1. SpecialReport
TMT SECTOR IN GERMANY
SPECIAL REPORT

2. MARKETVIEW
33%
18%18%
23%
8% IT
New Media /
Internet
Telecommunication
Publishing/ Media/
Advertising
E-Commerce
0
50
100
150
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Index2010=100
Info & Comms Financial Services
Professional Services All economic activities
2015 CBRE Research © 2015 CBRE GmbH | 2
Special Report TMT Sector in Germany
Source: CBRE, Destatis, Oxford Economics, Harvard Business Review, BMBF
Figure 1: Information and Communication – A booming Sector in Germany
Figure 2: Information & Communication outperforms other sectors in the
Economy
Figure 3: German cumulated TMT take-up by subsector
0
200
400
600
800
1 000
1 200
0
20
40
60
80
100
120
140
1994 1998 2002 2006 2010 2014
Sectoremployment(1,000)
RealGrossValueAdd
Index2010=100
Indexed GVA Total Employment

3. MARKETVIEW
BERLIN - GERMANY`S
START-UP CAPITAL
2015 CBRE Research © 2015 CBRE GmbH | 3
TMT SECTOR MARKET OVERVIEW – BERLIN
Berlin’s cosmopolitan and open-minded
image attracts thousands of new creative
minds and tech talent every year enchanted
by the special sense of life and plenty of
room for creativity. Besides its excellent
public transportation system and solid public
services sector, Berlin offers an unmatched
infrastructure of universities, research
institutes, governmental institutions and
companies from the private sector for
students, professionals, creatives and
entrepreneurs. The city’s attraction for
residents and visitors alike lies in the
combination of this economic infrastructure
with the vast number of cultural and
historical institutions as well as the
comparably affordable cost of living.
Matthias Hauff – Head of Agency Berlin
165,000 Students in:
 4 universities
 7 universities of applied sciences
 22 private accredited colleges
 Approx. 70 non-university
research facilities
 22 urban technology parks
 Over 70 incubators, accelerators
and creative labs
 15 S-Bahn (rapid transit) lines
 9 U-Bahn (underground) lines
 Roughly 215 bus lines
 Optimal connection to major
european cities via interregional
train
 (almost) 2 international Airports
 About 5,800 tech companies
 Approx. 62,400 employees
in the TMT sector
 Approx. 15,000 students with
majors in IT/Digital related studies
in 2013
Source: CBRE, Berlin Partner, Senate of Berlin, BMWi
Figure 4: Berlin’s location factors attracting tech talent

4. TMT SECTOR MARKET OVERVIEW – BERLIN
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
A B C
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
CBD non-CBD Periphery
8
10
12
14
16
2010 2011 2012 2013 2014
Berlin Hamburg Munich Frankfurt Dusseldorf
Figure 9: Cumulated TMT take-up by quality of fittings (Berlin)
Figure 7: Average rent – TMT companies across all Top 5 markets (€/sq m/month)
4
TAKE-UP IN THE TMT SECTOR ACROSS GERMANY
Source: CBRE
Source: CBRE
Source: CBRE
2015 CBRE Research © 2015 CBRE GmbH |
Figure 5: Cumulated TMT take-up in the Top 5 markets (sq m)
Figure 8: Cumulated TMT take-up by submarket cluster (Berlin)
Figure 6: Share of cumulated TMT take-up (sq m)
Source: CBRE
0 100 200 300 400 500 600 700 800
Munich
Berlin
Hamburg
Dusseldorf
Frankfurt
33%
27%
17%
15%
8% Munich
Berlin
Hamburg
Dusseldorf
Frankfurt

5. TMT SECTOR MARKET OVERVIEW – BERLIN
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014
up to 999 sq m 1,000 - 2,499 sq m 2,500 - 9,999 sq m over 10,000 sq m
5
DOES SIZE MATTER IN BERLIN’S TMT MARKET?
WHO ARE THE BIG PLAYERS AND WHERE DO THEY SETTLE?
COMPANY
CUMULATED
TAKE-UP 2010-2015 YTD
Zalando 81.660 sq m
Rocket Internet 37.200 sq m
Amazon 18.690 sq m
Nokia 16.960 sq m
Delivery Hero 10.760 sq m
Source: CBRE
2015 CBRE Research © 2015 CBRE GmbH |
Figure 10: Cumulated TMT take-up by size category
Figure 11: Cumulated take-up by the largest players
Source: CBRE

6. TMT SECTOR MARKET OVERVIEW – BERLIN
MICs OVERVIEW MAJOR TENANTS TMT SECTOR FOCUS
MITTE
Start-ups, mature companies, sought after residential market among
young urban professionals
Google, Amazon, Microsoft,
Mozilla, Rocket Internet, Twitter
MEDIASPREE /
KREUZBERG
Start-ups, mature companies, sought after residential market among
young urban professionals
Zalando, Rocket Internet,
Universal, Vice Magazine,
Wayfair
CITY-WEST
Start-ups and creative labs and mature players around the
universities Technische Universität Berlin (TU) and Universität der
Künste (UDK) with focus on IT and telecommunications
AVM, Strato
EUREF
CAMPUS
Start-ups and mature companies with focus on Internet of
Everything, Mobility/Industry 4.0, Sustainability, TU Campus
Cisco, Deutsche Bahn,
Schneider Electric
ADLERSHOF
Start-ups and mature companies focusing on Industry 4.0 and
Smart Cities
Atos IT Solutions, Corning Cable
Systems
WHO GOES WHERE?
CITY-WEST
EUREF CAMPUS
MITTE
ADLERSHOF
GLOBAL PLAYERS E-COMMERCE
6
Source: CBRE
BERLIN‘S MOST IMPORTANT CLUSTERS (MICS) IN THE TMT SECTOR
INDUSTRY 4.0INTERNET OF
EVERYTHING
MOBILITY / SMART CITIES
TECH STARTUPS
2015 CBRE Research © 2015 CBRE GmbH |
IT
TELECOMMS
 Clusters have formed as companies seek to benefit from being close to talent and the exchange of knowledge
 Most companies,regardless of the sector choose to stay within the urban railway loop
TXL
Figure 12: TMT MICs Overview

7. TMT SECTOR MARKET OVERVIEW – BERLIN
TXL
BER
MITTE, KREUZBERG, PRENZLAUER BERG AND FRIEDRICHSHAIN – THE TMT HOT SPOTS
7
Source: CBRE
Top 10
ZIP CODE
NEIGHBORHOOD DISTRICT
CUMULATED TMT
TAKE-UP (SQ M)
TMT SHAREOF
TOTAL TAKE-UP
10997 Wrangelstraße Friedrichshain-Kreuzberg 22,300 74%
10245 Ostkreuz Friedrichshain-Kreuzberg 31,300 69%
10178 Hackescher Markt Mitte 68,400 51%
10405 Prenzlauer Allee Prenzlauer Berg 19,900 50%
10969 Prinzenstraße Friedrichshain-Kreuzberg 24,300 50%
10243 Ostbahnhof Friedrichshain-Kreuzberg 30,500 42%
12099 Tempelhof-East Tempelhof-Schöneberg 18,800 37%
10179 Jannowitzbrücke Mitte 24,100 31%
10115 Chauseestraße Mitte 29,600 28%
10117 Unter den Linden Mitte 142,800 24%
2015 CBRE Research © 2015 CBRE GmbH |
Figure 14: Zip codes where the TMT sector makes up the highest share of cumulated leasing activity between 2010 and 2014
The correlation between
tech’sMICs and residential markets
Eastern districts have the highest
concentration of TMT firms at the same
time they are preferred residential
neighborhoods.
Friedrichshain-Kreuzberg
neighborhoods like around
Wrangelstraße or Görlitzer Park as well
as Mitte neighborhoods are particularly
well-known among younger and
foreign “new” Berliners who make up
a major share of the TMT demographic.
• While Mitte, Kreuzberg,Prenzlauer Berg and Friedrichshain have always been the preferred neighborhoods for TMT
companies to settle down, they have had to spread out to other areas of Berlin
• In the top 10 zip codes by cumulated TMT take-up more than one third of the total office space leased since 2010
is occupied by a TMT company
Figure 13: Top 10 TMT zip codes and letting transactions since 2010
Source: CBRE

8. TMT SECTOR MARKET OVERVIEW – BERLIN
BUILDINGS WITH MOST TMT LETTING ACTIVITY IN TERMS
OF CUMULATED TAKE-UP BETWEEN 2010 AND Q1 2015 AND MAJOR TENANTS
8
Source: CBRE
Neue Bahnhofstraße 11 - 17
TMT TAKE-UP : 24.100
Rocket Tower
Charlottenstraße 4
TMT TAKE-UP : 22.000
Hotel & Office Campus
Mühlenstraße 11 - 12
TMT TAKE-UP : 21.400
Dom Aquarée
Karl-Liebknecht-Straße 5
TMT TAKE-UP : 21.000
Greifswalder Straße 212
TMT TAKE-UP : 14.700
2015 CBRE Research © 2015 CBRE GmbH |
Zalando
Rocket Internet
Zalando
Amazon, Yandex
Home 24, Soundcloud
• Creative and tech companies usually prefer older converted industrial buildings
• However supply of large vacant office space in central locations close to good public transportation and infrastructure is scarce
• In many occasions more modern buildings prove to be more practical for the companies‘needs
TXL
Figure 15: Top 5 office buildings in terms of cumulated TMT take-up since 2010

9. TMT SECTOR MARKET OVERVIEW – BERLIN
Figure 16: Largest TMT leasing transactions
WHERE DID THE LARGEST LETTING TRANSACTIONS TAKE PLACE?
9
Source: CBRE
NUMBER SUBMARKET CLUSTER NAME TENANT SIZE (SQ M) QUARTER/YEAR
1 Berlin City-East Non-CBD Zalando 24,100 3Q/2012
2 Berlin City-East Non-CBD GSW Tower (Rocket Tower) Rocket Internet 22,000 1Q/2015
3 Berlin City-East Non-CBD Edison Höfe Nokia 11,900 1Q/2010
4 Berlin City-East Non-CBD FORUM MUSEUMSINSEL® Delivery Hero Holding 10,800 4Q/2014
5 Berlin Ost Periphery Atos IT Solutions and Services 10,100 1Q/2014
6 Berlin City-East Non-CBD Ritterhof Idealo Internet 10,000 1Q/2014
7 Berlin City-West Non-CBD Kleistpark myToys.de 9,700 3Q/2014
8 Berlin City-East Non-CBD Johannishof Rocket Internet 8,800 1Q/2012
9 Berlin City-East Non-CBD DomAquarée Amazon 8,100 2Q/2011
10 Berlin City-East Non-CBD Muratti Höfe Brands4Friends 7,600 2Q/2010
2015 CBRE Research © 2015 CBRE GmbH |
TXL
BER

10. TMT SECTOR MARKET OVERVIEW – BERLIN
0
5
10
15
20
25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 '15
CBD (Avg rent) Non-CBD (Avg rent)
Periphery (Avg rent) Prime rent
4.50
5.00
5.50
6.00
6.50
7.00
7.50
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Q1'15
CBD Non-CBD (incl Micro) Periphery
10
Source: CBRE
TMT’S IMPACT ON THE OFFICE MARKET
2015 CBRE Research © 2015 CBRE GmbH |
Figure 17: Average rents in Berlin by submarket cluster €/sq m/mth
Figure 18: Prime yields by submarket cluster (%)
Development of average and prime rent
2005- Q1 2015
Prime rent (total) 4.7%
CBD (Avg rent) 8.7%
Non-CBD (Avg rent) 43.2%
Periphery (Avg rent) 69.7%
TMT’S IMPACT ON NEW OFFICE DEVELOPMENT
Prime yields by submarket cluster
Q1 2015
Berlin Total 4.50%
CBD 4.50%
Non-CBD 4.90%
Periphery 6.25%
Source: CBRE

11. TMT SECTOR MARKET OVERVIEW – BERLIN
0
100
200
300
400
500
600
TMT Financial Services Professionals
Existing Refurbishment New
Total (1,000sq m)
Figure 19: Share of pre-lettings (refurbishments/new builds) versus lettings in existing buildings – TMT sector versus Financial
Services and Professional Services sector
112015 CBRE Research © 2015 CBRE GmbH |
EXPERTS‘ OUTLOOK
Berlin‘s tech ecosystem
has become one of the
most substantial in the world.
International tech companies
looking for a base for their
European operations are increasingly
choosing Berlin over other hubs
such as London, Paris or Dublin.
More investments are flowing
into Berlin-based companies,
and some significant IPOs are on
the horizon. Berlin isn’t going
anywhere.
David Knight, Editor of Silicon Allee
(www.siliconallee.com)
With the rising importance of the
digital economy as an integral
component of the German economy
and robust macroeconomic
fundamentals in Germany, Berlin will
continue to grow as a global tech hub.
The office market will reach a new
equilibrium as more companies
mature and can plan more longer
term. Remains to be seen when
speculative development will pick up.
Given the high lease-up levels in
completed developments and the
strong demand for office space the
potential is evident.
Matthias Hauff, Head of Agency Berlin
The biggest driver of office leasing accounts for the lowest share of pre-lettings in new
developments!
EXISTING
REFUR-
BISHMENT
NEW
Market 83% 5% 12%
TMT 87% 9% 4%
Financial Services 60% 0% 40%
Professionals 76% 2% 22%
“
„
“
„
Source: CBRE

12. TMT SECTOR MARKET OVERVIEW – BERLIN
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of CBRE.
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