2   THE STUTTGART ECONOMIC REGION.                                                      direction Heilbronn               ...
3MARKET TRENDS.BOOMING INDUSTRIAL AND LOGISTICS                                  Especially counties along the A 81 motorw...
4FACTS AND FIGURES.SPACE TURNOVER                                                  TRANSACTION-STRATEGIESIn 2011, the lett...
5    Informations    about InvestmentsInvestment.Top yield for commercial properties in %     11.0     10.0               ...
6our services.                                                        Geschäftsbereich                                    ...
7    Informations about    ELLWANGER & GEIGER Real EstateEllwanger & Geiger Real Estate.ELLWANGER & GEIGER Real Estate off...
DisclosureThe data for this market report has been sourced directly from city andc­ ommunity authorities, as well as from ...
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Industrial and Logistics Market Report 2012


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Industrial and Logistics Market Report 2012

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Industrial and Logistics Market Report 2012

  2. 2. 2 THE STUTTGART ECONOMIC REGION. direction Heilbronn County of Ludwigsburg direction Karlsruhe County of Rems-Murr Ditzingen Weilimdorf Esslingen County of Göppingen County of Böblingen County of Esslingen direction Munich County of Tübingendirection Singen industrial and logistics cluster* * logistics space > 50,000 sqm industrial space > 100,000 sqm
  3. 3. 3MARKET TRENDS.BOOMING INDUSTRIAL AND LOGISTICS Especially counties along the A 81 motorway (Ludwigsburg,The Stuttgart Region is booming. The automotive industry Böblingen), continue to lead the way. By far the largestas well as mechanical engineering are back on track with growth in logistics space could be observed in these twosustainable growth and excellent prospects. counties. This increase in logistics space was generated by expansions of local companies as well as new settlements.This can be seen in high bonus-payments for automotive Proximity to major industrial estates of the Stuttgart Region,employees, as well as a strong demand for industrial and in combination with excellent traffic links to nationwidelogistics property. speed- and motorways, were strategic advantages for the counties of Ludwigsburg and Böblingen. Furthermore, these counties have adopted settlement and logistic-friendlyLOGISTICS IN THE WAKE OF INDUSTRY policies, which is reflected in a sufficient supply of suitableThe strong economic background of the Stuttgart Region plots at an adequate price.and the high density of logistics have intensified thed­ emand for modern logistics space. On the one hand, Despite high demand not only for respective plots, buti­ndustrial companies strive for highly-efficient supply chains, also for flexible existing properties, the growth of modernon the other hand a continued trend for outsourcing of logistics property along the A 8 motorway (Munich –production processes to logistics service providers can be Karlsruhe) has been lagging behind its potential. Thisobserved. n ­ egative trend is the result of restrictive zoning policies on the one hand, and above average land prices on theSuch close ties between industrial and logistics are other hand. As a consequence, all major new settlementsc­ haracteristic for the economic Region of Stuttgart. where either placed outside the Region of Stuttgart (Ulm, Augsburg, Karlsruhe) or along the A 81 motorway.Despite these positive economic trends, not all communitieswithin the Stuttgart Region will benefit from a booming ECONOMIC ATTRACTIVNESS IS NOT A GIVENindustrial sector. The successful clustering of industrial and logistics c ­ ompanies has generated sustainable economic growth inA survey by Bankhaus Ellwanger & Geiger has found a the Stuttgart Region. To secure this positive trend for thewidening gap between the counties of the Stuttgart Region future, local authorities, companies and investors will needconcerning the settlement of modern logistics between to intensify their cooperation. The importance of industrial2009 and 2012. and logistics settlements will need to be communicated to the public and local residents will need to be involved in all stages of the planning process.
  4. 4. 4FACTS AND FIGURES.SPACE TURNOVER TRANSACTION-STRATEGIESIn 2011, the letting volume of industrial and logistics ❚❚ Owner occupancyspace in the Stuttgart Region has reached 165,000 square ❚❚ Partial demolition/new developmentmetres, compared with 195,000 square metres in 2010. ❚❚ Demolition/new developmentApprox. 79 per cent of the total space turnover resulted ­from lettings of existing property. The remaining 21 per The largest transactions in this sector were the selling ofcent of leases were placed in newly built properties, for NXP-Areal in Böblingen with approx. 220,000 squareexamples 5,000 square metres in Weilimdorf or 25,000 m ­ etres, the EllringKlinger commercial site in Ludwigsburgsquare ­ etres in Böblingen and Untertürckheim. m with ­ pprox. 140,000 sqm, as well as the brick works of a ­Winnenden with approx. 60,000 square metres and theOf that space turnover, brokers marketed approx. Coperions Areal in Stuttgart with approx. 45,000 square117,000 square metres, which corresponds to ­ pprox.  a metres. 71 per cent of the total volume. With a market shareof 25 per cent, Ellwanger & Geiger continues to be RENTSmarket leader. Average net rents for industrial and logistics space rose s ­ ignificantly from € 4.50 per square metres in 2010 toCounties with the largest space turnovers: €  4.70 per square metres in 2011. This increase is a result❚❚ Esslingen approx. 49,000 sqm of a continuous demand as well as shortage of ­ndustrial i❚❚ Böblingen approx. 35,000 sqm and logistics space in the Stuttgart Region. The average❚❚ Ludwigsburg approx. 33,000 sqm lease duration for existing properties lies between 3 to 5 years – 7 to 10 years for newly built property.In 2011 the transaction volume of developed plots andindustrial sites reached approx. 603,000 square metres. Like in 2010, peak rents reached € 6.20 per square metres for newly built logistics space. Range of net rents Average net rents trend 2012/2013 € per sqm € per sqm County of Böblingen 4.50 – 5.50 5.00 County of Esslingen 3.30 – 4.70 4.00 County of Göppingen 2.80 – 3.60 3.20 County of Ludwigsburg 3.80 – 5.50 4.70 County of Rems-Murr 3.00 – 3.70 3.40 Stuttgart 5.00 – 5.30 5.10 Total 4.70Source: BANKHAUS ELLWANGER & GEIGER KG ©, March 2012 all prices above are per month
  5. 5. 5 Informations about InvestmentsInvestment.Top yield for commercial properties in % 11.0 10.0 9.5 10.5 10.5 9.0 8.0 8.0 7.5 7.0 7.2 Logistics 7.0 Special Retail Centres 7.5 7.5 7.5 7.5 6.0 7.0 5.5 5.25 5.5 5.5 5.5 5.5 5.0 Office Office and Retail Buildings 4.0 5.0 5.0 5.0 5.0 Prime-Location 4.6 4.6 3.0 2.0 1.0 0 2006 2007 2008 2009 2010 2011 2012 Source: Research Bankhaus Ellwanger & Geiger KG ©, March 2012INVESTMENT OUTLOOK FOR 2012/2013A major trend from 2010 has been continued, as predomi- From the third quarter 2012 to the first quarter 2013nantly private investors were active on the market and e ­ xtensive newly built logistics properties will be completedbought existing industrial sites with potential for new and ready to be listed. Currently more than 50 per centd­ evelopments. Demand of institutional investors for core of these spaces are pre let. Ellwanger & Geiger willproperty has been high, but could not be met by suitable e ­ xclusively market a total of approx. 45,000 square metres.investment opportunities. Only few institutional investors However, this will not be enough to satisfy the demand forwere looking for brown fields with upside potential. modern logistics space.On the supply side, no suitable products where placed on Against the backdrop of a continuously high demand inthe industrial and logistics markets at all. New develop- combination with the completion of newly built logisticsments, no matter if initiated by private or institutional property, we expect average rents to rise in 2012/2013i­nvestors were held in the portfolio of the respective and forecast peak net rents for newly built logistics spacei­nvestor. Only one transaction, in the County of Rems- to the amount of € 6.50 per square metresMurr, with more than 10,000 square metres of logisticsspace, reached an ­nitial yield of 8 per cent. i Top letting volumes are to be reached in Ludwigsburg County, due to:Due to this lack of products and transactions, prime yields ❚❚ Available plotscannot be forcasted at present. For any selling of core ❚❚ Adequate ground valuesproducts, Ellwanger & Geiger expects an initial yield ❚❚ Excellent infrastructureof less than 8 per cent. ❚❚ Company friendly policies
  6. 6. 6our services. Geschäftsbereich Industrial And Industrie ­Logistics und Logistik Immobilien- Vermietung/ Letting/Sale Investment Consulting Research Valuations wirtschaftliche Verkauf Einschätzungenyour contact partners.The industrial and logistics sector has its own characteristics. In this field, you should rely on specialists who know therequirements for buildings, infrastructure and property down to the last detail: ELLWANGER & GEIGER Privatbankiers.You will benefit from our expertise, our long-standing experience and our comprehensive services.Our team in Stuttgart looks forward to your call or visit. You can reach us at: Phone +49 (0)711/2148-286or Fax +49 (0)711/2148-290.Information on the Internet: www.privatbank.deMarkus Knab Alexander Fink Moritz Weeber Kathrin ZieglerTeam Manager, Industrial and Consultant, Industrial and Consultant, Industrial and Assistant Industrial and ­­Logistics Properties ­Logistics Properties ­Logistics Properties Logistics PropertiesPhone +49 (0)711/2148-227 Phone +49 (0)711/2148-261 Phone +49 (0)711/2148-383 Phone +49 (0)711/
  7. 7. 7 Informations about ELLWANGER & GEIGER Real EstateEllwanger & Geiger Real Estate.ELLWANGER & GEIGER Real Estate offers you a one-stop shop for a comprehensive range of servicesr­ elating to the asset class of real estate. With the very highest discretion and integrity, we enableyou to keep your bearings in rapidly changing markets. Our success is founded above all on excellentknowledge of the market and decades of experience in the real estate business.COMMERCIAL PROPERTY FUNDS & ASSET MANAGEMENT Our LocationsExtensive research is the basis for our We plan individual real estate invest- Head office Stuttgartanalyses of locations, portfolios and ments and create special funds for Börsenplatz 1cost-effectiveness that reflect market i ­nstitutional investors and professional 70174 Stuttgart, Germanyconditions. From this, we derive private investors (family offices). Phone +49 (0)711/2148-286strat­ gies whose goal is to capitalize e Each investment approach is devised Fax +49 (0)711/2148-290on potentials for earnings and effi- in close consultation with the customer. www.privatbank.deciencies. An investment volume is selected that permits niche investments and Branch office MunichApart from comprehensive leasing individual mandates. By creating Herzog-Rudolf-Straße 1services, our core expertise includes portfolios for single investors or small 80539 München, Germanyproject consulting and transaction groups, we are able to provide indi- Phone +49 (0)89/17 95 98-0business. We adopt a holistic approach vidual support for the duration of the Fax +49 (0)89/17 95 98-55in consulting on real estate invest- investment. Different investment www.privatbank.dements: we partner you all the way – v ­ ehicles are selected depending onfrom the development of market­ng i the needs and product preferencess­ trategies, to preparation of data on of each, to implementation of­marketing processes. OUR SERVICES Special funds in accordance withOUR SERVICES the German Investment Company Research Act (KAGG) Investment analysis and ­ onsulting c Closed investment models Transactions, renting and leasing (KG, GmbH) of office, retail, industrial and Luxembourg security funds and logistics facilities special funds, SICAV, SIF Individual schemes for offshore ­investors OUR OTHER PUBLICATIONS Retail Market Report Office Market Report Investment Market Report can be obtained free of charge from:
  8. 8. DisclosureThe data for this market report has been sourced directly from city andc­ ommunity authorities, as well as from realtors and owners. Our contactpartners received standardised questions concerning quantitative factorslike rental price, standard ground value, plot size and space turn-­ ver, as owell as the prospects for the future. The quality of the answers to our enquiryvaried significantly. Some values were estimated, some data was incomplete.However, this survey offers an overview of the current trends and develop-ments in the industrial and logistic sector of the Stuttgart Region.Bankhaus Ellwanger Geiger KGReal EstateBörsenplatz 1, 70174 Stuttgart, GermanyPhone +49 (0)711/2148-286, Fax +49 (0)711/