ISSUE 02 CHANGE The Magazine of BNP Paribas Real Estate Germany GERMAN CITIES EMBRACE THE GREEN TREND! Green buildings on the rise 14 18 30 LOGISTICS OFFICE HOTEL Going up! Logistics properties Berlin Mediaspree: from newcomer Are established hotel operators are getting taller to prime of ce market in deep water? 21.09.2018 11:29 (tx_vecto) PDF_1.3_PDFX_1a_2001 300dpi YMCK ISOcoatedv2_FOGRA39_U280_K95 GMGv5 03 EDITORIAL Responsibility and sustainability are some of the key topics of the 21st century – especially in the real estate sector. That is why we have decided to make them the focus of the second R issue of our [CHANGE] magazine. In these pages we present examples of the DGNB German Sustainable Building Council’s plans for the future of green buildings along with inspiring best practices like the “icon” cradle-to-cradle project in Dortmund. You will also nd fascinating articles on how sustainability is staking a claim in the real estate sector, from of ce and logistics to retail. Andreas Völker Managing Director, And, of course, we take a look at other current hot topics as well. The world BNP Paribas Real Estate Germany of real estate is undergoing a transformation in which every asset class is being confronted with similar but at the same time entirely different challenges. While the hotel market is facing a consolidation wave, Berlin’s Mediaspree is becoming the city’s new prime office market and owners of older high-rises like the Frankfurt Messeturm are coming up with innovative “Sustainability, digitalisation concepts to keep up with new flagship developments. Many thanks to all of our colleagues and partners who have and limited availability. The helped us with the project by providing content and images. Without you, [CHANGE] wouldn’t be what it is: an inside view real estate sector is facing into the transformation we are seeing in real estate. signi cant challenges”. Enjoy the issue! BNP Paribas Real Estate Germany Magazine 02 21.09.2018 11:29 (tx_vecto) PDF_1.3_PDFX_1a_2001 300dpi YMCK ISOcoatedv2_FOGRA39_U280_K95 GMGv5 04 11 08 CONTENT 06 16 30 TITLE: GREEN BUILDINGS FACTS & FIGURES HOTEL Good to know: Are established hotel operators 06 German cities embrace Sustainability in deep water? the green trend 08 icon – green of ces based on cradle-to-cradle design 18 34 10 DGNB: The path toward OFFICE OFFICE climate-positive buildings Berlin Mediaspree: from newcomer The future is now to prime of ce market Creating a modern workplace 11 OFFICE 20 36 On records, transparency and RETAIL URBAN FARMING a great atmosphere Are you enjoying the experience or Gardeners on the company roof Frankfurt’s Messeturm reloaded still just buying? 14 22 LOGISTICS RESIDENTIAL Going up! Once upon a time in Berlin ... Logistics properties are Sleeping Beauty in Lichtenberg getting taller 24 PERSPECTIVES Picture series: Real estate in a changing world Visualisation: Delta Projektentwicklung und Management GmbH, Cadman Photos: Bikini Berlin, Steve Herud 04 // Content // 05 11 08 CONTENT 30 06 16 30 TITLE: GREEN BUILDINGS FACTS & FIGURES HOTEL Good to know: Are established hotel operators 06 German cities embrace Sustainability in deep water? the green trend 08 icon – green ofces based on 18 34 cradle-to-cradle design IMPRINT 10 DGNB: The path toward OFFICE OFFICE climate-positive buildings Berlin Mediaspree: from newcomer The future is now Publisher, Copyright and Editor to prime ofce market Creating a modern workplace BNP Paribas Real Estate Holding GmbH 11 Creative Direction & Design KD1 Designagentur, Cologne OFFICE 20 36 On records, transparency and RETAIL PROPERTY MANAGEMENT Cover Illustration a great atmosphere Are you enjoying the experience or Right in the thick of it Anja Stiehler-Patschan / Frankfurt’s Messeturm reloaded still just buying? Property Management at the Jutta Fricke Illustrators TRIANON high-rise Copyediting 14 22 TranslationFX, Munich LOGISTICS RESIDENTIAL 38 URBAN FARMING Going up! Once upon a time in Berlin ... carbon neutral Logistics properties are Sleeping Beauty in Lichtenberg Gardeners on the company roof natureOffice.com | DE-140-735173 getting taller print production 24 PERSPECTIVES 20 Picture series: Real estate in a changing world Visualisation: Delta Projektentwicklung und Management GmbH, Cadman Photos: Bikini Berlin, Steve Herud BNP Paribas Real Estate Germany Magazine 02 06 // GREEN BUILDINGS // GERMAN CITIES EMBRACE THE GREEN TREND Green buildings on the rise – an interview with Hermann Horster, Head of Sustainability at BNP Paribas Real Estate Germany, on sustainability in the real estate sector, different types of certi cations and the hidden capital city of green buildings Mr Horster, what exactly is a “green building”? How can you tell that a building is sustainable? [Hermann Horster: The term is actually some- [Hermann Horster: The most obvious criterion what misleading. Today it’s not just about ecological is whether the building has been certi ed. There speci cations like an of ce building’s energy ef ciency are currently three recognised certi cations: DGNB or which building materials were used. Social aspects (Deutsche Gesellschaft für Nachhaltiges Bauen e.V.) like employee wellbeing at the workplace need to in German-speaking countries and LEED or BREEAM be taken into account as well. And, of course, the in the English-speaking world. DGNB’s market share combination of cost effectiveness and sustainability in the new-build segment is 80 per cent and around is another important aspect. So the term “sustainable 64 per cent in total (including stock buildings). LEED building” would actually be a better t than “green is also primarily used in the new-build segment while building”.] BREEAM primarily certi es stock properties. However, that doesn’t mean that buildings that haven’t been Illustration: Anja Stiehler 06 // German cities embrace the green trend // 07 certi ed aren’t sustainable. SMEs in particular often of setting themselves apart from other market players, don’t have their buildings certi ed for cost reasons showcasing their commitment to environmental, social even though they would qualify as green buildings.] and sustainability goals as well as making their con- tribution to the sustainable development of cities and What’s the current situation on the to achieving climate targets.] green building market? [Hermann Horster: The green building market is Is this trend particularly relevant in certain cities? booming. Only 550 buildings were certi ed in 2013. [Hermann Horster: Ongoing growth in demand for By 2018 that number had risen to 1,800, re ecting an green buildings has been particularly strong in major annual increase of roughly 250 buildings! Transaction cities. In 2018, prime locations in Germany accounted volume is impressive as well. In 2018, single-asset for around 94 per cent of total volume in the certi ed deals for buildings certi ed as green accounted for buildings segment. Frankfurt claimed the lion’s share 10.1 billion euros, exceeding the 10-billion-euro mark at 52 per cent with Munich coming in a distant second for the very rst time. Certi cations like DGNB, BREEAM with 12 per cent.] and LEED are apparently becoming a must-have.] What role do landlords play? When it comes to commercial properties, green [Hermann Horster: Major investors like real estate building certi cation is still a relatively recent trend. funds and insurance companies prefer to invest in What drives the market? green buildings, if only for reasons of cost ef ciency. [Hermann Horster: The issue has only become Certi ed properties have a greater chance of attract- important within the last decade, initially in English- ing strong-covenant tenants. This also explains why // GREEN BUILDINGS // speaking countries but increasingly in Germany as it is hard to nd a renovation project in popular of ce well. Tenants are the main growth drivers. Many locations like Frankfurt that does not involve green companies use their corporate headquarters as a way building certi cation.] GERMAN CITIES EMBRACE THE GREEN TREND “Frankfurt is GREEN BUILDING CERTIFICATION Green buildings on the rise – an interview with the uno cial IN THE BIG 7 Hermann Horster, Head of Sustainability at BNP Paribas Real Estate Germany, on sustainability in the real estate sector, capital of 187 HAMBURG different types of certi cations and the hidden capital city of green buildings”. green buildings 182 116 BERLIN 73 DÜSSELDORF COLOGNE New Existing Mr Horster, what exactly is a “green building”? How can you tell that a building is sustainable? 264 buildings buildings FRANKFURT [Hermann Horster: The term is actually some- [Hermann Horster: The most obvious criterion Berlin 118 64 what misleading. Today it’s not just about ecological is whether the building has been certi ed. There Cologne 51 22 speci cations like an of ce building’s energy ef ciency are currently three recognised certi cations: DGNB 75 or which building materials were used. Social aspects (Deutsche Gesellschaft für Nachhaltiges Bauen e.V.) STUTTGART 188 Düsseldorf 77 39 MUNICH like employee wellbeing at the workplace need to in German-speaking countries and LEED or BREEAM Frankfurt 137 127 be taken into account as well. And, of course, the in the English-speaking world. DGNB’s market share Hamburg 135 52 combination of cost effectiveness and sustainability in the new-build segment is 80 per cent and around is another important aspect. So the term “sustainable 64 per cent in total (including stock buildings). LEED Munich 127 61 building” would actually be a better t than “green is also primarily used in the new-build segment while HERMANN HORSTER Stuttgart 51 24 building”.] BREEAM primarily certi es stock properties. However, knows that demand continues to © BNP Paribas Real Estate GmbH, 31.12.2018 that doesn’t mean that buildings that haven’t been Illustration: Anja Stiehler grow, especially in major cities. BNP Paribas Real Estate Germany Magazine 02 08 BEST PRACTICE: ICON – GREEN OFFICES BASED ON CRADLE-TO-CRADLE DESIGN Dortmund is home to a unique green building project: The icon of ce development by Dutch-based Delta Development Group is inspired by the cradle-to-cradle design principles and considered a agship project for sustainable construction.