Market Report 2011 GerMany - Europe Real Estate

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16 Constance Freiburg Augsburg Munich Ingolstadt Regensburg Nuremberg Erlangen Fürth Bamberg Würzburg Darmstadt Offenbach/M. Aschaffenburg Frankfurt/M. Mainz Wiesbaden Koblenz Bonn Cologne Erfurt Jena Weimar Magdeburg Braunschweig Salzgitter Kassel Gera Chemnitz Dresden Cottbus Potsdam Hannover Bielefeld Gütersloh Paderborn Bremen Hamburg Lübeck Kiel Rostock Schwerin Osnabrück Münster Dortmund Hamm Hagen Bochum Wuppertal Solingen Siegen Marburg Duisburg Essen Krefeld Aachen Mönchen- Gladbach Dusseldorf Neuss Leverkusen Ratingen Berlin Leipzig Halle/Saale Trier Heilbronn Stuttgart Karlsruhe Saarbrücken Kaiserslautern Heidelberg Mannheim Ludwigshafen Ulm 8.50 6.75 10.00 7.25 22.50 4.95 12.50 6.25 12.00 8.00 12.00 6.80 11.00 7.30 9.00 7.25 8.30 7.25 12.50 6.50 13.20 6.35 9.00 8.00 11.00 6.75 13.50 6.00 12.00 7.50 9.80 7.50 10.00 9.00 10.00 8.00 11.50 7.75 13.00 7.50 21.50 5.25 16.00 6.30 10.50 6.90 12.00 6.50 11.60 6.70 11.00 7.40 13.30 6.30 11.50 7.00 10.00 7.00 10.30 7.25 10.00 7.50 10.50 7.50 9.50 6.50 14.80 6.50 11.20 8.10 29.00 4.85 10.40 7.00 12.00 7.20 13.00 6.00 10.00 7.50 13.00 7.40 10.70 7.00 12.50 7.00 7.00 8.20 9.50 7.90 8.50 8.30 10.00 9.00 11,00 6,50 12.00 6.70 11,00 7,50 9.00 7.40 12.80 6.90 13.00 7.50 17.50 5.30 11.60 6.50 35.00 4.90 13.00 6.00 12.00 6.80 11.50 7.00 13.50 6.40 10.00 7.60 Dusseldorf 23.00 5.15 13.80 6.75 Ratingen 10.50 6.75 Neuss 10.00 7.10 10.50 7.86 7.00 9.00 12.50 6.25 7.40 12.50 12.50 7.00 21.00 5.10 11.00 6,40 10.00 7.50 13.00 6.70 10.90 7.00 Wilhelmshaven Prime rents and initial yields Prime rent in €/m² Prime initial yield in % 6-month trend Office market Germany 2011
IVG office market scoring: attractiveness of locations for office investments In the following section, IVG Research compares 70 selected major cities on the basis of a scoring model to determine their attractiveness for office investments. The cities are evaluated according to a variety of characteristics that fall under the three categories of market size, market risk and future prospects (refer to the Notes containing explanations of the methodology used). You can see how the locations performed in the comparison from the table on the right, which presents the overall results and from the map of Germany provided further below, which highlights the results in the individual categories. In this context, a score of 1 represents a very poor result and a score of 5 a very good result. Category Weighting Indicators Period Market size 33,3 % Market risk 33,4 % Future prospects 33,3 % Overall score 100.0 11.1 Office stock (in million m²) 2010 11.1 SID employees (in million) 2010 11.1 Gross value added (in € million) 2008 11.1 Market transparency (index) 2010 5.6 Volatility of gross value added (in %) 2000-2010 5.6 Volatility of rental trends (in %) 2000-2010 11.1 Vacancy rate (in %) 2010/2011 11.1 Growth of gross value added (in %) 2001-2010 11.1 Population growth 2025 (in %) 2009 11.1 Prognos future opportunities (index) 2010 Source: IVG Research, SID = subject to social insurance deductions Market size: guarantees a good score, but … Since market size is generally a reflection of a city‘s economic importance, the first 10 places in the ranking consist entirely of major conurbations with high populations, established labour markets, large numbers of commuters and their own universities. It therefore comes as no surprise to see Munich and Hamburg take first and second place respectively – a result that is not solely attributable to the market size. In reality, both cities score highly due to their solid economic development and their high level of transparency regarding market risk. Added to this are numerous soft factors that enable Munich and Hamburg to exert a strong attraction to people, coupled with a modern, diversified and dynamic economic structure. This contributes to the significant lead enjoyed by both cities with regard to future prospects. Good rankings were also secured by the smallest two of Germany‘s seven major office capitals, Stuttgart (3rd place) and Cologne (5th place). Virtually ignored by investors for many years, both cities have succeeded in making up for lost ground over the past few years. Although smaller than Cologne, Stuttgart has proved to be significantly more dynamic than its counterpart on the Rhine thanks to a flexible and innovative medium-sized entrepreneurial base. For this reason, Stuttgart comes in at eleventh place nationwide with regard to its future prospects (Cologne ranks 18th). The Stuttgart office market has also established a reliable reputation over the past decade with low rent volatility, low vacancies, stable economic growth and a high level of market transparency. Accordingly, Stuttgart tops the table in Germany in terms of market risk. Office Market Scoring – overall score Munich Hamburg Stuttgart Frankfurt/Main Cologne Berlin Dusseldorf Hanover Nuremberg Bonn Dresden Ingolstadt Wiesbaden Münster Erlangen Karlsruhe Essen Bremen Potsdam Mainz Mannheim Ulm Dortmund Regensburg Freiburg Aschaffenburg Duisburg Leipzig Augsburg Heidelberg Ludwigshafen Neuss Bochum Gütersloh Constance Kiel Darmstadt Aachen Paderborn Bielefeld Wuppertal Braunschweig Mönchengladbach Leverkusen Saarbrücken Ratingen Worms Lübeck Offenbach/Main Osnabrück Marburg Bamberg Kassel Kaiserslautern Hagen Koblenz Hamm Jena Trier Fürth Heilbronn Würzburg Solingen Rostock Erfurt Salzgitter Magdeburg Weimar Schwerin Krefeld Chemnitz Siegen Cottbus Gera Halle (Saale) Source: IVG Research 4. 4 27 4 . 18 3 . 86 3 . 84 3 . 83 3 . 83 3 . 66 3 . 45 3 . 25 3 . 19 3 . 13 3 . 05 2 . 98 2 . 98 2 . 93 2 . 91 2 . 90 2 . 89 2 . 89 2 . 84 2 . 82 2 . 82 2 . 80 2 . 74 2 . 74 74 2 . 74 2 . 71 2 . 70 2 . 63 2 . 62 2 . 60 2 . 55 2 . 53 2 . 53 2 . 52 2 . 51 2 . 51 2 . 50 2 . 46 2 . 44 2 . 44 2 . 36 2 . 33 2 . 32 2 . 30 2 . 30 2 . 30 2 . 29 2 . 29 2 . 29 2 . 27 2 . 27 2 . 26 2 . 23 2 . 22 2 . 22 2 . 22 2 . 20 2 . 19 2 . 15 2 . 15 2 . 14 2 . 07 2 . 07 2 . 05 2 . 04 2 . 03 2 . 02 1 . 97 1 . 96 6 1 . 87 1 . 79 1 . 65 1 . 57 1 . 56 Score 1 2 3 4 5 17
Page 1: Market report GerMany 2011
Page 4 and 5: 2 Dear Readers, In forming a valid
Page 6 and 7: 4 Implications of IVG Research for
Page 8 and 9: 6 Leading economic indicators such
Page 10 and 11: 8 Modern office buildings in short
Page 12 and 13: 10 Problem of structural vacancy no
Page 14 and 15: 12 Frankfurt: steady increase in va
Page 16 and 17: 14 Stuttgart: extremely stable tren
Page 20 and 21: 18 … only if rents are less volat
Page 22 and 23: 20 Investment market for office bui
Page 24 and 25: 22 Office Market Scoring and prime
Page 26 and 27: 24 Notes: German office markets 201
Page 28 and 29: 26 Office market scoring methodolog
Page 30: 28 Imprint IVG Immobilien AG Zander

Market Report 2011 GerMany - Europe Real Estate

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