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Upgrade Your Business Location Report - 2017

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www.standorte-rhein-neckar.de An alliance of strong 10 partners The Metropolitan Region Rhine- Neckar comprises 15 urban and rural Contents districts. Find out more about us.

Metropolitan Region Rhine-Neckar 4 An alliance of strong partners – an intro- An innovative powerhouse with duction to our 15 urban and rural districts a high quality of life i. d. Pfalz 10 Market segment: Office 12 Bad Dürkheim Booming market with low vacancy rate Bergstraße 11 Südliche Weinstraße Market Segment: Office Overview map 20 12 The positive trend continues Rhein-Pfalz 26 in the major centres. Market Segment: Industrial & Neckar- Commercial 24 Attractive area for commercial investment 27 Market segment: Retail 28 An appealing destination for customers and investors Neustadt a. d. Weinstraße 34 Market 28 Segment: Retail In Focus 36 Worms From small arcades to Networks support innovation large shopping centres Rhein-Neckar 35 and the longest pedes- Glossary 39 am Rhein trian zone in – the region offers many attrac- tive places to shop. Market Segment: Industry 24 & Commerce A central location and efficient infra- structure guarantee strong demand in the commercial and industrial sectors. Title image Office building in Heinrich-von-Stephan-Straße

DIRINGER & SCHEIDEL is building the “Kepler Quartier” near Mannheim’s main railway station. This mixed use quarter will include approx. 13,000 m² of office area, 168 residential units, 40 student apart- Impressum ments, a 3-star-plus business hotel and underground Publisher: Metropolregion Rhein-Neckar GmbH, N7, 5-6, 68161 Mannheim, Tel. +49 (0)621 129 87-0, Fax +49 (0)621 129 87-52, [email protected], car park with 420 spaces. The project is scheduled www.m-r-n.com Cartography: Verband Region Rhein-Neckar, P7, 20-21, 68161 Mannheim, Tel. +49 (0)621 107 08-0, Fax +49 (0)621 107 08-34, for completion in 2019 at a cost of € 140 million. [email protected], www.vrrn.de Concept and Design: Publik. Agentur für Kommunikation GmbH, Ludwigshafen, www.agentur-publik.de // www.kepler-quartier.de Printed by: NINO Druck GmbH, Neustadt, www.ninodruck.de

Title image DIRINGER & SCHEIDEL; Page 3, top: Rhein-Neckar; top right: HeidelbergCement;bottom left: Uli Hillenbrand, Photography; bottom right: MVV Energie AG Available as a complimentary pdf download and in a print version from www.m-r-n.com/publikationen

2 3 The Metropolitan Region Rhine-Neckar has many strengths Add a strong economy to outstanding scientific institutions and a flourish- ing cultural scene and the results will An innovative powerhouse be dynamic. Just like the Metropoli- tan Region Rhine-Neckar – one of the with a high quality of life most attractive locations in with a motivated population that wel- comes the entrepreneurial spirit.

Pristine natural scenery or a pulsating urban lifestyle? In the Metropolitan Region Rhine-Neckar you can have both. Apparent contradictions live in symbiosis in this sunny corner of south-west Germany at the junction of , Rhineland- and -Württemberg. Just a few miles from the unspoiled meadows and forests of the River Rhine, the charming hills of the Neckar valley and the Nature Park, global corporations 41.7 % and hidden champions power the German economy. The agricultural land region’s cultural life attracts a national audience and its university not only draw young people from all over the world but are also vital centres of research and inno- vation. So it is no surprise that the Metropolitan Region Rhine-Neckar – home to 2.4 million people – is one of the 5,637km² total area 37.9 % most dynamic and diverse conurbations in Germany. forest The pioneering spirit runs deep In 1742, the new ruler of the began “The cradle of German democracy since May 17.8 % 1.9 % 1832: Hambach Castle on the Kastanienberg hill promoting the arts and sciences – transforming the region

towns and transport network lakes and waterways near Neustadt.” imago/blickwinkel Photo: into an important centre of innovation. The Metropolitan

4 5 am Main

Market cap. of regional an innovative testing ground for the federal government’s „The proportion of the workforce DAX companies “Intelligent Networking” strategy. In June 2017, Ludwig- shafen will host the National Digital Summit – Germany’s engaged in R&D in the Rhine- central forum for politics, business, science and commu- Neckar Region is more than nities in shaping the digital revolution. The region is not only home to global corporations such as ABB, BASF, twice the national average.“ € 200 SAP and Roche but also SMEs which are leaders in their billion fields. Nearly 60 percent of the goods manufactured here are destined for markets around the world. Well-known brands, such as Lamy or Tempo, are also international ambassadors for the region’s economic strength.

The region combines its central location in Europe with LUDWIGSHAFEN am Rhein excellent infrastructure including a dense network of MANNHEIM motorways. Mannheim’s main railway station is Germa- ny’s second largest hub for ICE rail services while City Airport Mannheim and nearby airports in Frankfurt, Stutt- HEIDELBERG gart and /Baden-Baden offer fast connections to destinations all over the world.

The cradle of science Nobel laureates

Every year, thousands of young people flock to the 16 region’s 22 universities – ten percent of their students internationally recognised research institutions Region now recognises outstanding achievements with are international. Young scientists are not just attracted 30 KARLSRUHE the award named in his memory. “The Carl-Theodor Prize, to Heidelberg’s university – Germany’s oldest founded creates a link between the visionaries of the past and the in 1386 – but to renowned research institutes such as Mannheim Hbf – Paris pioneers of today,” says Kirsten Korte, Managing Director the German Cancer Research Center and the European 88,000 students of Future Metropolitan Region Rhine-Neckar. In 2016, the Molecular Biology Laboratory. These are also magnets for award was presented for the first time to Muhammad Yunus, winner of the Nobel Peace Prize. 22universities

2h58 The initiators of today’s European Metropolitan Region Mannheim Hbf – Rhine-Neckar achieved a milestone of their own when it was declared a Metropolitan Region by the Conference of Ministers for Regional Planning in 2005. A second 0:30 h state treaty officially recognised the historical coopera- tion which has grown between the cities and districts in this border triangle. Public authorities, businesses, scien- tific and cultural institutions and private individuals have been working together across state borders since 2006: the only public-private partnership model of its kind in “Creative minds have been Germany. highly valued here since the Engine of the economy reign of Carl Theodor. We are The strong local economy is one of the location’s key advantages. With a GDP of € 88 billion, the Metropol- creating a link between the itan Region Rhine-Neckar is one of Germany’s economic Remodelled in the Renaissance visionaries of the past and the powerhouses and a leader in many key sectors from the Revival style in 1886: the automobile industry to information technology. As a model Old Hall in the West Wing of the

pioneers of today.” region for smart networks and digital infrastructure, it is Map: Geodatabase: © GeoBasis-DE / BKG 2013 (Data changed); Cartography: VRRN; Photo: Uli Hillenbrand, Photography University of Heidelberg.

6 7 The Nibelungen Festival 2015 in The region between the Rhine and Neckar is home to the historic setting of the Imperial three World Heritage Sites – Abbey, the Impe- Stronger together Cathedral in Worms. rial Cathedral in Speyer and the Upper Germanic-Rhae- tian Limes. 130 palaces, castles and cathedrals testify to the region’s historical importance. Magnificent gardens, Real Estate Network Rhine-Neckar such as those at Schloss , “Monument of Founded in 2012, the Real Estate Network the Year 2016”, reflect human ingenuity in shaping the Rhine-Neckar brings together around 50 stake- symbiosis of nature and culture. The Metropolitan Region holders in the commercial real estate sector. It Rhine-Neckar has a proud cultural heritage – the diversity aims to create transparency, maximise syner- is astonishing and ranges from World Heritage Sites to gies and actively market real estate in the experimental performance. Metropolitan Region. Members include archi- tects, urban planners, insurers, banks, law Nature lovers immediately feel at home in the Metropol- firms, construction companies, property and itan Region Rhine-Neckar. Bustling urban life and green project developers, investors, estate agents, oases are less than 30 minutes apart. Three nature parks owners and municipal authorities. lie on the doorstep – pristine landscapes with space for contemplation, hiking or climbing adventures. The vine- www.m-r-n.com/immobiliennetzwerk yards of four wine regions are not just popular day trips but also the source of many award-winning vintages. After all, the region’s diverse cuisine and high quality bars, cafés Volunteers make a difference and restaurants play their part in making life between the There is a strong tradition of volunteering in Rhine and Neckar an experience to savour. the Metropolitan Region Rhine-Neckar. Almost one in two people devotes part of their leisure time to helping the community. They organise Further information: www.m-r-n.com experienced, highly qualified specialists. This environment activities for children, young people and adults 1,800 as well as a broad spectrum of services to hours of sunshine per year creates fertile ground for innovation and progress. help other members of society. Volunteering Around The region has directly or indirectly produced 16 Nobel Day takes place every two years and, in 2016, laureates and many revolutionary inventions including around 7,300 people participated in 389 proj- the bicycle and the automobile. Inventors and scientists ects in 73 towns, cities and villages.

feel at home in the Rhine-Neckar region. The proportion www.wir-schaffen-was.de 240 of the workforce engaged in research here is more than museums twice the national average. Part of the attraction for these highly qualified professionals in the metropolitan region is Work and family More than 3World Heritage Sites undoubtedly the excellent quality of life. New ideas and The Metropolitan Region Rhine-Neckar is cultural diversity are closely connected here, the people the most family-friendly region in Germany. are cosmopolitan and active. 146,000 Many companies, municipal authorities and companies employing other institutions help people to balance their A rich cultural life professional and family lives – for example, by Culture lovers have a choice of around 240 museums assisting with childcare or care services for and galleries as well as 115 theatres and cabaret venues. relatives. The Metropolitan Region also has a Internationally renowned festivals – attracting more forum for reconciling professional and family than 300,000 visitors per year – are highlights of the 895,000 life. This coordinates projects and initiatives staff and generating gross added value of cultural calendar. For example, artists from all over the which provide even better conditions for “The Metropolitan Region world perform at Enjoy Jazz in Mannheim, Heidelberg family life. and Ludwigshafen. Music is particularly important in www.m-r-n.com/vereinbarkeit Rhine-Neckar has a proud Mannheim, which was awarded the title “City of Music” cultural heritage – the diversity by UNESCO as a member of its network of “Creative Cities.” Heidelberg’s outstanding and thriving literary tradi-

is overwhelming.” tion gained it the title “City of Literature.” Bertram Bernward Photo: € 79.2billion.

8 9 No. of employees: 21,628 Population: 266,928 Purchasing power index: 101.2 Bergstraße district No. of employees: 66,585 Business tax rate: 405 No. of : 22 Rent price range – offi ce: 5.70 to 7 €/m² At the crossroads of Rent price range – retail: 14 to 60 €/m² Rhine-Neckar and Rhine-Main

An alliance of As a member of both the Frankfurt/Rhine-Main and Rhine-Neckar Metropolitan Regions, the Bergstraße district has a unique selling point: no other rural district in Germany belongs to two metropolitan strong partners regions. In prime position between Frankfurt am Main and Heidel- berg, it has unique connections and outstanding traffic infrastructure: Frankfurt International Airport is just 25 minutes away and there is Landau The Metropolitan Region Rhine-Neckar quick access to the A5, A6 and A67 motorways. The ICE station in comprises 15 urban and rural districts. offers direct high speed rail services to Zurich, Lively centre and Frankfurt and motorways link the district to other major cities. In They understand the needs of businesses, in the Southern addition, Mannheim has the second largest inland port in Europe and offer good transport links and a high there is a container terminal in Gernsheim. The Bergstraße district Palatinate has been a successful business location for decades. It is home to Its reputation is further enhanced by “soft” factors such as excellent quality of life. Embark on a journey around 16,000 SMEs and global players. They value the location and cuisine and tourist attractions. The picturesque countryside of the of discovery! Landau is a thriving university in the heart its highly professional workforce. The district is ranked as one of the Bergstraße district make it a popular location for film and television of the beautiful countryside of the Southern Top 10 places in Europe for training and professional development. productions. // www. kreis-bergstrasse.de Palatinate and well-known for its wine industry. A popular shopping centre with a strong SME service sector and catchment area of around 250,000 people, it offers ideal conditions for businesses. The “metropolis of the Southern

Palatinate” is a very attractive place to live and Population: 110,526 the population is expected to grow further over No. of employees: 44,000 the coming years. It is considered a “swarm No. of municipalities: 75

town.” Landau has long had a strong service inistration, Südliche Weinstraße sector, flourishing automotive supply industries and been an important centre of printing and publishing. Over recent years, many software and technology companies have also recog- nised its advantages. The innovative business park “Am Messegelände” has a direct link to the A65 motorway, a total area of approx. 75 hectares and offers an attractive commer- cial location with excellent future prospects. // www.landau.de Population: 132,203 No. of employees: 49,713 No. of municipalities: 48 Southern Wine Route rural district Rural district of Bad Dürkheim Enchanting landscapes, cuisine Strong SMEs and ideal connections and history

The rural district of Bad Dürkheim has a population of Grünstadt and Haßloch offer excellent conditions for around 132,500 and is a beautiful area of the Palatinate industry and commerce. These municipalities also The Southern Wine Route rural district enjoys an attrac- in Offenbach a. d. Queich and the Hornbach DIY chain incorporating the Palatinate Forest, the plains of the have good reserves of areas with planning approval for tive geographical location with around 12,000 hectares of which has its headquarters in Bornheim. As well as stand- River Rhine and vineyards of the Haardt wine region. commercial development, expansion and relocation. All vines and a mild southern climate. Its excellent transport alone locations, the district is also home to three major The runs through the district locations are close to junctions with major national high- infrastructure and dense network of national and inter- business parks – located directly by the A 65 motorway: from Bockenheim to . With a Mediterra- ways. For commuters to nearby centres in the Metro- national highways, the district offer persuasive advan- “Gewerbepark -Venningen” in Edenkoben, nean climate, it is home to a creative wine and tourism politan Region Rhine-Neckar, this rural district provides tages for businesses. These are well understood by both “Interpark Rheinpfalz” in Offenbach a. d. Queich and industry. The district’s economic success is based an exceptional quality of life and moderate land prices. SMEs and major companies, such as Catem in Herxheim “Gewerbepark West II” in Herxheim i. d. Pfalz. on its strong base of mostly small and medium-sized // www.kreis-bad-duerkheim.de i. d. Pfalz, Automotive Tenneco in Edenkoben, prowell // www.suedliche-weinstrasse.de

enterprises. The mid-sized centres of Bad Dürkheim, Photo Page left: 10, District administration, Bad Dürkheim, right: Dirk Laubner; top: Page Thomas 11, Neu, bottom: District adm

10 11 Mannheim will soon be home to a new interdisci- Existing office space (in m²) plinary campus for medical technology. The Business Development Center is the fi rst phase of the project. 2.0 Mio. Vacant premises

1.5 Mio.

1.0 Mio.

0.5 Mio.

2014 2015 2016 2014 2015 2016 2014 2015 2016 Mannheim Heidelberg Ludwigshafen

Source: gif / In-house research

owner-occupiers or built by owner-occupiers for their own use) grew by 35 percent in 2016 compared to the previous year and by around 65 percent compared to 2014. Due to the demand for high quality office space, peak rents in top locations have risen by between six and ten percent over the past year. This trend is expected to continue over the coming years as additional modern office real estate becomes available.

Vacancy rates in the three largest office markets in the Market Segment: Office The diversified economic structure of the Metropolitan Metropolitan Region are at a very low level of between Region Rhine-Neckar is also reflected in its office market. 1.4 and 4.5 percent and thus significantly below those of On one side of the region is the highly industrial area of the previous year. Ludwigshafen, in particular, enjoyed Ludwigshafen where the office market is dominated by even greater success in positioning itself as a lower cost The call of the city owner-occupied properties. On the other is the univer- alternative for price-sensitive tenants. It currently has the sity city of Heidelberg where the predominantly modern lowest office vacancy rate of the three major centres in office spaces are used by companies in the areas of the Metropolitan Region Rhine-Neckar. The office market in the Metropolitan Region Rhine-Neckar is grow- science and technology. In the middle – geographically ing strongly. Vacancy rates are remarkably low while office space turn- and structurally – is Mannheim where the office market Two major projects were completed outside the three serves a wide range of sectors. major cities – the Freudenberg Group’s new adminis- over is increasing. New offices are primarily being constructed in city trative complex in and HeidelbergCement’s centre locations. Peak city rents have therefore risen significantly in The Rhine-Neckar office market has been growing very Technology Center in . These owner-occupied Mannheim, Heidelberg and Ludwigshafen. strongly over recent years. Office space turnover (the buildings created a total of 16,000 m² and 7,000 m² of

Foto:Photo: sander.hofrichter sander.hofrichter GmbH, GmbH Stadt / City of Mannheim Mannheim total of all office spaces leased to new users, sold to office space respectively. Further projects outside

12 13 A new building is being constructed for Gerchgroup to the south of Mannheim’s main railway station. It will offer commercial premises with a gross fl oor area of 20,000 m².

Office market data

Office market data for Mannheim

Indicators 2016 2015 2014 Existing space 2.015 M m² 2.012 M m² 1.983 M m² the key centres are planned in Landau, and Offi ce space turnover 91,000 m² 56,000 m² 52,000 m² Leimen and will offer between 3,200 m² and 4,000 m² of Vacancy rate 4.5 % 5.2 % 5.6 % office space MF/G (see Glossary, page 39). The positive City centre, peak rent 16.40 €/m² 15.00 €/m² 15.00 €/m² trend is therefore expected to continue for the Metropol- City centre, average rent 12.60 €/m² 13.00 €/m² 11.50 €/m² itan Region Rhine-Neckar as a whole. City centre periphery, peak rent 14.70 €/m² 14.50 €/m² 13.90 €/m² City centre periphery, average rent 13.10 €/m² 12.20 €/m² 11.40 €/m² Mannheim Periphery, peak rent 11.00 €/m² 10.50 €/m² 11.50 €/m² Mannheim has the largest stock of existing office space Periphery, average rent 8.80 €/m² 8.40 €/m² 8.60 €/m² in the Rhine-Neckar region. It is considered a very stable market although it has become considerably more dynamic over the last few years. This is reflected in the Office market data for Heidelberg level of office space turnover which grew to a total of Indicators 2016 2015 2014 91,000 m² – an increase of 35 percent over the previous Existing space 0.970 M m² 0.966 M m² 0.935 M m² year. In contrast, the vacancy rate fell from 5.2 to 4.5 Offi ce space turnover 56,000 m² 49,000 m² 42,000 m² percent. Vacancy rate 2.9 % 4.6 % 5.0 % City centre, peak rent 16.00 €/m² 15.00 €/m² 14.00 €/m² The Mannheim office market traditionally has a large City centre, average rent 11.60 €/m² 12.70 €/m² 12.20 €/m² proportion of owner-occupied properties. However, a City centre periphery, peak rent 15.50 €/m² 15.00 €/m² 15.00 €/m² growing number of rental properties came onto the City centre periphery, average rent 12.70 €/m² 13.40 €/m² 13.40 €/m² market in 2016. These focused principally on the small- projects in the “Kepler Quartier” will each create more Familienheim RN e.G.. Further office spaces are planned Periphery, peak rent 13.00 €/m² 13.00 €/m² 13.00 €/m² and medium-sized office segment although larger deals than 10,000 m² of rental space this year. The maps on as part of a major conversion of the Taylor and Turley Periphery, average rent 9.50 €/m² 10.00 €/m² 10.30 €/m² were also agreed in 2016, e.g. with Ernst & Young. The page 16 show the locations of new project develop- barracks. market serves a wide range of sectors with innovative ments. Outside the city centres there are a number of technology and research companies, corporate service significant, if slightly smaller, project developments in Heidelberg Office market data for Ludwigshafen providers and banks forming the largest groups. Demand progress as well. For example, B.A.U. Bauträgergesell- As well as the industrial, service and financial sectors, Indicators 2016 2015 2014 for prestigious, high quality spaces is particularly strong schaft will complete three projects with approx. 12,000 Heidelberg is a major centre for research, education and Existing space 0.903 M m² 0.903 M m² 0.865 M m² in central locations. This is reflected in the current m² MF/G at the Eastsite office park in 2017. There are development. These are major sources of office demand Offi ce space turnover 17,000 m² 15,000 m² 5,000 m² growth in premium office spaces and dynamic market also a number of owner-occupier activities, e.g. the GBG in the city. Although the stock of existing office space in Vacancy rate 1.4% 4.2% 5.0% trend. Within one year, peak rents in the city have grown company HQ in the north of the city and the new HQ of Heidelberg may appear low at first, a number of major City centre, peak rent 11.00 €/m² 10.00 €/m² 8.50 €/m² by more than nine percent to € 16.40 per m² MF/G. developments – such as Bahnstadt Heidelberg – and City centre, average rent 9.70 €/m² 9.00 €/m² 8.30 €/m² Rents also rose slightly for the city as a whole due to the owner-occupier projects prove that it has become a City centre periphery, peak rent n.a. 7.00 €/m² 7.00 €/m² completion of a number of large projects. The average highly dynamic market over recent years. Vacancy rates City centre periphery, average rent n.a. 6.60 €/m² 6.60 €/m² rent rose from € 11.40 per m² in the previous year to the “The dynamism of the office have fallen even further from 4.6 to 2.9 percent over the Periphery, peak rent n.a. 7.60 €/m² 7.60 €/m² current level of € 11.80 per m² MF/G. past year while office space turnover has increased to Periphery, average rent n.a. 7.30 €/m² 7.30 €/m² market in Mannheim is 56,000 m². These statistics are further indicators of the New city centre office spaces will come online in 2017 reflected in the many project positive trend. Interim rentals of high quality offices were with the completion of an office tower in the “Glückstein- one of the key factors for the growth in office space Source: gif / In-house research

quartier” providing 14,000 m² of rental area. Another two developments.” Photo: GERCHGROUP / SCHMUCKER UND PARTNER planungsgesellschaft mbh turnover.

14 15 Heidelberg is one of Germany’s top centres for science value leases raised the average rent to € 11.80 per m². In “In Ludwigshafen, the rental 26 and research and its office market has traditionally been 2016, this fell slightly to € 11.60 per m² MF/G. 27 1 dominated by projects in the education sector. Bahn- market absorbs many office 11 stadt Heidelberg is one of the most important develop- Several further projects are in the planning phase outside 29 spaces through pre-letting and 7 ment schemes in the city. The largest current project is the Bahnstadt Heidelberg development. As a result, it the Skylabs “SkyAngle” which will create over 17,000 m² is expected that the dynamic office market trend will owner occupation.” 25 MF/G. The “Colours” office project and “Westarkaden” continue over the coming years. One important project is are two further important Bahnstadt developments with the Radiological Research and Development Centre with no direct link to education. around 4,000 m² of office space. Additional projects are planned for the conversion of the Campbell Barracks. The revitalised market has also seen the level of peak area offers the potential for around 368,000 m² of gross rents in Heidelberg city centre rise significantly. Whereas Ludwigshafen floor area in the office and residential sectors. This will in 2014 rents were at € 14 per m² MF/G, and thus even Ludwigshafen is dominated by the research and produc- create a mixed use urban zone which also redefines the below those of city centre periphery locations, city tion facilities of global companies in the chemicals gateway to the city along the banks of the Rhine. 22 centre offices are now commanding prices of up to € industry, such as BASF, the healthcare company AbbVie 16.00 per m² MF/G. Despite this trend, the city centre and road paver manufacturer Joseph Vögele. However, As in Mannheim and Heidelberg, peak rents in the periphery continues to be an important component of service providers such as Telekom and companies in the city have risen by nearly 30 percent over the past two the office market. This is confirmed by its current peak IT, healthcare and energy sectors also have important years. Peak rents in the city centre of Ludwigshafen rents of € 15.50 per m² MF/G. In 2015, a number of high branches in the city. As a result, many new office spaces are currently € 11.00 per m² MF/G. Demand for office Many new offi ce buildings are currently under construc- tion in Heidelberg, Ludwigshafen and Mannheim. You can are either fully leased before completion or owner-occu- space is primarily from public institutions and health- fi nd their locations on the two maps. Further information pied and never come onto the open market. care providers, local and regional service providers and about the projects is presented in the table on Page 19. companies in the technology sector. The office market overall is very stable. Large deals in Planung in Bau fertiggestellt provide significant but temporary moves in the market, 5 e.g. when authorities relocate to new premises. This was the reason for the growth in office space turnover from 5,000 to 15,000 m² in 2014/2015. In 2016, this figure 10 increased to 17,000 m². The positive state of the market

18 as a whole is underlined by the very low vacancy rate – currently at 1.4 percent. Peak rents in the city centre and its periphery

15

The most important new build project is the striking 16 28 “Metropol” tower at Berliner Platz. The high rise building 30 14 with around 9,000 m² of office space is scheduled for 12 completion in 2019. In the city centre, work has begun 10 on converting the former Galeria Kaufhof building. The 8 project developed by Pro Concept Holding AG will create 6 17 in € / m² / month around 11,000 m² of office capacity. The main user will 4 6 be the municipal energy provider – Technische Werke 2 9 4 8 Ludwigshafen. 2012 2013 2014 2015 2016 14 2 24 16 1 19 Mannheim city centre, peak rent Mannheim city centre periphery, peak rent The “City West” urban project development will create Heidelberg city centre, peak rent Heidelberg city centre periphery, peak rent Ludwigshafen city centre, peak rent Ludwigshafen city centre periphery, peak rent 13 attractive areas in the heart of the city along the ground level road intended to replace the elevated highway Source: Source: gif / In-house research

Map: Geodatabase: © GeoBasis-DE / BKG 2013 (Data changed); Cartography: VRRN between Ludwigshafen and Mannheim. The 147,000 m²

16 17 In early 2016, JÄGER DIREKT – the electrical goods manufacturer – completed its new production and logistics centre at a 24,000 m² site in . The facility has created 100 jobs.

Investing in growth

The Metropolitan Region Rhine-Neckar is one of Germany’s economic power- houses and offers excellent investment opportunities for companies in all sectors. Advantages include a central location at the heart of Europe, effi- cient transport infrastructure and the availability of extensive areas of land for greenfield developments, expansion and logistics.

The following section provides an overview of the largest investment projects in the region.

18 19 No. in Town/City Type of location Company Area of site or Investment Jobs Schedule (Start/Completion of Overview of the most important investment The Rhine-Neckar region 16 map (Investor/Operator) gross fl oor area volume construction) 8 A5 17 9 Logistics centre Dietz AG / Action 135,000 m² n.a. 675 Construction started in 2016 projects in the Rhine-Neckar region 9 10 1 10 Bensheim Company HQ, assembly hall AVL Deutschland GmbH 15,734 m² n.a. 200 Completion of assembly hall in 2017, con- Bensheim struction of company HQ to start in 2017

Bürstadt 11 Heppenheim Logistics centre Henry Schein 31,000 m² n.a. 100 Completed 2016 A61 Fürth Worms Lorsch 11 12 Heppenheim Production, offi ce ESM Energie- und Schwingung- 26,000 m² n.a. 80 Construction started in 2016 Selected key office projects Legende Heppenheim stechnik Mitsch GmbH 12 18 (Bergstraße) A67 13 13 Heppenheim Production, logistics centre JÄGER-FISCHER GRUNDBESITZ 25,000 m² n.a. 100 Completed 2016 Nr. in Ort Project name Investor/Operator Space Investment Schedule A5 27 Karte Volume Towns & cities 19 Bobenheim- 14 Warehouse Edeka Südwest 26,000 m² € 50 M 250 Completed 2016 Settled area Roxheim Walldürn 1 Heidelberg Sky Angle SKYLABS 17,000 m² n.a. Under construction, completion 2018 15 Ladenburg Production Renate Schmitt GmbH 4,000 m² € 6 M 100 Completed 2016 Population 100,000 and more 2 Mannheim No.1 Gerchgroup 14,000 m² € 70 M Planned Grünstadt 1 20 Wald-Michelbach 16 Mannheim Company HQ Raben Group n.a. € 15 M 60 Under construction, completion 2017 A6 3 Population 50,000 - 100,000 2 A6 3 Weinheim Offi ce and administration complex Freudenberg Group 14,000 m² € 36 M Completed 2016 19 17 Schwetzingen High bay warehouse, offi ce Jünger+Gräter GmbH 8,000 m² € 4.5 M 190 Completed 2016 Population 25,000 - 50,000 A659 Weinheim 4 Mannheim Keplerquartier DIRINGER & SCHEIDEL Wohn- und 13,172 m² € 140 M Under construction, completion Frankenthal complex (Pfalz) Gewerbebau GmbH 2018/19 Population 10,000 - 25,000 (Odenwald) 18 Leimen-St.Ilgen Production, logistics, offi ce Heidelberger Chlorella GmbH 3,800 m² n.a. n.a. Completed 2016 A61 Heddesheim14 28 5 Mannheim Open Campus Mannheim Roche Diagnostics Deutschland GmbH 11,300 m² € 36 M Under construction, completion 2017 LUDWIGSHAFEN MANNHEIM 19 Walldürn Production Concad GmbH 4,500 m² € 4.5 M n.a. Completed 2016 am Rhein A6 A6 3 A5 6 Ludwigshafen Retail and service centre, Bismarckstr. 63, Pro Concept Holding AG 10,700 m² n.a. Under construction, completion 2018 2 20 Osterburken Logistics centre, warehouse Spedition Rüdinger 42,000 m² € 5 M 10 Completed 2016 20 HBL Transportation routes A650 15 Ladenburg A650 7 Heidelberg Stadttor-Ost Bahnstadt Heidelberg KG 10,237 m² € 42 M* Under construction, completion 2018 Motorway with number Edingen-Neckarhausen A61 Source: In-house research (Date: 31 December 2016) Bad Dürkheim 8 Mannheim Postquadrat Eyemaxx 10,000 m² € 160 M Planned Federal route A65 4 9 Ludwigshafen Metropol Timon Bauregie GmbH 9,000 m² € 70 M Under construction, completion 2019 Railway line Mutterstadt A656 Selected industrial parks in the Metropolitan Region Rhine-Neckar Airport Mannheim Das “E” Mannheim Taylor Hotel- und 7,500 m² € 32 M* Under construction, completion 2017 5 16 HEIDELBERG 30 20 10 21 29 No. in Name of industrial park Zoning law/ Total area Still available Available lot sizes Guideline value Purchase Büroentwicklungsgesellschaft Port A65 map Type of area price Brühl 23 Neckar A81 11 Heidelberg COLOURS Deutsche Wohnwerte 7,500 m² n.a. Under construction, completion 2017 22 Plank- 1 Schwetzingen stadt Neckargemünd Worms Worms-Rheindürkheim GE / GI 1,000,000 m² 80,000 m² 1,000–35,000 m² 55–85 €/m² (2016) 85 €/m² 6 17 12 Leimen Technology Center Heidelberg Cement AG 7,200 m² € 20 M Completed 2016 2 Hettenleidelheim Business park (Gewerbepark) GEe / GE / GIe 50,000 m² 19,314 m² 1,500–4,285 m² 40 €/m² (2016) 40 €/m² Borders Böhl-Iggelheim Ofters- 13 Mannheim Chamber of commerce building Triwo 7,000 m² n.a. Under construction, completion 2017 A61 heim 24 3 3 Haßloch Frankenthal Am Römig GI 200,000 m² 200,000 m² 35,000–200,000 m² 65–100 €/m² On request National border A5 12 Leimen 14 Mannheim Headquarters, Familienheim RN e.G. Familienheim Rhein-Neckar 6,400 m² n.a. Planned Neustadt 8 26 4 Ludwigshafen Am Unteren Grasweg GE 98,000 m² 10,453 m² 1,000–4,622 m² 110 €/m² On request a.d. Weinstraße 7 10 State boundary Speyer 21 15 Mannheim GBG Company HQ GBG Company HQ 6,380 m² € 27 M Under construction, completion 2017 Nußloch 5 Dannstadt-Schauernheim Dannstadt-Schauernheim OST GE 120,578 m² 120,578 m² 2,165–53,914 m² n.a. 80–100 €/m² District boundary 18 16 Mannheim Eastsite 11 B.A.U. Bauträgergesellschaft mbH 5,400 m² n.a. Under construction, completion 2017 A65 6 Böhl-Iggelheim Business park south of the railway GE / GI / MI 87,500 m² 60,000 m² 4,500–8,000 m² 75 €/m² (2016) On request A6 line and west of Iggelheimer Str. 17 Mannheim Q 6 Q 7 DIRINGER & SCHEIDEL Wohn- und 5,000 m² € 300 M* Completed 2016 Gewerbebau GmbH 7 Neustadt a.d. Weinstraße Turenne GE 60,000 m² 60,000 m² 2,500–20,000 m² 70 €/m² 90–130 €/m² 9 25 18 Mannheim Taylor offi ce building greenfi eld development GmbH 4,640 m² n.a. Completed 2016 St. Leon-Rot 8 Neustadt a.d. Weinstraße Lilienthal (former Edon barracks) GE 100,000 m² 30,000 m² 1,500–30,000 m² 60 €/m² 65–75 €/m²

19 Mannheim Eastsite 12 B.A.U. Bauträgergesellschaft mbH 4,200 m² n.a. Under construction, completion 2017 Rhein A6 9 Edenkoben Business park (Gewerbegebiet) GE / GI 150,000 m² 40,000 m² 1,500–20,000 m² n.a. 65 €/m² A5 13 Edenkoben-Venningen 20 Ladenburg Business and industrial park Burkhardt & Witteler Industriestr. GbR 4,000 m² € 7 M Under construction, completion 2017 7 10 Speyer Am Rübsamenwühl GE 30,000 m² 12,000 m² 1,100–3,500 m² 130 €/m² (2015) 130–135 €/m² 21 Leimen New municipal administration complex City of Leimen 3,720 m² € 8.8 M Completed 2016 Landau i.d. Pfalz Germersheim 11 Landau i. d. Pfalz Paul-von-Denis-Straße GE / MI 40,000 m² 35,000 m² On request n.a. On request 22 Heidelberg MVZ Dr. Limbach und Kollegen Dr. Limbach 3,500 m² n.a. Completed 2016 23 12 6 Offenbach Interpark Rheinpfalz GI 715,000 m² 50,000 m² 1,000–20,000 m² n.a. 75 €/m² 23 Landau Construction of offi ce and VR Bank Südpfalz 3,200 m² € 15 M Under construction, completion 2019 4 5 11 12 13 Germersheim Wörth-West GE 200,000 m² 25,000 m² 4,400–25,000 m² 95 €/m² (2016) 125 €/m² administration complex 14 Rülzheim Nord III-IV GI 55,000 m² 14,000 m² 14,000 m² 12 €/m² (2016) 65 €/m² 24 Mannheim Eastsite 8 B.A.U. Bauträgergesellschaft mbH 2,100 m² € 6 M Completed 2016 Herxheim bei Landau (Pfalz) 15 Am Kapellenweg GE 40,000 m² 40,000 m² 1,000–12,000 m² 12 €/m² (2016) 60 €/m² 25 Heidelberg praxisHochschule CCH Development Real Estate GmbH & 2,000 m² n.a. Planned 14 Co. KG / praxisHochschule A65 16 Groß-Rohrheim Entenweg GE / GI 150,000 m² 90,000 m² 10,000–50,000 m² 70 €/m² (2016) On request Selected investments in production and logistics real estate 17 Bensheim Stubenwald GE 122,000 m² 75,000 m² 5,000–48,000 m² n.a. On request 26 Heidelberg SE2 GGH 2,000 m² n.a. Construction starts in 2017 15 18 Heppenheim Süd GE 230,000 m² 97,800 m² 11,900–40,400 m² n.a. On request 27 Heidelberg Westarkaden Unmüßig 1,960 m² € 100 M* Under construction, completion 2018 Orte Verkehrswege Grenzen 19 Mannheim Steinweg GE 111,434 m² 36,354 m² 1,300–7,000 m² 140–160 €/m² (2014) 140–160 €/m² 28 Mannheim SOHO Turley Tom Bock Group 1,300 m² n.a. Completed 2016 No. in Town/City Type of location Company Area of site or Investment Jobs Schedule (Start/Completion of Siedlungsfläche A6 Bundesautobahn mit Nummer Staatsgrenze 20 Weinheim Technologie– und Industriepark GE / GI 871,000 m² 107,000 m² 1,500–28,000 m² 85–152 €/m² On request 29 Heidelberg Business Development Center Organic Technologieförderung Heidelberg GmbH 1,128 m² € 17.3 M Planned map (Investor/Operator) gross fl oor area volume construction) Electronics (BDC OE) 21 Brühl Schütte-Lanz-Fläche GE 60,000 m² 44,513 m² 2,160–29,972 m² n.a. 195–240 €/m² Wörth 1 Kirchheim a. d. Weinstraße LogisticsBundesstraße centre Ixocon / Metro 101,165 m²Landesgrenze n.a. 400 Under construction, completion 2017 30 Mannheim SOHO Turley Tom Bock Group 750 m² n.a. Completed 2016 am Rhein 22 Schwetzingen Ausbesserungswerk Nord GE 30,000 m² 30,000 m² 10,000–30,000 m² n.a. 125 €/m² 2 Frankenthal Logistics centre VGP / Amazon 174,000 m² n.a. 1,000 Under construction, completion 2017 mehr als 100.000 Einwohner Kreisgrenze 23 Jungholz GE / GI 144,814 m² 61,203 m² 2,263–39,742 m² 145 €/m² (2014) On request Source: In-house research (Date: 31 January 2017) 3 Neustadt a. d. Weinstraße Car dealership Cuntz 15,000 m² € 5 M 40 Under construction, completion 2017 50.000 - 100.000 Einwohner Schienenstrecke 24 Heidelberg Rohrbach Süd GE / GEe / GI 719,000 m² 19,500m² 1,100–8,400 m² 220 €/m² (2015) On request 4 Landau i. d. Pfalz Company HQ Caratec GmbH 4,500 m² n.a. 20 Construction to start in 2017 Planned Under construction Completed * refers to the total investment volume 25 Wiesloch-Walldorf Metropolpark GE / GI 50,000 m² 30,000 m² 1,500–20,000 m² n.a. On request 25.000 - 50.000 Einwohner5 Landau i. d. Pfalz ProductionVerkehrslandeplatz Leissing Druckveredelung 11,000 m² € 5 M 30 Construction to start in 2017 Areas stated in accordance with the MF/G defi nition 26 Mosbach TECH-N-O GE / GI 160,000 m² 50,000 m² from 1,600m² 40.90 €/m² 41 €/m² GmbH & Co. KG 10.000 - 25.000 Einwohner Hafen 27 GVV -Walldürn VIP Walldürn GI 246,500 m² 51,000 m² 1,000–24,600 m² n.a. 25–38 €/m² 6 Logistics centre Honold Service Logistik GmbH 66,000 m² € 12.5 M 50 Under construction, completion 2017 28 Buchen IGO GE / GI 400,000 m² 100,000 m² 1,000–35,000 m² 42.50 €/m² 42.50–100 €/m² Many new offi ce buildings are currently under construction B ölk d 31 12 2015 7 Germersheim Logistics centre Compass Logistics International AG 80,000 m² € 30 M 250 Completed 2016 29 Business-Park GE / GI 85,213 m² 85,213 m² from 500 m² 30 €/m² (2012) 20–30 €/m² in Heidelberg, Ludwigshafen and Mannheim. You can fi nd 8 Groß-Rohrheim Production Franz Jäger GmbH 1,800 m² € 4 M 35 Under construction, completion 2017 30 Osterburken RIO GE / GI 330,000 m² 50,000 m² from 1,500 m² 25 €/m² (2016) 25 €/m²

their locations on the two maps on Page 16. Population count as of 31.12.2013 based on the 2011 census) Source: Federal Statistical ce, Wiesbaden Offi 2015; Map: VRRN, Geodatabase: © GeoBasis-DE / BKG 2016 (Data changed)

Source: In-house research (Date: 31 December 2016) 19 20 21 22 In the fi rst quarter of 2016, Staehle – the can manufacturer– opened its new 8,000 m² warehouse and production hall with truck loading facility in Schifferstadt.

Market Segment: Industrial & Commercial Ready to start

The Metropolitan Region offers land in mixed use and dedicated business parks. For companies with greater service needs, the region offers numerous business parks with well-developed infrastructure and the potential for syner- gies within business cluster. Additional attractions include proximity to strong suppliers, workforces and markets.

This location report is based on municipal surveys and of elastomer components for the isolation and damping analysed 30 business parks with a total area of around of vibrations in wind turbines. In Biblis, Dietz AG began 6.66 million m². Of these areas, approximatly 26 percent building a distribution centre for Action – the Dutch (1.72 million m²) are still undeveloped and available at discounter. The groundbreaking ceremony took place at short notice. the end of June 2016. The site has an area of 135,000 m².

Purchase prices for fully accessible industrial land parcels At the Stubenwald business park in Bensheim, AVL are dependent on the location. In the heart of the urban Deutschland is building a new company headquarters Rhine-Neckar region, prices generally range from € 110 to covering a site of over 15,700 m². The first stage will be € 200 per m² – although they can even be as high as € 240 the completion of the assembly hall in 2017. Construc- per m². In suburban areas, prices of between € 80 and € tion of the four storey HQ building will follow and begin 10 per m² are the starting point for negotiations. In the in 2017. AVL is the world's largest independent developer periphery, these fall to an average of € 50 per m² – usually of powertrain systems for internal combustion engines as with very good transportation links. well as instrumentation and test systems.

Investment activity in manufacturing and logistics is below These five developments alone have created over 1,000 the level described in the Real Estate Market Report new jobs in the Bergstraße district. Another two major 2015. This was due to the construction of the TDI plant by projects are also underway in the Palatinate area of the BASF in Ludwigshafen – an exceptional project which was Metropolitan Region Rhine-Neckar. In Kirchheim a. d. completed in 2015. However, many other projects have Weinstraße, METRO GROUP – the major international In Baden-Württemberg, Edeka Südwest completed a You can find further information about business parks been initiated and implemented throughout the region. wholesaler – is developing a 100,000 m² site for its new beverages handling warehouse for its subsidiary A. Kempf in the Rhine-Neckar region at the Rhine-Neckar loca- distribution centre with a warehouse area of around Getränkegroßhandel GmbH in 2016. The Raben Group tion website (www.standorte-rhein-neckar.de) as well as In 2016, the specialist dental retailer Henry Schein and 49,000 m². In Frankenthal, Amazon is investing in a new – which aims to be one of the Top 25 logistics compa- on websites and in publications produced by municipal JÄGER DIREKT, an electrical manufacturer and systems logistics centre which will have a total area of around nies by 2025 – is currently building its German headquar- authorities. supplier, both completed new facilities in Heppenheim. 50,000 m². Once completed, these projects are initially ters at Mannheim’s Rheinau Port. In addition, the freight Nearby, and in the same year, ESM Energie und Schwin- expected to create 1,000 new jobs. They will also provide forwarder Rüdinger developed three halls with a total gungstechnik Mitsch GmbH started building a produc- parking for 1,200 employees. Both are scheduled for warehouse area of 11,000 m² on a 50,000 m² site at the

tion hall with offices. ESM is the foremost manufacturer completion in 2017. Source: G. Staehle GmbH u. Co. KG Osterburken regional industrial park during 2016.

24 25 No. of employees: 117,500 An alliance of strong Purchasing power index: 99.4 Rural district of Germersheim Business tax rate: 400 Rent price range – offi ce: 7.50 to 15 €/m² Population: 143,000

partners thal Rent price range – retail: 18 to 28 €/m² No. of employees: 45,000 Structural diversity and commer- No. of municipalities: 27 cial sites with excellent potential

Rhein-Pfalz district Diversity underpins the exceptional economic strength of At the heart of Rhine-Neckar the rural district of Germersheim which is home to many with outstanding connections successful SMEs and factories operated by major compa- nies. The container terminals at Wörth and Germersheim are key ports for inland shipping on the Rhine and important The Rhein-Pfalz district – “Germany’s vegetable garden” – is home to nine links to the major seaports of northern Europe. A number percent of the country’s vegetable acreage. Yet nearly three quarters of of flagship employers highlight the success of the industrial its gross added value is generated by the service sector and the economy Neckar-Odenwald district Heidelberg sector in this rural district, such as the world’s largest truck is dominated by SMEs. The consultants at “Der kurze Weg” offer profes- assembly plant in Wörth (Daimler AG) and the factory with sional advice to companies seeking opportunities to relocate, modernise and Strong in science A historic rural area the world’s largest machine for making corrugated cardboard expand their commercial and industrial operations. The Rhein-Pfalz district (Palm GmbH). Highly innovative, global technology compa- has a well-developed public transport network. The A 6, A 61 and A 650 with a bright future and research nies also have locations here. The district of Germersheim motorways and Mannheim’s high-speed ICE rail junction connect the district has excellent transport infrastructure and local public trans- directly to the national highway and rail networks. The B9 dual carriageway The Neckar-Odenwald district is a predomi- Heidelberg is famous around the world not only for its port services as well as business-friendly administrative provides a convenient link to surrounding towns and cities. With a central nantly rural area with a strong tourist sector, castle but also its excellence in business and science. The structures. It offers an attractive environment with a high location in the Metropolitan Region Rhine-Neckar and surrounded by beau- unspoiled natural environment and high quality city is home to Germany’s oldest university. State-of-the- quality of life. // www.kreis-germersheim.de tiful countryside, the Rhein-Pfalz district offers its 150,000 residents both a of life. Its 143,000 residents live in 27 munici- art research facilities stand side-by-side with the attractive palities including Buchen and the district buildings of the historic old town. Heidelberg hosts world- high standard of living and quality of life. // www.rhein-pfalz-kreis.de town of Mosbach. Over 8,000 companies class cultural events and is an economic heavyweight – Population: 127,303 provide work for 45,000 employees subject No. of employees: 51,986 especially in the research and knowledge-based economy. Population: 151,546 to social insurance contributions as well as No. of municipalities: 31 The study Prognos Future Atlas 2016 confirms the city’s No. of employees: 80,645 1,500 apprenticeships. The district generates enormous potential and predicts that Heidelberg’s economic No. of municipalities: 25 sales of around € 4.2 billion with manufac- and labour market has the best prospects of any in Germany. turing industry contributing € 2.2 billion of this Nearly 8,000 companies ensure a healthy mix of sectors total. Four inter-municipal industrial parks and in the city which is also at the top of national rankings for a number of business parks allow companies childcare, school and family. All these factors combine to to build facilities here at low cost. Health- and ght: Klaus Landry; Page top 27, right: Skylabs SARL; left: Sabath Media; bottom right: Business Development Corporation Franken make Heidelberg a very attractive place to live. According childcare, local rail services, a host of cultural to current forecasts, the population is expected to grow events and seamless broadband internet by a further 9,000 people by 2020. They will be accommo- coverage highlight the many commercial oppor- dated in completely new districts of the city, such as the tunities and excellent leisure value of the area. Bahnstadt Quarter and areas formerly used by the US Army. // www.neckar-odenwald-kreis.de // www.heidelberg.de

Frankenthal No. of employees: 15,738 Speyer Purchasing power index: 99.7 Industrial heritage with a vision Business tax rate: 410 Productive, mid-sized town with a balanced economy Rent price range – offi ce: 5 to 8 €/m² for the future Rent price range – retail: 15 to 40 €/m² Speyer is a future-oriented location for busi- combines the best aspects of traditional life ness and technology companies in the heart with the conveniences of the modern world. The mid-sized town of Frankenthal has also benefit from the opportunities avail- of Europe. Diversity, short distances and It is a popular place to live with an attractive one of the richest traditions in the Rhine- able in this attractive business location. healthy balance between the retail, commer- range of shops, services and educational Neckar area. Its location in the heart of The new Amazon logistics centre, currently cial, industrial and tourism sectors create institutions. In addition, Speyer’s strengths Europe, excellent infrastructure and cosmo- under construction, will create another further benefits. A strong transport infra- in tourism, culture and cuisine also make politan charm are very attractive and make 1,000 jobs. The Frankenthal Nord busi- structure with links to the motorway and it unique on the Rhine. The city’s slogan it a popular conference venue. Frankenthal ness park and reserved areas in the city’s rail networks, two ports on the River Rhine “Culture, tolerance and lust for life” under- is an important location for global players, “Am Römig” industrial park offer versatile and a public airfield complete the package. lines the values that typify Speyer and its such as KSB AG, GE Jenbacher, Siemens commercial sites for growing companies The city is making good progress towards population and makes it such an attractive Turbomachinery Equipment and two subsid- with a direct link to the motorway. Nothing achieving its climate goals, is a certified place to live and work. // www.speyer.de iaries of KBA, the printing machine manu- is ever very far away in this green town with Fair Trade Town and currently implementing No. of employees: 28,548 facturer. Innovative SMEs in the areas of an outstanding school system and well- KISS – Speyer’s own climate protection Purchasing power index: 106.9 communication and IT technology, non- developed local public transport network. Business tax rate: 415 initiative. A historic trading post, Speyer Photo Page 26, top right: District administration, Neckar-Odenwald; left: District administration, Rhein-Pfalz-Kreis; bottom ri destructive materials testing and tool making // www.frankenthal.de Rent price range – offi ce: 5.50 bis 7.40 €/m² Rent price range – retail: 5.50 bis 40 €/m² 26 27 The Q 6 Q 7 city quarter: The largest project in the history of Diringer & Scheidel was offi cially opened in September 2016 after four years of construction.

Market Segment: Retail New concepts for shopping

High purchasing power and the potential for future population growth make the Rhine-Neckar region an attractive location for both retailers and investors. And not only in the regional centres of Mannheim, Heidelberg and Ludwigshafen.

The Metropolitan Region is also home to important retail Footfall in top locations locations in mid-sized towns such as Schwetzingen, 10,000 Pedestrians / hour Viernheim, Landau, Mosbach and Hockenheim. With their 9,000 high retail centrality, they attract purchasing power from 8,000 the surrounding districts. 7,000 6,000 5,000 Despite the Rhine-Neckar region’s strong economy, 4,000 will upgrade the Planken while Ludwigshafen’s city * 2016: not counted “Quarters are being used in new retailers here face the same challenges from digitisa- 3,000 centre development concept and management plan aims tion, globalisation and demographic change as retailers 2,000 to reinvigorate the retail sector in the area. ways that increase the attrac- 1,000 everywhere. Trends observed throughout Germany, * tiveness of city centres with a such as the consolidation of the city centre fashion retail Mannheim, Planken Heidelberg, Hauptstr. Ludwigshafen, Bismarckstr. Investors recognise and value the lure of the Rhine- sector, a reduction in the store expansion plans of once 2013 2014 2015 2016 Neckar region. Many retail properties have recently mix of shops, hotels, bars and fast-growing companies and the dynamic growth in the changed ownership – including the shopping centres restaurants and apartments.” number of local grocery suppliers, are also affecting the Quartier Q 6 Q 7 and -Center in Mannheim, the

region’s retailers. This trend cannot be explained solely in Peak rents for retail property Weinheim-Galerie in Weinheim and the Am Sandloch terms of a migration of sales to online shops. It is also retail park in Ludwigshafen. due to the growth of sales models with aggressive pricing 180.00 + 34.6 % in € / m² / Monat strategies, increasingly pernicious discount campaigns 160.00 The opening of Quartier Q 6 Q 7 in Mannheim in 2016 and the emergence of off-price retailers and businesses. 140.00 marked the completion of one of the last major project The number of off-price suppliers is set to rise with the 120.00 + 14.3 % developments with significant retail area. The number of opening of Modepark Röther in the Weinheim-Galerie market launch of the fashion chain Saks Off 5th. 100.00 projects on this scale is declining. Nevertheless, another and the transformation of the former Real supermarket in 80.00 project is in the planning phase in Germersheim. A retail Mannheim-Sandhofen into the Lilienthalcenter retail park. + 19.5 % In addition, retail locations are increasingly looking to 60.00 centre which will be home to various shops, including 40.00 compete through “soft skills” such as an attractive urban Rewe, Lidl, Müller, AWG and Depot, is being planned Heidelberg 20.00 – 33.3 % environment, inviting cafés, bars, restaurants and leisure on the site of one of the town’s former military barracks. Heidelberg city centre with its top location in Hauptstraße facilities. The Rhine-Neckar region was quick to spot 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 However, in future the focus will increasingly be on revit- is one of the most highly frequented shopping streets these new requirements. Heidelberg redeveloped its Mannheim Heidelberg Ludwigshafen Average for Germany alising and restructuring existing properties. Examples in Germany – partly due to the strength of the tourist

main shopping street – Hauptstraße. In 2017, Mannheim Maps: Presentation by MRN based on data supplied by Jones Lang LaSalle; Photo: DIRINGER & SCHEIDEL include projects such as the Postgalerie in Speyer, the industry. Visitor numbers and peak rents of € 120 per

28 29 Popular attraction: Heidelberg’s shopping street during Retail data for Mannheim the Heidelberger Frühling music festival.

“As consumers have less and less time they expect their shopping experience to be rich and emotional.”

with branches of Rewe, Aldi, Rossmann and other stores. The “Westarkaden” retail park in the Bahnstadt Quarter Mannheim, Planken provides approx. 10,000 m² of retail space for Aldi, Edeka Peak rent 2016 (ranking): 175 / m² (10*) Scheck-In and dm in addition to a branch of Alnatura – the GER overall: 65,12 € / m² organic supermarket. Further local grocery outlets are Change (2006–2016): 34.6 % being created with the development of the former US GER overall: 19.5 % military site “Mark Twain Village”. An XXXLutz furniture Footfall 2016 (ranking): 4,155 (69**) m² for the best premises remain consistently high. The in the Hauptstraße pedestrian zone are complemented by store with approx. 25,000 m² of sales area is also sched- Percentage of chain store operations large proportion of chain stores (76.1 percent) in this top various cafés, bars and restaurants with attractive pave- uled to open in the Bahnstadt Quarter in the next few in 2016: 64.1 % location and new tenac agreements with chain stores, ment tables and independently owned specialist retailers years. such as Only in Hauptstraße 59, Levis, the cosmetics in the side streets. “Das Carré”, with the first residential Pedestrian zone Prime location king among 170 shopping streets analysed in Germany) supplier Soap Stories or the restaurant Adelitas, reflect high rise building in Heidelberg as well as shops/commer- Mannheim Source: In-house research the enduring attraction of Heidelberg’s city centre. This cial areas on the ground and first floor levels was sold to Quartier Q 6 Q 7 was opened in the “Fressgasse” in may well have been a consideration when Hudson´s Unmüssig last year. The Freiburg-based company plans to Mannheim’s city centre in September 2016. At a cost Bay, the new owner of Galeria Kaufhof and Sportarena, restructure and upgrade the shop areas over the medium of over € 300 million, it was by far the largest construc- decided to open Germany’s first branch of Saks Off 5th term. tegut is currently negotiating for the retail areas in tion project of recent years in central Mannheim and is includes repaving the area, the installation of energy-effi- in the former premises of Sportarena. Saks Off 5th plans the “Wormser Hof” at Hauptstraße 110. considered an outstanding example of city centre devel- cient lighting, new street furniture and barrier-free bus/ to sell well-known designer brands in Germany. The loss opment. As well as apartments, hotel and office spaces, tram stops. These improvements to the public space will of the Sportarena sports equipment store will be offset The dynamic growth in this area is reflected in the expan- it also houses the 3-storey Q 6 Q 7 shopping quarter. The increase the quality of the shopping and leisure experi- by expanding the range of sporting goods sold in the sion plans of local grocery suppliers. In spring 2016, the architecture is very attractive and high quality with a glass ence enjoyed by visitors to the Planken. two city centre branches of Galeria Kaufhof. The shops “Mathematikon” retail park opened near the university bridge linking the Q6 and Q7 blocks. The new shopping centre complements the existing range of stores in the In concert with the renovation work, new design guide- city centre, e.g. with Zara home, & other stories, Kiehl´s, lines are being developed for retail, café, bar and restau- Superdry, Massimo Dutti and various concept stores. The rant premises. From Paradeplatz to Marktplatz, the Breite Retail data for Heidelberg basement is home to an inviting food hall which sets new Straße pedestrian zone is an attractive second boule- Heidelberg, Hauptstraße benchmarks. The Irish clothing store Primark is the anchor vard. With the closures of the Decathlon sporting goods Peak rent 2016 (ranking): 120 € / m² (19*) tenant in Q7 which can be accessed via Fressgasse. store after just two years and the Mömax furniture store GER overall: 65.12 € / m² announced for the end of March 2017, the northern Change (2006–2016): 14.3 % Despite the significant expansion of its retail areas, peak section of Breite Straße faces major challenges. The GER overall: 19.5 % rents in Mannheim have remained constant at € 175 per Mömax premises have since been sold and it is believed Footfall 2016 (ranking): 5,680 (37**) m². This confirms the strong attraction of Mannheim’s that tenants have already been found for more than 50 Percentage of chain store operations city centre for retail companies. From spring 2017, the percent of the area. Mannheim’s city centre as a whole in 2016: 76.1 % main shopping street – Planken – will be redeveloped at will continue to become more attractive due to the large a cost of nearly € 30 million. The winning design for the number of new stores opening in the area and the rede- Pedestrian zone Prime location

Photo: City of Heidelberg, Tobias Dittmer; Maps: Jones Lang LaSalle (*based on 183 shopping streets analysed in Germany, ** ran project was developed by Dr. Hartmut Holl (Würzburg). It sign of the Planken.

Source: In-house research 30 31 Ludwigshafen “The City of Ludwigshafen has The development of the “Metropol” project at Berliner Retail indices in the key centres of the Metropolitan The process of opening Ludwigshafen’s city centre up Platz continues. Here, a private investor is building a Region Rhine-Neckar towards the Rhine began in 2008. Further major proj- introduced its city centre man- retail/office/residential complex with around 28,500 m² of ects are now underway. For example, Mannheim Pro agement strategy to enhance floor space. Construction should begin in late 2017. The Municipality Population Retail Retail Retail purchasing sales centrality Concept Holding AG has purchased the former Galeria- ground floor will create a retail space of up to 8,000 m². power index index rating Kaufhof building at Bismarckstraße 63. This is currently the city centre and highlight new Potential tenants include a food market and drugstore. Mannheim 299,844 99.62 151.4 151.96 being gutted and the upper floors converted into an office potential uses.” Ludwigshafen am 163,832 92.78 107.12 115.45 complex. The new tenant, Technische Werke Ludwig- Alterations to public street areas and redesigned car parks Rhein shafen, will move into the building by spring 2018. The have enhanced the appearance of Ludwigsplatz in the city Heidelberg 154,715 99.43 120.34 121.02 ground floor will be retained as a retail space. centre. The Europa-Hotel with 22 business apartments, Worms 81,010 98.13 123.58 125.92 the new B&B-Hotel with 100 rooms that opened in 2016 Neustadt an der 52,564 108.01 122.9 113.78 Weinstraße This year, the Rhein-Galerie will be completely renovated The municipal housing development agency GAG wants and the Moxy “Ikea hotel” with 180 rooms (currently Speyer 49,855 106.87 143.72 134.47 by ECE at a cost of around € 5 million adding a touch of to demolish the existing buildings and passageway to the under construction) complete the picture. Frankenthal 47,724 99.72 91.19 91.44 marina style. As well as a new colour and lighting design, Bürgerhof at Bismarckstraße 70-74. Two new five- and (Palatinate) significant changes are planned for the food court. Two seven-storey buildings will offer a mix of spaces for apart- Planning for the major City-West project is taking shape Landau in der Pfalz 44,465 101.16 150.98 149.24 new jetties installed by a private provider for river cruise ments, offices and medical practices. They will enhance with the inclusion of citizens’ groups and political commit- Weinheim 43,892 118.88 143.44 120.65 ships will further emphasise the city’s orientation towards the area’s appearance by creating a wide entrance to the tees. The elevated highway is beyond repair and will be Bensheim 39,551 112.6 105.83 93.99 with the Rhine. Bürgerhof and extending the field of view to Amtsstraße. replaced by a multi-lane city highway at ground level Sinsheim 34,882 99.97 96.54 96.57 flanked by green areas. It will also create a new city centre Viernheim 33,276 100.74 217.83 216.22 area offering 340,000 m² for apartments and offices. Lampertheim 31,851 105.11 81.79 77.81

shopping streets analysed in Germany) Leimen 26,097 96.92 56.47 58.26 Wiesloch 25,642 106.1 84.82 79.94 The Rhein-Galerie in Ludwigshafen has been welcoming customers to its 30,000 m² shopping Heppenheim 25,001 105.69 136.93 129.55 (Bergstraße) area since September 2010. Retail data for Ludwigshafen Mosbach 22,781 97.81 170.16 173.97 Schwetzingen 21,494 111.34 239.4 215.00 Hockenheim 21,011 103.79 181.77 175.13 Germersheim 20,342 80.88 113.33 140.12 Haßloch 20,123 99.00 90.15 91.06 Schifferstadt 19,522 102.65 61.88 60.28 Bad Dürkheim 18,414 108.34 98.87 91.25 Buchen (Odenwald) 17,571 96.16 130.46 135.67

Index German average = 100; Sources: GfK Geomarketing (Indices: 2016), State Statistics Offi ces (Population count as of 1.1.2015 based on the 2011 census)

Ludwigshafen, Bismarckstraße Peak rent 2016: 20 € / m² GER overall: 65,12 € / m² Change (2006–2016): –3.33 % GER overall: 19,5 % Footfall 2015 (ranking)*: 1,185 (162) Percentage of chain store operations in 2016: 30.8 %

Photo: City of Ludwigshafen; Maps: Jones Lang LaSalle (*based on 183 shopping streets analysed in Germany, ** ranking among 170 Pedestrian zone Prime location

Info about LU: JLL only publishes data for the 25 most important cities in the retail sector, 32 Ludwigshafen is not one of these and thus has no ranking. Footfall was not counted in LU in 33 2016 – the data used is therefore from 2015. No ranking was determined for peak rent. No. of employees: 32,656 An alliance of strong Purchasing power index: 98.1 Business tax rate: 420 Rhein-Neckar district partners Rent price range – offi ce: 5 to 15 €/m² Rent price range – retail: 5.50 to 9 €/m² Business, science and administration in the fi rst European “smart county”

IT is here! As the headquarters of SAP, the society and the development of a seam- No. of employees: 182,321 Rhein-Neckar district is the most impor- less fibre optic network. The Rhein-Neckar Purchasing power index: 99.6 tant IT location in Germany. With compa- district not only has a central location at Business tax rate: 430 nies in the chemicals/pharmaceuticals important nodes in the European road, Rent price range – offi ce: 8.40 to 15 €/m² sector, food processing industry, retail, rail and waterway networks with excel- Rent price range – retail: 11 to 145 €/m² financial services, engineering and logis- lent links to international airports in Frank- tics sectors and 22 universities in the furt and Stuttgart. It also offers a high Worms Metropolitan Region Rhine-Neckar, it is quality of life in a charming rural environ- a centre for powerful drivers of innova- ment on the banks of the Rhine and Neckar A future built tion – from forward-looking SMEs to global between the Odenwald and . players. As a “smart county”, the Rhein- // www.rhein-neckar-kreis.de on tradition Neckar district is taking a pioneering role Population: 541,859 in the digitisation of the economy and No. of employees: 156,127 Worms is more than the Nibelungen, the No. of municipalities: 54 Mannheim cathedral, Martin Luther and a flourishing Cultural and economic centre of the wine industry. It is an important commercial centre with profitable industries and modern Metropolitan Region Rhine-Neckar service providers – thanks to its location in the Rhine-Neckar and Rhine-Main Metropolitan Economic success – that is built on ideas and innovations, efficiency Regions. Companies appreciate the business- Ludwigshafen am Rhein and productivity, diversity and openness, creativity, culture and lots of friendly atmosphere and excellent links to the bright minds. Mannheim, at the heart of the Metropolitan Region Rhine- wider world via road, rail, public airfield and Economic engine of Rhineland-Palatinate Neckar, has all these attributes. The city positions itself as a top location river port. The business parks offer broad- for successful and creative companies. As well as outstanding infra- band internet at speeds of up to 200 Mbit/s. Its The former industrial city of Ludwigshafen has trans- economy with major companies such as BASF and structure, Mannheim has an attractive range of commercial and office start-up centre supports new businesses with formed itself into a centre of pioneering research Abbott as well as a large number of SMEs in the premises. Around 500 hectares of former military bases are being devel- low-cost offices and a wide range of services. and innovation. As well as the chemical company areas of engineering, communications, IT and food

oped with a lively mix of uses and social structures. In combination with Worms has a university and a large number ottom: Kleb BASF, it is also home to the research departments production. All these companies understand the funding programmes run by the state and national governments as well of schools. Leisure facilities and a diverse of many other international corporations in the value of the city’s outstanding transport connec- as the EU, the city offers companies a business-friendly environment with cultural programme, a high standard of living sector. Taking the slogan “today for tomorrow” as tions, comprehensive range of educational and excellent growth prospects. As one of the leading cities for start-ups in and equable climate make life here pleasant. its inspiration, the city has repositioned itself and care institutions and a housing market which offers Baden-Württemberg, it provides everything entrepreneurs need to bring The Worms Conference Centre hosts over 250 moved closer to the Rhine. The City-West project good value for money. It also has a thriving cultural their ideas to market. Renowned universities and research institutions cultural events and conventions annually and is is transforming the city’s vision of its future into a life which attracts visitors from far beyond the city guarantee a steady supply of highly qualified professionals and graduates. a beacon for the city and its surrounding region. reality – creating space for new urban concepts. This boundaries. // www.ludwigshafen.de // www.mannheim.de // www.worms.de dynamic process has its foundation in a flourishing

No. of employees: 17,002 Purchasing power index: 108 Neustadt an der Weinstraße Business tax rate: 400 Rent price range – offi ce: 4.50 bis 7.50 €/m² Historic town centre and Rent price range – retail: 5.50 bis 30 €/m² global companies

Neustadt a. d. Weinstraße lies at the also made it their home. Compared to other halfway point of the German Wine Route municipalities in Rhineland-Palatinate, it has and has excellent transport connections. low business taxes and a low level of public With its direct link to the A 65 motorway debt – much appreciated by local entrepre- and the Neustadt railway junction, all the neurs. Moreover, Neustadt is an attractive important centres in the region are quick town for shopping and leisure with a historic and easy to reach. Wine and tourism are town centre, high standard of living and No. of employees: 100,902 among the most important sectors for good quality of life. // www.neustadt.eu Purchasing power index: 92.8 this mid-sized town but companies in the Business tax rate: 405 healthcare, retail, trade, automotive, DIY, IT, Rent price range – offi ce: 5.50 bis 11.50 €/m²

sport, publishing and creative sectors have Photo Page 34, top left: Fulbert Hauk; top right: City of Worms; bottom left: WEG Neustadt; Page 35, top: Rhein-Neckar-Kreis; b Rent price range – retail: 7.50 bis 27 €/m²

34 35 In 2018, the new Business Development Center Organic Electronics will open on the site of the former Patton Barracks – Heidelberg’s future centre for innovation and science.

In Focus Networks support innovation

Research, knowledge transfer and innovation secure prosperity and the ability to compete in global markets. The Metropolitan Region Rhine-Neckar profits from excellent research institutions, future-proof networks and remarkable powers of innovation.

In the past, knowledge was primarily transferred through individual activities or bilateral partnerships. Now, the region invests in “open innovation.” This approach aims to strategically harness the collective knowledge base, creativity and innovative potential of research institu- tions, companies and the general population as a whole. Networks and clusters play an important role in facilitating the exchange of knowledge as they bring together human, structural and relational capital. The co-innovation model makes it possible to bundle the expertise of the partners and offices as well as the support of an extensive network cluster. The Cluster Management team was established “No city, municipality or fed- involved from many different disciplines and reduce the of marketing and financial experts,” explains Dr. André in 2011 and achieved an important milestone with the time to market for knowledge transfer. Domin, CEO of Technologiepark Heidelberg and Chairman opening of the CUBEX41 centre for start-ups and exper- eral state will be able to solve of Heidelberg Startup Partners. tise in medical technology in 2015. “Bringing product the challenges of digitisation Partnership platform for organic electronics developers, clinicians and researchers together under InnovationLab is a partnership platform for research and Mannheim Medical Technology Campus one roof enables them to develop medical products more by itself.” development of organic electronics based in Heidelberg. Mannheim is a medical technology hotspot. In the next quickly and efficiently than elsewhere,” confirms Michael It is working to combine the know-how of companies, few years, it will become home to the Mannheim Medical Grötsch, Mayor for Economic Affairs. universities and research institutions in the Metropol- Technology Campus (MMT Campus) offering compa- itan Region Rhine-Neckar. Technologiepark Heidelberg is nies, university clinics and researchers – all based within “Smart County” initiative the Lernfabrik 4.0 initiative or the Smart Local Supply retail also planning to build its “Business Development Center walking distance of each other – a unique opportunity In the Rhein-Neckar district, stakeholders in business, project. “Smart County” placed second in the competition Organic Electronics” on the site of the former Patton to link up even more efficiently. “From the workbench science and administration have joined forces to create “Germany’s Smart Regions.” Barracks. “Many companies and scientists work in this to the operating theatre – your cup of coffee will stay the first European “smart county.” The group aims to top class cluster to turn their research results into market- hot,” promises Dr. Elmar Bourdon, Cluster Manager. The promote growth, start-ups and innovation, improve educa- Start-ups welcome able products. We want to offer them a favourable envi- CUBEX ONE Business Development Center is the heart tion and training and develop smart networks that connect Innovation depends on a thriving ecosystem for start-ups. ronment in our Business Development Center. This of the MMT Campus and will continue to push forward different projects, e.g. by extending fibre optic networks, In Ludwigshafen, the planned “Freischwimmer” innova-

includes low rents for specialist laboratories, clean rooms every strategic aspect of Mannheim’s medical technology Photo: RKW Architektur + Rhode Kellermann Wawrowsky GmbH linking up with Mannheim’s Smart Production network, tion centre will create an alternative space and range of

36 37 Glossar

services for start-ups. Technische Werke Ludwigshafen is Market Segment: Offi ce Percentage of Percentage of national chain store operations as a proportion of total “‘Freischwimmer’ is designed as chain store operations converting the former swimming pool in the north of the city local retail trade.

into an interesting location for start-ups – principally in the a platform which will allow start- City centre Best offi ce location in the respective area of the city Footfall Number of pedestrians passing by per hour based on a specifi c counting location in the pedestrian zone on a uniform survey time areas of energy, services, modern city concepts and mobility ups to exchange ideas. This will City centre periphery Locations directly adjacent to (offi ce) city centre. and date used throughout Germany: 21 March 2015, 13:00–14:00; – with an accelerator and co-working space. Support services 16 April 2016, 13:00–16:00 (in accordance with Jones Lang LaSalle). allow them to use synergies effi- Periphery All offi ce locations not categorised as “city centre” and range from mentoring and consulting to financial participation. “city centre periphery.” Purchasing power index Index per resident, based on the national German average (index = 100). Example: an index of 110 means that the residents in this town ciently and promote a culture of Peak rent Top price segment (3 percent) for all new leases agreed in the The road to Industry 4.0 have a purchasing power that is 10 % higher than the national German respective area (city centre, city centre periphery, periphery) average (GfK defi nition). The production facilities of the future will directly integrate innovation.” in 2016 (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Offi ce Market Reporting) Sales index Index per resident, based on the national German average (index = customers and partners into business and value creation published by gif Gesellschaft für Immobilienwirtschaftliche Forschung 100). Example: an index of 110 means that retail sales in this town processes. They will network people and objects using IT and e.V. in July 2015). All the rental prices stated are nominal rents for are 10 % higher per head of the population than the national German communications systems. Led by the City of Mannheim, the marketable offi ce spaces, i.e. rent according to lease agreement average (GfK defi nition). (excluding taxes, incentives and utilities). Smart Production network is investigating the best ways to Centrality rating Index per resident, based on the national German average (index = convert the region to smart production techniques. supervisory building authorities and legal boards of construc- Average rent Average rent for all new leases agreed in the respective area (city 100). Example: an index of 110 means that this town offers 10 % more centre, city centre periphery, periphery) in 2016 (in accordance with retention of purchasing power and centrality in retail than the national tion of the building permitting procedure. It will operate the latest edition of “Leitfaden zur Büromarktberichterstattung” German average (GfK defi nition). This is a measure of the scope and The Virtual Building Authority upstream of the authority’s own specialist procedures and (Guidelines for Offi ce Market Reporting) published by gif Gesellschaft strength of the retail sector in terms of its attractiveness to non-local für Immobilienwirtschaftliche Forschung e.V. in July 2015). All the rental consumers. The retail centrality rating is based on the ratio between As part of the model project “Cooperative E-Government in create opportunities to participate in the process electroni- prices stated are nominal rents for marketable offi ce spaces, i.e. rent the purchasing power loyalty that exists within the city and the infl ow Federal Structures”, the Metropolitan Region Rhine-Neckar cally. The “Virtual Building Authority” aims to network admin- according to lease agreement (excluding taxes, incentives and utilities). of purchasing power from outside. A centrality rating of greater than is planning to introduce a uniform electronic access system istrative departments and businesses, reduce processing 100 indicates that infl ows of purchasing power from the surrounding Existing space Total area of all completed offi ce spaces (in use or vacant) throughout the area exceed outfl ows of purchasing power from the area of the city – available to companies and others – for the 26 subordinate times and cut bureaucratic costs. town/city on 31 December 2016 plus offi ce areas under construction which itself (defi nition in accordance with Jones Lang LaSalle). will be ready for move-in within the next three months (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Offi ce Market Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in July 2015). Market Segment: Industrial & Commercial

Offi ce space turnover Total of all offi ce spaces throughout the town/city which have been leased to new users, sold to owner-occupiers or built by owner- Guideline land value Average land value for an area that has similar value conditions and occupiers in 2016. The transaction is recorded using the date of the can be used for similar purposes. The guideline land value provides the Digital Model Region: Rhine-Neckar lease agreement (in accordance with the latest edition of “Leitfaden value per square meter of land for a fi ctitious land parcel, with location zur Büromarktberichterstattung” (Guidelines for Offi ce Market features typical of the area in question. Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Digital technologies are transforming every focus will be on key aspects of public infra- Type of area Type of structural land use according to the Federal Land Utilization Forschung e.V. in July 2015). aspect of our lives. The Metropolitan Region structure – education, energy, healthcare, Ordinance (BauNVO). Abbreviations: GE = Business park, GEe = Vacancy rate The proportion of all existing offi ce spaces throughout the town/city Restricted-use business park, GIe = Restricted-use industrial park, Rhine-Neckar sees this revolution as an oppor- transport and administration. In addition, the which were available for rent, sub-letting or sale on 31 December 2016 MI = Mixed use area. tunity and wants to play an active role in coordination centre will contribute to a cross- and ready for move-in within three months.

shaping it over the coming years. section of important topics which are relevant Basis of calculation All quantitative statements in relation to offi ce spaces (existing space, to the region as a whole, e.g. in documenting for offi ce spaces / MF/G turnover etc.) are generally made in accordance with the area defi ni- tion contained in the latest edition of the guideline MF/G “Rentable The first half of 2017 will see the develop- progress in the extension of broadband fl oor space for commercial spaces” published by gif Gesellschaft für ment of a “coordination centre for smart internet or identifying needs for action in the Immobilienwirtschaftliche Forschung e.V. in May 2012. In this report, networking.” It will be supported by the federal area of digital expertise. where only information on gross fl oor area (BGF) was available, this has been converted using the industry standard factor of 0.85. states and the German Federal Ministry for Legal Information and Liability Disclaimer Economic Affairs and Energy and managed These plans for digitising public infrastructure Any publication, duplication and any sharing of this Report, even of parts thereof, shall be Market Segment: Retail subject to the prior written consent of the Metropolregion Rhein-Neckar GmbH. The estimates jointly by Metropolregion Rhein-Neckar GmbH will complement the wide range of Industry 4.0 and assessments provided in this Report shall be subject to the following reservations: We shall and Verband Region Rhein-Neckar with the projects already being developed and imple- not assume any liability for losses, costs or other damages resulting from the utilisation of the information published herein. The information provided is based on sources we consider reliable. aim of integrating existing expertise and stake- mented by businesses, chambers, districts and Top location The part of the city centre that enjoys the highest footfall and the However, we are in no position to guarantee that this information is correct and complete. The holders in the region. By promoting close municipal authorities in the region (e.g. in the greatest density of large stores that attract shoppers and chain stores assessments made are based on the status of information available at the time of our editorial with supra-regional operations. deadline (31 January 2017). Actual developments may differ signifi cantly from the forecasts and collaboration, the scheme aims to develop network “Smart Production Rhine-Neckar”). projections as well as expectations expressed in this Report. The Publishers shall not assume innovative, interdisciplinary digitisation proj- // www.m-r-n.com/digitalisierung Peak rent Rent paid per square meter in EUR for a newly leased space based any responsibility for providing updates to the statements made. The information contained on a 100 square meter ground fl oor sales area in a top location with a herein is provided for the sole purpose of sharing generally informative material and is not ects and test them across state borders. The 6 meter display front (defi nition Jones Lang LaSalle). intended as a substitute for professional consultations.

38 39 Research partners

Immobilien Sparkasse Heidelberg

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Metropolregion Rhein-Neckar GmbH N7, 5-6, 68161 Mannheim Tel. +49 (0)621 129 87-0 Fax +49 (0)621 129 87-52 [email protected] www.m-r-n.com