MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES Stuttgart region 2019 Market report on the letting of logistics properties and industrial spaces in the Stuttgart region* for 2019 n Take-up down by 15% to 169,600 sqm >> Take-up on the letting of industrial property and logistics facilities in the economic region of Stuttgart* 2019 n Decline to 20% below the five-year average n New buildings remain at a weak level due to a shortage of land n OEMs heralding a turnaround through invest- ment n No market slump expected for the time being despite a faltering industry n Forecast for 2020: Take-up at a similar level to 2019 – increased demand for space in retail and e-commerce/offsetting of weakening demand in the supply industry * The economic region of Stuttgart comprises sub-markets consisting of Stuttgart itself an the following administrative districts: Rems-Murr, Ludwigsburg, Esslingen, Böblingen, Göppingen According to our latest report, we recorded space consumer goods in particular. However, the pros- take-up of 169,600 sqm among all market partic- pect of finding a suitable branch location here Take-up by regions ipants in 2019. This figure was down 15% year- was very low last year, and this is likely to remain on-year (2018: 199,150 sqm) and is 20% below a major challenge in 2020. Market activity in 2019 was chiefly shaped by the the five-year average (212,950 sqm). sub-markets of Ludwigsburg and the Rems-Murr E-commerce is currently achieving up to double- district. As in the previous year, the Ludwigsburg While existing space accounted for 70% of new digit annual growth rates, and bringing about district was the leading region in terms of take-up, lettings, the share of new construction fell slight- lasting change on the markets. It is shaping contributing 37% to the result with 62,300 sqm ly compared with last year (2019: approx. 30%; consumer behaviour and making consumers (2018: 27%; 53,800 sqm). Hot on its heels was 50,300 sqm; 2018: 32%; approx. 63,900 sqm). As even more eager for ever shorter delivery times. the Rems-Murr district (2019: 36%; 61,400 sqm; in previous years, the logistics market in 2019 was These days, although almost everyone does lots 2018: 12%; 23,500 sqm), with the large-scale shaped by excess demand. of shopping online, people don’t want a deliv- leasing by Daimler AG in Waiblingen being a ma- ery centre on their doorstep. That is a paradox. jor factor here. It is noticeable that OEMs are investing heavily in Municipalities also appear to have little interest in their future – something that cannot currently be talks on this type of settlement. This is despite the Way back were the Esslingen district (2019: 14%; said of part of industry and suppliers in particu- fact that hundreds of new jobs would be created 24,500 sqm; 2018: 24%; 47,150 sqm), the Böblin- lar. A wait-and-see attitude still generally prevails in some cases and most of the delivery vehicles gen district (2019: 7%; 11,500 sqm; 2018: 15%; here, and this is having a knock-on effect on sup- are car-like (vans, sometimes even electric vehi- 30,300 sqm) and Stuttgart with 3%, although pliers. So the slump is deepening even though the cles, etc.) rather than large lorries. Now is the time this was due to the fact that occupancy in these order situation generally remains at a high level. to face up to change, as some sectors will under- three districts is practically 100%. The Göppingen Overall, however, we are highly optimistic that go a transformation. district accounted for 3% of take-up. the Stuttgart metropolitan region will remain a key player in Germany as an industrial and logis- >> Take-up on the letting of industrial property and logistics facilities in the economic region of Stuttgart 2019 by region tics location despite a degree of change. The current hesitancy of the supply sector and mechanical engineering is being offset by strong- er demand from other sectors – primarily retail and e-commerce. Companies in this sector are now even keener to find one or more locations, preferably on the edge of Stuttgart, in order to supply the metropolitan area with fast-moving MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Stuttgart region 2019 >> Take-up on the letting of industrial property and logistics facilities in the economic region of Take-up by size Stuttgart 2019 by size As in the previous year, the over 10,001 sqm size category came first in 2019, contributing around 35% to the result with 60,000 sqm (2018: 36%; 71,700 sqm), mainly on account of the contract concluded by Daimler in Waiblingen. The 1,001-3,000 sqm (32,900 sqm) and 5,001- 10,000 sqm (approx. 32,600 sqm) size categories ≥ 10,001 sqm 5,001 - 10,000 sqm 3,001 - 5,000 sqm 1,001 - 3,000 sqm ≤ 1,000 sqm accounted for around 19% each. There was also little to separate the 3,001-5,000 sqm (around >> Take-up on the letting of industrial property and logistics facilities in the economic region of 13%; 22,700 sqm) and under 1,000 sqm (12.6%; Stuttgart 2019 by sector around 21,400 sqm) size categories. Take-up by sector The Stuttgart region is one of Germany’s tradi- tional industrial hot spots and, along with the Rhine-Neckar region, for example, it is the most intensively used property location for light in- dustrial space. Logistics service providers have a correspondingly high take-up, accounting for ap- prox. 60% between them in 2019, and taking up 101,800 sqm for their supplies to industry (2018: 73%; approx. 145,400 sqm). Production came >> Prime and average rents of industrial property and logistics facilities in the economic region next with approx. 38% and 64,400 sqm (2018: of Stuttgart 23%; 45,800 sqm). 1.8% (around 3,400 sqm) was categorised as “Other”. Rental prices 2019 Whereas the prime rent remained unchanged from the previous year at EUR 6.50/sqm in 2019, the average rent (EUR 5.20/sqm) was up by 4% on 2018 (EUR 5.00/sqm). However, according to Realogis’ market assessment, rents would rise fur- ther given the opportunity as a result of increased construction costs and higher land prices. prime rents average rents Forecast 2020 >> Relevant deals 2019 The Stuttgart region is also equipped for the fu- 1. Daimler AG 3. Daimler AG ture with its diversified, highly efficient economic Rems-Murr, approx. 42,000 sqm Esslingen, approx. 8,300 sqm structure. The weakening of the industrial sector/ supply sector is likely to be offset by the growth 2. Mercedes-AMG GmbH 4. Klema Maschinenhandel in demand from retail and e-commerce. We are Ludwigsburg, approx. 10,200 sqm Ludwigsburg, approx. 7,840 sqm therefore optimistic that the excess demand will continue. MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Stuttgart region 2019 Logistic Property Market Stuttgart: Rental Prices 2019 (EUR/sqm) A61 Mannheim Bad Mergentheim NECKAR-ODENWALD-KREIS MAIN-TAUBER-KREIS Heidelberg A6 Mosbach A81 Speyer RHEIN-NECKAR-KREIS A6 Künzelsau A65 Wörnitz HOHENLOHEKREIS A6 Bad Rappenau Germersheim A6 A6 A7 Bruchsal Heilbronn Crailsheim HEILBRONN Schwäbisch Hall Stutensee KARLSRUHE Bretten Ludwigsburg A81 SCHWÄBISCH HALL A5 Weißenburg Karlsruhe 4.00 - 6.50 Ø 5.20 Rems-Murr A7 3.50 - 6.00 A8 Mühlacker Bietigheim-Bissingen Ellwangen Backnang Vaihingen Ø 5.00 (Jagst) Ettlingen ENZKREIS an der Enz Unterschneidheim LUDWIGSBURG A35 Pforzheim REMS-MURR-KREIS Kornwestheim Winnenden A8 OSTALBKREIS Ditzingen Waiblingen Fellbach Stuttgart Leonberg A81 Göppingen Gaggenau Weinstadt Schorndorf Schwäbisch 3.50 - 5.50 4.50 - 6.50 Gmünd A5 Stuttgart Ø 5.50Bad Wildbad Ø 4.95 Calw Sindelfi ngen Ostfi ldern Heidenheim Bühl Filderstadt an der Brenz Leinfelden-Echterdingen GÖPPINGEN Geislingen RASTATT A8 an der Kirchheim unter Teck Steige Böblingen CALW BÖBLINGEN HEIDENHEIM Messe Nürtingen 4.50 - 6.50 Airport Herrenberg ESSLINGEN A7 Ø 5.45 Nagold AM NECKAR Lonsee A81 Tübingen Metzingen FREUNDENSTADT A8 Langenau Reutlingen Laichingen Offenburg Horb am Neckar TÜBINGEN A8 ORTENAUKREIS REUTLINGEN Dornhan Hechingen ALB-DONAU-KREIS Biberach Esslingen Erbach 4.00 - 6.50 ZOLLERNALBKREIS Balingen Ø 5.20Pfronstetten ROTTWEIL A81 A7 Schramberg Albstadt Oberstadion Rottweil BIBERACH AN DER RIß * The economic region of Stuttgart comprises sub-markets consisting of Stuttgart itself and the following administrative districts: Rems-Murr, Ludwigsburg, Esslingen, Böblingen and Göppingen. MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Stuttgart region 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 Germany for space take-up enhance your search profile and provide you with in industrial properties, warehouses and logistics exact property matches.