2018 BREMEN PROPERTY MARKET REPORT OFFICES | LOGISTICS | RETAIL HOUSING | INVESTMENT City Gate, Bahnhofsvorstadt Foreword 2 | 3 Bremen remains an extremely attractive property loca- tion. This is demonstrated by the very good developments in all segments of the property market. Thus, floor-space turnover on the office property market just missed the threshold of 100,000 m² rental space in the previous year – at vacancy rates of only 3 %. Admittedly, 2018 began in a somewhat more reserved manner, but the planned new- builds will drive sales up further in the coming quarter at the latest – including the new Sparkasse headquarters in the heavily in-demand Bremen Technology Park. New development and construction projects also allow extremely lively growth to be expected on the market for logistics property. Even now, the total property portfo- lio amounts to over 2.8 million m². Of this, 60 % is due on Photo: Björn Behrens areas that are particularly interesting to investors – four times as much as the average for Germany. This under- lines the enormous capital assets of Bremen as an inter- face in international goods transport. Accordingly, sales also rose strongly again in the first half of 2018. iting from asset pressure on the capital markets. More than half a billion Euro were turned over in the previous Likewise, a markedly high dynamism is emerging in Bre- year. Admittedly, volumes fell back slightly in the first men’s retail. Numerous property projects are in planning half of 2018, but Bremen remains clearly in the focus of inside and outside the A1 locations, which will noticea- investors. bly raise the shopping and living quality in the city cen- tre. Among those that can be named are the planned or You too can use the potential on the Bremen property already in implementation conversions of the Parkhaus market. This report will provide you with the facts and fig- Mitte site, the Lloydhof, the Bremer Carree and the ures to do so. We look forward to meeting you in person. Johann-Jacobs-Haus. In 2017, there was a completion record on the Bremen residential market – related to the last five years. Addi- tional large construction projects are continuing this trend. Nevertheless, construction activities are insuf- ficient to meet the increasing demand and to cool price Andreas Heyer rises. The high assets pressure is not least leading to a CEO rise in purchase prices for new apartments of up to 12 % WFB Wirtschaftsförderung Bremen GmbH at the peak. The Bremen investment market is also prof- (Bremeninvest) Visualisation: HPE Hanseatische Projektentwicklung Hanseatische GmbH HPE Visualisation: Johann-Jacobs-Haus, city centre Contents 4 | 5 Visualisation: EuropaQuartier EuropaQuartier Visualisation: GrundbesitzBremen GmbH Schuppen 3, Überseestadt Housing BRIK, Oberneuland Dachser Freight, GVZ MARKET FOR OFFICE PROPERTY 2018 * TAKE-UP | CONSTRUCTION ACTIVITY | PRICE LEVELS 6 – 11 MARKET FOR LOGISTICS PROPERTY 2018 ** TAKE-UP | COMMERCIAL ESTATES | PRICE LEVELS 12 – 17 BREMEN AS RETAIL LOCATION 2018 * STRUCTURE | LOCATIONS | PRICE LEVELS 18 – 23 HOUSING MARKET 2018 * DEMOGRAPHICS | PRICE LEVELS | FORECASTS 24 – 25 INVESTMENT MARKET REPORT 2018 * TRANSACTIONS | YIELDS | PRICE LEVELS 26 – 27 Sources: *bulwiengesa AG; ** LSA Logistik Service Agentur GmbH MARKET FOR OFFICE PROPERTY 2018 TAKE-UP CONSTRUCTION ACTIVITY PRICE LEVELS 24’7 twentyfourseven, Technology Park VACANCY RATE OF 3.0 % REMAINS AT THE LOWEST LEVEL OFFICE FLOOR SPACE TURNOVER FELL SLIGHTLY TO 87,500 m² Office Center Überseestadt Market for office property 2018 8 | 9 STABLE SALES AT A HIGH LEVEL Büroimmobilien Büroimmobilien In 2017, office space sales of 99,500 m² in total were BremenBüroimmobilien city centre with nearly 28,500 m². With less than posted – equally distributed over both halves of the year. 5,500 m², the city outskirts represented the lowest office Despite a slight decline in comparison with the previous floorOffice lettingsspace turnoverin Bremen in 2014 2017. to 2018Market in m² development in 2018 year, the result was almost 10,000 m² above the average hasOffice been lettings determined in Bremen by 2014 sales to 2018 in the in m² city centre so far. At of the last 5 years (89,700 m²). The largest transaction 69,100 2014 completed related to the new corporate headquarters of Office lettings in Bremen 2014 to 2018 in m² 69,100 Kühne + Nagel, which is currently being built on 9,500 m² 2014 83,200 in Bremen city centre. However, owner occupations such 2015 69,100 2014 83,200 as this only made up a good 10 % of total sales in 2017. 2015 101,800 2016 83,200 2015 At about 38,500 m², floor-space turnover in the first half 101,800 2016 99,500 of 2018 was at a lower level than in the first halves of 2017 2017 101,800 and 2016. To date, there have not been any sales of space of 2016 99,500 2017 more 5,000 m², for which experience suggests mostly owner 87,500 2018* 99,500 occupiers come into question. The largest transaction so *2017 Forecast 87,500 far was carried out by the co-working provider Spaces, 2018* * Forecast 87,500 which rented 3,200 m² in the Ansgarihaus. However, the 2018* Sparkasse Bremen is planning to build a new headquarters Lettings* Forecast in city comparison 2018 in m² * in the Technology Park in the fourth quarter of 2018. With Lettings in city comparison 2018 in m² * this large owner-occupied property, floor space turnover 87,500 BREMEN could be around 90,000 m² at the end of the year. Lettings in city comparison 2018 in m² * 87,500 Development of construction activity 2014 to 2018 in m² BREMEN 103,600 LEIPZIG Smaller sales characterise the market 87,500 Development of construction activity 2014 to 2018 in m² BREMEN 103,600 Almost 60 % of sales was due on space of up to 1,000 m² 55,521 LEIPZIG 112,600 2014 in 2017. Only a few large transactions completed with ESSEN 103,600 Development of construction activity 2014 to 2018 in m²55,521 more than 5,000 m² were registered. In addition to the LEIPZIG 112,600 2014 65,791 ESSEN 121,600 2015 55,521 Kühne + Nagel owner occupation already mentioned, HANOVER 112,600 2014 65,791 these included large lettings to the municipality of Bre- ESSEN 121,600 2015 18,124 HANOVER 295,800 2016 men and Mondelēz. The latter added up to total turnover STUTTGART 65,791 121,600 2015 18,124 of about 21,300 m² – barely less than medium-sized let- HANOVER* Forecast average of the last five years 295,800 2016 STUTTGART 34,988 tings of between 1,000 and 5,000 m². 2017 * Forecast average of the last five years 18,124 295,800 2016 34,988 STUTTGART 2017 64,750 Market activities in 2018 were characterised by sales in the *Sector Forecast average structure of the last of five office years lettings 2018 in m² * 2018* 34,988 2017 small and medium-sized segment in the first half of the * Forecast 64,750Total Sector structure of office lettings 2018 in m² * 2018* year. About 17,500 m² has involved spaces of up to 500 m² to 32,800 OTHER SECTORS * ForecastOf which no longer available Of which available (vacant) 64,750Total date. A total of 15.900 m² involved spaces of between 1,000 Sector structure of office lettings 2018 in m² * 32,800 2018* and 5,000 m². Thus, both segments each made up more OTHER SECTORS 17,500 * ForecastOf which no longer available Of which available (vacant) Total than 40 % of registered sales. In contrast, the result for FORWARDING; PRODUCTION, TRADE 32,800 OTHER SECTORS 17,500 Of which no longer available Of which available (vacant) spaces of between 500 and 1,000 m², with sales of approxi- FORWARDING; PRODUCTION, TRADE 15,200 mately 5,100 m², were lower than in the same period in pre- BANKS, FINANCIAL SERVICES 17,500 vious years (for current large transactions see above). FORWARDING; PRODUCTION, TRADE 15,200 BANKS, FINANCIAL SERVICES 8,500 ASSOCIATIONS, MUNICIPALITY, UNIVERSITY 15,200 Technology Park and Airport-Stadt still popular BANKS, FINANCIAL SERVICES 8,500 ASSOCIATIONS, MUNICIPALITY, UNIVERSITY 7,800 In 2017, the Überseestadt was the location with the highest COMMUNICATION AND INFORMATION TECHNOLOGY 8,500 office floor space turnover for the second year in a row. The ASSOCIATIONS, MUNICIPALITY, UNIVERSITY 7,800 COMMUNICATION AND INFORMATION TECHNOLOGY 5,700 result even slightly exceeded with 31,500 m² the volume of BUSINESS-RELATED SERVICES 7,800 Office Center Überseestadt the previous year. Überseestadt was closely followed by the COMMUNICATION* Forecast AND INFORMATION TECHNOLOGY 5,700 BUSINESS-RELATED SERVICES * Forecast 5,700 * All details for office space in m² = m² rental space BUSINESS-RELATED SERVICES * Forecast / COBE Architects COBE / Europahafenkopf, Überseestadt Visualisation: Zech Group Zech Visualisation: Nagel + Büroimmobilien Visualisation: Delugan Meissl Meissl Delugan Visualisation: Associated Architects Visualisation: Visualisation: Kühne Sparkasse Bremen, Technology Park EcoMaT construction site, Airport-Stadt Kühne + Nagel, city centre Office lettings in Bremen 2014 to 2018 in m² over 16,000 m² more69,100 than 40 % of registered floor space Completions grow further in 2018 2014 turnover was located here. Behind the city centre came the In 2017, very little new office space was completed: Technology Park. Despite83,200 comparatively weak sales in the 9,600 m² in newbuilds and 8,500 m² in renovated prop- 2015 previous year, a medium-term scarcity of space emerges erties. The largest property, the Lofthaus 1 in the Über- here. Not least the101,800 recently planned Sparkasse newbuild, seestadt, opened with over 4,900 m² of office space. The 2016 underlines the great attractiveness of the location. first half of 2018 clearly exceeded the previous year’s result.