MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES region for H1 2019

Market report on the letting of logistics properties and industrial spaces in the Stuttgart region for the first half of 2019 n Stuttgart logistics market in robust health with >> Take-up on the letting of industrial property and logistics facilities in the economic region of growth of +11% Stuttgart* H1 2019 n --Kreis district leads the regional ranking thanks to Daimler lease n Rental prices unchanged n Positive forecast for 2019 as a whole: New re- cord of up to 250,000 sqm possible

* The economic region of Stuttgart comprises sub-markets consisting of Stuttgart itself an the following The Stuttgart economic region recorded dou- administrative districts: Rems-Murr, , , Böblingen, Göppingen ble-digit growth in terms of letting performance for industrial and logistics properties and busi- >> Take-up on the letting of industrial property and logistics facilities in the economic region of ness parks in the first half of 2019. The take-up Stuttgart H1 2019 by region achieved by all market participants increased by 11% year-on-year to 94,400 sqm (H1 2018: 85,000 sqm).

Once again, this development serves to under- line the economic strength and stability of this top logistics and production location. The mar- ket has achieved its second-best result in the last five years and is up 14% on the five-year average of 82,960 sqm. Only 2015 saw a higher level of take-up on the market, with a letting volume of 100,000 sqm in the first six months.

Take-up by regions >> Take-up on the letting of industrial property and logistics facilities in the economic region of Stuttgart H1 2019 by size An analysis of take-up by region shows that, at 55% (51,850 sqm), Rems-Murr-Kreis district contributed the lion’s share of the result for the period from January to June 2019 (H1 2018: 6.5%; 5,500 sqm). The jump in take-up is primar- ily thanks to the lease concluded with Daimler for around 42,000 sqm of new space in Waiblin- gen, which will be home to a service park for the > 10,000 sqm 5,001 - 10,000 sqm 3,001 - 5,000 sqm 1,001 - 3,000 sqm < 1,000 sqm development of new drive systems.

This helped Rems-Murr-Kreis district to put the (approx. 19,800 sqm). The size category of other regions in the shade. Ludwigsburg took Take-up by size between 5,001 sqm and 10,000 sqm took third second place with 28% (26,150 sqm) following place at 13% (approx. 12,300 sqm). This trio strong performance in the same period of the The size category analysis also illustrates the im- was followed by leases of between 1,001 and previous year (H1 2018: 45%; 38,300 sqm). This portance of the Daimler lease for the Stuttgart 3,000 sqm (11%; approx. 10,400 sqm) and was followed by Esslingen (7%; 7,150 sqm), Stutt- market. Major deals in excess of 10,000 sqm 1,000 sqm and less (10%; approx. 9,400 sqm). gart (5%; 4,750 sqm) as well as Böblingen (3%; lead the way, followed by the size category 2,900 sqm) and Göppingen (2%; 1,600 sqm) at of between 3,001 sqm and 5,000 sqm at 21% a similar level.

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Stuttgart region for H1 2019 Take-up by sector >> Take-up on the letting of industrial property and logistics facilities in the economic region of Stuttgart H1 2019 by sector As in the same period of the previous year (H1 2018: 72%; 61,200 sqm), the logistics in- dustry accounted for the highest take-up in the fi rst half of 2019 at 61% or around 57,400 sqm, followed by production at 38.5% or 36,525 sqm (H1 2018: 22%; 18,700 sqm). Retail take-up played a minor role in the period under review.

Rental prices H1 2019

Rental prices are unchanged compared with the end of 2018, with prime rent of EUR 6.50/sqm and average rent of EUR 5.00/sqm. >> Relevant deals H1 2019

Forecast for 2019 1. Daimler 3. Company in the event area Rems-Murr- district, approx. 42,000 sqm Rems-Murr-Kreis district, approx. 5,700 sqm The positive start to the year and the sustained demand on the part of the automotive industry 2. Motorsport service provider 4. Freight forwarder and e-commerce mean we are reiterating the Ludwigsburg, approx. 6,500 sqm Ludwigsburg, approx. 3,800 sqm forecast we made in our market report for 2018. By contrast, the mechanical engineering and au- tomotive supply industries are adopting a wait- and-see approach. We see take-up of industrial Logistics Property Market Stuttgart: Rental Prices 2019 (€/sqm)

and logistics space of between 200,000 sqm and A61 250,000 sqm in the Stuttgart region as a possi- Bad Mergentheim -ODENWALD-KREIS MAIN-TAUBER-KREIS bility, depending on the development of the au-

A6 tomotive and automotive supply industries. This Mosbach A81 Speyer RHEIN-NECKAR-KREIS A6 Künzelsau would be well in excess of the fi ve-year average A65 Wörnitz HOHENLOHEKREIS A6 Bad Rappenau of 229,030 sqm. Germersheim A6 A6 A7

Bruchsal Crailsheim HEILBRONN Schwäbisch Hall Stutensee Bretten Ludwigsburg A81 SCHWÄBISCH HALL A5 Weißenburg 4.00 - 6.30 Company background: Realogis Stuttgart bro- Karlsruhe Ø 5.20 Rems-Murr-Kreis A7 3.50 - 5.00 A8 Mühlacker Bietigheim-Bissingen Ellwangen Backnang kered approx. 23,250 sqm in H1 2019 Vaihingen Ø 4.55 (Jagst) Ettlingen an der Unterschneidheim LUDWIGSBURG A35 REMS-MURR-KREIS A8 Realogis Immobilien Stuttgart brokered a total of Stuttgart A81 Göppingen Gaggenau Schwäbisch 3.50 - 5.00 4.50 - 6.50 Gmünd approximately 23,250 sqm in the economic re- A5 Stuttgart Ø 4.95Bad Wildbad Ø 4.95 Sindelfi ngen Ostfi ldern gion of Stuttgart, accounting for a share of 25%. Bühl an der Brenz Leinfelden-Echterdingen GÖPPINGEN Geislingen A8 an der Steige Böblingen CALW BÖBLINGEN HEIDENHEIM Messe Nürtingen 4.00 - 6.50 Airport ESSLINGEN A7 Ø 5.45 Nagold AM NECKAR Lonsee A81 Tübingen Metzingen FREUNDENSTADT A8 Langenau Laichingen Offenburg Horb am Neckar TÜBINGEN A8 REUTLINGEN Dornhan Hechingen ALB-DONAU-KREIS Esslingen Erbach 4.00 - 6.50 Balingen Ø 4.85Pfronstetten A81 A7

Schramberg Albstadt Oberstadion

Rottweil BIBERACH AN DER RIß

* The economic region of Stuttgart comprises sub-markets consisting of Stuttgart itself and the follow- ing administrative districts: Rems-Murr, Ludwigsburg, Esslingen, Böblingen and Göppingen.

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Stuttgart region for H1 2019 REALOGIS Immobilien REALOGIS – REALOGIS – Stuttgart GmbH Pioneers in Logistics since 2005 Available to you directly on-site in Stuttgart Kranstraße 8 70499 Stuttgart When Realogis was first established in 2005, we We are your point of contact for the letting of in- phone: +49 (0)711 - 8 38 89 59 - 0 had an ambitious goal: to become the market dustrial and logistics property as well as business fax: +49 (0)711 - 8 38 89 59 - 9 leader for property lettings in the “industrial and parks in the Stuttgart region, and have been the e-mail: [email protected] logistics” segment. The concentration and poo- market leader in this segment since 2006. You’re ling of our know-how into this niche market has looking for a certain type of property? We will www.realogis.de proved successful: in 2015 we again gained define the precise details of your requirements, market leadership in for space take-up enhance your search profile and provide you with in industrial properties, warehouses and logistics exact property matches. Maybe you are looking properties. What’s more, we have also continued for a new tenant for your property. In that case we to expand our share of the European market. will assist you in valuing your property and setting the optimal rental price. We handle the professio- Today, the owner-managed Realogis group, which nal presentation of your property to the public and is headquartered in Munich and also has offices in ensure a prompt letting. Berlin, Dusseldorf, Frankfurt, Hamburg and Stutt- gart, not only offers lettings and consultancy ser- Both tenant and landlord benefit from the many vices but is also a sought-after partner of investors years of specialist market knowledge of our Contact: and institutional investors, to whom we offer our approximately eight-strong consultancy team in Oliver Stenzel (Managing director) comprehensive experience and in-depth regional, the region, as well as our market proximity and phone: +49 (0)711 - 8 38 89 59 - 0 national and international market knowledge. valuable contacts. We only employ well educated fax: +49 (0)711 - 8 38 89 59 - 9 and experienced property consultants, and also e-mail: [email protected] Extensive consultancy services in the areas of offer access to an in-house site-department, which logistics and fulfilment round off our range of is specialised in commercial and industry sites. services. With a team of highly motivated and well-trained professionals, we continually strive Please contact us about any decisions relating to to provide long-term support to our customers industrial and logistics property. and enable them to benefit from our position as market leader.

Our services Contact: n Preparation of a detailed and individual requi- n Sound and realistic valuation of your property / 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 // Stuttgart region for H1 2019