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MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES - metropolitan area for H1 2019

Realogis publishes market report on the letting of logistics properties and industrial spaces in the Rhine-Main metropolitan area for first half of 2019 n Take-up of around 261,200 sqm is down >> Take-up of logistics property and industrial space in the greater area H1 2019 around 13% on the previous year’s result and around 11% below the five-year average n The South region is contributing the most at 160,800 sqm, with the Mainz/ re- gion in second place n As in the same period of the previous year, large spaces are the biggest driving factor n Outlook for 2019: Shortage of space and de- clining industry could lead to further decrease in take-up n Rental prices probably will not fall, as demand the owner-occupied Ikea logistics property com- still outstrips supply due to further digitalisa- prising 33,000 sqm. Take-up by size tion of consumption and changes in retail It was followed by the Mainz/Wiesbaden region Looking at the distribution of space, it can be seen The letting volume of storage, logistics and pro- with 13% (33,000 sqm) and Rhine-Main East that units measuring more than 10,000 sqm made duction space in the Greater Frankfurt/Rhine- with 9% (22,400 sqm). A less important role the biggest contribution to the half-year result. Main region* in the first half of 2019 did not was played by lettings in the Rhine-Main West As in the same period of the previous year (67%, match the previous year’s results. At 261,200 sqm, region (6.7%, 17,400 sqm) and – at almost the 178,300 sqm), they accounted for the highest take- the market fell short of the result from H1 2018 same level – Frankfurt (6.4%, 16,800 sqm), as up – 162,400 sqm or 62% – in the first six months (300,000 sqm) by 13%. Compared to the five- well as by the Rhine-Main North region with of the current year, too. The smaller segments also year average (292,040 sqm), the first six months 4.1% (10,800 sqm). remained at a similar level. of the current year were 11% lower.

Our forecast from the end of 2018 regarding the >> Take-up of logistics property and industrial space by size in the greater Frankfurt area H1 2019 decline in take-up has unfortunately been con- firmed, as less space is available to the retail, in- dustrial and logistics sectors to implement their business strategies. However, we expect that the 2019 62 % 13 % 15 % 10 % logistics space currently available or under con- struction will be let in major deals in the near fu- ture, so we take a positive view with regard to the overall performance. > 10,001 sqm 5,001 - 10,000 sqm 2,001 - 5,000 sqm ≤ 2,000 sqm

>> Take-up of logistics property and industrial space by regions in the greater Frankfurt area H1 2019 Take-up by regions

As in the same period of the previous year, the most letting activity took place in the Rhine- Main South region, which comprises the districts of Groß-Gerau, , Offenbach-Land, , Darmstadt- and Bergstraße. At 160,800 sqm, this sub-market contributed 60% of the half-year result (H1 2018: around 220,000 sqm, 73%) due to major deals such as

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for H1 2019 Forecast 2019 >> Relevant deals in H1 2019

We expect that the slight decline in take-up will 1. IKEA 2. Coca Cola 3. Amazon be able to continue for now. Firstly, the Frank- Rüsselsheim Mainz/Bodenheim furt/Rhine-Main logistics market still has a lack approx. 33,000 sqm approx. 20,300 sqm approx. 19,700 sqm of properties to meet the high demand from end owner-occupier acquisition consumers and the resulting needs of business- 4. Eichler-Kammerer Gruppe 5. Akasol AG 5. Rigterink Gruppe es. Secondly, there are growing signs that indus- Darmstadt, Bischofsheim try is becoming more cautious, which could then approx. 18,200 sqm approx. 15,000 sqm approx. 14,000 sqm quickly spread to other areas, too. owner-occupier owner-occupier

However, this has not yet had any impact on tion and changes in end consumers’ purchasing growing metropolitan area and will therefore rental prices. Demand still outstrips the available behaviour, retail – and particularly e-commerce continue to account for high take-up. options and resources. As a result of digitalisa- – will play an important role in supplying the

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

45 Gießen / Bad Hersfeld area Gießen / Wetzlar area Fulda 3

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Limburg an der Lahn Rhine-Main North 7 Koblenz WETTERAU 3.50 - 4.50 Rhine-Main West Friedberg 66 4.00 - 6.50 5 45 HOCHTAUNUS Büdingen Bad Homburg MAIN- Gelnhausen MAIN- Rhine-Main East Frankfurt a. M. TAUNUS 3.30 - 5.00 4.00 - 6.50 Wiesbaden Hofheim am Taunus Offenbach - 61 Wiesbaden / Mainz 3 LAND 3.50 - 5.95 Neu-Isenburg Mainz Rüsselsheim OFFENBACH-LAND 60 Ingelheim Mörfelden-Walldorf Aschaffenburg am Rhein Groß-Gerau 3 GROß- DARMSTADT-DIEBURG GERAU 61 Darmstadt Groß-Umstadt

Rhine-Main South Würzburg Gernsheim 3.50 - 6.95 3 67 Wertheim Mannheim-Heidelberg- 63 Rhein-Neckar Alzey-Worms BERGSTRAßE Worms (Bergstraße)

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Mannheim 5 * Greater Frankfurt market area Realogis defi nes the sub-markets as the relevant available warehouse, logistics, industrial and production properties with hall space of approx. 1,000 sqm or greater (excluding offi ce and ancillary space) in the following regions: Rhine-Main North including Wetterau district; Rhine-Main South including Gross- Gerau, Offenbach, Offenbach-Land, Darmstadt and Darmstadt-Dieburg districts; Rhine-Main East including Aschaffenburg, (part of) Main-Kinzig and (part of) Aschaffenburg-Land districts; Rhine-Main West including Hochtaunus and Main-Taunus districts, Wiesbaden/Mainz including Wiesbaden and Mainz districts, and Frankfurt (Frankfurt district).

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for H1 2019 REALOGIS Immobilien REALOGIS – REALOGIS – Frankfurt GmbH Pioneers in Logistics since 2005 Available to you directly on-site in Frankfurt Bockenheimer Landstraße 39 60325 Frankfurt When Realogis was first established in 2005, we We are your point of contact for the letting of in- phone: +49 (0)69 - 8 700 401 - 50 had an ambitious goal: to become the market dustrial and logistics property as well as business fax: +49 (0)69 - 8 700 401 - 99 leader for property lettings in the “industrial and parks in the Rhine-Main metropolitan area. You’re email: [email protected] logistics” segment. The concentration and poo- looking for a certain type of property? We will ling of our know-how into this niche market has define the precise details of your requirements, www.realogis.de proved successful: in 2015 we again gained enhance your search profile and provide you with market leadership in Germany for space take-up exact property matches. Maybe you are looking in industrial properties, warehouses and logistics for a new tenant for your property. In that case we properties. What’s more, we have also continued will assist you in valuing your property and setting to expand our share of the European market. the optimal rental price. We handle the professio- nal presentation of your property to the public and Today, the owner-managed Realogis group, which ensure a prompt letting. is headquartered in Munich and also has offices in Berlin, Düsseldorf, Frankfurt, Hamburg and Stutt- Both tenant and landlord benefit from the many gart, not only offers lettings and consultancy ser- years of specialist market knowledge of our seven- vices but is also a sought-after partner of investors strong consultancy team in the region, as well as Contact: and institutional investors, to whom we offer our our market proximity and valuable contacts. We Adriano Borgia (Managing Director) comprehensive experience and in-depth regional, only employ well educated and experienced pro- phone: +49 (0)69 - 8 700 401 - 50 national and international market knowledge. perty consultants, and also offer access to an fax: +49 (0)69 - 8 700 401 - 99 in-house site-department, which is specialised in email: [email protected] Extensive consultancy services in the areas of commercial and industry sites. logistics and fulfilment round off our range of services. With a team of highly motivated and Please contact us about any decisions relating to well-trained professionals, we continually strive industrial and logistics property. to provide long-term support to our customers and enable them to benefit from our position as market leader.

Our services Contact: n Preparation of a detailed and individual requi- n Sound and realistic valuation of your property / Irina Lysenko (Research Analyst) rements profile land phone: +49 (0)89 - 51 55 69 - 287 fax: +49 (0)89 - 51 55 69 - 29 n Targeted offers n Individual marketing concept email: [email protected] n Development of possible alternatives n Advice on optimising property (leasing, purchase) n Strategy consulting to minimise the risk of n Integrated Realogis logistics consultancy to vacancies and defaults define the optimal location and implement internal processes in an existing property n Extensive regional, national and international contact network of potential tenants

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for H1 2019