DZ BANK and – his compensation depends neither in full nor in part, neither directly nor indirectly, on an opinion expressed in this Research Publication.

4. Updates and Validity Periods for Other Research Information 4.1 The frequency of updates of Other Investment Information depends in particular on the underlying macroeconomic conditions, current developments on the relevant markets, the current development of the analyzed companies, measures undertaken by the issuers, the behavior of trading participants, the competent supervisory authorities and the competent central banks as well as a wide range of other parameters. The periods of time named below therefore merely provide a non-binding indication of when an updated investment recommendation may be expected. 4.2 No obligation exists to update an Other Investment Information. If an Other Research Information is updated, this update replaces the previous Other Research Information with immediate effect. If no update is made, investment recommendations end / lapse on expiry of six months. This period begins on the day the Other Investment Information was published. 4.3 In a given case, updates of Other Research Information may also be temporarily suspended without prior announcement on account of compliance with supervisory regulations. 4.4 If no updates are to be made in the future because the analysis of an object / certain angle is to be discontinued, notification of this shall be made in the final publication or, if no final publication is made, the reasons for discontinuing the analysis shall be given in a separate notification.

5. Avoiding and Managing Conflicts of Interest 5.1 DZ BANK Research has a binding Conflicts of Interest Policy which ensures that the relevant conflicts of interest of DZ BANK, the DZ BANK Group, the analysts and employees of the Research and Economics Division and persons closely associated with them are avoided, or - if such interests are effectively unavoidable - are appropriately identified, managed, disclosed and monitored. Materiel aspects of this policy, which can be read and downloaded free- of-charge under www.dzbank.com/disclosures are summarized as follows. 5.2 DZ BANK organizes its Research and Economics Division as a confidentiality area and protects it against all other organizational units of DZ BANK and the DZ BANK Group by means of Chinese walls. The departments and teams of the Division that produce Financial Analyses are also protected by Chinese walls and by spatial separation, a closed doors and clean desk policy. Beyond the limits of these confidentiality areas, communication may only take place in both directions according to the need-to-know principle. 5.3 Other theoretically feasible, information-based personal conflicts of interest among employees of the Research and Economics Division and persons closely associated with them are avoided in particular by the measures explained in sub-paragraph 5.2 and the other measures described in the policy. 5.4 The remuneration of employees of the Research and Economics Division depends neither in whole nor in the variable part directly or materially on the earnings from investment banking, trade in financial instruments, other securities related services and / or trade in commodities, merchandise, currencies and / or on indices of DZ BANK or the companies of the DZ BANK Group. 5.5 DZ BANK and companies of the DZ BANK Group issue financial instruments for trading, hedging and other investment purposes which, as underlying instruments, may refer to financial instruments, commodities, merchandise, currencies, benchmarks, indices and / or other financial ratios also covered by DZ BANK Research. Respective conflicts of interest are primarily avoided in the Research and Economics Division by means of the aforementioned organizational measures.

6. Recipients and Sources of Information

6.1 Recipients Other Research Information of DZ BANK is directed at eligible counterparties as well as professional clients. They are therefore not suitable for dissemination to retail clients unless (i) an Other research Information has been explicitly labelled by DZ BANK as suitable for retail clients or (ii) is disseminated by an investment firm properly authorized in the European Economic Area (EEA) or Swiss to retail clients, who evidently have the necessary knowledge and sufficient experience in order to understand and evaluate the relevant risks of the relevant Other Research Information. Other Research Information is authorized for dissemination by DZ BANK to the aforementioned recipients in in Member States of the European Eco- nomic Area and Switzerland. It is neither allowed to provide Other Research Information to customers in the United States of America (USA) nor to conclude corresponding transactions with them. The dissemination of Other Research Information in the Republic of Singapore is in any case restricted to DZ BANK AG Singapore Branch. Main Regional Real Estate Markets in Germany 77 2021

6.2 Main Sources of Information For the preparation of its Research Publications, DZ BANK uses only information sources which it considers itself to be reliable. However, it is not feasible to make own checks of all the facts and other information taken from these sources in every case. If in a specific case, however, DZ BANK has doubts over the reliability of a source or the correctness of facts and other information, it shall make specific reference to this in the Research Publication. The main sources of information for Research Publications are: Information and data services (e.g. Reuters, Bloomberg, VWD, FactSet, Markit), licensed rating agencies (e.g. Standard & Poors, Moody‘s, Fitch, DBRS), specialist publications of the sectors, the business press, the competent supervisory authorities, information of the issuers (e.g. annual reports, securities prospectuses, ad-hoc disclosures, press and analyst conferences and other publications) as well as its own specialist, micro and macro-economic research, examinations and evaluations.

III. Disclaimer

1. This document is directed at eligible counterparties and professional clients. Therefore, it is not suitable for retail clients unless (a) it has been explicitly labelled as appropriate for retail clients or (b) is properly disseminated by an investment firm authorized in the European Economic Area (EEA) or Switzerland to retail clients, who evidently have the necessary knowledge and sufficient experience in order to understand and evaluate the relevant risks of the relevant evaluation and / or recommendations. It was prepared by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Germany (‚DZ BANK‘) and has been approved by DZ BANK only for dissemination to the aforementioned recipients in Member States of the EEA and Switzerland. If this document is expressly marked as ‘Financial Analysis’ in sub-section 1.1 of the Mandatory Disclosures, its distribution to recipients is subject to the section International Restrictions of Use and these additional rules: This document may only be brought into the Republic of Singapore by DZ BANK via the DZ BANK Singapore Branch, but not by other persons, and may only be disseminated there to ‚accredited investors‘ and / or ‚expert investors‘ ‘and used by them. This document may only be brought into the United States of America (USA) by DZ BANK and via Auerbach Grayson, but not by other persons, and may only be disseminated there to ‚major U.S. institutional investors‘ and used by them, if it solely comprises equity research. DZ BANK is neither allowed to bring documents on debt instruments into the USA nor to conclude transactions in debt instruments. If this document is expressly marked as ‘Other Research Information’ in sub-section 1.1 of the Mandatory Disclosures, its dissemination to recipients is subject to these additional rules: It is neither allowed to provide Other Research Information to customers in the United States of America (USA) nor to conclude corresponding transactions with them. The dissemination of Other Research Information in the Republic of Singapore is in any case restricted to DZ BANK AG Singapore Branch. In all before named countries, this document may only be distributed in accordance with the respective applicable laws and rules, and persons obtaining possession of this document should inform themselves about and observe such laws and rules.

2. This document is being handed over solely for information purposes and may not be reproduced, redistributed to other persons or be otherwise published in whole or in part. All copyrights and user rights to this document, also with regard to electronic and online media, remain with DZ BANK. Whilst DZ BANK may provide hyperlinks to web sites of companies mentioned in this document, the inclusion of a link does not imply that DZ BANK endorses, recommends or guarantees any data on the linked page or accessible therefrom. DZ BANK accepts no responsibility whatsoever for any such links or data, nor for the consequences of its use.

3. This document is not to be construed as and does not constitute an offer, or an invitation to make an offer, to buy securities, other financial instruments or other investment objects. Estimates, especially forecasts, fair value and / or price expectations made for the investment objects analyzed in this document may prove incorrect. This may occur especially as a result of unpredictable risk factors. Such risk factors are in particular, but not exclusively: market volatility, sector volatility, measures undertaken by the issuer or owner, the general state of the economy, the non-realisability of earnings and / or sales targets, the non-availability of complete and / or precise information and / or later occurrence of another event that could lastingly affect the underlying assumptions or other forecasts on which DZ BANK relies. The estimates made should always be considered and evaluated in connection with all previously published relevant documents and developments relating to the investment object and to the relevant sectors and, in particular, capital and financial markets. DZ BANK is under no obligation to update this document. Investors must inform themselves about the current development of business as well as of any changes in the business development of the companies. During the validity period of an investment recommendation, DZ BANK is entitled to publish a further or other analysis based on other, factually- warranted or even missing criteria on the investment object.

4. DZ BANK has obtained the information on which this document is based from sources believed to be essentially reliable, but has not verified all of such information. Consequently, DZ BANK does not make or provide any representations or warranties regarding the preciseness, completeness or accuracy of the information or the opinions contained in this document. Neither DZ BANK nor its affiliated companies accept any liability for disadvantages or losses incurred as a result of the distribution and / or use of this document and / or which are connected with the use of this document.

5. DZ BANK and its affiliated companies are entitled to maintain investment banking and business relationships with the company or companies that are the subject of the analysis contained in this document. Within the limits of applicable supervisory law, DZ BANK’s research analysts also provide information regarding securities-related services and ancillary securities-related services. Investors should assume that (a) DZ BANK and its affiliated companies are or will be entitled to engage in investment banking operations, security operations or other business transactions from or with the companies that are the subject of the analysis contained in this document, and that (b) analysts involved in the preparation of this document can generally be indirectly involved in the conclusion of such business transactions to the extent permitted by supervisory law. DZ BANK and its affiliated companies and their employees may have positions in securities of the analyzed companies or investment objects or effect transactions with these securities or investment objects.

78 Main Regional Real Estate Markets in Germany 2021

6. The information and recommendations of DZ BANK contained in this document do not constitute any individual investment advice and, depending on the specific investment targets, the investment horizon or the individual financial situation, may therefore be unsuitable or only partially suitable for certain investors. In preparing this document DZ BANK has not and does not act in the capacity of an investment advisor to, or asset manager for, any person. The recommendations and opinions contained in this document constitute the best judgment of DZ BANK’s research analysts at the date and time of preparation of this document and are subject to change without notice as a result of future events or developments. This document constitutes an independent appraisal of the relevant issuer or investment objects by DZ BANK; all evaluations, opinions or explanations contained herein are those of the author of this document and do not necessarily correspond with those of the issuer or third parties. Any decision to effect an investment in securities, other financial instruments, commodities, merchandise or other investment objects should not be made on the basis of this document, but on the basis of independent investment analyses and methods as well as other analyses, including but not limited to information memoranda, sales or other prospectuses. This document can be no replacement for individual investment advice.

7. By using this document, in any form or manner whatsoever, or referring to it in your considerations and / or decisions, you accept the restrictions, speci- fications and regulations contained in this document as being exclusively and legally binding for you.

Additional Information of Markit Indices Limited

Neither Markit, its affiliates or any third party data provider makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. Neither Markit, its affiliates nor any data provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the Markit data, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom. Markit has no obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. Without limiting the foregoing, Markit, its affiliates, or any third party data provider shall have no liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.

DZ HYP ADDRESSES

Hamburg Head Office Münster Head Office Rosenstrasse 2 Sentmaringer Weg 1 20095 Hamburg, Germany 48151 Münster, Germany PO Box 10 14 46 Mailing address: 20009 Hamburg, Germany 48136 Münster, Germany Phone: +49 40 3334-0 Phone: +49 251 4905-0

Commercial Real Estate Investors

Real Estate Centre Berlin Real Estate Centre Düsseldorf Real Estate Centre Frankfurt Pariser Platz 3 Ludwig-Erhard-Allee 20 CITY-HAUS I, Platz der Republik 6 10117 Berlin, Germany 40227 Düsseldorf, Germany 60325 Frankfurt/Main, Germany Phone: +49 30 31993-5101 Phone +49 211 220499-30 Phone: +49 69 750676-21

Real Estate Centre Hamburg Real Estate Centre Munich Real Estate Centre Stuttgart Rosenstrasse 2 Türkenstrasse 16 Heilbronner Strasse 41 20095 Hamburg, Germany 80333 Munich, Germany 70191 Stuttgart, Germany Phone: +49 40 3334-3778 Phone: +49 89 512676-10 Phone: +49 711 120938-0

Hanover Regional Office Kassel Regional Office Leipzig Regional Office Berliner Allee 5 Rudolf-Schwander-Str. 1 Schillerstrasse 3 30175 Hanover, Germany 34117 Kassel, Germany 04109 Leipzig, Germany Phone: +49 511 866438-08 Phone: +49 561 602935-23 Phone: +49 341 962822-92

Mannheim Regional Office Münster Regional Office Nuremberg Regional Office Augustaanlage 61 Sentmaringer Weg 1 Am Tullnaupark 4 68165 Mannheim, Germany 48151 Münster, Germany 90402 Nuremberg, Germany Phone: +49 621 728727-20 Phone: +49 251 4905-7314 Phone: +49 911 940098-16

Institutional Clients Rosenstrasse 2 20095 Hamburg, Germany Phone: +49 40 3334-2159 80 Main Regional Real Estate Markets in Germany 2021

DZ HYP ADDRESSES CONTINUED

Housing Sector

DZ HYP Berlin DZ HYP Düsseldorf DZ HYP Frankfurt Pariser Platz 3 Ludwig-Erhard-Allee 20 CITY-HAUS I, Platz der Republik 6 10117 Berlin, Germany 40227 Düsseldorf, Germany 60325 Frankfurt/Main, Germany Phone: +49 30 31993-5080 Phone: +49 251 4905-3830 Phone: +49 211 220499-5833

DZ HYP Hamburg DZ HYP Munich DZ HYP Stuttgart Rosenstrasse 2 Türkenstrasse 16 Heilbronner Strasse 41 20095 Hamburg, Germany 80333 Munich, Germany 70191 Stuttgart, Germany Phone: +49 40 3334-4705 Phone: +49 89 512676-55 Phone: +49 89 512676-55

Retail Customers

DZ HYP Berlin DZ HYP Düsseldorf DZ HYP Frankfurt Pariser Platz 3 Ludwig-Erhard-Allee 20 CITY-HAUS I, Platz der Republik 6 10117 Berlin, Germany 40227 Düsseldorf, Germany 60325 Frankfurt/Main, Germany Phone: +49 40 3334-4706 Phone: +49 211 220499-5830 Phone: +49 69 750676-12

Public Sector

Sentmaringer Weg 1 48151 Münster, Germany Phone: +49 251 4905-3333

dzhyp.de 403334-0 Phone +49 Germany 20095 Hamburg Rosenstrasse 2 DZ HYPAG reports todateisavailablehere. An overviewofDZHYP’s real estatemarket Phone +49 2514905-0 Phone +49 Germany 48151 Münster Sentmaringer Weg 1

As at = March 2021