E & G Stuttgart Office Market Report 2018-2019

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STUTTGART IN DETAIL
Stuttgart
in detail
A continuing need for space but significantly changed requirements
regarding the quality of such space have led to growing demand for
development projects and optimization of buildings.
Stuttgart central business district/city centre -
Locations experiencing shortages
Stuttgart’s most attractive areas, the central business district and the city centre, are
experiencing the most precarious conditions. Vacant space is practically non-existent,
while new development projects will only come on stream in a few years’ time.
The first indications that space was becoming scarce were
already noted in 2017, however, were not taken very
seriously until the signs became clearer in 2018. The last
two newly constructed projects in the central business
district (“Lautenschlager-Areal Construction Phase 1”
and “Eberhardhöfe”) have now been completed and fully
let. The space which will be created within the scope of
the second phase of construction at the Lautenschlager-
Areal complex has also already been fully let, although
the project has not yet been completed. At present there
is practically no vacant space available on the market,
neither for small nor large areas. This scarcity caused
take-up in 2018 to plummet by 46 %. At 27 000 m² it is
now significantly below the 10-year average of 52 500
m², while the situation in 2019 will further intensify as no
newly constructed space will be completed in the central
business district. Companies in this area will thus lack the
manoeuvring space and options required for healthy growth.
New space in the city centre area0 which would relieve
pressure on the market, is not expected to be created in the
near future.
In response to the scarcity of the offering in the central
business district various users have turned their attention
to directly adjacent areas, such as the city centre and
neighbouring districts. The options there are, however, also
very limited, as clearly shown by 2018 letting performance
for the entire city centre, which totalled 28 400 m². The 10-
year average is 59 500 m², illustrating the volume of take-up
achieved in the past.
The “Look 21” building, completed at the end of 2018, will
have been fully let by the first quarter of 2019. This means
that the closest newly constructed space offerings are
located further to the north, in the Pragsattel area. Upcoming
development projects in the central business district are not
expected to come on stream until 2024.
Central business district
≤ 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
m 2
Ø rental price
Prime rent
41 %
11 234
25 %
6 850
8 %
26 %
2 192
7 124
18.20 € / m 2
23.00 € / m 2
0 %
0
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
m 2
Ø rental price
Prime rent
32 %
9 080
15 %
4 260
11 %
0 %
3 124
0
11.90 € / m 2
17.00 € / m 2
42 %
11 928
STUTTGART | 2018/2019 OFFICE MARKET REPORT
STUTTGART | 2018/2019 OFFICE MARKET REPORT