E & G Industrial & Logistics Property Stuttgart Region 2018-11-07

Facts & Figures.
Letting Volume*
Space Take-up Stuttgart Region in sqm
Newly-built Space
Brownfields**:
Greenfields**:
For the counties of the Stuttgart Region,
E & G Real Estate has identified an overall
space take-up in industrial and logistics
space of ca. 240,600 square metres.
Compared to a letting volume of 205,000
square metres in the previous year, this
signifies a clear increase of 17.4%.
In total, 68 industrial and logistics leases
were signed in 2017. In the first six
months, 37 new leases accounted for ca.
42% of the overall space take-up. The 31
signings in the second half of the year
created a further 67.7% in letting turnover.
For the sixth time in succession, the
County of Ludwigsburg ranks first in
terms of space take-up with a share
of 55.3%, followed by the Counties of
Goeppingen (14.3%) and Rems-Murr
(10%) with significantly lower letting
volumes.
165,000
40,000
240,000
65,500
217,000
58,000
172,000
27,500
210,000
25,400
205,000
31,300
2011 2012 2013 2014 2015 2016
240,600
Total
Newly-built
121,700
2017
With an extraordinary letting volume
of ca. 121,700 square metres for newly
built industrial and logistics property,
the result of the previous year
(ca. 31,000 sqm) was outperformed
by nearly four times. This letting class
alone accounted for an overall share in
50.6%.
A total of nine leases were signed for
newly built industrial and logistics
space in 2017. Except for one development
project in Sindelfingen, all other
properties were built-to-suit the respective
occupier.
In the reporting period, ca. 151,200
square metres of industrial and logistics
property were developed on
brownfield sites. On undeveloped
greenfield plots, a total of ca. 135,500
square metres of newly built space
was made available for industrial and
logistics purposes.
Tamm (County of Ludwigsburg):
Logistics development for Bosch
with ca. 38,000 sqm of hall space
on a plot with ca. 73,000 sqm
Freiberg (County of Ludwigsburg):
Logistics property for Porsche/LGI
with ca. 15,300 sqm of hall space
on a plot with ca. 27,100 sqm
Benningen (County of Ludwigsburg):
Logistics complex for Müller-Lila
Logistics with ca. 15,300
sqm on a plot with 27,100 sqm
Sindelfingen (County of Boeblingen):
Ca. 4,500 sqm of light
industrial space for automotive
engineering services on a plot with
ca. 9,000 sqm
Alfdorf (County of Schwaebisch
Gmuend): ca. 13,700 sqm of hall
space for TRW Automotive on a
plot with ca. 27,300 sqm
Vaihingen/Enz (County of Ludwigsburg):
ca. 13,000 sqm of logistics
space for DSV on a plot with ca.
26,300 sqm
Sachsenheim (County of Ludwigsburg):
ca. 8,000 sqm of hall
space (two construction phases)
for Draexlmaier on a plot with ca.
40,000 sqm
Top 3 lettings > 5,000 sqm**:
County of Ludwigsburg:
ca.13,400 sqm rented to an OEM
County of Goeppingen:
former Geschmay Areal, ca.10,000
sqm of production space rented by
an industrial company
Letting volume 2017 by Counties
Böblingen: 22.600 sqm
(2016: 9.0 %)
Esslingen: 16,300 sqm
(2015: 20.8 %)
Stuttgart: 10,200 sqm
(2016: 18.5 %)
Rent Levels 2017***
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 per sqm
(newly-built space)
County of Böblingen 3.30 – 4.50 3,90 6.50 6.50
County of Esslingen 3.20 – 4.75 4,00 – –
County of Göppingen 3.30 – 4.90 4,00 – –
County of Ludwigsburg 4.00 – 6.00 5,30 4.90 – 6.50 6.10
County of Rems-Murr 4.50 – 5.60 4,85 5.00 5.00
County of Goeppingen: former Geschmay
Areal:
further 8,000 sqm of production
space rented by an industrial
company
Rems-Murr: 24,100 sqm
(2016: 11.6 %)
Göppingen: 34,400 sqm
(2016: 8.2 %)
Total
240,600 sqm
55.3%
Ludwigsburg: 133,000 sqm
(2016: 31.9%)
City of Stuttgart 3.70 – 6.50 5,40 – –
Total 3.20 – 6.50 4,60 4.90 – 6.50 6.10
For existing industrial and logistics
space in the Stuttgart Region, E&G
Real Estate has determined a marginal
decrease in average net rent from €
4.63 to € 4.60 per square metre. From
what we can tell, the on-going shortage
of letting products has created a
demand for less attractive spaces in
fringe locations of the Stuttgart Region
and with lower net rent levels.
Thanks to the construction activities in
the Stuttgart Region, newly built property
achieved a rent average of € 6.10
per square metre, which lies slightly
above the figure from 2016 (€ 6.04/
sqm). Yet, the prime rents from that
year (€ 6.75/ sqm) could not be reached
again.
Source: Research E & G Real Estate GmbH ©, Januar 2018
* exclusive of lease extensions /owner-occupiers
** I&L space without mezzanine/office/social space
6 I I 7