MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES - metropolitan area for 2018

Market report on the letting of logistics properties and industrial spaces in the Rhine-Main metropolitan area* for 2018 n New leases just exceed the 700,000 sqm take- >> Take-up of logistics property and industrial space in the greater area up mark (+5 %) 800,000 sqm 700,000 sqm n Five-year average topped by around 22 %, ten- year average by around 40 % 600,000 sqm 500,000 sqm n More than 50 % of leases are in new buildings 400,000 sqm n Increased new construction activity makes the 300,000 sqm Rhine-Main region one of the most dynamic logistics regions in 200,000 sqm 100,000 sqm n The strongest sector is logistics – hub of inter- 0 sqm national goods supply 2014* 2015* 2016* 2017* 2018 * value by Statista (statista.com) n Outlook for 2019: demand in the growing metropolitan area remains persistently strong. Rhine-Main West (9 %, 61,000 sqm) and / 471,000 sqm (67 %). The top leases in this ca- If the economic situation remains the same: op- (8 %, 58,000 sqm) contributed rough- tegory included ID Logistics in Hammersbach portunities for large-scale project develop- ly equally to the good performance. with 40,000 sqm and RWL in Trebur with ments in rural peripheral areas 37,000 sqm. By way of comparison, the biggest deal in the first half of the 2018 was REWE/ More than 700,000 sqm of storage, logistics and Take-up by size category Toom with 31,000 sqm at “M-Port³”. In second production space was taken up in the Frankfurt and third place for the year as a whole were the am Main area last year. Take-up by all market The level of annual take-up recorded for all size size categories between 2,001 and 5,000 sqm participants was thus up 5 % year-on-year (2017: categories put together in previous years was (16 %, 111,000 sqm) and between 5,001 and around 673,000 sqm) and topped the five-year achieved in 2018 by the “>10,000 sqm” size 10,000 sqm (13 %, 93,000 sqm). average (around 580,000 sqm) by around 22 %. A category alone, which accounted for a whole strong second half of 2018 contributed the lion’s share of the result at approximately 410,000 sqm. >> Take-up of logistics property and industrial space by size in the greater Frankfurt area 2018

The Rhine-Main region is one of the most dynam- ic logistics regions in Germany, as underscored by the high level of project development activity and the large number of completions in recent years. More than half of all new leases signed were in ≥ 10,001 sqm 5,001 - 10,000 sqm 2,001 - 5,000 sqm 1,001 - 2,000 sqm ≤ 1,000 sqm new buildings.

The logistics sector once again rented the most >> Take-up of logistics property and industrial space by regions in the greater Frankfurt area 2018 space, accounting for more than half of take-up and thus reflecting the Rhine-Main region’s role Rhine-Main-East as a hub for international goods supply. 116,000 sqm 16 % Rhine-Main-West Take-up by region 61,000 sqm 9 % Rhine-Main-South With a letting volume of approximately 433,000 Mainz/Wiesbaden 433,000 sqm sqm (61 %), the Rhine-Main South sub-market 61 % defined by Realogis once again proved to be the 58,000 sqm strongest logistics region – not least due to major 8 % new construction in Groß-Gerau, Trebur, etc. It Rhine-Main-North was followed by the Rhine-Main East sub-market 25,000 sqm 4 % Frankfurt (16 %) in second place with around 116,000 sqm. 12,000 sqm 2 %

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2018 peripheral areas of the metropolitan region with Rental prices in 2018 good transport connections, which companies Relevant deals 2018 with large space requirements and investors will The highest prime rent was recorded in new both have to address to a greater extent. buildings in the Rhine-Main South sub-market 1. ID Logistics with an asking price of EUR 6.95/sqm, while the Demand for logistics space depends on a contin- Hammersbach, 40,000 sqm prime rent in the Rhine-Main West and Frank- ued good economic situation, a strong regional furt regions came to EUR 6.50/sqm. The lowest economy and consequently high purchasing pow- 2. RWL prime rents were paid by users in the Rhine- er of the population. Retail companies – whether Trebur, 37,000 sqm Main North (EUR 4.50/sqm) and Rhine-Main East as online pure players or with omni-channel strat- (EUR 5.00/sqm) regions. egies – and their logistics providers play a leading 3. Seifert role here when it comes to supplying the growing Bürstadt , 35,000 sqm metropolitan area. Forecast for 2019 4. REWE/Toom However, Realogis expects take-up to decrease Rodgau, 30,000 sqm Due to the strong letting year in 2018 and the slightly year-on-year because of space becoming continued high demand, there is now only a lim- scarcer. The fi ve-year average will probably be ex- ited supply of suitable free space available in the ceeded in spite of this. Rental prices in 2019 will core region. This also presents opportunities for remain at the high level of 2018 without signifi - large-scale project developments in more rural cant changes.

Logistics Property Market Frankfurt: Rental Prices 2019 (EUR/sqm)

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

48

Limburg an der Lahn Rhine-Main North 7 Koblenz WETTERAU 3.50 - 4.50 Rhine-Main West Friedberg 66 4.00 - 6.50 5 45 HOCHTAUNUS Büdingen Bad Homburg MAIN-KINZIG Gelnhausen Maintal MAIN- Rhine-Main East Frankfurt a. M. TAUNUS 3.30 - 5.00 4.00 - 6.50 Hanau Wiesbaden Hofheim am Taunus Offenbach ASCHAFFENBURG- 61 Wiesbaden / Mainz 3 LAND 3.50 - 5.95 Neu-Isenburg Mainz Dreieich Rodgau Rüsselsheim OFFENBACH-LAND 60 Ingelheim Mörfelden-Walldorf Aschaffenburg am Rhein Groß-Gerau 3 GROß- -DIEBURG GERAU 61 Darmstadt Groß-Umstadt

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

6 5 Mannheim

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

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2018 REALOGIS Immobilien REALOGIS – REALOGIS – Frankfurt GmbH Pioneers in Logistics since 2005 Available to you directly on-site in Frankfurt Bockenheimer Landstraße 39 60325 Frankfurt When Realogis was first established in 2005, we We are your point of contact for the letting of in- phone: +49 (0)69 - 8 700 401 - 50 had an ambitious goal: to become the market dustrial and logistics property as well as business fax: +49 (0)69 - 8 700 401 - 99 leader for property lettings in the “industrial and parks in the Rhine-Main metropolitan area. You’re email: [email protected] logistics” segment. The concentration and poo- looking for a certain type of property? We will ling of our know-how into this niche market has define the precise details of your requirements, www.realogis.de proved successful: in 2015 we again gained enhance your search profile and provide you with market leadership in Germany for space take-up exact property matches. Maybe you are looking in industrial properties, warehouses and logistics for a new tenant for your property. In that case we properties. What’s more, we have also continued will assist you in valuing your property and setting to expand our share of the European market. the optimal rental price. We handle the professio- nal presentation of your property to the public and Today, the owner-managed Realogis group, which ensure a prompt letting. is headquartered in Munich and also has offices in Berlin, Düsseldorf, Frankfurt, Hamburg and Stutt- Both tenant and landlord benefit from the many gart, not only offers lettings and consultancy ser- years of specialist market knowledge of our seven- vices but is also a sought-after partner of investors strong consultancy team in the region, as well as Contact: and institutional investors, to whom we offer our our market proximity and valuable contacts. We Adriano Borgia (Managing Director) comprehensive experience and in-depth regional, only employ well educated and experienced pro- phone: +49 (0)69 - 8 700 401 - 50 national and international market knowledge. perty consultants, and also offer access to an fax: +49 (0)69 - 8 700 401 - 99 in-house site-department, which is specialised in email: [email protected] Extensive consultancy services in the areas of commercial and industry sites. logistics and fulfilment round off our range of services. With a team of highly motivated and Please contact us about any decisions relating to well-trained professionals, we continually strive industrial and logistics property. to provide long-term support to our customers and enable them to benefit from our position as market leader.

Our services Contact: n Preparation of a detailed and individual requi- n Sound and realistic valuation of your property / Irina Lysenko (Research Analyst) rements profile land phone: +49 (0)89 - 51 55 69 - 287 fax: +49 (0)89 - 51 55 69 - 29 n Targeted offers n Individual marketing concept email: [email protected] n Development of possible alternatives n Advice on optimising property (leasing, purchase) n Strategy consulting to minimise the risk of n Integrated Realogis logistics consultancy to vacancies and defaults define the optimal location and implement internal processes in an existing property n Extensive regional, national and international contact network of potential tenants

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Main metropolitan area for 2018