Facts and Figures

Warehouse/Logistics Rhine- H1 2017 ‘‘Wisdom is the daughter of experience.‘‘

Quote from Leonardo da Vinci

If you require any further information, please do not hesitate to contact us. We can put you in touch with our specialists who are always happy to provide you with expert support. We look forward to hearing from you!

Dr. Konrad Kanzler Head of Research +49 (0) 69 - 970 505-614 [email protected]

Michael Weyrauch Head of Industrial Letting and Transaction +49 (0) 69 - 970 505-902 [email protected]

Tim Weißleder Senior Consultant Industrial Letting and Transaction +49 (0) 69 - 970 505-157 [email protected]

Lenny Lemler Co-Head of Investment +49 (0) 69 - 970 505-174 [email protected] Market Environment

Population development /Rhine-Main

Frankfurt Wiesbaden Offenbach In the first half of 2017, the Rhine-Main re- Inhabitants (03/2017): Frankfurt 729,624 (12/2016) / Wiesbaden 289,654 /

gion continued to be characterised by a Mainz 213,850 / Darmstadt 159,779 / Offenbach 134,150 800,000 positive demographic and economic de- 700,000 velopment. At the end of March, the pop- 600,000 ulation of the five largest cities in the region 500,000 reached 1.53 million, although it was only 400,000 possible to include figures to end-2016 for 300,000 Frankfurt am Main because of the absence 200,000 Frankfurta.M., Wiesbaden, Mainz,Darmstadt, Offenbach

of more recent figures. Compared to 100,000 Cities : March in the previous year, Offenbach rec- 0 2010 2011 2012 2013 2014 2015 2016 Mar 17 Source orded the strongest growth of 1.3 %, fol- lowed by Mainz with 1.2 %. Unemployment rate Frankfurt/Rhine-Main Developments on the employment market

Frankfurt Wiesbaden Mainz Darmstadt Offenbach were also encouraging. Compared to the Unemployment rate (06/2017): Frankfurt 5.7 % / Wiesbaden 7.3 % / Mainz 6.0 % / Darmstadt 5.9 % / Offenbach 9.4 % / Germany 5.5 % previous year, the rate of unemployment 12.0 was lower by end-June in all of the major 11.0 cities with the exception of the state capi- 10.0

9.0 tal Wiesbaden, where the rate was un-

8.0 changed. Offenbach again demonstrated FederalEmployment Agency , 7.0 the most positive performance here with a 6.0 0.7 % points decline in the unemployment 5.0 rate to a single-digit figure of 9.4 %. Frank- FederalStatistical Office 4.0 : 2010 2011 2012 2013 2014 2015 2016 Jun 17 furt boasted the lowest unemployment Source rate in June of 5.7 %, which was 0.4 % points below the previous year’s level. In Purchasing power per capita Frankfurt/Rhine-Main line with these developments, the Regional Statistical Office for also reported Frankfurt Wiesbaden Mainz Darmstadt Offenbach Germany Purchasing power per capita (2017): Frankfurt €25,532 / Wiesbaden €24,836 / Mainz € 24,396 / higher GDP for the state. According to the Darmstadt €24,299 / Offenbach €20,786 / Germany €22,239 30,000 latest published figures, GDP grew by

25,000 1.5 % (adjusted for prices) in 2016.

20,000 The most recent business survey carried

15,000 out by the Hesse Chamber of Industry and Commerce (IHK) in early summer 2017 10,000 again presented a positive view of the re- 5,000 gion’s economy. All economic indicators : GfK GeoMarkting GmbH

0 Source are pointing upwards. The business cli- 2012 2013 2014 2015 2016 2017 mate index for the transport industry re- mains at the highest level for the past six Traffic situation Frankfurt/Rhein-Main years with 120 points. Some 90 % of the Air traffic Passenger numbers at reach 60.8 million in transport companies that took part in the 2016 and are almost at previous year’s level; cargo volume increases by 1.8 % to 2.1 million tonnes. survey rate their business situation as good or satisfactory. Around 89 % expect Rail traffic Frankfurt central station is the most important ICE hub in Germany. More than 630 long-distance and local trains per day, their situation to remain the same or im- 1,100 S-Bahn trains (regional trains) and 350,000 visitors and prove. The results therefore maintain the travellers. positive trend of recent business surveys Highway traffic Central hub for Germany’s long-distance road network with five in the transport industry. motorway links. Frankfurter Kreuz is the busiest motorway junction in Germany with about 335,000 vehicles per day. Market Data

Take-up (lettings and owner occupation) The market for logistics and warehouse Take-up (in thousend sqm) Average take-up 10 years (520,000 sqm) space in the Rhine-Main area achieved an 800 753 sqm outstanding result in the April-June period 700 629 sqm 635 sqm 582 sqm 569 sqm after a somewhat moderate start to the 600 511 sqm year. Space take-up by tenants and 500 369 sqm owner-occupiers of about 255,000 sqm in 400 349 sqm the second quarter of 2017 represents the 300 best quarterly result we have seen since 200 we first started to collect data. For the first 100 apollo realestate

: NAI half of 2017, the total volume amounted to 0

2010 2011 2012 2013 2014 2015 2016 H1 2017 Source 369,000 sqm and was 8.7 % below the previous year’s level (H1 2016: 404,000 sqm). Take-up according to unit size H1 2017 The record result achieved in the second 250,000 quarter was primarily caused by a strong Total: 369,000 sqm 11 Spaces 206,000 sqm increase in contract signings for spaces 200,000 larger than 10,000 sqm. Take-up in this 150,000 segment amounted to 168,000 sqm in the last three months, compared to approxi- 100,000 7 Spaces mately 38,000 sqm in the first quarter. In- 20 Spaces 59,000 sqm 28 Spaces 46,000 sqm 7 Spaces 50,000 cluded in these deals is the contract sign- 27,000 sqm 31,000 sqm

apollo realestate ing by the Rossmann drugstore chain for

0 : NAI a 33,000-sqm unit in a yet-to-be-devel- < 1,500 1,501 - 3,000 3,001 - 5,000 5,001 - 10,000 > 10,000 Source oped distribution centre in Bürstadt. NAI apollo real estate acted as the agent in this Take-up according to industry H1 2017 transaction, and the builder and landlord of the project is Dietz AG from Bensheim. The rental of units in project developments 15.8 % played a more significant role in the first

Transport, Warehouse & Logistics half of 2017, accounting for 52.2 % or ap-

Trade proximately 193,000 sqm of take-up 15.3 % 51.2 % (2016: 27.9 % share / 2015: 27.0 % Manufacturing

share). This development is primarily due Others & n/a to the shortage of existing units that pro- 17.7 % apolloreal estate vide adequate space and equipment. The : NAI lack of suitable products is driving a grow- Source: ing acceptance of longer implementation periods for new building projects. Lease Definition market area contracts in or for existing buildings ac- NAI apollo real estate defines the Frankfurt/Rhine-Main market area counted for the second highest share of for logistics and warehouses as the relevant available logistics and 145,000 sqm or 39.3 %, but compared to warehouse space between the cities of Butzbach in the north and previous years this segment lost significant Worms in the south, as well as between Bingen in the west and market share (2016: 45.1 % share / 2015: Aschaffenburg in the east. 54.4 % share). Purchases and building projects by owner-occupiers were respon- The City of Frankfurt am Main forms the central point of the sub-mar- sible for 5.9 % and 2.6 % of take-up re- ket described. spectively in the first half of the year. Market Data

Development of rents Frankfurt am Main Large rentals in project developments Minimum rent (in €/sqm) Prime rent (ni €/sqm) were primarily responsible for the fact that 8.0 the southwestern market area again occu- 7.0 pied the top spot. With a 48.6 % share of 6.0 take-up or about 180,000 sqm, this can 5.0 even be described as a dominant market 4.0

position. The eastern sub-market is next 3.0 with 62,000 sqm or a 16.7 % share, with 2.0 contract signings by Dachser on the for- apollo realestate 1.0 NAI : mer airbase in Erlensee or by B+S in 0.0 Source 2010 2011 2012 2013 2014 2015 2016 H1 2017 Alzenau. Transport, storage and logistics compa- Selection of large current project developments 2017 nies remained by far the biggest consum- ers of space with a half-year take-up vol- - 43,000 sqm ume of 189,000 sqm or a 51.2 % market Construction of a 43,000-sqm distribution hall for a contract logistics provider in the industrial park of Zech Group-owned Deutsche Logistik Holding (DLH) on the former share. This sector therefore increased its Mitsubishi site. share by 4.7 % points compared to the Bürstadt - 33,000 sqm first quarter of 2017 or by as much as

Construction of a 33,000-sqm distribution centre in the industrial park "Am 14.5 % points compared to 2016. In con-

Brückelsgraben Nord" for drugstore chain Rossmann by Dietz AG. trast, retail (17.7 %) and industrial compa- nies (15.3 %) accounted for remarkably Kelsterbach - 25,000 sqm

apollo realestate low shares. NAI

Construction of the M-Port³ logistics park by MP Holding and AG with the start of : the first speculative construction phase for 25,000 sqm. The plan is to build a total Source We also expect to see strong market ac- warehouse space of around 50,000 sqm. tivity in the coming months, with continu- ing high demand for new spaces in project Selection of large completed developments 2017 developments. At the same time, the sup-

Biblis - 85,000 sqm ply of new buildings constructed on a speculative basis has improved. Completion of the new distribution centre by Dietz AG that is let to Dutch non-food discounter Action. With that in mind, and based on the recent

Ginsheim-Gustavsburg - 32,000 sqm record result, we have upgraded our fore- cast for the full year. In all likelihood, the Construction of VGP-Park in Ginsheim-Gustavsburg, with full occupancy achieved before market will exceed the 600,000-sqm mark

completion. for the fourth year in succession. Erlensee - 28,000 sqm

apollo realestate Larger (> 5,000 sqm) spaces for first-time NAI Completion of a logistics warehouse for Dachser on the former Langendiebach airbase by : occupancy are still available in Cen-

Panattoni in the immediate vicinity of a Dachser food distribution centre. Source trA5lPark in Weiterstadt as well as at the Dietz logistics centre in . To- Outlook next 12 months gether with M-Port³, the Multipark expan- sion and the Kolb Red Logistik building Stock project, further (partly) speculative projects with available spaces of over 5,000 sqm Vacancy were either completed in the second quar- ter or are under development, especially Take-up on the Mönchhof site. There is also a Prime rent greater supply of space available to rent in apollo realestate

NAI the SEGRO logistics parks being con-

Minimum rent Source: structed in Bischofsheim and Mörfelden. Submarkets

Submarkets and available logistics stock Q2 2017

North-East 3.50 – 5.00€/sqm

North-West 3.50 – 5.00€/sqm

Frankfurt Wiesbaden/Mainz 3.00 – 6.30€/sqm East 3.00 – 5.60€/sqm 3.00 – 5.00€/sqm

South-East South-West 3.50 – 6.30€/sqm 3.20 – 6.95€/sqm

Available logistics stock > 5,000 sqm Q2 2017 Location Local rent range (€/sqm) Alzenau approx. 4.00 - 4.50 Bischofsheim approx. 3.80 - 4.50 Bürstadt approx. 3.20 - 3.50 Frankfurt approx. 3.00 - 6.30 Friedberg approx. 3.50 - 4.50 Friedrichsdorf approx. 3.50 - 4.50 approx. 3.30 - 4.50 Groß-Rohrheim approx. 3.20 - 3.50

Kelsterbach approx. 5.30 - 6.95 Langen approx. 4.50 - 5.50 Pfungstadt approx. 3.50 - 4.50

Raunheim approx. 4.80 - 6.00 apollo realestate NAI Rodgau approx. 3.50 - 4.50 :

Weiterstadt approx. 4.50 - 5.75 Source Wiesbaden approx. 4.20 - 4.60 Top 5 – Key Facts

Logistics strongholds Rental18,6 price range Q2 2017 (€/sqm) Existing stock New construction

Berlin 2.50 - 4.70 4.50 - 6.40

Dusseldorf 3.00 - 4.80 4.50 - 6.20

Frankfurt/Rhine-Main 3.00 - 5.50 5.00 - 6.95 apollo realestate Hamburg 3.70 - 5.20 4.50 - 5.70

Munich 4.70 - 5.90 5.50 - 8.00 NAI Source:

Prime yields Q2 2017

Prime office yields Prime retail yields Prime logistics yields

Berlin 3.20 % 3.30 % 4.80 %

Dusseldorf 3.90 % 3.45 % 4.80 %

Frankfurt a. M. 3.50 % 3.50 % 4.80 %

Hamburg 3.25 % 3.35 % 4.80 % apollo realestate Munich 3.15 % 3.00 % 4.75 %

Total Ø = 3.40 % Ø = 3.30 % Ø = 4.80 % Source: NAI

Frankfurt/Rhein-Main Top take-up H1 2017

Property + Location Tenant / owner occupier Utility area in sqm

Trebur Contract logistics provider approx. 43,000

Bürstadt Rossmann approx. 33,000

Florstadt DHL approx. 27,700 apollo realestate Lampertheim Pfennig Logistics approx. 16,600

Bingen Kraftverkehr Nagel approx. 15,600 NAI Source:

Top investments H1 2017

Property + Location Purchaser Utility area in sqm

Distribution centre / Worms Garbe Logistik Immobilien Fonds Plus approx. 54,000

TST Logistics property / Worms European Logistics Fund approx. 50,000

Otzberg Reinhard-Müller-Ring / Otzberg China Investment Corporation approx. 44,700 apollo realestate Logistics centre / Bodenheim AXA IM - Real Assets approx. 41,100

Kaiser's Tengelmann Logistics property / Nieder-Olm China Investment Corporation approx. 33,000 NAI Source: ONE PARTNER. ALL SERVICES. ALL ASSET CLASSES: OFFICE – RETAIL – LOGISTICS – RESIDENTIAL

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