The 2016/2017 Stuttgart office market report
Again in 2016 the Stuttgart office market reached new record levels. The turnover of floor space came to 432,000 square metres for the year, a growth of almost 50 percent. At the same time rents rose slightly, and the vacancy ratio fell by 2.8 percent. As in past years, the main growth driver was industry, but the IT and telecommunication sectors have also been responsible for increasing demand.
Again in 2016 the Stuttgart office market reached new record levels. The turnover of floor space came to 432,000 square metres for the year, a growth of almost 50 percent. At the same time rents rose slightly, and the vacancy ratio fell by 2.8 percent. As in past years, the main growth driver was industry, but the IT and telecommunication sectors have also been responsible for increasing demand.
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14 I Developments in <strong>2016</strong>/<strong>2017</strong><br />
Record levels for rents.<br />
At € 23.00/m² the prime rent in <strong>Stuttgart</strong> in <strong>2016</strong> increased slightly over the previous year. <strong>The</strong>rew<br />
was also an increase in the average rent in all sub<strong>market</strong>s. As of 31.12.<strong>2016</strong> the average rent for the<br />
entire <strong>Stuttgart</strong> urban area including Leinfelden-Echterdingen was € 12.90 /m².<br />
Take-up by price segment<br />
In <strong>2016</strong> 112 contracts were signed in<br />
the price segment up to € 10.00/m²,<br />
primarily in outlying districts and older<br />
buildings. <strong>The</strong>re were significantly fewer<br />
transactions in this price segment<br />
in the city centre in comparison to the<br />
previous year, which can certainly be<br />
attributed to the improvement in quality<br />
of space which has accompanied<br />
increasing rental prices. Overall 121<br />
contracts were concluded in the segment<br />
€ 10.01 to 13.00/m². <strong>The</strong>y were<br />
distributed almost equally across peripheral<br />
and city centre locations, accounting<br />
for approx. 49 % of take-up.<br />
<strong>The</strong> segment € 13.01 to 15.00/m² saw<br />
more than twice as many contracts signed<br />
as in 2015. Only 17 letting contracts<br />
were concluded in the segment<br />
€ 15.01 to 17.00/m². 26 transactions<br />
were achieved in the segment over<br />
€ 17.00/m², somewhat lower than<br />
the previous year. With the exception<br />
of one contract at <strong>Stuttgart</strong> Airport, all<br />
the contracts in this segment were for<br />
premises in the central business district<br />
and the city centre.<br />
Record levels in the central business<br />
district and city centre<br />
Further lettings in the new Dorotheen<br />
Quartier, Milaneo, CityGate, Gerber and<br />
Europe Plaza buildings have resulted in<br />
prime rents for the CBD again breaking<br />
the record figure set in the previous<br />
year. As of 31.12.<strong>2016</strong> this figure was<br />
€ 23.00/m² and thus slightly above the<br />
previous year (31.12.2015: € 22.80/m²).<br />
In addition to this, there has also been<br />
an increase in rents for new lettings<br />
in existing buildings – undoubtedly<br />
an initial effect of the growing scarcity<br />
of space. <strong>The</strong> average rent in <strong>Stuttgart</strong>’s<br />
CBD has correspondingly risen<br />
by € 0.30/m² over the previous year, to<br />
€ 16.20/m². <strong>The</strong> average rent achieved<br />
for the city centre was € 12.80/m², also<br />
some € 0.30/m² above the figure for<br />
2015. At € 18.00/m² the prime rent in<br />
the city centre remains at a high level.
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