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 <strong>Stuttgart</strong> 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) Dem<strong>and</strong> In the reporting period, the strongest dem<strong>and</strong> for industrial <strong>and</strong> logistics space came from logistics service providers <strong>and</strong> freight forwarders with 27.7%. Automotive companies <strong>and</strong> their suppliers ranked second with 26.3%, followed closely by the local industrial <strong>and</strong> manufacturing sector with 25.2%. The remaining space dem<strong>and</strong> (20.8%) can be allocated to commerce, trade, service companies <strong>and</strong> 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 <strong>and</strong> trading companies leaving the <strong>Stuttgart</strong> <strong>Region</strong> to take-up space in neighbouring regions with a greater supply. The tight market for such industrial <strong>and</strong> logistics products also prevent new industrial settlements in the <strong>Stuttgart</strong> <strong>Region</strong>. Leases Ellwanger & Geiger Real Estate has identified a total of 72 new leases in the <strong>Stuttgart</strong> <strong>Region</strong>. 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 <strong>and</strong> 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 <strong>and</strong> logistics lettings in the <strong>Stuttgart</strong> <strong>Region</strong> 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 <strong>Stuttgart</strong> <strong>Region</strong>, Ellwanger & Geiger Real Estate were able to achieve a market share of ca. 24%. Concerning agency supported lettings, Ellwanger <strong>and</strong> Geiger Real Estate had a market share of 34% in 2016. . Lease Terms In the reporting period, commercial leases for industrial <strong>and</strong> logistics facilities had an average duration of around 3 years, with fixed lease terms ranging between 6 months <strong>and</strong> 5 years. For newly –built property, lease periods of 10 to 15 years could be obtained. Rent Levels* For industrial <strong>and</strong> logistics space in the <strong>Stuttgart</strong> <strong>Region</strong>, Ellwanger & Geiger Real Estate has calculated an average rent of € 4.75 per square metres. Compared with 2015 <strong>and</strong> 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 <strong>and</strong> € 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 ©, St<strong>and</strong>: Januar <strong>2017</strong> 6 I I 7