MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE

Stuttgart region 1. half of 2016

Market report on the logistics and industrial

space lettings market in the Stuttgart region

for the first half of 2016

n Take-updeclinesduetogreaterstabilityamong

tenants

n Bulkoflettingsactivityexpectedtotakeplace

inH22016

n Communities are increasingly willing to enter

intoadialogueaboutnew settlementswhen

presentedwithconvincingutilisationconcepts

n Stillnoactivityforspeculativebuilding

n Strongtake-upvolumeinBaden-Württemberg

boostedbynewbuildingsinLahr

n Aboutus:Realogisbrokeredabout25%ofall

spaceintheStuttgartmetropolitanregionand

morethan15%inBaden-Württemberg

Thestabilityoftenantsparticularlyinunitslarger

than10,000sqmcharacterisedtheindustrialand

logisticspropertymarketintheStuttgartmetro-

politanregionduringthefirsthalfof2016.Take-

upreachedjust59,000sqmcomparedtoapprox.

100,000sqminthefirsthalfof2015,according

tothelatestanalysisbyRealogis–Germany’slea-

dingrealestateconsultantandagentforlogistics

and industrial property andbusinessparkswith

ancillaryofficespace.Atotalof31leasesignings

took place in the first six months, but no units

largerthan10,000sqmwereavailableduringthis

period.Thustherewerenonewlettingsinaseg-

mentthatishighlyrelevanttotheoveralltake-up

result.Atthesametime,norelevantnewdeve-

lopmentswerebroughtontothemarket.

“Nevertheless,weexpecttoseeasignificantin-

creaseinactivityinthecomingmonths.Basedon

thestrongdemandandseverallargedealsinthe

pipeline for existing properties, we expect the

Stuttgart metropolitan region to maintain the

sameleveloftake-upasreportedlastyear,”said

OliverStenzel,managingdirectorofRealogisIm-

mobilienStuttgartGmbH.In2015asawhole,all

marketplayersgeneratedatake-upvolumetotal-

ling240,000sqmofindustrialandlogisticsspace.

Anotherpositivedevelopmentexperiencedbythe

Realogismanagingdirectoristhatlocalcommu-

nities are more willing to enter into a dialogue

aboutnewindustrialandlogisticsdevelopments

than inpreviousyears.OliverStenzel:“Commu-

nitiesaremoreopentoproposalsregardingthe

settlementofnewcompanieswhenweapproach

themdirectlyandprovidethemwithinformation

atanearly stage.”However, speculativeproject

developmentsstillhavenochanceofgettingap-

proved,incontrasttootherlogisticslocationsin

Germany.

In reference to take-upbymanufacturers, retai-

lers and logistics companiesona regional basis

revealed that the Ludwigsburg district was the

most popular location in the first half of 2016

with take-up of approx. 22,300 sqm (11 lease

contracts). In second place was Böblingen with

11,850 sqm (7 lease contracts) followedbyEss-

lingen with 11,740 sqm (7 lease contracts) and

Rems-Murrdistrictwith9,230sqm(4leasecon-

tracts). Stuttgart saw two lease contracts with

totaltake-upofapprox.3,450sqm.

WiesheuGmbHsignedaleasefor8,000sqmof

industrial/logisticsspaceintheLudwigsburgdis-

trict(Großbottwar),representingthelargestcon-

tractsigninginthereportedperiod.

Rental prices for existing industrial and logistics

stockintheStuttgartregionremainedatahigh

levelinthefirsthalfof2016,withaveragerents

ranging from 3.90 Euro/sqm in the Göppingen

districtto5.30Euro/sqmintheBöblingendistrict.

Rentsinprimelocationscanstillamountto5.80

Euro/sqmorasmuchas6.00Euro/sqminexcep-

tionalcases.

>> Take-upbyBusinessSectorintheregionofStuttgart+neighboringcountiesfirsthalfof2016

>> Take-up of logistics property and industrial space by space segment in the region of Stuttgart +neighboringcountiesfirsthalfof2016

n <1,000n 1,000-3,000n 3,000-5,000n 5,000-10,000n >10,000

>> DistributionofturnoversbyregionintheregionofStuttgart+neighboringcountiesfirsthalfof2016

41.2% 23.5% 23.5%5.9

%5.9

%

1,780sqm/4.2%County of Ludwigsburg

County of Esslingen4,900sqm/11.5%

County of Böblingen7,940sqm/18.7%

Heilbronn6,709sqm/15.9%

County ofRhein-Neckar6,223sqm/14.6%

County of Enz10,800sqm/25.4%

County ofAlb-Donau4,135sqm/9.7%

Manufacturing8.8%

Others5.9%

Retailers5.9%

Distribution, Logistics79.4%

MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE // Stuttgartregion1.halfof2016

A81

A81

A81

A81

A81

A35

A65

A61

A6

A6

A6

A6

A6

A7

A7

A7

A7

A8

A8

A8

A8

A8

A5

A5

Mühlacker

Heilbronn

Bietigheim-Bissingen

Pforzheim

Ettlingen

Germersheim

Weißenburg Karlsruhe

Stutensee

Bruchsal

Speyer

Mannheim

Heidelberg

Mosbach

Heilbronn

Bad Rappenau

Künzelsau

Bad Mergentheim

Wörnitz

Herrieden

Crailsheim

Ellwangen(Jagst)

Bretten

Sindelfingen

Böblingen MesseAirport

Filderstadt

Nürtingen

Albstadt

Pfronstetten

Hechingen

Balingen

Bad Wildbad

BühlLeinfelden-Echterdingen

Ostfildern

DitzingenWinnenden

Backnang

Weinstadt Schorndorf

Göppingen

Enzkreis

Geislingenan derSteige

Lonsee

LangenauLaichingen

Erbach

Oberstadion

Kirchheim unter Teck

LeonbergFellbach

Kornwestheim

Vaihingenan der Enz

SchwäbischGmünd

Horb am Neckar

Heidenheiman der Brenz

Esslingenam Neckar

Schwäbisch Hall

Unterschneidheim

Waiblingen

Ludwigsburg

Stuttgart

Tübingen

Reutlingen

Metzingen

Calw

Nagold

Dornhan

Offenburg

Biberach

Schramberg

Rottweil

Gaggenau

Herrenberg

Rems-Murr-Kreis

Neckar-Odenwald-KreisMain-Tauber-Kreis

Schwäbisch Hall

Ostalbkreis

Heidenheim

Biberachan der Riß

Hohenlohekreis

Rhein-Neckar-Kreis

Alb-Donau-Kreis

Reutlingen

Tübingen

ZollernalbkreisRottweil

Calw

Karlsruhe

Rastatt

Freudenstadt

Ortenaukreis

>> *Realogisdefinesthesub-marketasalltheavailablestorage,logistics,andproductionsitesintheStuttgartregionandwithin50kmoftheA8autobahn

“Karlsruhe-Stuttgart-Munich“andA81autobahn“Heilbronn-Stuttgart-Singen“.

Forthefirsttime,Realogisalsoanalysedindustrial

andlogisticsspacetake-upinthefederalstateof

Baden-Württemberg.Here,take-upbyallmarket

playersamountedtoapprox.278,000sqminthe

firsthalfof2016.Thispositiveresultwasprimari-

lyduetothenew130,000-sqmdevelopmentby

project developer Goodman for Zalando in the

Ortenaudistrict.

About us:

Realogis accounted approx. 43.000 sqm

Realogis accounted for 25% or approx. 14,700

sqmof the totalmarket in theStuttgartmetro-

politanregioninthefirsthalfyear2016,andwas

alsoresponsiblefor15%orapprox.43,000sqm

of space take-up inBaden-Württemberg. Exclu-

dingtheexceptionallylargeZalandotransaction,

therealestateagency’ssharewascloseto29%.

>> Averagerentrange€/sqmintheregionofStuttgartfirsthalfof2016

3.00€/sqm

5.00€/sqm5.50€/sqm6.00€/sqm

4.50€/sqm4.00€/sqm3.50€/sqm

2.50€/sqm

Count

yofR

ems-M

urr

Count

yofG

öppin

gen

Count

yofL

udwigs

burg

Count

yofE

ssling

en

Count

yofB

öblin

gen

Stut

tgar

t

Ø 4.50

4.00

5.50

Ø 5.20

3.50

5.50

Ø 4.80

4.00

5.80

Ø 5.30

4.00

5.80

Ø 3.90

3.30

4.50

Ø 4.30

3.30

4.80

REALOGIS Immobilien

StuttgartGmbH

Kranstraße8

70499Stuttgart

phone:+49(0)711-8388959-0

fax:+49(0)711-8388959-9

e-mail:stuttgart@realogis.de

www.realogis.de

RegionStuttgart

REALOGIS Immobilien Stuttgart GmbH

Contact:

OliverStenzel(Managingdirector)

phone:+49(0)711-8388959-0

fax:+49(0)711-8388959-9

e-mail:stuttgart@realogis.de

The first port of call for industrial and logistics

property

WhenRealogiswasfirstestablished in2005,we

hadanambitiousgoal:tobecomethemarketlea-

derforpropertylettingsinthe“industrialandlogi-

stics”segment.Theconcentrationandpoolingof

ourknow-howintothisnichemarkethasproved

successful: in2015weagaingainedmarket lea-

dershipinGermanyforspacetake-upinindustrial

properties, warehouses and logistics properties.

What’smore,wehavealsocontinuedtoexpand

ourshareoftheEuropeanmarket.

Today,theowner-managedRealogisgroup,which

is headquartered inMunich andalsohasoffices

inBerlin,Dusseldorf,HamburgandStuttgart,not

onlyofferslettingsandconsultancyservicesbutis

alsoasought-afterpartnerofinvestorsandinsti-

tutionalinvestors,towhomweofferourcompre-

hensiveexperienceandin-depthregional,national

andinternationalmarketknowledge.

Extensiveconsultancyservicesintheareasoflogis-

ticsandfulfilmentroundoffourrangeofservices.

Withateamofhighlymotivatedandwell-trained

professionals, we continually strive to provide

long-term support to our customers and enable

themtobenefitfromourpositionasmarketlea-

der.

Our services

n Preparationofadetailedandindividualrequi-

rementsprofile

n Targetedoffers

n Developmentofpossiblealternatives

(leasing,purchase)

n Integrated Realogis logistics consultancy to

define the optimal location and implement

internalprocessesinanexistingproperty

REALOGIS -

Available to you directly on-site in Stuttgart

Weareyourpointofcontactforthelettingofin-

dustrialandlogisticspropertyaswellasbusiness

parks intheStuttgartregion,andhavebeenthe

marketleaderinthissegmentsince2006.You’re

looking for a certain type of property? We will

define the precise details of your requirements,

enhanceyoursearchprofileandprovideyouwith

exact property matches. Maybe you are looking

foranewtenantforyourproperty.Inthatcasewe

willassistyouinvaluingyourpropertyandsetting

theoptimalrentalprice.Wehandletheprofessio-

nalpresentationofyourpropertytothepublicand

ensureapromptletting.

Bothtenantand landlordbenefitfromthemany

yearsofspecialistmarketknowledgeofourseven-

strongconsultancyteamintheregion,aswellas

our market proximity and valuable contacts. We

onlyemploywelleducatedandexperiencedpro-

pertyconsultants,andalsoofferaccesstoanin-

housedepartmentthatcansupportyourbuilt-to-

suitsolutionsacrossGermany.

Pleasecontactusaboutanydecisionsrelatingto

industrialandlogisticsproperty.

n Soundandrealisticvaluationofyourproperty/

land

n Individualmarketingconcept

n Adviceonoptimisingproperty

n Strategy consulting to minimise the risk of

vacanciesanddefaults

n Extensive regional, national and international

contactnetworkofpotentialtenants

MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE // Stuttgartregion1.halfof2016