Industrial Market Profile

Munich | 4th quarter 2019 January 2020

Industrial Market Profile | th4 quarter 2019

Warehousing Take-up

Munich's logistics market cannot exploit demand potential The high demand for warehousing and logistics space in the Munich region* slowed down in 2019 due to the lack of available space and land. As expected, with 219,000 sqm (including owner-occupiers), the take-up result was signifi- cantly below the previous year's level (-22%) and the five- year average (-13%). Thanks to two large deals of over 10,000 sqm, almost half of the annual take-up volume was generated in the third quarter. In general, however, few ma- jor searches can be satisfied due to the lack of available space and land. bach (by an owner-occupier). With 30 contracts signed and Compared to 2018, over 50% less space was taken up in the a 40% share of take-up, most market activities took place in > 5,000 sqm size category. By the end of the year, just seven Periphery North, followed by Periphery East with 25 contracts deals had been concluded in this segment. In addition to signed and 31% of the take-up volume. a letting of 30,000 sqm of projected new space in Parsdorf Due to the lack of available land, 46,000 sqm of new space (BMW), this included a new 15,000 sqm project in Langen- was completed in 2019, around 41% less than in the previ- ous year. The volume of new construction suggests that the market situation will not ease in the coming months. An Prime Rent ≥ 5,000 sqm additional 44,000 sqm of warehousing space is expected in the region in 2020, of which a maximum of 10% could be freely available in the market. We assume that demand in the market for warehousing and logistics space in Munich will remain at a high level in 2020, despite an expected cyc- lical slowdown. The conclusion of an extraordinary large deal is expected imminently in the market, suggesting that the take-up volume in 2020 will exceed the 2019 result.

* 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.

Industrial Market Profile | th4 quarter 2019 Munich Munich: Industrial Market Areas

Freising

A 9 Periphery North € 6.50 - 7.50

A 92 Neufahrn b. Hallbergmoos Freising Erding Eching

A 8 Unterschleißheim

Dachau/Karlsfeld Dachau Oberschleißheim € 6.20 - 6.80 b. München

Karlsfeld Markt Gröbenzell Schwaben Munich Kirchheim b. München Fürstenfeldbruck € 7.10 - 13.0 A 99 Poing Eichenau A 94 München Periphery East Periphery West € 6.50 - 7.10 € 5.50 - 7.10 Gräfelfing Haar Gilching Vaterstetten

A 96 Gauting

A 95 Taufkirchen Grünwald A 995

A 952 Starnberg Periphery South € 5.50 - 6.50

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)

Industrial Market Profile | th4 quarter 2019 Munich Contacts

Frank Weber Helge Scheunemann Head of Industrial Agency Head of Research Germany [email protected] [email protected] +49 (0) 89 290088 110 +49 (0) 40 350011 225

Industrial Agency Industrial Agency Munich Industrial Agency 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 Agency Frankfurt Industrial Agency Düsseldorf Industrial Agency 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 Agency Cologne Industrial Agency 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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Industrial Market Profile | th4 quarter 2019