Facts and Figures

Warehouse/Logistics Rhine- Q3 2017 ‘‘The essence of knowledge is,

having it, to apply it.‘‘

Quote from Confucius

If you require any further information, please do not hesitate to contact us. We can put you in touch with our specialists who are always happy to provide you with expert support. We look forward to hearing from you!

Dr. Konrad Kanzler Head of Research +49 (0) 69 - 970 505-614 [email protected]

Michael Weyrauch Head of Industrial Letting and Transaction +49 (0) 69 - 970 505-902 [email protected]

Tim Weißleder Senior Consultant Industrial Letting and Transaction +49 (0) 69 - 970 505-157 [email protected]

Lenny Lemler Co-Head of Investment +49 (0) 69 - 970 505-174 [email protected] Market Environment

Population development /Rhine-Main

Frankfurt Wiesbaden Offenbach The socio-economic and business data for Inhabitants (06/2017): Frankfurt 736,222 / Wiesbaden 289,607 / Mainz 214,057 /

the Rhine-Main region remained positive Darmstadt 159,470 / Offenbach 134,547 800,000 during the first nine months of 2017. The 700,000 largest cities within the region again regis- 600,000 tered an increase in population. Com- 500,000 pared to June 2016, the total population in 400,000

300,000 the five biggest cities increased by 1.0 %

200,000 to 1.534 million by mid-2017. The cities Frankfurta.M., Wiesbaden, Mainz,Darmstadt, Offenbach

100,000 Offenbach am Main and Frankfurt am Main Cities 0 : recorded the strongest growth rates of 2010 2011 2012 2013 2014 2015 2016 Jun 17 Source 1.6 % and 1.2 % respectively. The remain- ing cities registered increases of between 0.5 % and 0.9 %. Unemployment rate Frankfurt/Rhine-Main

Frankfurt Wiesbaden Mainz Darmstadt Offenbach Unemployment rate (09/2017): Frankfurt 5.7 % / Wiesbaden 7.4 % / Mainz 5.8 % / Darmstadt 5.9 % / Offenbach 9.4 % / Germany 5.5 % 12.0 The employment market in the Rhine-Main

11.0 region also continues to perform well. With 10.0 the exception of Wiesbaden, where the 9.0 unemployment rate remains unchanged, 8.0 FederalEmployment Agency

, unemployment fell compared to the previ- 7.0 ous year (September 2016). Mainz regis- 6.0

5.0 tered the biggest decline of 0.6 % points FederalStatistical Office

4.0 : to 5.8 %. Frankfurt still boasts the lowest 2010 2011 2012 2013 2014 2015 2016 Sep 17 Source rate of unemployment at 5.7 %. Com- pared to the other four cities, Offenbach am Main still has the highest unemploy- Purchasing power per capita Frankfurt/Rhine-Main ment rate of 9.4 %, although the rate has Frankfurt Wiesbaden Mainz Darmstadt Offenbach Germany again declined significantly with a de- Purchasing power per capita (2017): Frankfurt €25,532 / Wiesbaden €24,836 / Mainz €24,396 / Darmstadt €24,299 / Offenbach €20,786 / Germany €22,239 crease of 0.4 % points. 30,000

25,000

20,000 The most recent business survey carried out by the Hessian Chambers of Industry 15,000 and Commerce in early summer 2017 10,000 continues to reflect the positive mood in 5,000 the economy. The business climate : GfK GeoMarkting GmbH index for the transport industry remains at

0 Source 2012 2013 2014 2015 2016 2017 a very high level with 120 points. Around 90 % of the companies surveyed rated Traffic situation Frankfurt/Rhein-Main both their current business situation as Air traffic Passenger numbers at reached peak well as their future expectations as positive level of 30 million in the first half of 2017 (+4.5 % compared to previous year); cargo volume increased or steady. The lack of skilled workers was 5.3 % to almost 1.1 million tonnes. cited as the biggest obstacle to their future Rail traffic Frankfurt central station is the most important ICE hub development, followed by high fuel prices. in Germany. More than 630 long-distance and local trains per day, 1,100 S-Bahn trains (regional trains) and 350,000 visitors and travellers. Highway traffic Central hub for Germany’s long-distance road network with five motorway links. Frankfurter Kreuz is the busiest motorway junction in Germany with about 335,000 vehicles per day. Market Data

Take-up (lettings and owner occupation) In the period from July to September Take-up (in thousend sqm) Average take-up 10 years (520,000 sqm) 2017, the market for warehouse and logis- 800 753 sqm tics space in the Rhine-Main region per- 700 635 sqm 582 sqm 569 sqm 629 sqm 583 sqm formed broadly in line with the previous 600 511 sqm quarter. Space take-up by tenants and 500 owner-occupiers amounted to about 400 349 sqm 214,000 sqm in the last three months and 300

200 represents one of the best quarterly results since we first started to collect data. Total

100 apollo

0 : NAI space take-up in the first nine months of

2010 2011 2012 2013 2014 2015 2016 Q1-Q3 2017 Source 2017 amounted to about 583,000 sqm – some 68,000 sqm more than in the corre- sponding period of the previous year. Take-up according to unit size Q1-Q3 2017

18 Spaces The strong take-up of space in the third 350,000 331,000 sqm quarter of 2017 resulted from the high pro- 300,000 portion of deals for over 10,000 sqm of 250,000 space. The take-up level in this segment Total: 583,000 sqm 200,000 amounted to more than 125,000 sqm in

150,000 the last three months, accounting for more 11 Spaces 28 Spaces 88,000 sqm than half of the total quarterly volume. The 100,000 53 Spaces 63,000 sqm 12 Spaces 50,000 sqm 51,000 sqm Gorilla Sports deal for 35,000 sqm in a 50,000

apollo project development on the Südzucker 0 : NAI < 1,500 1,501 - 3,000 3,001 - 5,000 5,001 - 10,000 > 10,000 site in Groß-Gerau represented the big- Source gest contract signing during the recent quarter, as well as the second-largest deal Take-up according to industry Q1-Q3 2017 in terms of space in the year to date. In terms of the different types of deals,

11.4 % rentals in existing buildings increased sig- nificantly in the third quarter and ac- Transport, Warehouse & Logistics 10.7 % counted for 63.3 % of space take-up. In Trade 45.0 % the year to date, this segment increased Manufacturing its share to 48.1 % (280,000 sqm) of the Others & n/a volume, whereby lettings in existing prop-

32.9 % erties achieved the highest space take-up

apollo and were in line with previous years (2016: NAI 45.1 % share / 2015: 54.4 % share). Let-

Source: tings in project developments fell by 12.4 % points compared to the first half of Definition market area 2017 and accounted for a 39.8 % share NAI apollo defines the Frankfurt/Rhine-Main market area for logistics (232,000 sqm) of the volume. However, and warehouses as the relevant available logistics and warehouse the overall percentage is much higher than space between the cities of Butzbach in the north and Worms in the in previous years (2016: 27.9 % share / south, as well as between Bingen in the west and Aschaffenburg in 2015: 27.0 % share). Purchases and pro- the east. jects by owner-occupiers accounted for 10.5 % and 1.6 % of the volume respec- The City of Frankfurt am Main forms the central point of the sub-mar- tively in the first three quarters of 2017. ket described. Market Data

Development of rents Frankfurt am Main The southwest market area remained the Minimum rent (in €/sqm) Prime rent (ni €/sqm) most important sub-market with the high- 8.0 est take-up level, primarily due to a high 7.0 number of large contract signings. At 6.0 around 290,000 sqm, around half of the 5.0 market activity in the last three quarters 4.0 took place in this area. The east market 3.0 area was next in line with a 13.1 % share 2.0 and around 76,000 sqm. 1.0 apollo NAI : 0.0 Companies from the transport, storage 2010 2011 2012 2013 2014 2015 2016 Q3 2017 Source and logistics industry continue to repre- sent the biggest users and accounted for Selection of large current project developments 2017 space take-up of about 262,000 sqm in the period from January to September in Kelsterbach - 50,000 sqm 2017. This corresponds to a 45.0 % Construction of the M-Port³ logistics park by MP Holding and AG with the start of the first speculative construction phase for 25,000 sqm. The plan is to build a total share, and indicates a loss of 6.2 % points warehouse space of around 50,000 sqm. compared to end-June. In contrast, retail - 46,000 sqm companies registered the biggest growth Construction by AXXUS Capital and Gaul Planung & Finanzierung of a trimodal logistics on the demand side in the last three park with 46,000 sqm of warehouse space on the former site of the van Baerle chemicals plant. months. Compared to the first half of the

year, this group increased its take-up al- - 43,000 sqm

apollo most threefold to 192,000 sqm (Q1-Q3 NAI

Construction of a 43,000-sqm distribution hall for a contract logistics provider in the : industrial park of Zech Group-owned Deutsche Logistik Holding (DLH) on the former 2017) or a 32.9 % share (H1 2017: Source Mitsubishi site. 65,000 sqm). Industrial companies ac- counted for a 10.7 % share. Selection of large completed developments 2017 Based on the positive market develop-

Biblis - 85,000 sqm ment, we have upgraded the forecast from the previous quarter. Market activity is ex- Completion of the new distribution centre by Dietz AG that is let to Dutch non-food discounter Action. pected to remain extremely buoyant in the final quarter of the year. The total volume Ginsheim-Gustavsburg - 32,000 sqm after just nine months is only 50,000 sqm

Construction of VGP-Park in Ginsheim-Gustavsburg, with full occupancy achieved before below the entire annual volume recorded completion. in the previous year. For this reason, we

Erlensee - 28,000 sqm expect space take-up in 2017 to attain the

apollo record level of 2014. Take-up reached NAI Completion of a logistics warehouse for Dachser on the former Langendiebach airbase by : more than 750,000 sqm in 2014. Large-

Panattoni in the immediate vicinity of a Dachser food distribution centre. Source scale rental opportunities in newly con- structed premises are currently available in Outlook next 12 months the Dietz AG development in , for example, or in the M Port³ construction Stock project on the Mönchhof site. Other possi- bilities also include the SEGRO project de- Vacancy velopments in Bischofsheim and Take-up Mörfelden-Walldorf. Furthermore, up to 95,000 sqm is being developed in the Prime rent

apollo Deutsche Logistik Holding industrial park

NAI in Trebur, of which 43,000 sqm was pre-

Minimum rent Source: let in the second quarter. Submarkets

Submarkets and available logistics stock Q3 2017

North-East 3.50 – 5.00€/sqm

North-West 3.50 – 5.00€/sqm

Frankfurt Wiesbaden/Mainz 3.00 – 6.30€/sqm East 3.00 – 5.60€/sqm 3.00 – 5.00€/sqm

South-East South-West 3.50 – 6.30€/sqm 3.20 – 6.95€/sqm

Available logistics stock > 5,000 sqm Q3 2017 Location Local rent range (€/sqm) Alzenau approx. 4.00 - 4.50 Frankfurt approx. 3.00 - 6.30 Friedberg approx. 3.50 - 4.50 Friedrichsdorf approx. 3.50 - 4.50 Gernsheim approx. 3.30 - 4.50 Kelsterbach approx. 5.30 - 6.95 Langen approx. 4.50 - 5.50

Pfungstadt approx. 3.50 - 4.50 Raunheim approx. 4.80 - 6.00 apollo NAI

Weiterstadt approx. 4.50 - 5.75 : Wiesbaden approx. 4.20 - 4.60 Source Top 5 – Key Facts

Logistics strongholds

Rental18,6 price range Q3 2017 (€/sqm) Existing stock New construction

Berlin 2.50 - 4.70 4.50 - 6.40

Dusseldorf 3.00 - 4.80 4.50 - 6.20

Frankfurt/Rhine-Main 3.00 - 5.50 5.00 - 6.95 apollo apollo Hamburg 3.70 - 5.20 4.50 - 5.70 Source: NAI NAI Source: Munich 4.70 - 6.20 5.80 - 8.50 NAI Source:

Prime yields Q3 2017

Prime office yields Prime retail yields Prime logistics yields

Berlin 3.10 % 3.25 % 4.70 %

Dusseldorf 3.80 % 3.40 % 4.70 %

Frankfurt a. M. 3.45 % 3.45 % 4.70 %

Hamburg 3.20 % 3.30 % 4.70 % apollo Munich 3.10 % 2.95 % 4.65 %

Total Ø = 3.35 % Ø = 3.25 % Ø = 4.70 % Source: NAI

Frankfurt/Rhine-Main Top take-up Q1-Q3 2017

Property + Location Tenant / owner occupier Utility area in sqm

Trebur Contract Logistics Provider approx. 43,000

Groß-Gerau Gorilla Sports approx. 35,000

Bürstadt Rossmann approx. 33,000 apollo Florstadt DHL approx. 27,700

Bingen Hensel Logistik GmbH approx. 23,000 Source: NAI

Top investments Q1-Q3 2017

Property + Location Purchaser Utility area in sqm

Ostheimer Weg / Babenhausen Blackstone / M7 Real Estate approx. 148,000

Distribution centre / Worms Garbe Logistik Immobilien Fonds Plus approx. 54,000

TST Logistics property / Worms European Logistics Fund (TH Real Estate) approx. 50,000 apollo Otzberg Reinhard-Müller-Ring / Otzberg China Investment Corporation (part of logistics portfolio) approx. 44,700

Logistics centre / Bodenheim AXA IM - Real Assets approx. 41,100 NAI Source: ONE PARTNER. ALL SERVICES. ALL ASSET CLASSES: OFFICE – RETAIL – LOGISTICS – RESIDENTIAL

ASSET MANAGEMENT

ACCOUNTING

BUILDING MANAGEMENT

PROJECT DEVELOPMENT

VALUATION AND RESEARCH

CORPORATE FINANCE ADVISORY

CORPORATE REAL ESTATE SERVICES

PROPERTY MANAGEMENT

SALES

LETTINGS

YOUR PROPERTY PARTNER – WE DISTINGUISH OURSELVES BY Copyright © NAI apollo, 2017.

This report is for information purposes only. It was compiled with the OWNER-MANAGED utmost care and is based on information from sources that we regard as being reliable, but for which we assume no liability for their accuracy, completeness or correctness. Estimates, figures and forecasts con- PARTNER ACTIVE IN DAY-TO-DAY BUSINESS tained in this document are for guidance only. This report does not pur- sue the aim of promoting the purchase or sale of a particular financial investment and thus should not be considered as such an offer. The MORE THAN 25 YEARS OF MARKET EXPERIENCE reader of this report must make his or her own independent decisions in regards to correctness and completeness. NAI apollo assumes no liabil- INDEPENDENT - INNOVATIVE - SOLUTION-ORIENTED ity for direct or indirect damage that arises through inaccuracies, omis- sions or errors in this report. We reserve the right to make changes and/or additions to the information contained therein at any time. Neither LOCAL - NATIONAL - TOP NETWORK the report nor parts thereof may be published, reproduced or passed on without the written consent of NAI apollo.

FLEXIBLE - CUSTOMER-FOCUSED - COMPETENT