Logistics and Industrial Property 2017 - Stuttgart Region

6 I Zahlen & Fakten.
Rental Levels 2016
Net rent in EUR per sqm
(existing space)
Average rent in EUR per sqm
(existing space)
Net rent in EUR per sqm
(newly-built space)
Average rent in EUR in sqm
(newly-built space)
County of Böblingen 3.50 – 5.50 4.96 – –
County of Esslingen 3.50 – 5.50 4.02 6,75 6.75
County of Göppingen 4.50 – 5.00 4.93 – –
County of Ludwigsburg 3.80 – 6.00 4.55 5.65 – 5.80 5.71
County of Rems-Murr 3.60 – 4.00 3.89 5.75 5.75
City of Stuttgart 4.10 – 6.00 5.43 – –
Total 3.83 – 5.33 4.63 6.08 6.07
Top Rents / Average Rents (existing space in EUR per sqm)
Demand
In the reporting period, the strongest
demand for industrial and logistics
space came from logistics service providers
and freight forwarders with
27.7%. Automotive companies and
their suppliers ranked second with
26.3%, followed closely by the local
industrial and manufacturing sector
with 25.2%. The remaining space demand
(20.8%) can be allocated to commerce,
trade, service companies and
other sectors.
As in previous years, the keen interest
in new multi-functional industrial facilities
could not be met by a sufficient
supply of respective products. A continuing
lack of suitable greenfield or
brownfield plots increases the risk of
industrial, logistics and trading companies
leaving the Stuttgart Region to
take-up space in neighbouring regions
with a greater supply. The tight market
for such industrial and logistics products
also prevent new industrial settlements
in the Stuttgart Region.
Leases
Ellwanger & Geiger Real Estate has
identified a total of 72 new leases in the
Stuttgart Region. Compared to the 63
signings in 2015, this figure signifies an
increase of ca. 14.3%. Almost half of the
lettings (48.6% / 35 leases) were closed
for facilities with 1,000 to 3,000 square
metres of lettable floor space. Regarding
industrial and logistics property
with more than 10,000 square metres,
only half of the signings of the previous
year could be achieved in 2016. With a
total of 3 leases, this corresponds to a
mere 4.2% of the total space take-up.
All in all, 51 lettings were supported
by professional agents, a market share
of 70.8%. Based on the total space
turnover, the rate of agency supported
lettings accounted for 70.4% or 144,256
square metres of space take-up in 2016.
In the previous year, the agency rate
was significantly lower with 62.9% or
132,257 square metres of leased space.
Ellwanger & Geiger Real Estate has successfully
supported 11 industrial and
logistics lettings in the Stuttgart Region
with a total space volume of ca.
49,100 square metres. Of this total, ca.
13,400 square metres were newly-built
facilities, equivalent to ca. 43% of all
newly-built space. With regards to the
overall letting volume in the Stuttgart
Region, Ellwanger & Geiger Real Estate
were able to achieve a market share of
ca. 24%. Concerning agency supported
lettings, Ellwanger and Geiger Real Estate
had a market share of 34% in 2016.
.
Lease Terms
In the reporting period, commercial
leases for industrial and logistics facilities
had an average duration of around
3 years, with fixed lease terms ranging
between 6 months and 5 years. For
newly –built property, lease periods of
10 to 15 years could be obtained.
Rent Levels*
For industrial and logistics space in the
Stuttgart Region, Ellwanger & Geiger
Real Estate has calculated an average
rent of € 4.75 per square metres. Compared
with 2015 and an average of
€4.60 per square metre, this signifies
an increase of 3.3%.
Newly-built property accounted for
an rent average of € 6.03 per square
metre. In this segment, the average
rent level fell slightly below the € 6.10
per square metre which were achieved
in 2015, resulting in a drop of 1.1
percentage points. Base rents (excluding
for tenant specific CAPEX) ranged
between € 5.65 and € 6.75 per square
metre in 2016.
6.26
4.30
5.50
4.70
5.50
4.15
5.90
4.45
5.90
4.60
6.00
4.75
2011 2012 2013 2014 2015
2016
Top Rents/ Average Rents (newly-built space in EUR per sqm)
6.20
5.70
6.60
5.55
5.90
5.20
5.30
5.30
6.20
6.10
6.75
6.03
2011 2012 2013 2014 2015
2016
Top rent
Average rent
Top rent
Average rent
* for rentated industrial & logistics space; monthly net rent
All graphs by: Research ELLWANGER & GEIGER Real Estate GmbH ©, Stand: Januar 2017
6 I
I 7