GERMANY 21: REGIONALER OFFICE INDEX Asking Rents in German Key Regional Cities 12th Edition – Focal City Karlsruhe Status: 3/2017 CORPUS SIREO
CONTENTS Market Overview and Key Ratios 3 Index Performance 10 – Benchmark Comparison – Age Categories – City Trends Focal city Karlsruhe 20 Interview with Michael Kaiser, Director of Economic Development in Karlsruhe 22 Methodology 26 About empirica and CORPUS SIREO 28 Contact 32
2 Overview
SUSTAINED MOMENTUM ON THE GERMAN OFFICE MARKETS
Dear Reader,
The office rental and investment market was in extremely good shape in 2016. Driven by robust economic data, lettings on the main office markets increased by around 10% year- on-year. Vacancy rates continued to decline despite the moderate rise in construction activity, and there was growth in both prime rents and average rents.
On the investment market, office properties worth almost €25 billion changed hands. Following a muted first half of the year, the market rallied towards the end of 2016 with turnover of almost €10 billion in the final quarter. This meant that the volume for the year as a whole was comparable with the previous year in spite of the shortage of supply, with investors proving relatively reluctant to sell in the current low-interest environment. Strong demand led to a further rise in the price level in the top seven cities and the regio- nal office markets, with initial yields declining significantly in some cases.
The development of the rental markets, and especially asking rents in 14 selected regional centres, is illustrated in the regional office index, which CORPUS SIREO is publishing in conjunction with the research firm empirica for the twelfth time. The index shows a tangible increase in asking rents in the second half of 2016. The regional focal point of this edition lies on the office market of Karlsruhe, which is characterised by long-term positive rental development accompanied by pronounced stability.
We hope you will enjoy reading this publication.
Ralph Scherer and Ralf Bäuchle
3 CORPUS SIREO
REGIONAL CENTRES SUPPLEMENT THE BIG OFFICE LOCATIONS
Regional office markets enjoy solid In addition to these regional centress, economic foundations Germany has a number of other cities with positive growth trends whose rental de- The 14 cities examined by CORPUS velopment is not yet included in the office SIREO and empirica in “GERMANY 21: index on account of their comparatively Regional Office Index” are characterised small market size. by growing office employment and stable demand for office space. These regional centres were selected on the basis of the following criteria:
– absolute size of the office market – importance of office employment for the regional macro-economy – excellent historical and promising future demand trends
Change in office employment 2007–2025 in %
below -15 % -15 % to -5 % Key regional centres Focal cities of -5 % to 5 % previous editions Examples of other attractive office markets 5 % to 15 % above 15 % Top 7 cities
4 Overview
SELECTION OF THE REGIONAL CENTRES Growth in office employment 2007–2025
KIEL ROSTOCK
HAMBURG
BREMEN
BERLIN HANNOVER POTSDAM
MÜNSTER
DORTMUND ESSEN LEIPZIG DUSSELDORF DRESDEN COLOGNE ERFURT AACHEN BONN
WIESBADEN FRANKFURT/MAIN MAINZ
MANNHEIM NUREMBERG
KARLSRUHE STUTTGART
AUGSBURG
MUNICH FREIBURG
Previous editions are available as free downloads at: www.corpussireo.com/downloads Source: empirica
5 CORPUS SIREO
FALLING YIELDS IN THE REGIONAL CENTRES
Affordable office market in Karlsruhe Aachen 1.8 Prime rent 14.50 Interpretation of the available key market data based on Return 5.0 the example of Karlsruhe: At 2.9 million square metres, Take-up 35 Karlruhe is one of the smaller regional office markets. Take-up in 2017 is expected to be lower than the figure of Vacancy 2.4 74,000 square metres recorded in the previous year. Prime rent in Karlsruhe at year-end 2016 was €13.30/sqm. The Bonn 4.0 vacancy rate of 3.6% is expected to decline further over Prime rent 19.00 the next year. Return 4.6 Take-up 90 Vacancy 2.6
(Focal city, 2nd edition)
Bremen 3.2 Prime rent 12.80 Key figures for 2016 Return 5.3 Take-up 88 City Trend Office stock (YoY change) (GLA, in million sqm) Vacancy 4.5 Prime rent stable €/sqm/month (Focal city, 6th edition)
Yield rising Net initial yield Dortmund 3.3 (prime properties, in %) Prime rent 13.50 Take-up declining Net absorption Return 5.0 (in thousand sqm) Take-up 100 Vacancy Vacancy rate (in %) Vacancy 5.4 (Focal city, 5th edition)
6 Überblick
Dresden 3.3 Leipzig 3.4 Nuremberg 4.5 Prime rent 12.60 Prime rent 13.00 Prime rent 13.80 Return 5.0 Return 5.0 Return 4.8 Take-up 80 Take-up 97 Take-up 70 Vacancy 8.4 Vacancy 11.4 Vacancy 6.1
(Focal city, 8th edition) (Focal city, 4th edition) (Focal city, 1st edition)
Essen 3.7 Mainz 2.0 Wiesbaden 2.8 Prime rent 14.00 Prime rent 12.70 Prime rent 14.30 Return 5.0 Return 5.3 Return 5.1 Take-up 85 Take-up 21 Take-up 58 Vacancy 5.4 Vacancy 5.5 Vacancy 5.7
(Focal city, 10th edition) (Focal city, 7th edition)
Hanover 6.1 Mannheim 2.6 Prime rent 14.80 Prime rent 15.20 Return 4.7 Return 5.0 Take-up 110 Take-up 91 Vacancy 5.5 Vacancy 4.9
(Focal city, 3rd edition) (Focal city, 9th edition)
Karlsruhe 2.9 Münster 2.8 Prime rent 13.30 Prime rent 14.40 Return 5.0 Return 5.0 Take-up 74 Take-up 60 Vacancy 3.6 Vacancy 3.0 Source: empirica, BulwienGesa, (Focal city, 12th edition) (Focal city, 11th edition) Wirtschaftsförderung der Städte 2017
7 CORPUS SIREO
BERLIN STAYS AHEAD IN TERMS OF TAKE-UP
Vacancy rate in Munich continues to fall
Interpretation of the available key market data based on the example of Munich: Prime rent in the Bavarian capital amounted to €34.70/sqm at year-end 2016, placing it only just behind Frankfurt; further growth is anticipated. The vacancy rate in Munich has reached a low level of 2.7%, and this figure is expected to decline further.
Key figures for 2016
City Trend Office stock (YoY change) (GLA, in million sqm) Prime rent stable €/sqm/month
Yield rising Net initial yield (prime properties, in %) Take-up declining Net absorption (in thousand sqm) Vacancy Vacancy rate (in %)
8 Overview
Berlin 23.6 Düsseldorf 9.1 Prime rent 28.00 Prime rent 24.50 Return 3.3 Return 4.1 Take-up 875 Take-up 308 Vacancy 3.0 Vacancy 8.3
Frankfurt 12.4 Hamburg 17.2 Prime rent 35.50 Prime rent 26.00 Return 4.1 Return 3.6 Take-up 463 Take-up 550 Vacancy 10.7 Vacancy 5.3
Cologne 9.4 Munich 17.1 Prime rent 21.00 Prime rent 34.70 Return 4.1 Return 3.2 Take-up 375 Take-up 581 Vacancy 5.6 Vacancy 2.7
Stuttgart 9.3 Prime rent 19.70 Return 3.9 Take-up 400 Vacancy 2.9 Source: empirica, BulwienGesa
9 CORPUS SIREO
NEW UPTURN IN ASKING RENTS IN THE REGIONAL CENTRES
Regional markets outperform the top 7 in of 2.9% in the first half of the year was terms of rental development followed by a modest rise of just 0.2% in the second half, suggesting a shortage of Average asking rents for office space in high-quality space in particular. the 14 regional markets increased by an average of 1.8% in the period from July Asking rents in the top seven cities ave- to December 2016. Development saw the raged €13.66/sqm in the fourth quarter same pattern as in 2015, with stability in of 2016, with rents excluding the most the first half of the year followed by sub- expensive 10% of the market ranging from stantial growth in the second half. €7.50 to €21.00/sqm. Only the mid-price segment saw rental growth, whereas rents In the regional centres, the asking rent in the upper and lower market segments for office space amounted to €8.42/sqm remained unchanged compared with the on average in the fourth quarter of 2016. halfway point of the year. Rents mainly came in at between €5.00 and €12.00/sqm, with prime rents amounting to around €17.00/sqm. Interpretation of the Regional Office Index
In terms of rent categories, the trends re- The Regional Office Index shows the ave- corded in the early part of the year continu- rage asking rents in the 14 regional centres ed, with asking rents in the high-end seg- since the first quarter of 2008 (index = ment again enjoying above-average growth 100). The development of the correspon- in the second half of the year while rents in ding rents in the top 7 locations is shown the other segments saw little movement. for comparison.
Asking rents saw more muted developed in the top seven locations. The increase
10 Index Performance
REGIONAL OFFICE INDEX Development of asking rents in the regional centres compared to the top 7
120
115
110
105
100
95
90 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Asking rent indices
14 Key Regional Cities Regional Office Index Top 7 Cities Asking rents in the top 7 cities
Source: empirica Preisdatenbank 2017 (IDN Immodaten GmbH, empirica systeme GmbH)
11 CORPUS SIREO
RENTAL GROWTH BENEFITS ALL AGE CATEGORIES
Very low supply of new construction space
New builds in the regional centres increased by 0.4% to an average of €11.90/sqm in the second half of the year. New construction continued to account for a relatively low share of around 5% of the total supply in the fourth quarter of 2016. Only the lower price seg- ment saw rental growth, whereas rents in the mid-price and high-end segments remained unchanged as against the end of the first six months. New build rents in the final quarter of 2016 ranged from €9.00 to €14.90/sqm (excluding the top segment). Asking rents for new properties averaged €12.45/sqm in central locations compared with €11.43/sqm in peripheral areas.
Properties built between 1980 and 1994 record strongest growth
Asking rents for properties built between 1945 and 1994 recorded above-average growth in the second half of 2016, increasing by 1.9% to an average of €8.18/sqm at the end of 2016. However, this development was driven solely by properties built between 1980 and 1994, whereas asking rents for properties from the 1950s to the 1970s remained unchanged.
Asking rents for older properties increased by 0.4% since the middle of the year, ave- raging €7.90/sqm in the fourth quarter of 2016. Dresden had the most affordable older properties, with prices averaging €6.63/sqm, while Wiesbaden was most expensive at €11.02/sqm.
12 Indexentwicklung
OLDER PROPERTIES RECORD ABOVE-AVERAGE GROWTH Regional Office Index by age category (Q1/2008 - Q4/2016)
130
120
110
100
90 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
after 1995, excluding new buildings new buildings* 1945 - 1994 before 1945
*Buildings less than 3 years old
Source: empirica price database 2017 (IDN Immodaten GmbH, empirica systeme GmbH)
13 CORPUS SIREO
MANNHEIM, BONN AND WIESBADEN RECORD HIGHEST ASKING RENTS
Strong growth in Aachen, Hanover, Mannheim and Wiesbaden
In the second half of 2016, these four cities saw the strongest performance in terms of asking rents, with growth rates in excess of four percent. Aachen led the way with growth of 5.6%. Average rents climbed to €8.71/sqm, with the high-end price segment in particu- lar enjoying positive momentum. The 5% increase in Hanover was attributable prima- rily to rental growth at either end of the price scale, i.e. among affordable and high-end properties. The situation is different in Mannheim, the second most expensive regional centre at €9.90/sqm, where asking rents increased across all segments.
Above-average growth also recorded in Karlsruhe, Leipzig and Nuremberg
In the second half of the year, average asking rents in these office markets rose by bet- ween 2.2% in Karlsruhe and 3.2% in Leipzig. With an average asking rent of €7.22/sqm, Leipzig has overtaken Dresden but remains affordable. Rents increased in the high-end segment in particular.
In Karlsruhe, rents were around 6% higher than the average for the 14 regional markets at €8.92/sqm. Growth was recorded in the affordable and high-end segment alike. Rents increased more sharply in central Karlsruhe than in peripheral locations, with older buildings in particular enjoying above-average rental growth. The small number of new builds in the city centre also became more expensive, with asking rents generally in excess of €13/sqm. By contrast, properties from the 1950s and 1960s saw falling prices even in central locations.
14 Index Performance
LEIPZIG OVERTAKES DRESDEN Absolute rents* (Q1/2008 - Q4/2016)
€/sqm/month %
12 130
125 11
120 10 115
9 110
8 105
100 7
95 6 90
5 85
4 80
Mainz Bonn Leipzig Essen Bremen Dresden Münster Aachen Hannover Dortmund Karlsruhe Nuremberg Mannheim Wiesbaden
Q1/2008 Expected year-on-year rental trend Q4/2016 Aachen Dresden Leipzig Nuremberg Increase Bonn Essen Mainz Wiesbaden Q1/2008 to Bremen Hannover Mannheim Q4/2016 Dortmund Karlsruhe Münster
Source: empiraica price database 2017 (IDN Immodaten GmbH, empirica systeme GmbH) *Arithmetic mean
15 CORPUS SIREO
CITIES IN NRW BENEFIT FROM UPTURN IN PRICES TO A LIMITED EXTENT
Bonn, Münster, Dortmund and Bremen with only the high-end segment recording record moderate rental growth growth. This related to space in modern- ised 1990s buildings as well as properties The office markets in this group of cities built in the 2000s. By contrast, office space recorded moderate rental growth of up to in new builds was still a rarity at the end one percent in the second half of 2016. of the year, accounting for just 2% of the The former German capital, Bonn, remains total supply. Driven by growth in the mid- the most expensive regional centre with price segment, average rents in Bremen average rents of €9.92/sqm. Price increases increased by 0.7% in the second half of the in the mid-price segment were offset by re- year. Compared with the 14 regional mar- ductions in the high-end segment. The most kets, the Bremen office market had a rela- expensive properties in Bonn, with rents tively generous supply of new-build space in excess of €16.50/sqm, were new builds in the second half of the year; in particular, in the Bonner Bogen and Regierungsvier- this was concentrated on the Überseestadt tel districts. The 1% increase in Münster district, where rents exceeded €11/sqm. (to €9.06/sqm) is based on above-average growth in the affordable segment, with the other categories seeing stable development. Falling rents in Essen, Mainz and Dresden The small number of new builds in Mün- ster are located in the city centre and the Average rents in all three cities decreased Stadthafen district (up to €14.50/sqm). in the second half of the year. In Essen, rents declined by 1.6% to €8.17/sqm. This Dortmund and Bremen, where average development affected all categories with asking rents are considerably lower at the exception of the low-price segment, €8.28/sqm and €8.23/sqm respectively, where rents stagnated. New builds accoun- saw divergent trends in terms of price ted for 3% of total supply in the fourth segments. In Dortmund, average rents quarter of 2016 compared with the average remained essentially unchanged (+0.2%), of 5% for the regional markets covered by
16 Index Performance istockphoto.com © kupicoo
this report. The city centre in particular market at prices of €14.00/sqm or more. At demonstrated a shortage of high-quality €6.85/sqm, Dresden was the regional cen- new office space. tre with the lowest asking rents at the end of 2016. Rents have declined across almost Despite a downturn of 0.8% in the second all price segments in the past six months, half of the year, Mainz remains one of the resulting in an average downturn of 1.1%. more expensive regional office markets Compared with the average for the regional with average asking rents of €9.57/sqm. markets as a whole, new build properties at Growth in the high-end segment parti- year-end 2016 were comparatively scarce, ally offset the downward rental trend in accounting for 3% of the total supply; the other categories, as new builds in the however, asking rents for these properties waterfront districts of Winterhafen and rarely exceed €10/sqm. Zollhafen increasingly came onto the
17 CORPUS SIREO
GAP BETWEEN MUNICH AND FRANKFURT INCREASES
Berlin and Cologne record strongest rental growth With growth of 5%, asking rents in Berlin continued on their upward trend in the second half of the year. Asking prices averaged €12.92/sqm in the fourth quarter of 2016. Rents in Berlin increased across all segments, with high-end space performing especially well. Following a sustained phase of muted price development, Cologne saw strong growth to- wards the end of 2016. An increase of 3.1% – with above-average growth in the high-end segment – meant that average rents climbed to €11.04/sqm. Cologne remained the top 7 market with the lowest rental level.
Stuttgart, Düsseldorf, Munich: Growth curbed Rents in this group of cities saw considerably more muted development. With growth of 1.6% to an average of €12.42/sqm at year-end 2016, Stuttgart remained slightly ahead of Düsseldorf, where asking rents increased by 1.1% to average €12.14/sqm. Munich remained the most expensive of the top 7 cities, with rents rising by 1.5% to €16.47/sqm. While rents in Munich and Düsseldorf mainly increased in the high-end segment, the upturn in Stuttgart was attributable to all market segments.
Falling rents in Frankfurt and Hamburg Asking rents in Frankfurt declined by 3.3% in the second half of 2016, with office space being marketed for an average of €14.99/sqm at the end of the year. Rents declined across all market segments. In Hamburg, average rents fell by 0.8% to €12.96/sqm, with only the mid-price and top segments recording stable development.
18 Index Performance
BERLIN CONTINUES TO CATCH UP Absolute rents* (Q1/2008 - Q4/2016)
€/sqm/month % 17 130
15 120
13 110
11
100 9
90 7
5 80 Stuttgart Berlin Cologne Hamburg Dusseldorf Frankfurt Munich
Q1/2008 Expected year-on-year rental trend Q4/2016 Berlin Cologne Increase Dusseldorf Munich Q1/2008 to Frankfurt Stuttgart Q4/2016 Hamburg
Source: empirica price database 2017 (IDN Immodaten GmbH, empirica systeme GmbH) *Arithmetic mean
19 CORPUS SIREO
KARLSRUHE: ECONOMIC CENTRE OF BADEN REGION
Technology location with a stable in 2016 was the highest level recorded in a office market number of years. With average asking rents of €8.92/sqm at the end of 2016, Karlsruhe With around 240,000 people in employ- is ranked in the mid-table of the regional ment, Karlsruhe is the second-largest eco- centres. nomic centre in Baden-Württemberg state after Stuttgart. The technology location on Rents have increased by 12% since the the Upper Rhine Plain is very well connec- start of 2008 but the growth momentum ted to Stuttgart and the Rhine-Neckar and remains below the average for the regional Rhine-Main conurbations by rail and road. office markets as a whole. Prime rents in Karlsruhe amount to €13.30/sqm, making Key industries include knowledge-intensi- it affordable compared with other locations ve services, information and communica- of a similar size. tions technology (ICT) and culture and the creative arts. In the ICT industry, Karlsru- he is the fourth most important location in Deviation from average below -25 Europe after Munich, London and Paris. rent (=0) The Karlsruhe Institute of Technology -25 to -15 (KIT) and Karlsruhe University of Applied -15 to -10 Sciences are among the best universities in Built-up areas -10 to -5 Germany. The city is also the home of the Green areas 5 to 10 German Federal Constitutional Court and the German Federal Court of Justice. Other areas -5 to 5 10 to 15 The broad industry mix helps to ensure 15 to 25 stable demand for office space. Only 3.6% 25 to 50 of the city‘s around 2.9 million square metres of office space was vacant at year- above 50 end 2016. Take-up of 74,000 square metres
20 Focal City
KARLSRUHE OFFICE MARKET Asking rents (Q1/2012 - Q4/2016)
Source: empirica-systeme GmbH, Infas Geodaten GmbH 2017
21 CORPUS SIREO
NEW PROJECTS CREATE FUTURE DEVELOPMENT POTENTIAL
Interview with Michael Kaiser, Director of Economic Development in Karlsruhe
What are the characteristics of the Karlsruhe office market? Stability is the defining characteristic of the office market in Karlsruhe. Even in the financial crisis of 2008/09, the local economy and the office market were largely unaffected by ex- ternal disruptions. The reasons are the city‘s broad industry mix, lots of small and medium- sized enterprises and the demand resulting from its universities and public bodies. Very few properties are constructed speculatively; instead, they typically have high levels of pre-letting and are developed with a view to the specific requirements of the user. Demand for office space in Karlsruhe has been rising steadily since 2011 in particular.
Where is the office market currently developing? 30,000 square metres of gross floor area are currently being constructed on Ludwig-Erhard- Allee, one of the prime locations in Karlsruhe, for the Municipal Supply Association of Baden-Württemberg and the head office of the construction firm Weisenburger. The new dm head office in Durlacher Str. (approx. 40,000 square metres of gross floor area) will be com- pleted in 2019. The new Hauptbahnhof Süd office district is expected to provide more than 100,000 square metres of gross floor area. Karlsruhe Technology Park is being made fit for the future – the potential for up to 300,000 square metres of gross floor area should suffice for the next 15 to 20 years.
What are the trends for the future? Thanks to an economic structure that is fit for the future and good living conditions in the city and the surrounding region, the Karlsruhe office market will continue to enjoy positive development. The vacancy rate is set to increase in the medium term as existing space is freed up, e.g. following the construction of the new dm head office, which will have a corre- sponding impact on average rents. The peak in take-up that was recorded in the previous year is unlikely to be repeated in 2017, but demand for office space is expected to remain solid in the longer term. The new builds in the pipeline suggest that prime rents will continue to rise.
22 Focal City
OLDER BUILDINGS DRIVE CITY-CENTRE RENTAL GROWTH Karlsruhe index performance compared with the index as a whole
130
125
120
115
110
105
100
95
90 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Karlsruhe – Centre All 14 Regional Centres – Centre Karlsruhe – Periphery All 14 Regional Centres – Periphery
Source: empirica price database 2017 (IDN Immodaten GmbH, empirica systeme GmbH)
23 CORPUS SIREO
CORPUS SIREO ACTIVE ON THE KARLSRUHE PROPERTY MARKET
1 Schenkenburgstraße 2 2 Am Entenfang 1 Lettable area Lettable area 1,225 sqm 2,240 sqm Main tenant Main tenant Deutsche Deutsche Telekom AG Telekom AG Year built Year built 1975 1956
Selected investment transactions in the office sector 2015–2016
Period Property Floor area Buyer Q4/2016 Philipp-Reis-Str. 2 32,300 sqm GIEAG Immobilien AG Q4/2016 Haid-und-Neu-Str. 13 7,820 sqm Wealth Mgt. Capital Holding GmbH Q2/2016 Karlstr. 2,300 sqm Seeger & Russwurm Immobilien GmbH Q4/2015 Karl-Friedrich-Str. 23 n/a City of Karlsruhe Q4/2015 Herman-Veit-Str. 23,000 sqm Israeli investor Q3/2015 Bannwaldallee n/a b.i.g. Group Q2/2015 Rheinstr. 44 1,540 sqm Investa Real Estate
Deviation from average rent in (=0)
Built-up areas below -25 -10 to-5 10 to 15 above 50 Green areas -25 to -15 -5 to 5 15 to 25 Other areas -15 to -10 5 to 10 25 to 50
Source: Thomas Daily
24 Focal City
KARLSRUHE OFFICE MARKET Asking rents (Q1/2012 - Q4/2016)
Waldstadt
Nordweststadt Nordstadt Hagsfeld
Mühlburg Oststadt Rintheim Innenstadt-West
Weststadt Innenstadt-Ost
Grünwinkel Südweststadt Südstadt
Beiertheim-Bulach Durlach
Weiherfeld-Dammerstock Oberreut
Rüppur Wolfsrtsweier
Source: empirica-systeme GmbH, Infas Geodaten GmbH 2017
25 CORPUS SIREO
METHODOLOGY
The quoted prices for office properties as Almost four million listings were includ- represented in the images and maps are the ed in the evaluation for the period from result of an evaluation of the empirica price Q1/2008 to Q4/2016. The “GERMANY database (source: IDN Immodaten GmbH) 21: Regional Office Index” profiles average and the price database of empirica-sys- rents calculated as arithmetic medians. teme GmbH. Together, these two databases include more than 100 sources (e.g. major The transition of the data source from real estate portals and daily newspapers), the empirica price database (source: IDN thereby covering a large share of the Ger- Immodaten GmbH) to the price database man real estate market. of empirica-systeme GmbH necessitated a conversion of the absolute rents mapped by In order to achieve a high degree of valid the index for each city for Q1/2008. results, office listings are filtered in a grad- uated cleaning process. In the first step, The transition was accompanied by the recurrent listings are isolated by matching elimination of extreme values at the level multiple characteristics. In the second step, of the individual cities. Any cases exceed- improbable listings are removed from the ing three times the standard deviation data record by setting threshold values. (above and below) are excluded from the
26 Methodology
calculation of the arithmetic mean of the process that links asking rents from the office rents for the respective market. years 2012 to 2016 geographically right down to the exact address. In the final step, The rent increases identified by either the findings are coordinated with local of- source are used to determine the retrospec- fice market experts to enhance plausibility. tively calculated rents listed on pages 15 and 19. The asking rent levels in Karls- The empirica office employment forecast ruhe as shown on page 21 and 25 repre- for the regional planning regions (page sent zones of identical rents in the office 5) is based on the empirica employment quarters of the city as a deviation from the forecast and a forecast for the office em- city-wide average and irrespective of urban ployment ratios in 60 business departments district boundaries. backed by a regression analysis of the office employment ratio. This not only identifies the office rent price structure within a given city but also highlights the price differences within a given district. Methodologically speaking, the asking rent level is based on a geostatic
27 CORPUS SIREO About
EMPIRICA
empirica ag empirica, an independent economics and social science research and consulting firm, operates three offices: empirica Forschung und Beratung AG in Berlin, its branch of- fice in Bonn, and komet-empirica Regionalentwicklung, Stadtentwicklung, Immobil- ienforschung GmbH in Leipzig. empirica advises national, regional and international institutions as well as private clients in the areas of real estate markets, economic research and urban and regional planning, and maintains proprietary databases (the empirica price database, the empirica vacancy index, the empirica regional forecasts and the empirica urban sub-district database). empirica ag is a member of the “Rat der Weisen” council of experts that regularly submits a spring report on the forward-looking development of Germany’s key real estate seg- ments.
For more information about empirica, go to www.empirica-institut.de
empirica-systeme GmbH empirica-systeme GmbH specialises in the processing, analysis and supply of real estate market data. The empirica-systeme market database provides the basis for differentiated analyses of the real estate market including a wide range of variables concerning the loca- tion, features and condition of individual properties.
For more information about empirica-systeme GmbH, go to www.empirica-systeme.de
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CORPUS SIREO IS GERMANY’S LEADING ASSET MANAGER
CORPUS SIREO Germany’s most valuable real estate asset man- agement brand for the fifth year in succession
Cologne, May 2016: CORPUS SIREO has been recognised as Germany‘s most valuable brand in the real estate asset manage- ment segment for the fifth year in a row. This is the outcome of the Berlin-based EUREB Institute‘s survey of around 44,000 industry experts concerning awareness of a total of 1,200 European real estate brands.
The survey, which has been conducted annually since 2009, is the most extensive empirical study of brand value in the German real estate industry. CORPUS SIREO also received the „Brand Sustainability Over Five Years“ award across all categories and asset classes.
PropertyEU: Swiss Life Top Investor 2016
According to the ranking by the real estate industry journal PropertyEU, Swiss Life Asset Managers is Europe‘s largest asset management service provider with assets under management of €62.2 billion. CORPUS SIREO has been an independent business unit of Swiss Life Asset Managers since 2014.
34 Awards
CORPUS SIREO crowned top midmarket employer in the consult- ing industry in 2017
FOCUS has recognised Germany‘s best employers for the fifth time in cooperation with Kununu and Xing, and CORPUS SIREO placed extremely well for the fourth year in succession.
The largest survey of its kind, which asked more than 70,000 employees to rate their own companies, identified the 1,000 best employers with over 500 employees from across a total of 22 industries. This year‘s survey again asked employees about their employer‘s image, their workplace equipment, career opportunities, management behaviour, corporate culture, and whether they would recommend their employer to others.
CORPUS SIREO among the top two most popular employers
The annual survey of students conducted by Immobilien Zeitung showed that we are again one of the two most popular employers in the real estate industry.
The most important German trade publication surveyed 588 students taking industry-related degree courses at a total of 112 educational institutions throughout Germany, asking them about their preferred employer. The outstanding result: CORPUS SIREO improved its score from the previous year and took second place.
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COPYRIGHT: All rights to this edition reserved. Reprinting, including excerpts, subject to prior written permission. Photographs, charts, and layout designed by the editorial team are protected by the applicable copyright laws. The data and information contained in this publication are based on publicly available sources that the editor deems to be trustworthy. The CORPUS SIREO group of companies assumes no warranty regarding the accuracy or completeness of the information provided. Any opinion offered represents the current assessment of the editor. No warranty is assumed regarding the opinions and forecasts ventured. In particular, no liability is assumed for future developments in the real estate economy. The data and information contained in this publication is subject to change with- out notice both during the time of its publication and thereafter. Status: March 2017