Rhine-Main Metropolitan Area for 2019

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES Rhine-Main metropolitan area for 2019

Market report on the letting of logistics properties and industrial spaces in the Rhine-Main metropolitan area* for 2019 n Weakest result in the last five years: take-up >> Take-up of logistics property and industrial space in the greater Frankfurt area falls by 36% n Logistics expected to remain at a high level in the region n Rhine-Main South remains the region with the strongest letting activity n Units of 5,000 sqm or more account for just under 300,000 sqm of space; those with large space requirements of 50,000 sqm or more are having to switch to the outskirts n Prime rent increases by 8%, average rent remains unchanged n Forecast: outskirts to become increasingly

attractive for logistics properties * value by Statista (statista.com)

Our latest analysis on the letting volume of stor- Frankfurt (around 8%; 34,500 sqm). “Rhine-Main focus on the 7,500 sqm and under segment. De- age, logistics and production space in the Great- North” (27,240 sqm) and “Rhine-Main West” mand for units up to 20,000 sqm was also strong. er Frankfurt/Rhine-Main region* confirms the (25,424 sqm) each had a share of around 6% of downward trend that started at the beginning of market activity in 2019. Around 19% of total take-up was in the 1,000 to the year. While take-up was already down 13% 3,000 sqm size category, followed by the 3,000 year-on-year at the end of the first half of 2019 Take-up by size to 5,000 sqm segment (14%, 63,560 sqm). Deals (H1 2019: 262,200 sqm, H1 2018: 300,000 sqm), below 1,000 sqm made up just 3% of all leases 454,000 sqm of space was brokered by all market Total take-up in 2019 was dominated by units of up to the end of December (13,620 sqm). participants in the year as a whole (- 36%). Con- 5,000 sqm or more (64%, 290,560 sqm), with a sequently, the market delivered its worst result in the last five years, and also fell 22% short of the >> Take-up of logistics property and industrial space by size in the greater Frankfurt area 2019 five-year average of 578,800 sqm.

In the years leading up to 2019, the Rhine-Main region saw very high levels of construction of large spaces with direct letting. However, the decline in the result last year should not be over- stated for the time being. Companies with large space requirements will locate in the outskirts in ≥ 5,001 sqm 3,001 - 5,000 sqm 1,001 - 3,000 sqm ≤ 1,000 sqm future, i.e. in peripheral locations 50 km or more outside the core region of Frankfurt. >> Take-up of logistics property and industrial space by regions in the greater Frankfurt area 2019

Take-up by regions

The Rhine-Main South region again posted the strongest letting activity in the reporting period, although the figure was approx. 200,000 sqm less than in the previous year. At approx. 234,264 sqm, Offenbach, Gross-Gerau, Darmstadt and Bergstrasse accounted for more than half the space brokered.

The regions with the next highest take-up were Rhine-Main East (19%, 86,260 sqm), Mainz/ Wiesbaden (approx. 10%; 46,310 sqm) and

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2019 Rents 2019 >> Prime and average rents of logistic property and industrial space in the greater Frankfurt area 2019

The prime rent for new buildings in the city of Frankfurt rose by 8% year-on-year to approx. EUR 7.00/sqm (nominal) (2018: EUR 6.50/sqm). The average rent remained unchanged at EUR 4.95/sqm.

Forecast 2020

In recent years, the market posted record results driven by the high level of construction. This is hard to repeat. For 2020, we forecast similar take-up to the previous year, with those looking prime rents average rents for logistics properties with large spaces of over 50,000 sqm having to switch to the outskirts. >> Relevant deals in 2019 Despite current trends, we are optimistic about the future. National and international trading 1. IKEA 4. Amazon S.à r.l. companies with high logistics capacity will con- Rüsselsheim, 33,000 sqm (owner-occupier) Gernsheim, 19,700 sqm tinue to supply the densely populated, growing metropolitan area. In addition, there are logis- 2. Geis Industrie 5. Eichler Kammerer Gruppe tics-related industries such as the highly special- Rodenbach, 31,000 sqm Dietzenbach, 18,200 sqm (owner-occupier) ised chemical and pharmaceutical sector as well as e-commerce. Consequently, major future-ori- 3. Coca Cola European Partners GmbH ented transportation industries are located at the Bodenheim, 20,300 sqm largest European cargo airport and one of the most important road and rail hubs, which also attract numerous specialist logistics service pro- viders.

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2019 Logistics Property Market Frankfurt: Rental Prices 2019 (EUR/sqm)

45 Gießen Fulda / Bad Hersfeld area Gießen / Wetzlar area Fulda 3

Limburg an der Lahn Rhine-Main North 7 Koblenz WETTERAU 3.50 - 4.80 Rhine-Main West Friedberg 66 4.00 - 6.50 5 45 HOCHTAUNUS Büdingen Bad Homburg MAIN-KINZIG Gelnhausen Maintal MAIN- Rhine-Main East Frankfurt a. M. TAUNUS 3.30 - 5.00 4.00 - 7.00 Hanau Wiesbaden Hofheim am Taunus Offenbach ASCHAFFENBURG- 61 Wiesbaden / Mainz 3 LAND 3.50 - 5.95 Neu-Isenburg Mainz Dreieich Rodgau Rüsselsheim OFFENBACH-LAND 60 Ingelheim Mörfelden-Walldorf Aschaffenburg am Rhein Groß-Gerau 3 GROß- DARMSTADT-DIEBURG GERAU 61 Darmstadt Groß-Umstadt

Rhine-Main South Würzburg Gernsheim 3.50 - 6.95 3 67 Wertheim Bensheim Mannheim-Heidelberg- 63 Rhein-Neckar Alzey-Worms BERGSTRAßE Worms Heppenheim (Bergstraße)

6 5 Mannheim

* Greater Frankfurt market area Realogis defi nes the sub-markets as the relevant available warehouse, logistics, industrial and production properties with hall space of approx. 1,000 sqm or greater (excluding offi ce and ancillary space) in the following regions: Rhine-Main North including Wetterau district; Rhine-Main South including Gross- Gerau, Offenbach, Offenbach-Land, Darmstadt and Darmstadt-Dieburg districts; Rhine-Main East including Aschaffenburg, (part of) Main-Kinzig and (part of) Aschaffenburg-Land districts; Rhine-Main West including Hochtaunus and Main-Taunus districts, Wiesbaden/Mainz including Wiesbaden and Mainz districts, and Frankfurt (Frankfurt district).

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2019 REALOGIS Immobilien REALOGIS – REALOGIS – Frankfurt GmbH Pioneers in Logistics since 2005 Available to you directly on-site in Frankfurt Bockenheimer Landstraße 39 60325 Frankfurt When Realogis was first established in 2005, we We are your point of contact for the letting of in- phone: +49 (0)69 - 8 700 401 - 50 had an ambitious goal: to become the market dustrial and logistics property as well as business fax: +49 (0)69 - 8 700 401 - 99 leader for property lettings in the “industrial and parks in the Rhine-Main metropolitan area. You’re email: [email protected] logistics” segment. The concentration and poo- looking for a certain type of property? We will ling of our know-how into this niche market has define the precise details of your requirements, www.realogis.de proved successful: in 2015 we again gained enhance your search profile and provide you with market leadership in Germany for space take-up exact property matches. Maybe you are looking in industrial properties, warehouses and logistics for a new tenant for your property. In that case we properties. What’s more, we have also continued will assist you in valuing your property and setting to expand our share of the European market. the optimal rental price. We handle the professio- nal presentation of your property to the public and Today, the owner-managed Realogis group, which ensure a prompt letting. is headquartered in Munich and also has offices in Berlin, Düsseldorf, Frankfurt, Hamburg and Stutt- Both tenant and landlord benefit from the many gart, not only offers lettings and consultancy ser- years of specialist market knowledge of our seven- vices but is also a sought-after partner of investors strong consultancy team in the region, as well as Contact: and institutional investors, to whom we offer our our market proximity and valuable contacts. We Adriano Borgia (Managing Director) comprehensive experience and in-depth regional, only employ well educated and experienced pro- phone: +49 (0)69 - 8 700 401 - 50 national and international market knowledge. perty consultants, and also offer access to an fax: +49 (0)69 - 8 700 401 - 99 in-house site-department, which is specialised in email: [email protected] Extensive consultancy services in the areas of commercial and industry sites. logistics and fulfilment round off our range of services. With a team of highly motivated and Please contact us about any decisions relating to well-trained professionals, we continually strive industrial and logistics property. to provide long-term support to our customers 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

All data in this report come from different sources which we consider reliable but whose validity, exactness and correctness we cannot garantee. Our stetements and forecasts here correspond to our estimations at the time when this report was prepared. This report has been prepared for advertising purposes and does not represent any recommandation or basis for making any decisions about investment or letting property. This market report is the copyright property of REALOGIS. No part of this report may be used in any form or by any means, without the prior permission in writing of REALOGIS. / 16.01.2020

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2019