Office Market Profile Nuremberg | 4th quarter 2019 Published in February 2020 Nuremberg Development of Main Indicators High take-up thanks to large-scale lettings Nuremberg’s off ice space market remained a sought-aft er business location. Positive net absorption confi rmed the steady growth of the Franconian city. The market was char- acterised by strong demand for off ice space, but also by low supply. For the fi rst time, there was a clear alignment of two submarkets in terms of the prime rent. In 2019, 133,600 sqm of off ice space was taken up on the Nuremberg off ice space market - almost double the previous this size category was concluded by Design Off ices GmbH in year’s result of 67,300 sqm and the third-best result within the the City Centre Fringe submarket (approx. 10,000 sqm). last ten years aft er 2016 (142,000 sqm) and 2017 (137,900 sqm). This strong performance was attributable to fi ve leases The Nuremberg real estate market remains a sought-aft er in the large-scale size category. With a total volume of 76,500 business location and continues to expand. Over the past 12 sqm, these lettings accounted for more than half of the overall months, this has been evident from the net absorption fi g- result. By far, the largest letting was concluded by the City of ure which has improved by 59,000 sqm in terms of the vol- Nuremberg in “The Q” (approx. 42,000 sqm). Another lease in ume of occupied off ice space. Nuremberg: Off ice Space Market Areas with Rental Bands (€/sqm/month) Nuremberg: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2019/Q4 Lauf a.d. Pegnitz Watzendorf Nürnberg Burgfarrnbach North € 7.50-14.00 Röthenbach a.d. A73 Schwaig Pegnitz bei Nürnberg Oberfuerberg Fürth A3 East € 7.50-14.00 E45 Banderbach City Centre € 8.50-16.00 Inner City Belt € 8.50-16.00 Zirndorf Nürnberg Bronnamberg A9 Oberasbach Wintersdorf West Weinzierlein € 7.50-14.00 Nuernberg-Fischbach Altenfurt Stein South € 7.50-14.00 A6 Feucht Off ice Market Overview Nuremburg | 4th quarter 2019 2 Given the number of large-scale searches, we expect above- are currently at the planning stage. Of these, a large propor- average take-up of around 100,000 sqm for the coming year. tion of off ice space (77%) is also still available, although con- struction of the projects will only commence aft er a suff i- Strong demand is faced with a low supply of off ice space. cient pre-letting rate has been secured. The volume of vacancies has been falling steadily since 2010 and the vacancy rate reached a historic low of 2.1% in the The continuing strong demand and scarcity of high-quality fi rst half of 2019, while rising again slightly by 0.4 percentage off ice space is refl ected in the prime rent. Aft er remaining points to 2.5% at the end of the year. Over the coming year, stable for 18 months, it has now increased for a second time we expect it to increase further, albeit slightly, to 2.7%. This to its current level of €16.00/sqm/month and, at the end of forecast is based on the assumption that some companies 2019, was achieved (for the fi rst time ever) in two submar- will move into their new premises in 2020 thereby releasing kets simultaneously, i.e. the City Centre and City Centre their former accommodation onto the market. Fringe. This alignment has occurred as a result of the rela- tively high level of new construction in the City Centre Fringe Space completed in 2019 brought just 1,700 sqm of available submarket, which has both increased the supply of new new space onto the letting market. A further 58,900 sqm of space and, consequently, stimulated demand. space had already been pre-let prior to its completion. Next year, the completion pipeline is not expected to provide any Over €800 billion worth of properties were sold in Nurem- relief with just a small proportion (of just under 1.0%) still berg’s investment market in 2019, 80% higher than the trans- available to the letting market. However, the situation will action volume recorded in the previous year. Investor de- change over the next two years with the completion of a fur- mand for investment products remains high. Aft er two and a ther approx. 42,000 sqm of space in 2021/22, of which al- half years of stability, the prime yield for off ice properties fell most 96% is still available to the market. Further new-build by 0.15 percentage points to 3.70% at the end of 2019. projects with a volume of over half a million square metres Off ice Market Data 2018 2019 % Off ice Space Take-up incl. Owner Occupier (sqm) 67,300 133,600 98.5 Vacancy incl. Space for subletting (in sqm) 96,300 97,500 1.2 Vacancy Rate incl. Space for subletting (in %) 2.5 2.5 0.0 Prime Off ice Rent (€/sqm/month) 15.00 16.00 6.7 Completions (in sqm) 31,800 22,600 -28.9 Off ice Space Stock (in Mill. sqm) 3.91 3.92 0.5 Off ice Market Overview Nuremberg | 4th quarter 2019 3 Contacts Contact Nürnberg Stephan Leimbach Helge Scheunemann Julia Schreiter Head of Office Leasing Germany Head of Research Germany Team Leader Office Leasing Nürnberg +49 (0) 69 2003 1245 +49 (0) 40 350011 225 +49 (0) 911 633 297 70 [email protected] [email protected] [email protected] jll.de Information regarding JLL and our services jll.de/research All research reports on current market figures and special topics jll.de/immo Commercial real estate properties for sale or to let througout Germany Copyright © JONES LANG LASALLE SE, 2020. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them. Office Market Overview Nuremburg | 4th quarter 2019 4.