ELLWANGER & GEIGER: THE STUTTGART OFFICE MARKET 2012/2013
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Transcript of ELLWANGER & GEIGER: THE STUTTGART OFFICE MARKET 2012/2013
Changing StuttgaRt.ThE sTuTTgarT OFFiCE MarkET 2012/2013
* Data from a survey by Bulwiengesa ag + Baasner, Möller & Langwald gmbh Source: Research BankhauS ELLwangER & gEigER kg ©, as of 31 December 2012
Year Volume (sq. m)
representative prime rents
average central business district rents
Vacancies (sq. m)
Vacancies (%)
Total space (mill. sq. m)
Completion volume (sq. m)
Pre-leased volume (sq. m)
2000 205,000 €16.87 €14.90 100,000 1.50 6.356 60,000 n/a
2001 160,000 €18.41 €15.34 137,000 2.00 6.516 160,000 130,000
2002 127,000 €17.89 €14.80 292,000 4.20 6.828 312,000 220,000
2003 149,000 €17.50 €14.50 379,000 5.30 6.973 145,000 80,000
2004 152,000 €17.00 €14.50 415,000 5.70 7.102 129,000 93,500
2005 145,000 €17.00 €13.50 402,000 5.60 7.170 68,500 51,400
2006 140,000 €17.50 €13.50 467,400 6.50 7.222* 52,500 20,500
2007 169,000 €17.50 €14.50 466,000 6.40 7.253 32,600 23,400
2008 180,000 €18.00 €14.50 460,000 6.20 7.367 117,000 116,000
2009 171,000 €18.00 €13.60 453,000 6.12 7.401 40,000 22,000
2010 194,000 €17.50 €14.30 480,000 6.46 7.425 42,400 22,400
2011 285,000 €18.80 €14.30 424,000 5.7 7.449 45,900 41,200
2012 191,500 €20.00 €14.60 399,000 5.4 7.416 37,000 36,300
Overview Of the Stuttgart Office market
BülOw CarréLautenschlagerstr. 21Office + retailto be completed 2nd quarter of 2013
hOsPiTalhOFhospitalplatz/gymnasiumstr.Officeto be completed 4th quarter of 2013
CiTYgaTEkriegsbergstr. 11Büro + EinzelhandelFertigstellung 3. Q 2014
CiTYgaTEkriegsbergstr. 11Office + retailto be completed 3rd quarter of 2014
PaulinEPaulinenstr. 21 Office + clinicto be completed 3rd quarter of 2013
BülOw CarréLautenschlagerstr. 21Office + retailto be completed 2nd quarter of 2013
CalEidOtübinger Str. 41– 43Office + retail + residentialto be completed 2nd quarter of 2013
das gErBErMarien-/tübinger-/Paulinenstr.Office + retail + residentialto be completed 4th quarter of 2014
dOrOThEEn quarTiErDorotheenstr./holzstr. Office + retail + residentialto be completed 2nd quarter of 2017
pariser höfeAthener Str. 9 –11 Office + residentialTo be completed 2nd quarter of 2013
ihKJägerstr. 30 OfficeTo be completed 2nd quarter of 2014
milaneoHeilbronner Str./Wolframstr. Office + retail + residential + hotelTo be completed 2nd quarter of 2015
site section 7Wolframstr. Hotel + residentialTo be completed 3rd quarter of 2015
citygateKriegsbergstr. 11Office + retailTo be completed 3rd quarter of 2014
sparKassenaKademieMoskauer/Lissabonner Str. Office + trainingTo be completed 1st quarter of 2014
europe plazaStockholmer Platz 1 OfficeTo be completed at unknown date
looK 21Türlenstr./Heilbronner Str. Office + residentialTo be completed at unknown date
CONTENTS.
Foreword 8
Stuttgart: A city of tradition and a great future 10
Europaviertel – under construction 11
Rental take-up rates at good level 12
Demand varies from sector to sector 14
Losses for large premises 15
Rental rates go up once again 16
Vacancy rate continues to fall 18
Nationwide office market stagnates 20
Stuttgart central business district/city centre:
Record levels of construction activity 22
Northern Stuttgart: Plans for enhancement 23
Eastern Stuttgart: Plenty of space for new projects 24
Southern Stuttgart: Supply of new space scarce 25
Overview of the Stuttgart office market 27
Prospects are good for 2013 28
Your contact partners 30
ELLWANGER & GEIGER Real Estate 31
FOREWORD.
Stuttgart needs ecological modernisation.
Stuttgart is a cosmopolitan, tolerant and international city which is home to over 170 successfully
co-existing nationalities. The quality of life in Stuttgart is consistently high and the city has a vibrant
culture. These are some of the factors which enable businesses to attract the top professionals
which the city so urgently needs. Stuttgart is the economic engine for all of Baden-Württemberg.
The city is the world’s top location for engineering and the home of key, groundbreaking
environmental technology. The city’s economic strength is founded on a diverse range of industries,
a significant service sector, excellently networked businesses and, above all, its outstanding
capacity for innovation. It is essential that the city and region maintain these advantages. At the
same time, they must also promote the development of industries which manufacture the
products for which, in the future, there will be substantially growing demand on global markets.
The conditions for such a scenario are favourable.
The guiding vision for Stuttgart’s continuing economic development is one of ecological
modernisation. We have the scientific and technical capacity to gain a leading position in energy
technology, mobility, production engineering and environmental engineering. The enterprises
based in Stuttgart are already heading in this direction. Stuttgart must now shape up to become the
world’s leading location for green technologies. We must also manage a process of transformation
in which the city develops, applies and accelerates the practice of new forms of sustainable mobility.
In 15 years Stuttgart must export not only automobiles, but also tried-and-tested models for the
transportation systems of the future. This will involve the integrated, step-by-step realisation of the
energy transition, green urbanism and sustainable building.
We need strong businesses which engage in ecological modernisation to create new jobs which
uphold the vision of social justice and improve the quality of life for all of us.
Fritz KuhnMayor of Stuttgart
Ines AufrechtDirector of Business Development, Stuttgart
8
9
Focusing on sustainability.
Never before has there been so much construction activity in Stuttgart’s city centre as there was in
2012. Investors and tenants are increasingly attracted to the city centre and demand for modern
office space continues to grow unabated. This explains why construction work gets underway on
some new projects even before advance rental agreements are in place – ultimately the chances of
finding tenants are excellent.
It is gratifying to see the focus of project planning move increasingly towards the issue of
sustainability, especially bearing in mind that many large companies now insist that the premises
they occupy have a sustainability certificate. Baden-Württemberg’s capital city is the perfect setting
for this development. A recent study undertaken by the business news magazine Wirtschaftswoche
ranks Stuttgart as the most sustainable city in the whole of Germany. In the integrated scientific
study, the first of its kind, the Swabian capital scored well above average in all six of the sustainability
categories: economic strength, environment, human capital, social conditions, energy and transport,
as well as transparency and social commitment.
Over the next few years the focus of work will almost certainly shift to more peripheral parts of
Stuttgart, where the aim will be to set in motion positive developments similar to those which
have transformed the centre of Stuttgart.
Facts, figures and everything else worth knowing about Stuttgart’s office market in 2012 can
be found on the following pages. We hope you find the report informative and will be glad to
respond to any questions or suggestions you may have.
Mario Caroli Björn Holzwarth
STUTTGART: A CITY OF TRADITION WITH A GREAT FUTURE.
Although Stuttgart may have a smaller office market than any of Germany’s other seven most important property markets, over the years it has demonstrated that it has a great deal to offer. As well as a traditionally strong economy and a highly qualified workforce, other factors such as electromobility and sustainable building are becoming increasingly important. Stuttgart’s property market has also benefited from extensive property measures taken by automotive companies in 2012 which underlined their continuing commitment to their business locations in Stuttgart.
shoWcase for electromoBility
The region has been chosen by the government in Berlin
as one of Germany’s four “showcases for e-mobility”.
With so many people commuting into Stuttgart every
day work began several years ago on devising mobility
concepts, some of which have now been implemented
in the new “moovel” mobility platform which was
launched in mid-2012. The system shows its users the
best possible way to get from A to B and bundles the
offers of diverse mobility providers. Another idea behind
the showcase for electromobility is to foster continuing
development of know-how by the global firms based in
the region. Experiments have been underway for many
years on hybrid buses, for example. Trials are also being
conducted on large fleets of vehicles working with new
drive concepts, such as the 300 Car2Go Smart electric
drive cars which recently hit the road. The service is
supported by 300 charging stations set up by local
suppliers right across the city.
sustainaBle Building
In just four years, the certification system established in
Stuttgart by the German Sustainable Building Council
(DGNB) has become a badge of quality which now has an
indispensable function in the country’s property sector.
The system is now firmly established as the essential basis
for the leasing of modernised and new buildings or the
sale of properties. In addition, the Triple Zero® building
standard developed by Werner Sobek Engineering and
Klaus Sedelbauer will be implemented for the first time in
Stuttgart’s Neckarpark. This standard defines the demands
that a building must meet in order to qualify as a
sustainable structure. The lion’s share of the district’s
energy requirements will be met from renewable sources
of energy, such as heat recovered with heat exchangers
from waste water. At the same time, the initiators are
building a first model residential house to Triple Zero®
standards in Stuttgart. The plan is for the building to
produce more energy than it actually needs itself.
Data source: GfK GeoMarketing, figures as of December 2012
28,247
24,374
24,310
23,568
22,813
22,769
18,565
Munich
Düsseldorf
Frankfurt
Stuttgart
Cologne
Hamburg
Berlin
Per cAPitA PurchASinG Power in 2012, in €:
citieS with 500,000 or more reSidentS
10
11
EUROPAVIERTEL – UNDER CONSTRUCTION.
Fast and furious building in the europaviertel.
The 7,500 square metres of office space and 240 apart-
ments which make up the “Pariser Höfe” are almost fully
let and the first tenants have already moved into their
new homes. The biggest office user in this new urban
development is a subsidiary of EnBW, which has rented
some 6,000 square metres of space.
The new Sparkassenakademie building, which is going
up next to the City Library, is also beginning to take
shape: preliminary work on the almost 12,600 square
metres of new training and administrative space and
160 planned apartments has almost been finished.
Building work is scheduled for final completion in the
spring of 2014.
The foundation stone for the large-scale “Milaneo” project
has already been laid. The project will provide around
43,000 square metres of retail space, 7,400 square metres
of office space, 450 apartments and a hotel. Marketing
activities for retail space are in full swing. Plans for a hotel
and residential tower on the directly adjacent site section 7
are now also entering the final phase. The neighbouring
“Europe Plaza” project now has the green light and
construction work will begin as soon as the first advance
rental agreements are in place.
The road layout, with centrally located squares and a
new station to link the site to the urban railway, will also
enhance the quality of this urban development.
pariser höfeOffice + residentialTo be completed 2nd quarter of 2013
sparKassen aKademieTraining + residentialTo be completed 1st quarter of 2014
europe plazaOfficeTo be completed at unknown date
city liBrary
milaneoOffice + retail + residentialTo be completed 2nd quarter of 2015
site section 7Hotel + residentialTo be completed 3rd quarter of 2015
site section 5
site section 15
site section 12
site section 4
Development model
Under construction
Available space
Completed
Wolframstrasse
Wolframstrasse
RENTAL TAKE-UP RATES AT GOOD LEVEL.
After record letting rates in 2011, take-up of space on Stuttgart’s office market fell in 2012. with around 191,500 square metres of office space, of which 8,700 square metres is being used by owners, rental take-up was well below last year’s 285,000 square metres. nonetheless, rental take-up remained at a comparatively high level in 2012 compared with the average take-up of space over the last ten years of around 171,000 square metres.
rental Volume in stuttgart’s central
Business district still at record leVels
The amount of additional space rented out in Stuttgart’s
central business district rose impressively again by some
61,500 square metres, just below the previous year’s
record of 63,000 square metres. This outstanding annual
performance was largely due to lettings of new building
projects which are currently under construction. The
biggest transaction in Stuttgart’s central business district
involved the letting of around 12,000 square metres in
Bülow Carré to a law firm.
Much less space was let in Stuttgart’s city centre than in
2011. However, last year’s figures were also influenced by
the activities of a handful of proprietors who occupy their
own property (such as new buildings belonging to AOK
or Sparkassenakademie). The number of new leases was
in fact identical.
fall in rental taKe-up in Vaihingen and
möhringen
Rental take-up in the southern markets in Vaihingen and
Möhringen fell starkly in 2012, not only compared with
the exceptional letting rates of the year before. This was
most probably due to the lack of new space, particularly
for small premises. Thanks to its proximity to the motor-
way and airport, this area remains one of the most highly
desired locations. The largest area, of around 2,700 square
metres, of new space leased was in the OFFICIVM build-
ing complex. There were again no major transactions in
Leinfelden-Echterdingen this year.
northern suBmarKets
The northern submarkets encompassing Feuerbach/
Zuffenhausen again benefited from the strategic land
development activities of Porsche AG and Robert Bosch
GmbH. In fact, Bosch signed the largest contract of all
for around 5,000 square metres at the Feuerbach location.
12
13
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
central business district 19,000 4,600 55,100 33,300 43,000 61,500 44,400 38,200 32,800 63,000 61,500
city centre 45,000 28,400 21,700 43,200 31,300 46,600 41,700 83,800 66,600 97,500 58,400
Vaihingen/möhringen 6,300 14,450 30,800 10,400 32,600 13,700 18,500 20,200 26,200 56,300 18,200
fasanenhof 11,000 72,500 4,000 3,700 3,500 2,300 10,600 2,700 5,300 12,500 7,400
feuerbach/zuffenhausen 6,000 8,400 20,600 9,800 2,000 6,800 12,300 3,300 28,500 24,800 18,700
degerloch 2,700 3,000 6,000 3,400 4,500 7,200 9,200 4,900 2,100 4,000 4,800
Weilimdorf 16,000 750 3,000 6,600 6,000 5,100 12,800 5,900 11,400 5,500 5,300
Bad cannstatt/Wangen 18,000 14,000 7,700 24,600 13,500 15,400 12,500 8,100 8,300 13,400 12,000
leinfelden-echterdingen 3,000 2,900 3,100 10,000 3,600 10,400 18,000 3,900 12,800 8,000 5,200
total 127,000 149,000 152,000 145,000 140,000 169,000 180,000 171,000 194,000 285,000 191,500
205
,00
0
159,
00
0
127,
00
0
149,
00
0
152
,00
0
145,
00
0
140,
00
0
169,
00
0
180,
00
0
171,
00
0
194,
00
0
191,
500
285
,00
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
rentAl tAke-uP in StuttGArt And SubmArketS in Sq. m
rentAl tAke-uP oF oFFice SPAce in StuttGArt 2000 – 2012 in Sq. m
Source: Research BANKHAUS ELLWANGER & GEIGER, figures as of 31 December 2012
Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
DEMAND VARIES FROM SECTOR TO SECTOR.
In 2012, just under 35 percent of total lets were taken up
by the largest category of “other office users” – a category
which includes retail companies, various service providers
and self-employed professionals – compared to around
40 percent in 2011. This is equal to total space of around
67,000 square metres. The “consultants” category also
played a significant role in the office market in 2012. This
category accounted for around 32,000 square metres or
16.7 percent of total rented space.
As was the case last year, the public sector was a source
of major demand. This segment accounted for around
14.5 percent of total rented space or some 27,800 square
metres of office space. Demand from the “energy” and
“industry” sectors, which had been particularly high in
2011, declined somewhat last year. These sectors none-
theless leased around 17,800 square metres of space.
Demand for office space from the “IT/telecommunication”
category also declined in 2012 to around 22,300 square
metres. Last year companies in this sector leased 27,400
square metres of space.
Users in the “media/communication” category continued
to be a source of strong demand for office space and
leased a total of 10,000 square metres of space in 2012.
This was closely comparable with the figure for last year
of 10,900 square metres. Less demand was generated by
financial service providers in 2012. While this category of
users leased 24,700 square metres of space in 2011, this
had fallen to around about 14,600 square metres last
year. This represents a decline of about 41 percent.
2004 2005 2006 2007 2008 2009 2010 2011 2012
media/communication 4.00 8.00 6.64 6.27 5.56 6.14 4.07 3.82 5.20
financial service providers 34.00 12.00 9.93 10.36 15.78 8.36 8.41 8.67 7.60
consultants 5.00 10.00 20.29 18.4 13.39 7.72 13.35 8.00 16.70
public sector 9.00 21.00 3.21 17.75 7.22 30.41 8.14 13.68 14.50
other 29.00 28.00 35.21 37.28 36.94 40.94 48.04 40.42 35.00
energy/industry 9.00 13.00 12.86 – – – – 15.79 9.30
it/telecommunications 10.00 8.00 11.86 9.94 21.11 6.43 17.99 9.62 11.70
total 100 100 100 100 100 100 100 100 100
tAke-uP by SectorS in %
Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
14
15
LOSSES FOR LARGE PREMISES.
Small premises have traditionally been the mainstay of Stuttgart’s office market. in fact, in 2012 most contracts were again signed for space of up to 500 square metres. of a total of 292 leases, 197 contracts were signed in this segment.
However, since last year the number of contracts signed
in the small premises segment has fallen by 21 percent.
With a total rental volume of around 36,000 square
metres – or around 19 percent of total rental turnover –
the largest share of signings was again for space of less
than 500 square metres in the central business district
and city centre.
Fifty-nine contracts were signed in the range from 501
to 1,000 square metres, accounting for 21 percent of the
rental turnover. This was better than the previous year’s
figure of 46.
The figures for the ranges from 1,001 to 2,000 square
metres and from 2,001 and 5,000 square metres were
similar to last year. In the segment up to 5,000 square
metres an important role was again played in 2012 by
the Bosch and Porsche groups, both of which engaged in
land development activities at their locations in Feuerbach
and Zuffenhausen. A further 2,500 square metres of office
space was acquired for its own use by Porsche on the Xcel
Campus in Zuffenhausen. Bosch leased around 5,000 square
metres on the former Akzo Nobel industrial site in Feuer-
bach. Further progress towards completing the OASIS II
office and commercial project on Heilbronner Strasse in
Feuerbach was made with the letting of around 4,000
square metres to a retail company operating in the car
parts industry.
There was a substantial drop in the number of transactions
for premises of over 5,000 square metres compared to last
year. Only four contracts for lettings on this scale were
signed, covering around 28,800 square metres, including
a contract for around 12,000 square metres in Stuttgart’s
central business district.
total space 2011:285,000 sq. m
2011
comPAriSon oF new contrActS by SiZe
59,5
00
54,
720
44,
500
40,
86
8
35,9
00
24,0
03
< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 m²
2012
total space 2012: 191,500 sq. m
total number 2011: 361
2011
197
249
59
62
1824 1414 412
< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 m²
2012
total number 2012: 292
comPAriSon oF new contrActS by number
Source for both charts: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
41,9
00
43,1
46
103,
20
0
28
,763
RENTAL RATES GO UP ONCE AGAIN.
the trend for rental rates in Stuttgart’s office market continued to be encouraging throughout 2012. on 31 december 2012, the average rental rate was around 12.40 euros per square metre, 0.80 euros above the level a year before.
A third of all contracts signed were for premises in the
10.00 euros per square metre price segment. In the range
from 10.01 to 13.00 euros per square metre, there were
118 signings (2011: 141). Forty-eight signings, or two more
than last year, were made in the 13.01 to 15.00 euros per
square metre price segment. There were 25 contracts at
prices of above 15.00 euros per square metre. Of these,
eight were for rental rates of over 17.00 euros per square
metre.
central Business district: prime rents
BreaK 20 euros limit
The average rent in Stuttgart’s central business district
went up from around 14.30 euros in 2011 to around
14.50 euros per square metre in 2012. The weighted top
rent also rose by 6 percent to around 20.00 euros per
square metre, going up to levels which have been predic-
ted by many market participants for many years. This pri-
ce rise is due not only to the high quality of new buil-
dings, but also to higher land prices. Rents are also very
high in Stuttgart’s neighbouring city centre.
Rental rates were also strongly affected by transactions in
new and revitalisation properties in particular, such as in
the “Quadrat” hospital district near the central business
district. The weighted top rent in 2012 was consequently
around 16.00 euros per square metre. At 11.50 euros per
square metre, the average rent remained the same as last
year.
faVouraBle deVelopments in suBmarKets
Prime rents also rose in the northern submarkets of Feuer-
bach, Zuffenhausen and Weilimdorf. This was positively
influenced above all by the OASIS II office and commercial
project in Feuerbach, where several large transactions
pushed up average rents. Prime and average rents also
went up in 2012 in the submarkets of southern Stuttgart
in Degerloch, Vaihingen, Möhringen and Fasanenhof.
Rental rates in the Bad Cannstatt, Wangen and Hedelfingen
districts of eastern Stuttgart went up compared to last
year. This was, however, mainly affected by large rental
transactions in newly built or refurbished buildings.
Prime rents
Average rents
Prime And AverAGe centrAl buSineSS diStrict rentS 2000 – 2012 in €/Sq. m
14.9
0
•16
.87
15.3
4
•18
.41
14.8
0
•17
.89
14.5
0
•17
.50
14.5
0
•17
.00
13.5
0
•17
.00
13.6
0
•17
.50
14.5
0
•17
.50
14.5
0
•18
.00
13.6
0
•18
.00
14.3
0
•17
.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
14.3
0
•18
.80
14.5
0
•2
0.0
0
16
17
XX
X
Prime And AverAGe rentS 2012 in €/Sq. m
14.5
0
20.
00
11.5
0
16.0
0
10.7
512.5
0
10.0
0
11.5
0
10.5
0
14.3
0
average rentsprime rents
Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
central busi- city centre outlying districts outlying districts outlying districts ness district to the north to the east to the south
Stuttgart’s office market was only just able to satisfy
demand for new space from potential tenants in 2012.
Although a total of about 36,910 square metres of office
space was completed, most of this was built for use by
its owners or pre-let prior to construction. The supply of
office space available changed in Stuttgart’s central
business district and in the city centre in particular.
Compared with last year the available supply in the
central business district rose by around 10,000 square
metres, although this was due to the vacation of existing
premises – in some cases following corporate restructuring –
rather than the creation of new space. In contrast, the
scale of transactions and modest number of existing new
office premises vacated in Stuttgart city centre resulted in
a sharp decrease in the supply of office space. The available
supply in 2011 was still around 93,500 square metres or
some 30 percent higher than in 2012. There will be an
increase in available space in the central business district
VACANCY RATE CONTINUES TO FALL.
the supply of vacant office space declined again last year. on 31 december 2012 some 399,000 square metres were unoccupied, including approximately 23,000 square metres of sub-let space. with the total office space at 7.42 million square metres, this corresponds to a vacancy rate of around 5.4 percent.
comPletion volume in Sq. m
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
87,0
00
59,2
00 84,
40
0
43,9
00
160,
00
0
130,
00
0
312
,00
0
22
0,0
00
145,
00
0
80,
00
0
143,
500
131,
500
68
,50
0
51,4
00
49,
00
0
28
,50
0
32,6
00
23,
40
0
115,
60
0
104,
90
0
40,
00
0
22
,00
0
42,4
00
23,
20
0
45,9
00
41,2
00
37,0
00
36,3
00
pre-lettingBuilding completion
18
19
and city centre areas in the years ahead when the large-
scale projects currently under construction are completed.
There was little change in the availability of space in
southern Stuttgart’s submarkets in Vaihingen, Möhringen
and Degerloch. There is above all a lack here of modern
new office space, particularly in the small premises
segment. Office space in the Stuttgart Engineering Park,
which is in Vaihingen, is almost fully let, for example. The
low rental take-up in Weilimdorf meant that there was no
noticeable change in supply at this location either. In the
eastern submarkets of Bad Cannstatt, Hedelfingen and
Wangen some space became available again with the
vacation of existing premises. The supply of space increased
from around 19,300 square metres last year to around
30,600 square metres on 31 December 2012.
vAcAnt oFFice SPAce AS oF 31 december 2012
stuttgart central business district > 70,500 sq. m
stuttgart city centre > 71,200 sq. m
möhringen > 41,700 sq. m
Weilimdorf > 41,100 sq. m
Bad cannstatt, Wangen etc. > 30,600 sq. m
fasanenhof > 23,400 sq. m
feuerbach, zuffenhausen > 13,500 sq. m
degerloch > 11,600 sq. m
Vaihingen > 27,300 sq. m
leinfelden-echterdingen > 68,100 sq. m
17.8% 100%
(corresponds to approx.
399,000 sq. m)
17.7%
17.0% 10.5%
10.3%
7.7%
6.8%
5.9%
3.4%2.9%
Source for both charts: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012
A total of 2.97 million square metres – some 9.5 percent
less than in 2011 – was let in the “Big Seven” – Berlin,
Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and
Stuttgart. The increase was biggest in Frankfurt at
12.7 percent, followed by 4.6 percent for Berlin. In
contrast, rental turnover was significantly lower in
Stuttgart, where it fell by 48.8 percent back to normal
levels after the record figures for 2011. Turnover declined
strongly in Hamburg by 25.5 percent and in Munich as
well by around 17 percent.
With the exception of Cologne, average rents rose in all
cities compared with 2011. Rents in Berlin went up by
1.3 percent, in Munich by 4.7 percent, in Stuttgart by
6 percent and in Düsseldorf by as much as 7.8 percent.
Average rents in central business districts – apart from in
Frankfurt – have developed positively. Rents rose in
Hamburg by 11.1 percent, in Munich by 5.8 percent and
in Cologne by about 4.3 percent. Average rents increased
in Stuttgart and Berlin by between 1.3 and 1.8 percent.
Vacancy rates in the Big Seven fell once again in 2012.
The main factors here were the relatively low volume of
new construction and the number of new buildings
which are still under construction or not yet completed.
In Stuttgart the supply of available space decreased by
5.3 percent, in Munich by 11.2 percent and in Hamburg
by as much as 15.7 percent. In contrast, vacancy rates in
Düsseldorf fell by a minimal 0.8 percent.
We anticipate a further sideways trend in 2013. Whether
top rental rates will continue to go up, however, will
depend on how the economy performs in general.
NATIONWIDE OFFICE MARKET STAGNATES.
the upturn in 2011 was transformed into a sideways trend in 2012. the situation was much the same across the whole of Germany: rental turnover decreased while prime rents went up practically everywhere. the same was true of average rents. the supply of vacant office space declined in all markets.
20
21
turnover of space in sq. m prime rent in € average rent in the central
business district in € Vacancy rate in %
2012 2011 2012 2011 2012 2011 2012 2011
Berlin 600,000 572,000 22.00 21.70 16.30 16.00 8.0 8.4
düsseldorf 325,000 365,000 25.50 23.50 17.50 17.00 11.7 11.8
frankfurt 470,000 410,000 36.00 36.00 21.50 21.50 13.7 14.4
hamburg 430,000 515,000 24.00 23.00 15.20 13.50 7.0 8.1
cologne 245,000 280,000 20.50 21.00 11.50 11.00 7.8 8.2
munich 716,700 853,000 32.00 30.50 14.90 14.20 6.8 7.7
stuttgart 191,500 285,000 20.00 18.80 14.50 14.30 5.4 5.7
frankfurt düsseldorf cologne munich Berlin hamburg stuttgart
comPAriSon oF vAcAncy rAteS in GermAny in %
10.3
9.6
8.3 8
.9
8.2
7.8
7.9 9.
1 9.7
8.3
7.7 8.0
9.4
8.2 8.4 8.9
8.4
8.0
7.2
6.7 7.
5
9.8
8.1
7.0
6.4
6.2
6.1 6.5
5.7
5.4
11.5
11.8
11.7
9.8 10
.3
10.3
Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012
Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012
turnover oF SPAce oF the biG Seven 2003 – 2012 in Sq. m
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012
149,
00
0
152
,00
0
145,
00
0
140,
00
0
169,
00
0
180,
00
0
171,
00
0
194,
00
0
191,
500
28
0,0
00
5
10,0
00
4
80,
00
0
5
80,
00
0
6
20,
00
0 8
20,
00
0
7
65,0
00
5
40,
00
0
5
90,
00
0
7
16.7
00
munich
frankfurt
hamburg
Berlin
düsseldorf
colognestuttgart
StuttGArt comPAred to other GermAn citieS
15.0
13.9
14.3 15
.1
14.4
13.7
2007
2008
2009
2010
2011
2012
8
53,0
00
EuG_RE-J-13014_Bueromarktber_
Inh_2012_lay02_Ansicht_18-19_
Vers1.jpg
STUTTGART CENTRAL BUSINESS DISTRICT/CITY CENTRE:
RECORD LEVELS OF CONSTRUCTION ACTIVITY.
never before have so many new construction projects been launched in Stuttgart’s city centre as in 2012 – a response to consistently high demand for modern office space. As expected, rental take-up in Stuttgart’s central business district and city centre was again well above average.
The largest contract, for around 12,000 square metres,
was signed with a law firm in Bülow Carré. The office and
commercial project near the revitalised Postquartier will
soon be completed and will add considerably to the
attractiveness of Lautenschlagerstrasse. The pit for the
“CityGate” project has now been excavated. Construction
is underway here – as in many other cases – without the
ensuing buildings having been pre-let. Consistently strong
demand in recent years has encouraged developers to
build without advance rental agreements. A total of
four new construction projects are underway near the
Österreichischer Platz, including the Gerber development,
the Caleido and Pauline office and commercial buildings
as well as the new WGV building. Some 11,000 square
metres of office space are also being created on the old
AOK site in western Stuttgart’s Rosenberghöfen. Almost
half of this space is used by the AOK itself.
After some tough negotiations concerning architecture
and size, the planning decision for the Dorotheen Quarter
was finally taken. The plans envisage an area which will
accommodate around 25,000 square metres of offices,
10,000 square metres of high-end retail and restaurant
space, and around 3,150 square metres of apartments.
Construction work is due to begin in late 2013/early 2014.
Of the 81 leases recorded in Stuttgart’s central business
district, 53 were signed for areas of less than 500 square
metres. This is equal to around 22.6 percent of total
space rented in the central business district. Rents for
around 29.7 percent of space were as high as 11.00 euros
per square metre. For 24.6 percent of space rents were
between 11.01 and 15.00 euros. 18 leases – equal to
45.6 percent of the space – were signed for rents of
15.00 euros per square metre; seven of these leases were
for rents of over 17.00 euros. These contracts were for lar-
ge premises, mostly newly built properties.
A total of 106 contracts were signed in Stuttgart’s central
business district, of which 77 were for properties in the
segment up to 500 square metres. Around 55 percent of
premises let – under 53 contracts – were for rental rates of
no more than 11.00 euros per square metre. Forty-six
contracts, or 36 percent of space let in the central business
district, were signed at rental rates of between 11.01 and
15.00 euros. The price segment between 15.01 and 18.00
euros per square metre accounted for 9 percent of the to-
tal space let.
EuG_RE-J-13014_Bueromarktber_
Inh_2012_lay02_Ansicht_18-19_
Vers1.jpg
22
23
feuerBach/zuffenhausen
The character of Feuerbach and Zuffenhausen is strongly
determined by the automotive industry and transactions
with this sector were again the main influences on locations
here in 2012. Compared with the two previous years
during which the Bosch and Porsche groups expanded
considerably, rental take-up rates in 2012 fell again to
normal levels of around 15,000 square metres.
Extensive revitalisation resulted in the creation of modern
loft-style office space in the former Akzo Nobel industrial
estate. In addition to a large rental transaction by Bosch
for some 5,000 square metres of space, contracts were
also signed with many small-scale users. It is still not clear
when the Skyline Project will get underway. Construction
of a residential tower has been delayed by a noise study.
The commercial part of the project, which covers around
10,000 square metres, will be built only when advance
rental agreements are in place.
A total of 13 contracts have been signed in Stuttgart
Feuerbach. Around 82 percent of the leases were signed
at prices between 11.01 and 13.00 euros per square metre.
Eight transactions were completed in the segment up to
500 square metres. The biggest transaction, however, was
the contract signed by Bosch referred to above. Another
contract for around 4,000 square metres was signed for
the OASIS II new building project. In Zuffenhausen four
leases were signed at prices between
7.50 and 10.00 euros per square metre. A contract
completed with Porsche for approximately 2,500 square
metres was the largest transaction in the Zuffenhausen
submarket.
Weilimdorf
Demand for office space in Weilimdorf had already started
to decline in previous years. Stuttgart’s Business Develop-
ment Department launched a business location offensive
after it was announced that Ernst & Young would be
leaving the Weilimdorf business park. The round table,
which convened under the motto “Weilimdorf, the
Green Location”, focused primarily on energy issues.
With the owners’ participation the electric heating
found in many buildings, for example, will be replaced
by more energy-efficient technologies. Action will also
be taken to make Weilimdorf more attractive, such as
creating more day nursery and kindergarten places and
improving local facilities.
A total of 11 leases were signed in Weilimdorf business
park. Seven contracts were for properties in the segment
up to 500 square metres. The biggest transaction was for
premises of around 1,200 square metres. Around 82 per-
cent of premises were let at prices of between 8.00 and
10.00 euros per square metre. One contract for premises
with correspondingly high-quality fixtures was signed at a
price of 12.40 euros per square metre.
NORTHERN STUTTGART: PLANS FOR ENHANCEMENT.
EASTERN STUTTGART: PLENTY OF SPACE FOR NEW PROJECTS.
Bad cannstatt/Wangen/hedelfingen
Substantial progress was made in 2012 on planning the
Neckarpark on the site of the former goods station in
Bad Cannstatt. The fundamental idea underlying this
project is the concept of sustainability. The lion’s share
of the energy required will come from renewable energy
sources – such as heat recovery from waste water. The
first plots of land are due to be sold in the first half of
2013. As office projects in eastern Stuttgart are still
relatively few and far between, the marketing prospects
are good in this area.
The area between Cannstatter Wasen and Bad Cannstatt
railway station has been upgraded, for example by re-
building the former Ahoj sherbet factory and the Friedel
lofts to create a successful mixed-use development of
apartments, offices and ateliers.
Plans by Daimler AG to add a Mercedes-Benz World to its
existing Mercedes-Benz Museum has also added to the
attractiveness of this location. This project will bring
together both brand presentations and Mercedes-Benz
Classic – the service department for owners of classic
cars. The architectural competition will be decided in the
first quarter of 2013. It should be possible to complete
the project by late 2015 or early 2016.
Eighty-five percent of leases signed in the Hedelfingen,
Wangen and Bad Cannstatt area – 17 in total – were for
properties in the segment up to 500 square metres. One
large-scale contract for 5,400 square metres was also signed
in 2012 as part of the expansion of Deutsche Telekom.
Forty-five percent, or 14 contracts, were signed at prices
of between 9.00 and 12.00 euros per square metre. Most
of the users of leased office space fell within the category
of “other office users”, such as medical service providers,
security companies or medical insurers. As well as the
premises which are already available, office space on a
scale typical for the area of up to 5,000 square metres
can also be provided on the former Schaudt grounds.
24
25
SOUTHERN STUTTGART: SUPPLY OF NEW SPACE SCARCE.
degerloch
Although Degerloch offers an attractive infrastructure,
there continued to be a shortage of space for new office
buildings in 2012. While a new building project on Alb-
platz continues to offer large amounts of space, there are
currently no further plans for modern office space. The
area directly adjacent to the exit from the B 27 main
road, which was originally envisaged as a project site,
has been sold to buyers who plan to use it for their own
purposes. The Wilhelmshöhe new building project was
fully let in 2012.
The rental turnover of 4,800 square metres was almost
the same as in the previous year. Seventeen percent of
premises let – three contracts in total – were in the price
segment of up to 9.00 euros per square metre. Another
Forty-four percent, or four contracts, were signed at a
rental rate of between 12.01 and 13.00 euros per square
metre. The contracts in the newly built part of the
Compas Commerce Park and in the newly constructed
Wilhelmshöhe were let at prices of between 12.00 and
15.00 euros per square metre. Forty-two percent, or
seven transactions, were signed in the segment of under
500 square metres. Two contracts were signed for
premises up to 1,000 square metres and the biggest
transaction was for around 1,400 square metres.
leinfelden-echterdingen
The departure of Telekom from Unteraichen continued to
make itself felt in 2012. At 5,200 square metres the rental
volume was 35 percent below the figure for last year.
The Humboldt Carré, which was completed in 2011, was
fully let in 2012 to an IT company which rented some
1,300 square metres in what was easily the biggest
transaction to take place on this market. Fifty-two percent
of contracts were for premises up to 500 square metres
and 23 percent for premises of between 501 and 1,000
square metres. Sixty-two percent of let premises were in
the price segment up to 9.00 euros per square metre.
A rental rate of around 12.00 euros per square metre was
obtained for new office space.
Work is due to begin on the “Airport City” office location
at Stuttgart Airport in 2013. This new development will
offer capacity for some 250,000 square metres of office
and service space which will be marketed in smaller units
of around 10,000 to 15,000 square metres per year. The
ball for this development has been set rolling by the leasing
decision taken some time ago by Ernst & Young. The lease
is due to be signed in 2013 and the building is scheduled
for completion in 2015.
Apart from the announced Macs Resort project – a 100,000
square metre hotel, office and health complex develop-
ment – there are currently no further new building projects.
fasanenhof
The volume of space rented in Fasanenhof fell by 40 per-
cent in 2012 to around 7,400 square metres. This was
mainly due to the current supply side of the equation:
modern office spaces are hard to come by and the few
rental contracts which are concluded are taken by
property owners with flexible structures and small units.
The sale of formerly rented property to owners who
intend to use it themselves also impacts turnover figures.
Although the location was upgraded thanks to improve-
ments in local facilities it has not yet attained the stan-
dards required for a modern commercial area. However,
the extension of the urban railway will turn Fasanenhof
into the commercial area with the best connections to
Stuttgart Airport, which is sure to arouse the interest of
larger-scale users.
Ninety-free percent of transactions – equivalent to twelve
contracts – were completed in the 9.01 to 10.00 euros
per square metre price segment. The largest share of
around 35 percent of these transactions – ten contracts –
were for small premises of up to around 500 square met-
res. Only two transactions were completed for properties
between 501 and 1,000 square metres. As in previous ye-
ars, most users rented space in the Business Park.
Vaihingen/möhringen and step
Rental take-up rates have fallen in the previously very
strong location of Vaihingen/Möhringen. Office space
totalling some 18,200 square metres was let in the entire
area in 2012 – well below the ten-year average of around
23,000 square metres. One of the reasons for this was
the currently low vacancy rates in the Stuttgart Engineering
Park (STEP), where the highest turnover has been
generated in recent years.
Planning activity will be increased up in 2013 in response
to the low vacancy rate in the STEP: there are plans to
build around 11,000 square metres of office space on
plots 7.1 and 7.2. In addition, Baden-Württemberg’s
Centre for Solar Energy and Hydrogen Research with a
total of 9,500 square metres of office space will go up on
site 7.3 by 2014.
Fifty-five percent of the space in the STEP – corresponding
to five contracts – was let in the 11.00 to 12.00 euros per
square metre price segment and 39 percent in the 12.00
to 13.00 euros segment. Of the leases, 31 percent were in
the small premises segment up to 500 square metres and
68 percent in the range from 501 to 1,000 square metres.
Aurelis is planning a project for 20,000 square metres of
office space at Vaihingen’s metropolitan train station.
Another project which will change and modernise the
location is the planned European headquarters of the
Lapp Kabel Group, one of the world’s leading providers of
cables, leads, etc. The growth of the Dekra Group will also
result in around 6,000 square metres of new construction,
which will probably be ready for occupancy in the fourth
quarter of 2013. The redevelopment of the Koch, Neef &
Volckmar site on the corner of Wallgraben/Industriestrasse
and around Schockenriedstrasse also looks exciting. The
aim here is to develop an overall concept for both sites
(approximately 80,000 square metres) which both meets
users’ needs and implements the idea of a synergy park.
The IBM site, which has been under discussion since early
2011, still awaits a new user, although the situation as a
whole (ownership, listed status) means that a clear
planning concept will have to be developed before
further marketing activities are launched. Work is currently
underway on this concept.
Forty-six percent of space – equivalent to 14 leases – was
let in Vaihingen/Möhringen at prices of up to 10.00 euros
per square metre. The square metre price of 53 percent
of premises, let under eight contracts, was between 10.00
and 12.00 euros. Around 27 percent of the rented premises
were in the up to 500 square metres segment, and a
further 36 percent of office space in the 501 to 1,000
square metres segment. The largest transaction, for 2,700
square metres, was signed in OFFICIVM.
26
27
< 10,000 sq. m
10,000 – 20,000 sq. m
20,000 – 30,000 sq. m
30,000 – 40,000 sq. m
above 40,000 sq. m
A 8 towardsKarlsruhe
Stuttgart motorway intersection
A 81towards Singen
A 81
A 8 towards Munich
A 81towards Heilbronn
Industrial parks/office locations
NorthernStuttgart
EasternStuttgart
CentralStuttgart
SouthernStuttgart
WesternStuttgart
OVERVIEW OF THE STUTTGART OFFICE MARKET.
< 10,000 sq. m
10,000 – 20,000 sq. m
20,000 – 30,000 sq. m
30,000 – 40,000 sq. m
above 40,000 sq. m
A 8 towardsKarlsruhe
Stuttgart motorway intersection
A 81towards Singen
A 81
A 8 towards Munich
A 81towards Heilbronn
Industrial parks/office locations
NorthernStuttgart
EasternStuttgart
CentralStuttgart
SouthernStuttgart
WesternStuttgart
Turnover of office space in 2012
focus on neW deVelopment
One of the main issues in 2013 will be the marketing of
the large volume of new space which is currently being
provided in Stuttgart’s office market. The completion
volume will more than double compared with previous
years. Nonetheless, 80 percent of space has already been
let. The consistently high level of demand in recent years,
in particular, has resulted in new buildings going up in
the central business district even before the required
advance rental agreement ratio has been met. The market
will continue to be dominated by demand for high-
quality, energy-efficient and optimally arranged space.
Several large transactions will be signed on the market
in 2013 which may have a significant impact on rental
take-up. These include the signing of the lease at Stuttgart
Airport by Ernst & Young.
record prices in the central Business district
Rent trends have also benefitted from strong demand.
Some contracts were signed in the central business
district for prices of over 20.00 euros per square metre.
Although rental rates have also developed positively in
submarkets, there are still structural deficits in some of
these areas. Opportunities for increasing rental volumes
will only be available if efforts are made in the future to
meet the requirements users have for a modern office and
service setting. This not only concerns the appearance of
properties but, above all, important factors such as energy
efficiency, local facilities and accessibility.
PROSPECTS ARE GOOD FOR 2013.
Although rental take-up in 2012 was somewhat lower than in the outstanding previous year, at 191,500 square metres it was still very good. demand has simply returned to normal levels. this is certainly in part due to the current state of the world economy. it is all but impossible to make economic forecasts for the year 2013 based on global economic developments and particularly on developments in the eurozone. nonetheless, turnover of office space of around 200,000 square metres is anticipated for 2013.
28
29
YOUR CONTACT PARTNERS.
ellwAnGer & GeiGer Privatbankiers is the ideal partner for marketing your office properties. our many years of experience and unique range of services enable us to move the market and proactively identify budding trends. For us, having a sixth sense isn’t a supernatural ability but simply part of the service we offer you. our team in Stuttgart is looking forward to your call or visit. contact us: Phone: +49 (0) 711 2148297, Fax: +49 (0) 711 2148290.on the internet: www.privatbank.de · www.bueroflaeche-stuttgart.de
Sebastian Degen
Consultant Office Letting
Phone +49 (0) 7112148166
Alice Disam
Commercial Property Assistant
Phone +49 (0) 7112148297
Ulrich Nestel
Head of Office Letting and
Retail Projects Stuttgart
Phone +49 (0) 7112148291
Matthias Hägele
Office Letting Consultant
Phone +49 (0) 7112148292
Helga Schöner
Research and Commercial
Property Consultant
Phone +49 (0) 7112148269
disclaimer:Although this study has been prepared
with all due care, ELLWANGER & GEIGER
Privatbankiers accepts no liability for the
correctness of the assessments presented.
We are sure that you will understand this.
30
31
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