Investment/Office Letting Property Market Germany 2018
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LOCAL EXPERTISE – ACROSS GERMANY INVESTMENT | OFFICE LETTING COMMERCIAL PROPERTY MARKET GERMANY’S TOP 7 CITIES 2018/Q1-4 WWW.GERMANPROPERTYPARTNERS.DE LOKALELOCAL EXPERTISE KOMPETENZ – ACROSS – DEUTSCHLANDWEIT GERMANY MARKTBERICHTMARKET SURVEY INVESTMENT/BÜROVERMIETUNG INVESTMENT/OFFICE LETTING 2018/Q1-42018/Q1-2 ABOUT US GERMAN PROPERTY PARTNERS Each of us being a leading commercial real estate company We have founded German Property Partners with the aim in its respective region, we have joined together to form a of providing our special services in all of Germany’s major Germany-wide real estate network. We are five strong real estate centres. That way, whatever your commercial partners. real estate requirements, wherever you are in Germany, you can obtain your advice from a single provider, and that In Northern Germany, Grossmann & Berger offers its real is us. Via our network and thanks to our respective market estate services out of its locations in Hamburg and Berlin, positions, we can offer you outstanding local knowledge LOCAL EXPERTISE – ACROSS GERMANY while E & G Real Estate covers Southern Germany from and preferential market access throughout Germany. its bases in Stuttgart and Munich. ANTEON Immobilien is GERMAN PROPERTY PARTNERS the firm to contact about property matters in and around The many years of service our employees have put in with Düsseldorf, while GREIF & CONTZEN Immobilien are your us, make German Property Partners a reliable partner for Dear Readers, eyes and ears in the metropolitan area of Cologne and long-term collaboration in the fields of commercial real Bonn. blackolive guarantees full market coverage in the estate and finance. Fresh superlatives were needed to describe the 2018 also on each of the top 7 locations and the sub-markets Frankfurt region. property market. At Germany’s top 7 cities the volume of within each of these. investment transactions was the highest in over ten years, totalling €36.7bn. The top 7 also continued to register We hope you find the survey an informative and illumi- Partner great demand for office space, resulting in a respectable nating read. We would be happy to hold personal talks with year-end total of 3.9m m². Too few properties to meet you and answer your specific questions about property Grossmann & Berger Anteon GREIF & CONTZEN demand remains a constraint on the market. This shortage matters. A real estate consultant with expe- Anteon is an owner-managed real This owner-managed service company is reflected both in the average vacancy rates, which have rience stretching back for over 80 estate consultancy firm that spe- has been providing consultancy, evalu- fallen to an all-time low of 3.4% in these cities, and in the Guido Nabben years, Grossmann & Berger is one of cializes in brokering office lets, invest- ation, brokering and management ser- huge proportion of space in new developments that is let Spokesman for German Property Partners the leading service providers for the ments and industrial & logistics prop- vices for commercial and residential before completion. sale and letting of commercial and resi- erties. In addition, as one of the market properties in the metropolitan region of dential real estate in Northern Germany, leaders, Anteon offers property mar- Cologne | Bonn for over 40 years, and is This market survey provides a review of the year 2018 as and is an affiliate in the HASPA-group of keting, project support and research experienced in the entire value chain of it played out on Germany’s top 7 markets. In addition to CONTENT companies. services. real estate transactions. drawing comparisons between the top 7 markets, we offer a detailed look at the investment and office letting markets Top 7 | Overview and Key figures ................................4/5 in Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Economic environment ................................................... 6 blackolive E & G REAL ESTATE Stuttgart and Munich. This survey includes a new section Spotlight: Coworking space ........................................... 7 blackolive is an owner-managed real E & G is one of the leading providers of on the economic environment and one called “Spotlight” - Top 7 | Investment ........................................................8/9 estate consultancy firm that focuses on real estate services in South Germany in this edition we shall be shedding more light on the pro- Top 7 | Office letting .................................................10/11 office letting and investment. The man- and has many years’ experience in the viders of coworking space. Hamburg ...................................................................12/13 aging directors both have more than 26 fields of investment in commercial and Berlin .........................................................................14/15 years of experience and stand for an in- residential properties and the com- This market survey was made possible by the partnership Düsseldorf ................................................................16/17 depth understanding of the market. mercial letting of office, retail, indus- between five of the leading service providers specialized in Cologne .....................................................................18/19 trial or logistics premises. commercial properties based in north, central and south Frankfurt .................................................................. 20/21 Germany - the nationwide network German Property Stuttgart .................................................................. 22/23 Partners (GPP). Our detailed knowledge of local markets Munich ...................................................................... 24/25 gives us access not only to data on the overall market, but 2 3 WWW.GERMANPROPERTYPARTNERS.DE LOCAL EXPERTISE – ACROSS GERMANY MARKET SURVEY INVESTMENT/OFFICE LETTING 2018/Q1-4 OVERVIEW KEY FIGURES TOP 7 | 2018/Q1-4 TOP 7 | 2018/Q1-4 INVESTMENT OFFICE LETTING » Strong growth boosts transactions by 22% to €36.7bn » Take-up of office space, although considerable at » Forward deals account for remarkable 18% 3.9m m², not on a par with the good result of 2017 » Result betters previous record year of 2007 by almost » Vacancy rate at new all-time low HAMBURG BERLIN €5.0bn » Take-up spurred by new build projects with high pro- 590,000 m² (-8 %) 835,000 m² (-7 %) » Strong 4th quarter with transactions totalling €12.0bn portion of pre-letting 27.50 €/m² (+6 %) 33.50 €/m² (+12 %) 15.80 €/m² (+4 %) 21.30 €/m² (+9 %) » Average rent rises in almost every top 7 city 3.5 % (-0.8 pp) 1.8 % (-0.4 pp) €5.95bn (+65 %) €6.75bn (-8 %) 2.80 % (-0.1 pp) 3.00 % (-0 pp) Office letting Hamburg Berlin Düsseldorf Cologne Frankfurt Stuttgart Munich Top 7 2018/Q1-4 Take- up of space 590,000 835,000 334,600 310,000 639,400 218,000 955,000 3,882,000 [m²] Year-on-year change [%] -8 -7 -7 0 -12 -19 +9 -5 Average rent 15.80 21.30 16.10 15.00 20.00 13.90 18.65 - [net €/m²/mth] DÜSSELDORF Year-on-year change [%] +4 +9 +5 +9 -1 +1 +10 - 334,600 m² (-7 %) (+2 %) Premium rent 27.50 €/m² 27.50 33.50 27.50 23.00 43.50 23.00 36.80 - [net €/m²/mth] 16.10 €/m² (+5 %) 7.6 % (-0.8 pp) Year-on-year change [%] +6 +12 +2 +7 +9 -5 +5 - €3.84bn (+30 %) Vacant space 3.00 % (-0.4 pp) 477,200 350,000 555,000 200,000 858,600 186,000 420,000 3,046,800 [m²] Year-on-year change [%] -18 -19 -12 -29 -15 +11 -28 -17 Vacancy rate 3.5 1.8 7. 6 2.6 7. 4 2.3 1.8 3.4 [%] Year-on-year change -0.8 -0.4 -0.8 -1.0 -1.2 +0.2 -0.7 -0.7 [percentage points (pp)] COLOGNE Completions 310,000 m² (0 %) 313,000 843,000 269,000 235,000 472,000 168,600 465,000 2,222,000 FRANKFURT 2019+2020 [m²] 23.00 €/m² (+7 %) 639,400 m² (-12 %) Pre-let rate [%] 63 55 41 74 55 48 90 77 15.00 €/m² (+9 %) 2.6 % (-1.0 pp.) 43.50 €/m² (+9 %) €2.10bn (-9 %) 20.00 €/m² (-1 %) 7.4 % (-1.2 pp) Investment 3.30 % (-0.4 pp) Hamburg Berlin Düsseldorf Cologne Frankfurt Stuttgart Munich Top 7 €9.69bn (+42 %) 2018/Q1-4 3.00 % (-0.3 pp) Transaction volume 5,950 6,750 3,840 2,100 9,685 2,147 6,237 36,709 [€m] Year-on-year change [%] +65 -8 +30 -9 +42 +79 +6 +22 STUTTGART MUNICH Share CBD [%] 29 25 10 48 60 10 9 31 218,000 m² (-19 %) 955,000 m² (+9 %) Share of foreign 26 60 39 26 51 39 41 44 23.00 €/m² (-5 %) 36.80 €/m² (+5 %) investors [%] 13.90 €/m² (+1 %) 18.65 €/m² (+10 %) Share of 2.3 % (-0.2 pp) 1.8 % (-0,7 pp) 19 20 12 18 27 10 7 18 forward deals [%] €2.15bn (+79 %) €6.24bn (+6 %) 3.30 % (-0,2 pp) Share of asset class 2.85 % (-0.15 pp) 55 57 63 52 86 60 68 67 Office [%] Prime yield 2.80 3.00 3.00 3.30 3.00 3.30 2.85 3.04 Office [%] Year-on-year change [pp] -0.10 0.00 -0.40 -0.40 -0.30 -0.20 -0.15 -0.22 Prime yield KEY FIGURES OFFICE LETTING/INVESTMENT: 2.70 2.90 3.00 2.90 2.90 2.80 2.40 2.80 Commercial premises [%] Take-up of space (year-on-year change) Vacancy rate (year-on-year change) Year-on-year change [pp] -0.20 0.00 -0.50 -0.30 -0.20 -0.30 -0.05 -0.22 Premium rent (year-on-year change) Transaction volume (year-on-year ch.) Prime yield 4.50 4.20 4.35 4.20 4.20 4.50 4.00 4.28 Logistics [%] Average rent (year-on-year change) Prime yield office (year-on-year ch.) Year-on-year change [pp] -0.10 -0.30 -0.40 -0.50 -0.40 0.00 -0.40 -0.30 4 5 WWW.GERMANPROPERTYPARTNERS.DE LOCAL EXPERTISE – ACROSS GERMANY MARKET SURVEY INVESTMENT/OFFICE LETTING 2018/Q1-4 GERMANY SPOTLIGHT BUSINESS ENVIRONMENT COWORKING SPACE AND BUSINESS CENTRES Year on year even more space was rented in 2018 by the TOP 10 OFFICE LETTINGS | TOP 7 CITIES In 2018 the German economy’s growth rate was slower Following a rise at the start of 2018, 10-year Federal bonds providers of coworking space and business centres.