Logistics- and Industrial Market Overview

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H1 | August 2021

Research Germany Logistics- and Industrial Market Overview Demand for logistics space remains high German market for logistics space already breaking records by the mid-point of the year

In the first six months of 2021, the German market for an exceptionally high take-up result was recorded here warehousing and logistics space registered a record high in the first half of 2020, due to a single major deal of over take-up volume of around 3.88 million sqm for the first 100,000 sqm. The two largest lettings in the Big 5 were half of the year, exceeding the previous year’s result by registered in Kleinostheim and Hammersbach in the 28% (H1 2020: 3.03 million sqm). The result was also 16% Frankfurt region, each with over 40,000 sqm. and 25% above the corresponding 5- and 10-year averages, respectively. While take-up by owner-occupiers The strongest demand came from companies from the remained almost unchanged (-4%), take-up as a result distribution/logistics sector which accounted for around of lettings increased by 42% year-on-year. The second 38% of take-up. Retailers accounted for a further 29% quarter contributed 2.1 million sqm to this excellent re- and manufacturers for 21%. Take-up increased signifi- sult. It was only the second time that the 2 million sqm cantly in the > 5,000 sqm size category: with 58 deals, mark was exceeded in a 3-month period; the first time 23 more than in the first half of 2020, demand for space ever was in the third quarter of 2020 (2.16 million sqm). was high among many companies.

Unlike a year ago, the negative effects of the COVID-19 The lack of available land is a problem in many regions, pandemic are no longer being felt. Demand for logistics and consequently only around 191,000 sqm of new ware- space continues to increase on a broad basis, and logis- housing space was completed in the Big 5 in the first six tic services providers, retailers and manufacturers are months. A further 1.15 million sqm is currently under still on the lookout for space. We therefore expect the construction, with just 30% of this being built specula 7 million sqm mark to be exceeded again this year. tively. Most speculative construction activity is taking place in the Hamburg region, where around 180,000 sqm Hamburg records the highest take-up is under construction and not yet let. of the Big 5 regions Approximately 1.11 million sqm of space was taken up in Prime rents remain stable the first six months in theBig 5 regions (Berlin, Düssel- Prime rents for warehouse space in the > 5,000 sqm size dorf, Frankfurt, Hamburg and Munich), 25% more than in category in the Big 5 have been stable over the last three the same period last year; the result fell just short of the months. In a twelve-month comparison, however, the record take-up volume of 1.2 million sqm registered in Düsseldorf region recorded an increase of €0.50/sqm/ the first half of 2011. The corresponding 5- and 10-year month to €6.00/sqm/month. At €7.10/sqm/month, the averages were both exceeded by around 15%. highest rent was paid for top-quality space in the Munich region. The Hamburg and Frankfurt regions followed The development of the market has varied across the re- with €6.40/sqm/month and €6.20/sqm/month, respecti- gions. The Hamburg region benefited from several high- vely. Space in this category is significantly cheaper in volume deals over 20,000 sqm and more than doubled Berlin at €5.50/sqm/month. its result year-on-year; at 360,000 sqm, it recorded the highest volume of take-up in the Big 5. Take-up was also Outside the Big 5, the Ruhr area tops the leaderboard higher in the Berlin (+74%), Düsseldorf (+17%) and Frank- In the first half of 2021, around 2.77 million sqm was taken furt (+8%) regions. Only the Munich region recorded a up outside the Big 5 regions*. This exceeded the previ- significant decline (-60%), but comparability is limited as ous year’s figure by 30% (H1 2020: 2.14 million sqm) and

* Note: in these regions, we only account for take-up of space greater than 5,000 sqm.

Cover page 2 Contacts Warehousing Take-up Germany*

* Outside the Big 5 only deals ≥ 5,000 sqm, in the Big 5 (Berlin, Düsseldorf, Hamburg, Frankfurt and Munich) deals ≥ and < 5,000 sqm Status: July 2021, Source: JLL

the corresponding 5-year average by 17%. While take-up By the mid-point of the year, the Ruhr area again top- by owner-occupiers was stable year-on-year (+3%), take- ped the leaderboard of regions outside the Big 5 with a up as a result of lettings increased by 44%. total of around 278,000 sqm. The largest deal was registered in Dorsten, where Levi Strauss Germany GmbH The strongest demand for space came from companies signed a lease for around 67,000 sqm for its new Euro- in the distribution/logistics sector who were responsible pean distribution centre. The Hanover/Brunswick and for more than 1 million sqm (corresponding to 38% of Bremen regions followed in second and third place with the total take-up) and several high-volume deals in ex- 251,800 sqm and 216,000 sqm, respectively. cess of 50,000 sqm. This included the largest letting of the year so far: BLG Logistik signed a contract for around More than two-thirds of the space was taken up in new 95,000 sqm of space for a new logistic centre in Bremen. buildings or development projects; this result rises to The retail sector was responsible for 35% of take-up 90% when only considering units larger than 30,000 sqm. (981,000 sqm), with around 450,000 sqm accounted for by eCommerce companies alone. Manufacturers accounted for 23% of the take-up volume.

Cover page 3 Contacts Warehousing Take-up total (sqm) 2020 H1 2020 H1 2021 % 9) Berlin 1) 451,700 165,900 288,400 73.8 Düsseldorf 2) 173,000 83,300 97,200 16.7 Frankfurt 3) 472,500 262,900 284,700 8.3 Hamburg 4) 498,300 169,900 360,000 111.9 Cologne 5) only space ≥ 5,000 sqm 187,400 31,900 101,400 217.9 Munich 6) 307,200 208,400 82,700 -60.3 Stuttgart 7) only space ≥ 5,000 sqm 107,700 56,200 78,900 40.4 Ruhr Area 8) only space ≥ 5,000 sqm 844,500 349,500 278,100 -20.4

Warehousing Take-up (≥ 5,000 sqm) 2020 H1 2020 H1 2021 % 9) Berlin 1) 251,500 84,600 168,100 98.7 Düsseldorf 2) 108,400 44,300 23,500 -47.0 Frankfurt 3) 329,500 188,600 212,900 12.9 Hamburg 4) 345,500 95,200 300,700 215.9 Cologne 5) 187,400 31,900 101,400 217.9 Munich 6) 205,900 156,400 10,000 -93.6 Stuttgart 7) 107,700 56,200 78,900 40.4 Ruhr Area 8) 844,500 349,500 278,100 -20.4

Prime Rents for Warehousing Space (≥ 5,000 sqm) (€/sqm/month) Q4 2020 Q2 2020 Q2 2021 % 9) Berlin 1) 5.50 5.50 5.50 0.0 Düsseldorf 2) 5.50 5.50 6.00 9.1 Frankfurt 3) 6.20 6.20 6.20 0.0 Hamburg 4) 6.40 6.40 6.40 0.0 Cologne 5) 5.80 5.10 5.80 13.7 Munich 6) 7.10 7.10 7.10 0.0 Stuttgart 7) 6.80 6.80 6.80 0.0 Ruhr Area 8) 5.25 5.25 5.50 4.8

Completions (sqm) 2020 H1 2020 H1 2021 % 9) Berlin 1) 349,800 116,400 82,500 -29.1 Düsseldorf 2) 151,600 85,000 0 n/a Frankfurt 3) 129,100 39,000 45,200 15.9 Hamburg 4) 9,000 300 63,500 21066.7 Cologne 5) only space ≥ 5,000 sqm 38,800 0 12,000 n/a Munich 6) 35,000 8,200 0 n/a Stuttgart 7) only space ≥ 5,000 sqm 119,500 99,000 21,200 -78.6 Ruhr Area 8) only space ≥ 5,000 sqm 405,900 66,600 146,200 119.5

1) The Berlin city area and surrounding communities are included in the study. 2) The following towns are covered: Düsseldorf, Erkrath, Hilden, Ratingen, Neuss, Krefeld, Kaarst, Korschenbroich, Haan, Grevenbroich, Langenfeld, Meerbusch, Monheim, Rommerskirchen, Dormagen, Willich. 3) Coverage includes in the entire Frankfurt region, bounded by Butzbach (Wetterau-Kreis) in the north, by Aschaffenburg in the east, by Bensheim/Heppenheim (Kreis Bergstraße) in the South and by Wiesbaden and Mainz in the West. 4) Coverage includes Hamburg and four surrounding submarkets: North limited by Norderstedt, Quickborn, Kaltenkirchen, Henstedt-Ulzburg; East limited by Bargteheide, Ahrensburg, Trittau, Schwarzenbek, Geesthacht; South limited by Lüneburg, Winsen (Luhe), Buchholz, Buxtehude; West limited by Wedel, Uetersen-Tornesch. 5) The considered market area comprises the cities and communities Cologne, Leverkusen, Bergisch Gladbach, Rösrath, Troisdorf, Niederkassel, Wesseling, Brühl, Hürth, Frechen, Pulheim, Bedburg, Bergheim, Elsdorf, Kerpen, Erftstadt, Weilerswist, Leichlingen, Burscheid and Odenthal.6) Coverage includes the entire Munich region. In addition to the City of Munich itself, the region surveyed comprises the most important towns and local authorities in the immediate vicinity of the administrative districts of Dachau, Ebersberg, Erding, Freising, Fürstenfeldbruck and Munich as well as Starnberg. 7) The considered market area comprises the cities Stuttgart and Heilbronn as well as the administrative districts Ludwigsburg, Böblingen, Esslingen, Göppingen, Heilbronn and Rems-Murr-Kreis. 8) The considered market area comprises the cities Bochum, Bottrop, Dortmund, Duisburg, Essen, Gelsenkirchen, Hagen, Hamm, Herne, Mülheim and Oberhausen as well as the administrative districts Recklinghausen, Wesel, Unna and Ennepe-Ruhr-Kreis. 9) compared to the previous year.

Cover page 4 Contacts Berlin

Record take-up at the mid-point of the year Warehousing Take-up Around 288,000 sqm of warehousing and logistics space was taken up in the Berlin region* (lettings and owner- occupiers) in the first six months of the year, the highest take-up ever recorded for the first half of a year. In a twelve-month comparison, this is a rise of 74% and the gap to the 5-year average of the first half-years is also considerable (47%). Due to the sustained high demand, especially from eCommerce companies which continue to benefit from the changing shopping habits of the po- pulation, the full-year result could reach 500,000 sqm. In the first half of the year, companies from the distribution/logistics sector headed the industry statistics, secu- ring one in every three square metres. Retailers and eCommerce companies accounted for 29% of the total,

Prime Rent ≥ 5,000 sqm including the largest deal of the second quarter in which an online retailer leased around 16,000 sqm in a development project in Mittenwalde on the southern outskirts of the city. Manufacturers accounted for 23% of take-up.

Around 150,000 sqm of new logistics space is expected to be completed in 2021, less than half the volume that was released onto the market last year. The 83,000 sqm completed in the first six months was not yet let at the time of completion, but will be insufficient to meet the high user demand for modern space.

The prime rent for warehousing space larger than 5,000 sqm has remained stable at €5.50/sqm/month.

* The Berlin city area and surrounding communities are included in the study.

Cover page 5 Contacts Berlin: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Berlin: Industrial Market Areas

A 11 Oranienburg

l A 24 a Periphery North n a

K - l € 2.50 - 3.80

A 111 e

d Bernau O Hohen Neuendorf Hennigsdorf

Kanal Havel- Berlin-North A 114 € 4.00 - 6.00 Periphery East A 105 € 3.00 - 4.20 Falkensee Berlin-East Strausberg Spree € 4.20 - 6.20 Petershagen Periphery West A 100 Berlin-West € 3.40 - 4.20 € 4.00 - 7.10 Berlin

A 104 A 115 S acrow-Par A 103 etzer-K Berlin-South anal € 5.00 - 10.00 Teltowkanal A 113 Potsdam A 10

Od l er e -S v pr a ee Werder/ Havel H -K an al Airport Berlin Brandenburg € 4.40 - 6.50 A 12

Königs Ludwigsfelde Wusterhausen Periphery South € 3.80 - 4.70 A 13 A 9 0 5 10 km

Airport Switch Yard Harbour Industrial Market Areas

Main Station Freight Village Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space of all unit sizes (incl. business parks)

Cover page 6 Contacts Düsseldorf

Prime rent up by 9% Warehousing Take-up Around 97,000 sqm of warehousing and logistics space was taken up in the Düsseldorf region* (lettings and owner-occupiers) in the first half of 2021. This was 17% higher than the previous year’s result, but 14% below the 5-year average. Only two deals involving more than 10,000 sqm of space were concluded: a haulage company leased 12,300 sqm in Ratingen and a logistic services provider secured around 11,000 sqm in Grevenbroich. Companies from the distribution/logistics sector were responsible for a third of the take-up. The strongest demand came from retailers with a 46% share of total take- up. Manufacturers leased just under 11,000 sqm (11%). Most leases were concluded for space in the 1,000 – 2,000 sqm size category.

Prime Rent ≥ 5,000 sqm The Düsseldorf region lacks modern logistics space and land available at short notice; this is reflected in the low level of new construction activity and rising rents. No new logistics space was released onto the market in the first six months and it is expected that only 52,000 sqm will be completed in the second half of the year, just a third of the previous year’s volume. The prime rent for warehousing space larger than 5,000 sqm increased year-on-year by €0.50/sqm/month to €6.00/sqm/month and was achieved in the Düsseldorf urban area, close to the airport.

* The following towns are covered: Düsseldorf, Erkrath, Hilden, Ratingen, Neuss, Krefeld, Kaarst, Korschenbroich, Haan, Grevenbroich, Langenfeld, Meerbusch, Monheim, Rommerskirchen, Dormagen, Willich.

Cover page 7 Contacts Düsseldorf: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Düsseldorf: Industrial Market Areas Mülheim an Essen Duisburg der Ruhr

Kempen A 3

Krefeld € 3.75 - 5.10 A 524 R he Krefeld in Velbert Tönisvorst Heiligenhaus Ratingen € 4.00 - 5.40 in e h Meerbusch R Ratingen € 4.00 - 5.00 Willich A 44 Wülfrath Willich € 3.50 - 5.20 Meerbusch Viersen Kaarst Mettmann A 52 Düsseldorf € 4.00 - 4.60 € 4.50 - 6.75 Mönchengladbach Kaarst Erkrath Haan € 3.50 - 4.90 € 3.50 - 4.50 A 57 Korschenbroich Neuss Düsseldorf Erkrath Wuppertal

Korschenbroich Haan € 3.25 - 4.50 Neuss € 4.20 - 5.40 Hilden Hilden € 3.50 - 5.20

in e h Solingen A 46 A57 R A 59 Langenfeld (Rhld.) Langenfeld Grevenbroich Jüchen Dormagen € 3.75 - 5.20 Grevenbroich € 3.50 - 4.50 Monheim A 542 A 540 € 3.50 - 4.80 Dormagen € 3.50 - 4.75 Monheim

A 61 Rommerskirchen € 3.50 - 4.25 Leverkusen A 1 0 5 10 km Köln

Airport Harbour Industrial Market Areas

Main Station Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space of all unit sizes (incl. business parks)

Cover page 8 Contacts Frankfurt

Shortage of space continues to increase Warehousing Take-up Around 285,000 sqm of warehousing and logistics space was taken up in the Frankfurt region* (lettings and owner-occupiers) in the first half of 2021, an increase of 8% year-on-year. A rather weak first quarter was followed by a strong second quarter in terms of take-up, with three quarters of total take-up registered between April and June. This included two deals of over 40,000 sqm in Kleinostheim and Hammersbach. Most demand for space came from manufacturers and companies from the distribution/logistics sector (35% and 33%, respec tively), followed by retailers with just 23%. Almost two- thirds of take-up was registered in development projects or recently completed new buildings. The shortage of space available at short notice has worsened in recent

Prime Rent ≥ 5,000 sqm months and the increasing shortage of land is significantly limiting new construction activity. In the first two quarters, just 45,000 sqm of logistics space was completed; around a quarter of a million square metres is to be ad- ded in the second half of the year, mainly in the eastern outskirts of Frankfurt, although most of this space has already been reserved by owner-occupiers or tenants.

The prime rent for warehousing space larger than 5,000 sqm remained stable year-on-year at €6.20/sqm/month. For smaller units, rents in the region range from €4.20/ sqm/month to €7.50/sqm/month, with a slight upward tendency over the same period.

* Coverage includes in the entire Frankfurt region, bounded by Butzbach (Wetter- au-Kreis) in the north, by Aschaffenburg in the east, by Bensheim/Heppenheim (Kreis Bergstraße) in the South and by Wiesbaden and Mainz in the West.

Cover page 9 Contacts Frankfurt: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Frankfurt: Industrial Market Areas

A 485

n h L a A 3

Periphery North € 4.20 - 5.50 A 45

Periphery East € 4.25 - 5.20 A 661 A 66 Frankfurt Main Wiesbaden Frankfurt am Main € 4.20 - 5.50 € 4.80 - 7.50 Wiesbaden Offenbach am Main A 671 ein Rh ain A 643 M A 60 Mainz

Mainz R h

i € 4.20 - 5.50 n Periphery South A 63 € 4.40 - 6.20

n A 672 i a Darmstadt M Periphery West € 4.60 - 6.35

A 5 in A 67

A 61

i 0 5 10 km n

Airport Harbour Industrial Market Areas

Main Station Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space of all unit sizes (incl. business parks)

Cover page 10 Contacts Hamburg

High take-up result in the second quarter Warehousing Take-up Around 360,000 sqm of warehousing and logistics space was taken up in the Hamburg region* (lettings and owner-occupiers) in the first six months of 2021. It was more than double the result for the corresponding period in 2020 and significantly above the 5-year average (68%). This is a clear sign that the economic uncertainties being felt by many companies during the crisis, which was still evident a year ago, has subsided. The second quarter (219,000 sqm) made a significantly stronger contribution to the result than the first and benefited from several deals of over 20,000 sqm. At around 38,000 sqm, the largest letting was concluded by an online furniture retailer in Nützen, on the northern outskirts of Hamburg. The strongest demand came from companies from the dis

Prime Rent ≥ 5,000 sqm tribution/logistics sector which accounted for 53% of total take-up, followed by retailers and manufacturers with shares of 30% and 8%, respectively.

64,000 sqm of logistics space was completed in the first six months, with all but 5,000 sqm of this space already let. There is currently around 500,000 sqm of space under construction, 36% of which is still available to the market and could help improve the supply situation. The largest single project will be realised in Hamburg’s Wilhelmsburg district with around 114,000 sqm. The prime rent for warehousing space larger than 5,000 sqm remained stable year-on-year at €6.40/sqm/month.

* Coverage includes Hamburg and four surrounding submarkets: North limited by Norderstedt, Quickborn, Kaltenkirchen, Henstedt-Ulzburg; East limited by Bargteheide, Ahrensburg, Trittau, Schwarzenbek, Geesthacht; South limited by Lüneburg, Winsen (Luhe), Buchholz, Buxtehude; West limited by Wedel, Ueter- sen-Tornesch.

Cover page 11 Contacts Hamburg: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Hamburg: Industrial Market Areas

Bad Oldesloe Henstedt-Ulzburg

A 21 Periphery North Elmshorn € 4.50 - 5.30 Quickborn Norderstedt € 4.30 - 5.80 Periphery West Ahrensburg € 4.00 - 4.80 A 23 Norderstedt Pinneberg Hamburg-North-East € 4.20 - 5.30 Airport / Groß Borstel € 4.10 - 5.80 Wedel Hamburg-West Hamburg (Holstein) Periphery East € 4.20 - 5.20 Elbe € 4.30 - 5.10 Elbe A 24 Elbe Billbrook-Billwerder-Billstedt Industrial Port € 4.20 - 6.40 € 4.60 - 6.40 A 255 Reinbek A 26 Peute-Obergeorgswerder Allermöhe Harburg-Hausbruch € 4.10 - 5.60 € 4.20 - 5.90 S N üd € 4.00 - 5.60 er o A 253 E E r A 25 lb l d Buxtehude e b e Neu Wulmstorf e r

Wilhelmsburg Geesthacht € 4.10 - 5.30 e Elb

e lb E A 261 Hittfeld

Periphery South Winsen A 1 € 4.20 - 5.20 (Luhe) Buchholz in A 7 der Nordheide A 250

0 5 10 km

Airport Switch Yard Harbour Industrial Market Areas

Main Station Freight Village Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space of all unit sizes (incl. business parks)

Cover page 12 Contacts Cologne

Above-average take-up performance Warehousing Take-up Around 101,000 sqm of warehousing and logistics space larger than 5,000 sqm was taken up in the Cologne region* (lettings and owner-occupiers) in the first half of 2021. This is three times the volume of take-up registered in the extremely weak corresponding period in 2020, and 25% above the 5-year average. The strongest demand in the first six months came from manufacturers who accounted for almost 60% of total take-up. This included the largest deal to date in which an around 46,000 sqm new distribution centre is being built for WEG Germany GmbH in Kerpen and is scheduled for completion in 2022. The second-largest letting was significantly smaller at 13,800 sqm: here, the Edelmann Group, a packaging manufacturer, signed a contract in a development pro-

Prime Rent ≥ 5,000 sqm ject in Burscheid. Logistic services providers followed in second place in the industry statistics with a share of 25%.

The prime rent for warehousing space larger than 5,000 sqm has not risen since the third quarter of 2020 (+14%) and currently stands at €5.80/sqm/month. This is achieved in the Cologne urban area. Corresponding space in Erftstadt and Weilerswist in the Cologne region is significantly more affordable at up to €4.00/sqm/month and €4.10/sqm/month, respectively.

* The considered market area comprises the cities and communities Cologne, Leverkusen, Bergisch Gladbach, Rösrath, Troisdorf, Niederkassel, Wesseling, Brühl, Hürth, Frechen, Pulheim, Bedburg, Bergheim, Elsdorf, Kerpen, Erftstadt, Weilerswist, Leichlingen, Burscheid and Odenthal.

Cover page 13 Contacts Cologne: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Cologne: Industrial Market Areas Hilden Remscheid Düsseldorf Solingen A 46 Langenfeld (Rhld.)

A 59 Jüchen Leichlingen Grevenbroich Dormagen A 542 € 3.00 - 4.30 Wermelskirchen A 540 Monheim A57 Burscheid € 3.00 - 4.30 R he in Leverkusen € 3.00 - 4.40 A 57 Odenthal Bedburg Pulheim Leverkusen € 3.00 - 4.30 € 3.00 - 4.35 € 3.50 - 4.70 Bergisch Gladbach Bedburg Bergheim Pulheim A 61 Bergheim Bergisch Gladbach Köln € 3.00 - 4.30 € 3.10 - 4.40 Elsdorf Cologne Elsdorf € 3.90 - 5.80 Overath Frechen € 3.00 - 4.30 A 4 € 3.50 - 4.85 A 559 Frechen Rösrath € 3.20 - 4.30 Kerpen A 1 Hürth Rösrath € 3.00 - 4.50 Kerpen Hürth

€ 3.50 - 4.95 in he R

Brühl Niederkassel Brühl Troisdorf Düren Wesseling Lohmar € 3.20 - 4.50 A 553 € 3.20 - 4.60 € 3.00 - 4.65 Erftstadt Niederkassel Troisdorf Siegburg € 3.20 - 4.50 Erftstadt A 555 A 560 € 3.00 - 4.00 Hennef (Sieg) Bornheim A 565 Sankt

R Augustin h Weilerswist Bonn e i A 3 € 2.90 - 4.10 n Königswinter Alfter A 562 0 5 10 km Euskirchen

Airport Switch Yard Harbour Industrial Market Areas

Main Station Freight Village Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space >= 5,000 sqm

Cover page 14 Contacts Munich

A shortage of land and space casts a Warehousing Take-up shadow over the market Around 83,000 sqm of warehousing and logistics space was taken up in the Munich region* (lettings and owner- occupiers) in the first six months of 2021; this is the second-lowest half-year result in the last ten years. Alt- hough it was 60% lower year-on-year, it is important to note that the result for the first half of 2020 was distorted by an extremely large deal of 138,000 sqm. The largest deal concluded this year is for just around 10,000 sqm; here, ASM Assembly Systems GmbH & Co. KG signed a contract in Weßling on the western outskirts of the region. This letting means that manufacturers accounted for the highest volume of take-up (40%). Retailers and companies from the distribution/logistics sector accounted for

Prime Rent ≥ 5,000 sqm 24% and 17%, respectively. Most space was leased in the 2,000 – 5,000 sqm size category. It is currently difficult to satisfy larger searches as there is a lack of modern space available at short notice in this segment. Due to the shortage of land, there is almost no speculative construction activity across the region. No new logistics space was built in the first six months and although around 170,000 sqm will be completed in the second half of the year, all of this space has already been let. There is no relief in sight for the tight supply situation.

The prime rent for space larger than 5,000 sqm remained stable year-on-year at €7.10/sqm/month.

* Coverage includes the entire Munich region. In addition to the City of Munich itself, the region surveyed comprises the most important towns and local authorities in the immediate vicinity of the administrative districts of Dachau, Ebers- berg, Erding, Freising, Fürstenfeldbruck and Munich as well as Starnberg.

Cover page 15 Contacts Munich: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Munich: Industrial Market Areas

Freising

A 9

A 92 Periphery North € 6.50 - 7.50 Erding

A 8 Unterschleißheim Dachau/Karlsfeld Dachau € 6.20 - 6.80

Olching

Fürstenfeldbruck A 99 Periphery West A 94 München € 5.50 - 7.10 Periphery East Germering Munich € 6.50 - 7.10 € 7.10 - 13.00 Vaterstetten

A 96 Unterhaching

A 995 A 95

Periphery South

A 952 € 5.50 - 6.50 Starnberg

0 5 10 km

Airport Switch Yard Industrial Market Areas

Main Station Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space of all unit sizes (incl. business parks)

Cover page 16 Contacts Ruhr Area

Prime rent rises to €5.50/sqm/month Warehousing Take-up Around 278,000 sqm of warehousing and logistics space larger than 5,000 sqm was taken up in the Ruhr area* (lettings and owner-occupiers) in the first half of 2021, around 20% less than in the first half of 2020 and below the average of the past five years. Most deals were registered in development projects, including the largest lease of the year so far in which Levi Strauss Germany GmbH signed a lease for around 67,000 sqm for its new Euro- pean distribution centre in Dorsten. The property is scheduled to be ready for occupancy by 2023 and will meet the Cradle-to-Cradle sustainability standard. The strongest demand came from companies from the distribution/logistics sector which accounted for 45% of total take-up. Manufacturers followed in second place with

Prime Rent ≥ 5,000 sqm a share of 37% and retailers and eCommerce companies, which topped the leaderboard a year ago, accounted for just 12%.

Due to the decreasing availability of space, the prime rent for warehousing space larger than 5,000 sqm increased by €0.25/sqm/month in the second quarter, to its current level of €5.50/sqm/month. This is achieved in Duisburg. Rent rises were also observed in other loca- tions such as Dortmund, Essen, Hamm and Hagen. Most new leases were signed at rents of between €4.00 and €4.50/sqm/month.

* The considered market area comprises the cities Bochum, Bottrop, Dortmund, Duisburg, Essen, Gelsenkirchen, Hagen, Hamm, Herne, Mülheim and Oberhausen as well as the administrative districts Recklinghausen, Wesel, Unna and Ennepe- Ruhr-Kreis.

Cover page 17 Contacts Ruhr Area: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Ruhr Area: Industrial Market Areas

Münster

A 1

A 43 A 31

Wesel Recklinghausen Hamm l Rh a ein € 3.00 - 4.25 n € 3.25 - 4.75 € 3.00 - 4.25 a K Datteln-Kanal s- Wesel- m Hamm -E d Da R n tteln h Bottrop u -H e tm am i r m n D o o -K A 3 D rtm a € 3.25 - 4.25 u n n al A 2 d -E m Herne s Unna - Gelsenkirchen K a € 3.25 - 4.50 n € 3.25 - 4.75 a

€ 3.00 - 4.50 l Oberhausen € 3.50 - 4.75 Dortmund A 44 A 42 Gelsenkirchen A 443 Bochum Dortmund Ruhr € 3.75 - 5.25 Bochum A 40 Duisburg Essen Duisburg € 3.50 - 4.75 A 57 € 3.75 - 5.50 € 3.50 - 4.75

Rhein Mülheim an der Ruhr € 3.50 - 4.75 Hagen € 3.25 - 4.50 Ennepe-Ruhr-Kreis

A 535 € 3.00 - 4.25 A 46 A 45 Wuppertal Düsseldorf

R h e in A57 A 59 A 542 0 5 A 5140 km

Airport Switch Yard Harbour Industrial Market Areas

Main Station Freight Village Market Area Rental Band (Euro/sqm/month) € min - max for warehousing space >= 5,000 sqm

Cover page 18 Contacts Stuttgart

Increase in take-up by owner-occupiers Warehousing Take-up Around 79,000 sqm of warehousing and logistics space larger than 5,000 sqm was taken up in the Stuttgart region* (lettings and owner-occupiers) in the first half of 2021. This is 40% higher than the result for the corresponding period in 2020 and 34% above the corresponding 5-year average. The good result is mainly due to owner-occupiers who accounted for almost two-thirds of take-up. The strongest demand came from manufacturers who accounted for more than half of the take-up. This included the largest deal of the year so far in which the owner-occupier Porsche AG is expanding its site in Sachsenheim by almost 30,000 sqm. Retailers followed in second place with a share of 28% and included an online retailer who commenced construction of a 9,500 sqm

Prime Rent ≥ 5,000 sqm distribution centre in Korntal-Münchingen. Third place was assumed by logistic services providers with a share of 20%. The shortage of land and modern logistics space continues to cast a shadow over the market in the region. There is no relief in sight through speculative buil- ding activity with just 21,000 sqm of new warehousing space completed in the first half of the year, none of which was still available to the market. The prime rent for warehousing space larger than 5,000 sqm remained stable year-on-year at €6.80/sqm/month and was achieved in the Stuttgart urban area.

* The considered market area comprises the cities Stuttgart and Heilbronn as well as the administrative districts Ludwigsburg, Böblingen, Esslingen, Göppingen, Heilbronn and Rems-Murr-Kreis.

Cover page 19 Contacts Stuttgart: Industrial Market Areas with Rental Bands JLL Research 2021 Q2 Stuttgart: Industrial Market Areas

A 5

A 81 Periphery Heilbronn € 4.00 - 5.00

A 6

Heilbronn € 4.50 - 6.00 Heilbronn

Ludwigsburg € 5.00 - 6.50 Rems-Murr-Kreis Pforzheim € 4.00 - 5.50

A 8 Stuttgart € 5.00 - 6.80 Stuttgart A 8/81 Neck A 831 ar

Böblingen € 5.00 - 6.50 Göppingen Esslingen € 3.50 - 4.80 € 4.50 - 5.80

0 5 10 km Reutlingen

Airport Harbour Industrial Market Areas

Main Station Market Area Rental Band (Euro/sqm/month) Freight Village € min - max for warehousing space >= 5,000 sqm

Cover page 20 Contacts Dr. Konstantin Kortmann Sven Schürer Helge Scheunemann Head of Leasing & Agency Germany EMEA Logistics Business Development Head of Research Germany [email protected] Director [email protected] +49 (0) 69 2003 1390 [email protected] +49 (0) 40 350011 225 +49 (0) 171 4176325

Industrial Leasing Berlin Industrial Leasing Munich Industrial Leasing Leipzig Rahel-Hirsch-Straße 10 Ludwigstraße 8 Petersstraße 12-14 10557 Berlin 80539 Munich 04109 Leipzig [email protected] [email protected] [email protected] +49 (0) 30 203980 0 +49 (0) 89 290088 0 +49 (0) 341 22633 0

Industrial Leasing Frankfurt Industrial Leasing Düsseldorf Industrial Leasing Stuttgart Bockenheimer Landstraße 55 Dreischeibenhaus 1 Kleiner Schloßplatz 13 60325 Frankfurt 40211 Düsseldorf 70173 Stuttgart [email protected] [email protected] [email protected] +49 (0) 69 2003 0 +49 (0) 211 13006 0 +49 (0) 711 900370 0

Industrial Leasing Cologne Industrial Leasing Hamburg Augustinerstraße 10 Alter Steinweg 1 50667 Cologne 20459 Hamburg [email protected] [email protected] +49 (0) 221 2775 0 +49 (0) 40 350011 0

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