E & G Real Estate office market report Stuttgart 2017-2018

Stuttgart – Central I 21
of space has resulted in the average
rent increasing by 15 % to € 18.50/m²,
while the prime rent has risen by 20
% to € 24.30. The average rent in the
city centre went up by 4 % to € 13.30/
m² and the prime rent by 13 % to €
18.60/m².
City centre < 500 m 2 501 - 1,000 m 2 1,001 - 2,000 m 2 2,001 - 5,000 m 2 > 5,001 m 2
% share of space 39 % 22 % 27 % 12 % 0 %
m 2 13,318 7,363 9,155 4,120 0
Ø rental price 13.30 €/m 2
Prime rent 18.60 €/m 2
Northern Stuttgart – the office market is virtually exhausted.
Feuerbach
FFeuerbach and Zuffenhausen are still
districts which are still characterized
by the automotive industry. Take-up in
2017 was 5 800 m², significantly under
the 10-year average and only 10 % the
figure for 2016. The previous year was,
however, dominated by a high number
of large letting contracts in the district.
Following this, no new space was
completed in 2017 and no large areas
worth mentioning came onto the market.
The low take-up figure can thus
be attributed to Feuerbach’s extremely
tight market.
In the area around Maybachstrasse
the “MayOffice” project is currently in
the preparatory stage, with building
scheduled to commence in 2018. The
approx. 8 500m² office development
should be finished in mid-2020. A
further smaller project in Maybachstrasse
– around 6 000 m², is also being
built in direct proximity to the “MayOffice”
complex and has already been let
to an automotive industry tenant. The
full renovation of the Leitz complex,
announced two years ago, will be delayed
by some six to nine months, is,
however, scheduled for completion in
2018. Work on a start-up campus with
adjacent amenities such as a gym and
hotel plus so-called “micro fabs” is still
underway.
The “Technologie-Center I” office project
in Borsigstrasse, with total floor
space of approx. 23 000 m² was completed
in the fourth quarter of 2017
and handed over to Robert Bosch
GmbH. This construction phase and its
expansion, the “Technologie-Center II”
building on the opposite side of the
road are part of the further transformation
of the Feuerbach’s industrial
park into a service provider location.
Feuerbach/
Zuffenhausen
Developments in previous years, also
by the main user Robert Bosch GmbH,
have given the area a modern appearance
when viewed from Siemensstrasse.
This will be added to in the
coming years, when the current Daimler
AG complex in Heilbronner Strasse
has been replaced with a new-build
Mercedes-Benz branch. Following
this, the appearance of the Heilbronner
Strasse will, with the exception of
a few buildings/plots, have been fully
transformed.
Robert Bosch GmbH also has further
plans to construct a new building with
approx. 50 000 m² of office space on
what is now a car park directly adjacent
to the B 295 main road in the area
Bregenzer Strasse/corner of Leobener
Strasse. The objective behind this is to
concentrate widely dispersed company
departments in one single location.
Developments in Feuerbach/Zuffenhausen
are currently largely dominated
by the extensive upheavals being
experienced by industry and caused
by the challenges of digitalization and
changes in the context of self-driving
vehicles.
Zuffenhausen
< 500 m 2 501 - 1,000 m 2 1,001 - 2,000 m 2 2,001 - 5.000 m 2 > 5,001 m 2
% share of space 53 % 15 % 32 % 0 % 0 %
m 2 2,973 858 1,850 0 0
Ø rental price 11.30 €/m 2
Prime rent 14.00 €/m 2
A further development project has
been expected for some time now and
has now reached the realization stage.
An entire office campus is planned on
the Spedition Fritz complex, located at
Schwieberdingerstrasse/corner of Lorenzstrasse
in Stuttgart Zuffenhausen.
The project will be carried out in several
construction phases, with a total of
some 35 000 m² of office space planned.
The corresponding building permits
have been applied for and, assuming
that pre-letting figures are satisfactory,
work could start in the near future.
The design concept envisages a number
of buildings arranged around an open
space. The combination of existing old
buildings – for use as restaurants and
bars – with cutting-edge architecture
should make this an attractive project.
This is, incidentally, the only project within
the boundaries of the city of Stuttgart
which will be able to provide such a
large amount of space in the near future.
Weilimdorf
With a vacancy rate of 3.2 % or 12 000
m² the market in the Weilimdorf district
is also now practically fully let, with
only 54 % of the previous year’s take-up
achieved. This is not due to a lack of demand
but to a lack of properties. Space
which is still available is distributed
among several buildings or no longer
appropriate for current needs and thus
difficult to position on the market. Letting
of the final space formerly occupied
by Ernst & Young in 2017 saw all available
large spaces in the location taken;
short-term larger requirements cannot
currently be met. A new-build development
project in the industrial park, to-