Changing StuttgaRt.ThE sTuTTgarT OFFiCE MarkET 2012/2013

* Data from a survey by Bulwiengesa ag + Baasner, Möller & Langwald gmbh Source: Research BankhauS ELLwangER & gEigER kg ©, as of 31 December 2012

Year Volume (sq. m)

representative prime rents

average central business district rents

Vacancies (sq. m)

Vacancies (%)

Total space (mill. sq. m)

Completion volume (sq. m)

Pre-leased volume (sq. m)

2000 205,000 €16.87 €14.90 100,000 1.50 6.356 60,000 n/a

2001 160,000 €18.41 €15.34 137,000 2.00 6.516 160,000 130,000

2002 127,000 €17.89 €14.80 292,000 4.20 6.828 312,000 220,000

2003 149,000 €17.50 €14.50 379,000 5.30 6.973 145,000 80,000

2004 152,000 €17.00 €14.50 415,000 5.70 7.102 129,000 93,500

2005 145,000 €17.00 €13.50 402,000 5.60 7.170 68,500 51,400

2006 140,000 €17.50 €13.50 467,400 6.50 7.222* 52,500 20,500

2007 169,000 €17.50 €14.50 466,000 6.40 7.253 32,600 23,400

2008 180,000 €18.00 €14.50 460,000 6.20 7.367 117,000 116,000

2009 171,000 €18.00 €13.60 453,000 6.12 7.401 40,000 22,000

2010 194,000 €17.50 €14.30 480,000 6.46 7.425 42,400 22,400

2011 285,000 €18.80 €14.30 424,000 5.7 7.449 45,900 41,200

2012 191,500 €20.00 €14.60 399,000 5.4 7.416 37,000 36,300

Overview Of the Stuttgart Office market

BülOw CarréLautenschlagerstr. 21Office + retailto be completed 2nd quarter of 2013

hOsPiTalhOFhospitalplatz/gymnasiumstr.Officeto be completed 4th quarter of 2013

CiTYgaTEkriegsbergstr. 11Büro + EinzelhandelFertigstellung 3. Q 2014

CiTYgaTEkriegsbergstr. 11Office + retailto be completed 3rd quarter of 2014

PaulinEPaulinenstr. 21 Office + clinicto be completed 3rd quarter of 2013

BülOw CarréLautenschlagerstr. 21Office + retailto be completed 2nd quarter of 2013

CalEidOtübinger Str. 41– 43Office + retail + residentialto be completed 2nd quarter of 2013

das gErBErMarien-/tübinger-/Paulinenstr.Office + retail + residentialto be completed 4th quarter of 2014

dOrOThEEn quarTiErDorotheenstr./holzstr. Office + retail + residentialto be completed 2nd quarter of 2017

pariser höfeAthener Str. 9 –11 Office + residentialTo be completed 2nd quarter of 2013

ihKJägerstr. 30 OfficeTo be completed 2nd quarter of 2014

milaneoHeilbronner Str./Wolframstr. Office + retail + residential + hotelTo be completed 2nd quarter of 2015

site section 7Wolframstr. Hotel + residentialTo be completed 3rd quarter of 2015

citygateKriegsbergstr. 11Office + retailTo be completed 3rd quarter of 2014

sparKassenaKademieMoskauer/Lissabonner Str. Office + trainingTo be completed 1st quarter of 2014

europe plazaStockholmer Platz 1 OfficeTo be completed at unknown date

looK 21Türlenstr./Heilbronner Str. Office + residentialTo be completed at unknown date

CONTENTS.

Foreword 8

Stuttgart: A city of tradition and a great future 10

Europaviertel – under construction 11

Rental take-up rates at good level 12

Demand varies from sector to sector 14

Losses for large premises 15

Rental rates go up once again 16

Vacancy rate continues to fall 18

Nationwide office market stagnates 20

Stuttgart central business district/city centre:

Record levels of construction activity 22

Northern Stuttgart: Plans for enhancement 23

Eastern Stuttgart: Plenty of space for new projects 24

Southern Stuttgart: Supply of new space scarce 25

Overview of the Stuttgart office market 27

Prospects are good for 2013 28

Your contact partners 30

ELLWANGER & GEIGER Real Estate 31

FOREWORD.

Stuttgart needs ecological modernisation.

Stuttgart is a cosmopolitan, tolerant and international city which is home to over 170 successfully

co-existing nationalities. The quality of life in Stuttgart is consistently high and the city has a vibrant

culture. These are some of the factors which enable businesses to attract the top professionals

which the city so urgently needs. Stuttgart is the economic engine for all of Baden-Württemberg.

The city is the world’s top location for engineering and the home of key, groundbreaking

environmental technology. The city’s economic strength is founded on a diverse range of industries,

a significant service sector, excellently networked businesses and, above all, its outstanding

capacity for innovation. It is essential that the city and region maintain these advantages. At the

same time, they must also promote the development of industries which manufacture the

products for which, in the future, there will be substantially growing demand on global markets.

The conditions for such a scenario are favourable.

The guiding vision for Stuttgart’s continuing economic development is one of ecological

modernisation. We have the scientific and technical capacity to gain a leading position in energy

technology, mobility, production engineering and environmental engineering. The enterprises

based in Stuttgart are already heading in this direction. Stuttgart must now shape up to become the

world’s leading location for green technologies. We must also manage a process of transformation

in which the city develops, applies and accelerates the practice of new forms of sustainable mobility.

In 15 years Stuttgart must export not only automobiles, but also tried-and-tested models for the

transportation systems of the future. This will involve the integrated, step-by-step realisation of the

energy transition, green urbanism and sustainable building.

We need strong businesses which engage in ecological modernisation to create new jobs which

uphold the vision of social justice and improve the quality of life for all of us.

Fritz KuhnMayor of Stuttgart

Ines AufrechtDirector of Business Development, Stuttgart

8

9

Focusing on sustainability.

Never before has there been so much construction activity in Stuttgart’s city centre as there was in

2012. Investors and tenants are increasingly attracted to the city centre and demand for modern

office space continues to grow unabated. This explains why construction work gets underway on

some new projects even before advance rental agreements are in place – ultimately the chances of

finding tenants are excellent.

It is gratifying to see the focus of project planning move increasingly towards the issue of

sustainability, especially bearing in mind that many large companies now insist that the premises

they occupy have a sustainability certificate. Baden-Württemberg’s capital city is the perfect setting

for this development. A recent study undertaken by the business news magazine Wirtschaftswoche

ranks Stuttgart as the most sustainable city in the whole of Germany. In the integrated scientific

study, the first of its kind, the Swabian capital scored well above average in all six of the sustainability

categories: economic strength, environment, human capital, social conditions, energy and transport,

as well as transparency and social commitment.

Over the next few years the focus of work will almost certainly shift to more peripheral parts of

Stuttgart, where the aim will be to set in motion positive developments similar to those which

have transformed the centre of Stuttgart.

Facts, figures and everything else worth knowing about Stuttgart’s office market in 2012 can

be found on the following pages. We hope you find the report informative and will be glad to

respond to any questions or suggestions you may have.

Mario Caroli Björn Holzwarth

STUTTGART: A CITY OF TRADITION WITH A GREAT FUTURE.

Although Stuttgart may have a smaller office market than any of Germany’s other seven most important property markets, over the years it has demonstrated that it has a great deal to offer. As well as a traditionally strong economy and a highly qualified workforce, other factors such as electromobility and sustainable building are becoming increasingly important. Stuttgart’s property market has also benefited from extensive property measures taken by automotive companies in 2012 which underlined their continuing commitment to their business locations in Stuttgart.

shoWcase for electromoBility

The region has been chosen by the government in Berlin

as one of Germany’s four “showcases for e-mobility”.

With so many people commuting into Stuttgart every

day work began several years ago on devising mobility

concepts, some of which have now been implemented

in the new “moovel” mobility platform which was

launched in mid-2012. The system shows its users the

best possible way to get from A to B and bundles the

offers of diverse mobility providers. Another idea behind

the showcase for electromobility is to foster continuing

development of know-how by the global firms based in

the region. Experiments have been underway for many

years on hybrid buses, for example. Trials are also being

conducted on large fleets of vehicles working with new

drive concepts, such as the 300 Car2Go Smart electric

drive cars which recently hit the road. The service is

supported by 300 charging stations set up by local

suppliers right across the city.

sustainaBle Building

In just four years, the certification system established in

Stuttgart by the German Sustainable Building Council

(DGNB) has become a badge of quality which now has an

indispensable function in the country’s property sector.

The system is now firmly established as the essential basis

for the leasing of modernised and new buildings or the

sale of properties. In addition, the Triple Zero® building

standard developed by Werner Sobek Engineering and

Klaus Sedelbauer will be implemented for the first time in

Stuttgart’s Neckarpark. This standard defines the demands

that a building must meet in order to qualify as a

sustainable structure. The lion’s share of the district’s

energy requirements will be met from renewable sources

of energy, such as heat recovered with heat exchangers

from waste water. At the same time, the initiators are

building a first model residential house to Triple Zero®

standards in Stuttgart. The plan is for the building to

produce more energy than it actually needs itself.

Data source: GfK GeoMarketing, figures as of December 2012

28,247

24,374

24,310

23,568

22,813

22,769

18,565

Munich

Düsseldorf

Frankfurt

Stuttgart

Cologne

Hamburg

Berlin

Per cAPitA PurchASinG Power in 2012, in €:

citieS with 500,000 or more reSidentS

10

11

EUROPAVIERTEL – UNDER CONSTRUCTION.

Fast and furious building in the europaviertel.

The 7,500 square metres of office space and 240 apart-

ments which make up the “Pariser Höfe” are almost fully

let and the first tenants have already moved into their

new homes. The biggest office user in this new urban

development is a subsidiary of EnBW, which has rented

some 6,000 square metres of space.

The new Sparkassenakademie building, which is going

up next to the City Library, is also beginning to take

shape: preliminary work on the almost 12,600 square

metres of new training and administrative space and

160 planned apartments has almost been finished.

Building work is scheduled for final completion in the

spring of 2014.

The foundation stone for the large-scale “Milaneo” project

has already been laid. The project will provide around

43,000 square metres of retail space, 7,400 square metres

of office space, 450 apartments and a hotel. Marketing

activities for retail space are in full swing. Plans for a hotel

and residential tower on the directly adjacent site section 7

are now also entering the final phase. The neighbouring

“Europe Plaza” project now has the green light and

construction work will begin as soon as the first advance

rental agreements are in place.

The road layout, with centrally located squares and a

new station to link the site to the urban railway, will also

enhance the quality of this urban development.

pariser höfeOffice + residentialTo be completed 2nd quarter of 2013

sparKassen aKademieTraining + residentialTo be completed 1st quarter of 2014

europe plazaOfficeTo be completed at unknown date

city liBrary

milaneoOffice + retail + residentialTo be completed 2nd quarter of 2015

site section 7Hotel + residentialTo be completed 3rd quarter of 2015

site section 5

site section 15

site section 12

site section 4

Development model

Under construction

Available space

Completed

Wolframstrasse

Wolframstrasse

RENTAL TAKE-UP RATES AT GOOD LEVEL.

After record letting rates in 2011, take-up of space on Stuttgart’s office market fell in 2012. with around 191,500 square metres of office space, of which 8,700 square metres is being used by owners, rental take-up was well below last year’s 285,000 square metres. nonetheless, rental take-up remained at a comparatively high level in 2012 compared with the average take-up of space over the last ten years of around 171,000 square metres.

rental Volume in stuttgart’s central

Business district still at record leVels

The amount of additional space rented out in Stuttgart’s

central business district rose impressively again by some

61,500 square metres, just below the previous year’s

record of 63,000 square metres. This outstanding annual

performance was largely due to lettings of new building

projects which are currently under construction. The

biggest transaction in Stuttgart’s central business district

involved the letting of around 12,000 square metres in

Bülow Carré to a law firm.

Much less space was let in Stuttgart’s city centre than in

2011. However, last year’s figures were also influenced by

the activities of a handful of proprietors who occupy their

own property (such as new buildings belonging to AOK

or Sparkassenakademie). The number of new leases was

in fact identical.

fall in rental taKe-up in Vaihingen and

möhringen

Rental take-up in the southern markets in Vaihingen and

Möhringen fell starkly in 2012, not only compared with

the exceptional letting rates of the year before. This was

most probably due to the lack of new space, particularly

for small premises. Thanks to its proximity to the motor-

way and airport, this area remains one of the most highly

desired locations. The largest area, of around 2,700 square

metres, of new space leased was in the OFFICIVM build-

ing complex. There were again no major transactions in

Leinfelden-Echterdingen this year.

northern suBmarKets

The northern submarkets encompassing Feuerbach/

Zuffenhausen again benefited from the strategic land

development activities of Porsche AG and Robert Bosch

GmbH. In fact, Bosch signed the largest contract of all

for around 5,000 square metres at the Feuerbach location.

12

13

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

central business district 19,000 4,600 55,100 33,300 43,000 61,500 44,400 38,200 32,800 63,000 61,500

city centre 45,000 28,400 21,700 43,200 31,300 46,600 41,700 83,800 66,600 97,500 58,400

Vaihingen/möhringen 6,300 14,450 30,800 10,400 32,600 13,700 18,500 20,200 26,200 56,300 18,200

fasanenhof 11,000 72,500 4,000 3,700 3,500 2,300 10,600 2,700 5,300 12,500 7,400

feuerbach/zuffenhausen 6,000 8,400 20,600 9,800 2,000 6,800 12,300 3,300 28,500 24,800 18,700

degerloch 2,700 3,000 6,000 3,400 4,500 7,200 9,200 4,900 2,100 4,000 4,800

Weilimdorf 16,000 750 3,000 6,600 6,000 5,100 12,800 5,900 11,400 5,500 5,300

Bad cannstatt/Wangen 18,000 14,000 7,700 24,600 13,500 15,400 12,500 8,100 8,300 13,400 12,000

leinfelden-echterdingen 3,000 2,900 3,100 10,000 3,600 10,400 18,000 3,900 12,800 8,000 5,200

total 127,000 149,000 152,000 145,000 140,000 169,000 180,000 171,000 194,000 285,000 191,500

205

,00

0

159,

00

0

127,

00

0

149,

00

0

152

,00

0

145,

00

0

140,

00

0

169,

00

0

180,

00

0

171,

00

0

194,

00

0

191,

500

285

,00

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

rentAl tAke-uP in StuttGArt And SubmArketS in Sq. m

rentAl tAke-uP oF oFFice SPAce in StuttGArt 2000 – 2012 in Sq. m

Source: Research BANKHAUS ELLWANGER & GEIGER, figures as of 31 December 2012

Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

DEMAND VARIES FROM SECTOR TO SECTOR.

In 2012, just under 35 percent of total lets were taken up

by the largest category of “other office users” – a category

which includes retail companies, various service providers

and self-employed professionals – compared to around

40 percent in 2011. This is equal to total space of around

67,000 square metres. The “consultants” category also

played a significant role in the office market in 2012. This

category accounted for around 32,000 square metres or

16.7 percent of total rented space.

As was the case last year, the public sector was a source

of major demand. This segment accounted for around

14.5 percent of total rented space or some 27,800 square

metres of office space. Demand from the “energy” and

“industry” sectors, which had been particularly high in

2011, declined somewhat last year. These sectors none-

theless leased around 17,800 square metres of space.

Demand for office space from the “IT/telecommunication”

category also declined in 2012 to around 22,300 square

metres. Last year companies in this sector leased 27,400

square metres of space.

Users in the “media/communication” category continued

to be a source of strong demand for office space and

leased a total of 10,000 square metres of space in 2012.

This was closely comparable with the figure for last year

of 10,900 square metres. Less demand was generated by

financial service providers in 2012. While this category of

users leased 24,700 square metres of space in 2011, this

had fallen to around about 14,600 square metres last

year. This represents a decline of about 41 percent.

2004 2005 2006 2007 2008 2009 2010 2011 2012

media/communication 4.00 8.00 6.64 6.27 5.56 6.14 4.07 3.82 5.20

financial service providers 34.00 12.00 9.93 10.36 15.78 8.36 8.41 8.67 7.60

consultants 5.00 10.00 20.29 18.4 13.39 7.72 13.35 8.00 16.70

public sector 9.00 21.00 3.21 17.75 7.22 30.41 8.14 13.68 14.50

other 29.00 28.00 35.21 37.28 36.94 40.94 48.04 40.42 35.00

energy/industry 9.00 13.00 12.86 – – – – 15.79 9.30

it/telecommunications 10.00 8.00 11.86 9.94 21.11 6.43 17.99 9.62 11.70

total 100 100 100 100 100 100 100 100 100

tAke-uP by SectorS in %

Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

14

15

LOSSES FOR LARGE PREMISES.

Small premises have traditionally been the mainstay of Stuttgart’s office market. in fact, in 2012 most contracts were again signed for space of up to 500 square metres. of a total of 292 leases, 197 contracts were signed in this segment.

However, since last year the number of contracts signed

in the small premises segment has fallen by 21 percent.

With a total rental volume of around 36,000 square

metres – or around 19 percent of total rental turnover –

the largest share of signings was again for space of less

than 500 square metres in the central business district

and city centre.

Fifty-nine contracts were signed in the range from 501

to 1,000 square metres, accounting for 21 percent of the

rental turnover. This was better than the previous year’s

figure of 46.

The figures for the ranges from 1,001 to 2,000 square

metres and from 2,001 and 5,000 square metres were

similar to last year. In the segment up to 5,000 square

metres an important role was again played in 2012 by

the Bosch and Porsche groups, both of which engaged in

land development activities at their locations in Feuerbach

and Zuffenhausen. A further 2,500 square metres of office

space was acquired for its own use by Porsche on the Xcel

Campus in Zuffenhausen. Bosch leased around 5,000 square

metres on the former Akzo Nobel industrial site in Feuer-

bach. Further progress towards completing the OASIS II

office and commercial project on Heilbronner Strasse in

Feuerbach was made with the letting of around 4,000

square metres to a retail company operating in the car

parts industry.

There was a substantial drop in the number of transactions

for premises of over 5,000 square metres compared to last

year. Only four contracts for lettings on this scale were

signed, covering around 28,800 square metres, including

a contract for around 12,000 square metres in Stuttgart’s

central business district.

total space 2011:285,000 sq. m

2011

comPAriSon oF new contrActS by SiZe

59,5

00

54,

720

44,

500

40,

86

8

35,9

00

24,0

03

< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 m²

2012

total space 2012: 191,500 sq. m

total number 2011: 361

2011

197

249

59

62

1824 1414 412

< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 m²

2012

total number 2012: 292

comPAriSon oF new contrActS by number

Source for both charts: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

41,9

00

43,1

46

103,

20

0

28

,763

RENTAL RATES GO UP ONCE AGAIN.

the trend for rental rates in Stuttgart’s office market continued to be encouraging throughout 2012. on 31 december 2012, the average rental rate was around 12.40 euros per square metre, 0.80 euros above the level a year before.

A third of all contracts signed were for premises in the

10.00 euros per square metre price segment. In the range

from 10.01 to 13.00 euros per square metre, there were

118 signings (2011: 141). Forty-eight signings, or two more

than last year, were made in the 13.01 to 15.00 euros per

square metre price segment. There were 25 contracts at

prices of above 15.00 euros per square metre. Of these,

eight were for rental rates of over 17.00 euros per square

metre.

central Business district: prime rents

BreaK 20 euros limit

The average rent in Stuttgart’s central business district

went up from around 14.30 euros in 2011 to around

14.50 euros per square metre in 2012. The weighted top

rent also rose by 6 percent to around 20.00 euros per

square metre, going up to levels which have been predic-

ted by many market participants for many years. This pri-

ce rise is due not only to the high quality of new buil-

dings, but also to higher land prices. Rents are also very

high in Stuttgart’s neighbouring city centre.

Rental rates were also strongly affected by transactions in

new and revitalisation properties in particular, such as in

the “Quadrat” hospital district near the central business

district. The weighted top rent in 2012 was consequently

around 16.00 euros per square metre. At 11.50 euros per

square metre, the average rent remained the same as last

year.

faVouraBle deVelopments in suBmarKets

Prime rents also rose in the northern submarkets of Feuer-

bach, Zuffenhausen and Weilimdorf. This was positively

influenced above all by the OASIS II office and commercial

project in Feuerbach, where several large transactions

pushed up average rents. Prime and average rents also

went up in 2012 in the submarkets of southern Stuttgart

in Degerloch, Vaihingen, Möhringen and Fasanenhof.

Rental rates in the Bad Cannstatt, Wangen and Hedelfingen

districts of eastern Stuttgart went up compared to last

year. This was, however, mainly affected by large rental

transactions in newly built or refurbished buildings.

Prime rents

Average rents

Prime And AverAGe centrAl buSineSS diStrict rentS 2000 – 2012 in €/Sq. m

14.9

0

•16

.87

15.3

4

•18

.41

14.8

0

•17

.89

14.5

0

•17

.50

14.5

0

•17

.00

13.5

0

•17

.00

13.6

0

•17

.50

14.5

0

•17

.50

14.5

0

•18

.00

13.6

0

•18

.00

14.3

0

•17

.50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

14.3

0

•18

.80

14.5

0

•2

0.0

0

16

17

XX

X

Prime And AverAGe rentS 2012 in €/Sq. m

14.5

0

20.

00

11.5

0

16.0

0

10.7

512.5

0

10.0

0

11.5

0

10.5

0

14.3

0

average rentsprime rents

Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

central busi- city centre outlying districts outlying districts outlying districts ness district to the north to the east to the south

Stuttgart’s office market was only just able to satisfy

demand for new space from potential tenants in 2012.

Although a total of about 36,910 square metres of office

space was completed, most of this was built for use by

its owners or pre-let prior to construction. The supply of

office space available changed in Stuttgart’s central

business district and in the city centre in particular.

Compared with last year the available supply in the

central business district rose by around 10,000 square

metres, although this was due to the vacation of existing

premises – in some cases following corporate restructuring –

rather than the creation of new space. In contrast, the

scale of transactions and modest number of existing new

office premises vacated in Stuttgart city centre resulted in

a sharp decrease in the supply of office space. The available

supply in 2011 was still around 93,500 square metres or

some 30 percent higher than in 2012. There will be an

increase in available space in the central business district

VACANCY RATE CONTINUES TO FALL.

the supply of vacant office space declined again last year. on 31 december 2012 some 399,000 square metres were unoccupied, including approximately 23,000 square metres of sub-let space. with the total office space at 7.42 million square metres, this corresponds to a vacancy rate of around 5.4 percent.

comPletion volume in Sq. m

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

87,0

00

59,2

00 84,

40

0

43,9

00

160,

00

0

130,

00

0

312

,00

0

22

0,0

00

145,

00

0

80,

00

0

143,

500

131,

500

68

,50

0

51,4

00

49,

00

0

28

,50

0

32,6

00

23,

40

0

115,

60

0

104,

90

0

40,

00

0

22

,00

0

42,4

00

23,

20

0

45,9

00

41,2

00

37,0

00

36,3

00

pre-lettingBuilding completion

18

19

and city centre areas in the years ahead when the large-

scale projects currently under construction are completed.

There was little change in the availability of space in

southern Stuttgart’s submarkets in Vaihingen, Möhringen

and Degerloch. There is above all a lack here of modern

new office space, particularly in the small premises

segment. Office space in the Stuttgart Engineering Park,

which is in Vaihingen, is almost fully let, for example. The

low rental take-up in Weilimdorf meant that there was no

noticeable change in supply at this location either. In the

eastern submarkets of Bad Cannstatt, Hedelfingen and

Wangen some space became available again with the

vacation of existing premises. The supply of space increased

from around 19,300 square metres last year to around

30,600 square metres on 31 December 2012.

vAcAnt oFFice SPAce AS oF 31 december 2012

stuttgart central business district > 70,500 sq. m

stuttgart city centre > 71,200 sq. m

möhringen > 41,700 sq. m

Weilimdorf > 41,100 sq. m

Bad cannstatt, Wangen etc. > 30,600 sq. m

fasanenhof > 23,400 sq. m

feuerbach, zuffenhausen > 13,500 sq. m

degerloch > 11,600 sq. m

Vaihingen > 27,300 sq. m

leinfelden-echterdingen > 68,100 sq. m

17.8% 100%

(corresponds to approx.

399,000 sq. m)

17.7%

17.0% 10.5%

10.3%

7.7%

6.8%

5.9%

3.4%2.9%

Source for both charts: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2012

A total of 2.97 million square metres – some 9.5 percent

less than in 2011 – was let in the “Big Seven” – Berlin,

Düsseldorf, Frankfurt, Hamburg, Cologne, Munich and

Stuttgart. The increase was biggest in Frankfurt at

12.7 percent, followed by 4.6 percent for Berlin. In

contrast, rental turnover was significantly lower in

Stuttgart, where it fell by 48.8 percent back to normal

levels after the record figures for 2011. Turnover declined

strongly in Hamburg by 25.5 percent and in Munich as

well by around 17 percent.

With the exception of Cologne, average rents rose in all

cities compared with 2011. Rents in Berlin went up by

1.3 percent, in Munich by 4.7 percent, in Stuttgart by

6 percent and in Düsseldorf by as much as 7.8 percent.

Average rents in central business districts – apart from in

Frankfurt – have developed positively. Rents rose in

Hamburg by 11.1 percent, in Munich by 5.8 percent and

in Cologne by about 4.3 percent. Average rents increased

in Stuttgart and Berlin by between 1.3 and 1.8 percent.

Vacancy rates in the Big Seven fell once again in 2012.

The main factors here were the relatively low volume of

new construction and the number of new buildings

which are still under construction or not yet completed.

In Stuttgart the supply of available space decreased by

5.3 percent, in Munich by 11.2 percent and in Hamburg

by as much as 15.7 percent. In contrast, vacancy rates in

Düsseldorf fell by a minimal 0.8 percent.

We anticipate a further sideways trend in 2013. Whether

top rental rates will continue to go up, however, will

depend on how the economy performs in general.

NATIONWIDE OFFICE MARKET STAGNATES.

the upturn in 2011 was transformed into a sideways trend in 2012. the situation was much the same across the whole of Germany: rental turnover decreased while prime rents went up practically everywhere. the same was true of average rents. the supply of vacant office space declined in all markets.

20

21

turnover of space in sq. m prime rent in € average rent in the central

business district in € Vacancy rate in %

2012 2011 2012 2011 2012 2011 2012 2011

Berlin 600,000 572,000 22.00 21.70 16.30 16.00 8.0 8.4

düsseldorf 325,000 365,000 25.50 23.50 17.50 17.00 11.7 11.8

frankfurt 470,000 410,000 36.00 36.00 21.50 21.50 13.7 14.4

hamburg 430,000 515,000 24.00 23.00 15.20 13.50 7.0 8.1

cologne 245,000 280,000 20.50 21.00 11.50 11.00 7.8 8.2

munich 716,700 853,000 32.00 30.50 14.90 14.20 6.8 7.7

stuttgart 191,500 285,000 20.00 18.80 14.50 14.30 5.4 5.7

frankfurt düsseldorf cologne munich Berlin hamburg stuttgart

comPAriSon oF vAcAncy rAteS in GermAny in %

10.3

9.6

8.3 8

.9

8.2

7.8

7.9 9.

1 9.7

8.3

7.7 8.0

9.4

8.2 8.4 8.9

8.4

8.0

7.2

6.7 7.

5

9.8

8.1

7.0

6.4

6.2

6.1 6.5

5.7

5.4

11.5

11.8

11.7

9.8 10

.3

10.3

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012

turnover oF SPAce oF the biG Seven 2003 – 2012 in Sq. m

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2012

149,

00

0

152

,00

0

145,

00

0

140,

00

0

169,

00

0

180,

00

0

171,

00

0

194,

00

0

191,

500

28

0,0

00

5

10,0

00

4

80,

00

0

5

80,

00

0

6

20,

00

0 8

20,

00

0

7

65,0

00

5

40,

00

0

5

90,

00

0

7

16.7

00

munich

frankfurt

hamburg

Berlin

düsseldorf

colognestuttgart

StuttGArt comPAred to other GermAn citieS

15.0

13.9

14.3 15

.1

14.4

13.7

2007

2008

2009

2010

2011

2012

8

53,0

00

EuG_RE-J-13014_Bueromarktber_

Inh_2012_lay02_Ansicht_18-19_

Vers1.jpg

STUTTGART CENTRAL BUSINESS DISTRICT/CITY CENTRE:

RECORD LEVELS OF CONSTRUCTION ACTIVITY.

never before have so many new construction projects been launched in Stuttgart’s city centre as in 2012 – a response to consistently high demand for modern office space. As expected, rental take-up in Stuttgart’s central business district and city centre was again well above average.

The largest contract, for around 12,000 square metres,

was signed with a law firm in Bülow Carré. The office and

commercial project near the revitalised Postquartier will

soon be completed and will add considerably to the

attractiveness of Lautenschlagerstrasse. The pit for the

“CityGate” project has now been excavated. Construction

is underway here – as in many other cases – without the

ensuing buildings having been pre-let. Consistently strong

demand in recent years has encouraged developers to

build without advance rental agreements. A total of

four new construction projects are underway near the

Österreichischer Platz, including the Gerber development,

the Caleido and Pauline office and commercial buildings

as well as the new WGV building. Some 11,000 square

metres of office space are also being created on the old

AOK site in western Stuttgart’s Rosenberghöfen. Almost

half of this space is used by the AOK itself.

After some tough negotiations concerning architecture

and size, the planning decision for the Dorotheen Quarter

was finally taken. The plans envisage an area which will

accommodate around 25,000 square metres of offices,

10,000 square metres of high-end retail and restaurant

space, and around 3,150 square metres of apartments.

Construction work is due to begin in late 2013/early 2014.

Of the 81 leases recorded in Stuttgart’s central business

district, 53 were signed for areas of less than 500 square

metres. This is equal to around 22.6 percent of total

space rented in the central business district. Rents for

around 29.7 percent of space were as high as 11.00 euros

per square metre. For 24.6 percent of space rents were

between 11.01 and 15.00 euros. 18 leases – equal to

45.6 percent of the space – were signed for rents of

15.00 euros per square metre; seven of these leases were

for rents of over 17.00 euros. These contracts were for lar-

ge premises, mostly newly built properties.

A total of 106 contracts were signed in Stuttgart’s central

business district, of which 77 were for properties in the

segment up to 500 square metres. Around 55 percent of

premises let – under 53 contracts – were for rental rates of

no more than 11.00 euros per square metre. Forty-six

contracts, or 36 percent of space let in the central business

district, were signed at rental rates of between 11.01 and

15.00 euros. The price segment between 15.01 and 18.00

euros per square metre accounted for 9 percent of the to-

tal space let.

EuG_RE-J-13014_Bueromarktber_

Inh_2012_lay02_Ansicht_18-19_

Vers1.jpg

22

23

feuerBach/zuffenhausen

The character of Feuerbach and Zuffenhausen is strongly

determined by the automotive industry and transactions

with this sector were again the main influences on locations

here in 2012. Compared with the two previous years

during which the Bosch and Porsche groups expanded

considerably, rental take-up rates in 2012 fell again to

normal levels of around 15,000 square metres.

Extensive revitalisation resulted in the creation of modern

loft-style office space in the former Akzo Nobel industrial

estate. In addition to a large rental transaction by Bosch

for some 5,000 square metres of space, contracts were

also signed with many small-scale users. It is still not clear

when the Skyline Project will get underway. Construction

of a residential tower has been delayed by a noise study.

The commercial part of the project, which covers around

10,000 square metres, will be built only when advance

rental agreements are in place.

A total of 13 contracts have been signed in Stuttgart

Feuerbach. Around 82 percent of the leases were signed

at prices between 11.01 and 13.00 euros per square metre.

Eight transactions were completed in the segment up to

500 square metres. The biggest transaction, however, was

the contract signed by Bosch referred to above. Another

contract for around 4,000 square metres was signed for

the OASIS II new building project. In Zuffenhausen four

leases were signed at prices between

7.50 and 10.00 euros per square metre. A contract

completed with Porsche for approximately 2,500 square

metres was the largest transaction in the Zuffenhausen

submarket.

Weilimdorf

Demand for office space in Weilimdorf had already started

to decline in previous years. Stuttgart’s Business Develop-

ment Department launched a business location offensive

after it was announced that Ernst & Young would be

leaving the Weilimdorf business park. The round table,

which convened under the motto “Weilimdorf, the

Green Location”, focused primarily on energy issues.

With the owners’ participation the electric heating

found in many buildings, for example, will be replaced

by more energy-efficient technologies. Action will also

be taken to make Weilimdorf more attractive, such as

creating more day nursery and kindergarten places and

improving local facilities.

A total of 11 leases were signed in Weilimdorf business

park. Seven contracts were for properties in the segment

up to 500 square metres. The biggest transaction was for

premises of around 1,200 square metres. Around 82 per-

cent of premises were let at prices of between 8.00 and

10.00 euros per square metre. One contract for premises

with correspondingly high-quality fixtures was signed at a

price of 12.40 euros per square metre.

NORTHERN STUTTGART: PLANS FOR ENHANCEMENT.

EASTERN STUTTGART: PLENTY OF SPACE FOR NEW PROJECTS.

Bad cannstatt/Wangen/hedelfingen

Substantial progress was made in 2012 on planning the

Neckarpark on the site of the former goods station in

Bad Cannstatt. The fundamental idea underlying this

project is the concept of sustainability. The lion’s share

of the energy required will come from renewable energy

sources – such as heat recovery from waste water. The

first plots of land are due to be sold in the first half of

2013. As office projects in eastern Stuttgart are still

relatively few and far between, the marketing prospects

are good in this area.

The area between Cannstatter Wasen and Bad Cannstatt

railway station has been upgraded, for example by re-

building the former Ahoj sherbet factory and the Friedel

lofts to create a successful mixed-use development of

apartments, offices and ateliers.

Plans by Daimler AG to add a Mercedes-Benz World to its

existing Mercedes-Benz Museum has also added to the

attractiveness of this location. This project will bring

together both brand presentations and Mercedes-Benz

Classic – the service department for owners of classic

cars. The architectural competition will be decided in the

first quarter of 2013. It should be possible to complete

the project by late 2015 or early 2016.

Eighty-five percent of leases signed in the Hedelfingen,

Wangen and Bad Cannstatt area – 17 in total – were for

properties in the segment up to 500 square metres. One

large-scale contract for 5,400 square metres was also signed

in 2012 as part of the expansion of Deutsche Telekom.

Forty-five percent, or 14 contracts, were signed at prices

of between 9.00 and 12.00 euros per square metre. Most

of the users of leased office space fell within the category

of “other office users”, such as medical service providers,

security companies or medical insurers. As well as the

premises which are already available, office space on a

scale typical for the area of up to 5,000 square metres

can also be provided on the former Schaudt grounds.

24

25

SOUTHERN STUTTGART: SUPPLY OF NEW SPACE SCARCE.

degerloch

Although Degerloch offers an attractive infrastructure,

there continued to be a shortage of space for new office

buildings in 2012. While a new building project on Alb-

platz continues to offer large amounts of space, there are

currently no further plans for modern office space. The

area directly adjacent to the exit from the B 27 main

road, which was originally envisaged as a project site,

has been sold to buyers who plan to use it for their own

purposes. The Wilhelmshöhe new building project was

fully let in 2012.

The rental turnover of 4,800 square metres was almost

the same as in the previous year. Seventeen percent of

premises let – three contracts in total – were in the price

segment of up to 9.00 euros per square metre. Another

Forty-four percent, or four contracts, were signed at a

rental rate of between 12.01 and 13.00 euros per square

metre. The contracts in the newly built part of the

Compas Commerce Park and in the newly constructed

Wilhelmshöhe were let at prices of between 12.00 and

15.00 euros per square metre. Forty-two percent, or

seven transactions, were signed in the segment of under

500 square metres. Two contracts were signed for

premises up to 1,000 square metres and the biggest

transaction was for around 1,400 square metres.

leinfelden-echterdingen

The departure of Telekom from Unteraichen continued to

make itself felt in 2012. At 5,200 square metres the rental

volume was 35 percent below the figure for last year.

The Humboldt Carré, which was completed in 2011, was

fully let in 2012 to an IT company which rented some

1,300 square metres in what was easily the biggest

transaction to take place on this market. Fifty-two percent

of contracts were for premises up to 500 square metres

and 23 percent for premises of between 501 and 1,000

square metres. Sixty-two percent of let premises were in

the price segment up to 9.00 euros per square metre.

A rental rate of around 12.00 euros per square metre was

obtained for new office space.

Work is due to begin on the “Airport City” office location

at Stuttgart Airport in 2013. This new development will

offer capacity for some 250,000 square metres of office

and service space which will be marketed in smaller units

of around 10,000 to 15,000 square metres per year. The

ball for this development has been set rolling by the leasing

decision taken some time ago by Ernst & Young. The lease

is due to be signed in 2013 and the building is scheduled

for completion in 2015.

Apart from the announced Macs Resort project – a 100,000

square metre hotel, office and health complex develop-

ment – there are currently no further new building projects.

fasanenhof

The volume of space rented in Fasanenhof fell by 40 per-

cent in 2012 to around 7,400 square metres. This was

mainly due to the current supply side of the equation:

modern office spaces are hard to come by and the few

rental contracts which are concluded are taken by

property owners with flexible structures and small units.

The sale of formerly rented property to owners who

intend to use it themselves also impacts turnover figures.

Although the location was upgraded thanks to improve-

ments in local facilities it has not yet attained the stan-

dards required for a modern commercial area. However,

the extension of the urban railway will turn Fasanenhof

into the commercial area with the best connections to

Stuttgart Airport, which is sure to arouse the interest of

larger-scale users.

Ninety-free percent of transactions – equivalent to twelve

contracts – were completed in the 9.01 to 10.00 euros

per square metre price segment. The largest share of

around 35 percent of these transactions – ten contracts –

were for small premises of up to around 500 square met-

res. Only two transactions were completed for properties

between 501 and 1,000 square metres. As in previous ye-

ars, most users rented space in the Business Park.

Vaihingen/möhringen and step

Rental take-up rates have fallen in the previously very

strong location of Vaihingen/Möhringen. Office space

totalling some 18,200 square metres was let in the entire

area in 2012 – well below the ten-year average of around

23,000 square metres. One of the reasons for this was

the currently low vacancy rates in the Stuttgart Engineering

Park (STEP), where the highest turnover has been

generated in recent years.

Planning activity will be increased up in 2013 in response

to the low vacancy rate in the STEP: there are plans to

build around 11,000 square metres of office space on

plots 7.1 and 7.2. In addition, Baden-Württemberg’s

Centre for Solar Energy and Hydrogen Research with a

total of 9,500 square metres of office space will go up on

site 7.3 by 2014.

Fifty-five percent of the space in the STEP – corresponding

to five contracts – was let in the 11.00 to 12.00 euros per

square metre price segment and 39 percent in the 12.00

to 13.00 euros segment. Of the leases, 31 percent were in

the small premises segment up to 500 square metres and

68 percent in the range from 501 to 1,000 square metres.

Aurelis is planning a project for 20,000 square metres of

office space at Vaihingen’s metropolitan train station.

Another project which will change and modernise the

location is the planned European headquarters of the

Lapp Kabel Group, one of the world’s leading providers of

cables, leads, etc. The growth of the Dekra Group will also

result in around 6,000 square metres of new construction,

which will probably be ready for occupancy in the fourth

quarter of 2013. The redevelopment of the Koch, Neef &

Volckmar site on the corner of Wallgraben/Industriestrasse

and around Schockenriedstrasse also looks exciting. The

aim here is to develop an overall concept for both sites

(approximately 80,000 square metres) which both meets

users’ needs and implements the idea of a synergy park.

The IBM site, which has been under discussion since early

2011, still awaits a new user, although the situation as a

whole (ownership, listed status) means that a clear

planning concept will have to be developed before

further marketing activities are launched. Work is currently

underway on this concept.

Forty-six percent of space – equivalent to 14 leases – was

let in Vaihingen/Möhringen at prices of up to 10.00 euros

per square metre. The square metre price of 53 percent

of premises, let under eight contracts, was between 10.00

and 12.00 euros. Around 27 percent of the rented premises

were in the up to 500 square metres segment, and a

further 36 percent of office space in the 501 to 1,000

square metres segment. The largest transaction, for 2,700

square metres, was signed in OFFICIVM.

26

27

< 10,000 sq. m

10,000 – 20,000 sq. m

20,000 – 30,000 sq. m

30,000 – 40,000 sq. m

above 40,000 sq. m

A 8 towardsKarlsruhe

Stuttgart motorway intersection

A 81towards Singen

A 81

A 8 towards Munich

A 81towards Heilbronn

Industrial parks/office locations

NorthernStuttgart

EasternStuttgart

CentralStuttgart

SouthernStuttgart

WesternStuttgart

OVERVIEW OF THE STUTTGART OFFICE MARKET.

< 10,000 sq. m

10,000 – 20,000 sq. m

20,000 – 30,000 sq. m

30,000 – 40,000 sq. m

above 40,000 sq. m

A 8 towardsKarlsruhe

Stuttgart motorway intersection

A 81towards Singen

A 81

A 8 towards Munich

A 81towards Heilbronn

Industrial parks/office locations

NorthernStuttgart

EasternStuttgart

CentralStuttgart

SouthernStuttgart

WesternStuttgart

Turnover of office space in 2012

focus on neW deVelopment

One of the main issues in 2013 will be the marketing of

the large volume of new space which is currently being

provided in Stuttgart’s office market. The completion

volume will more than double compared with previous

years. Nonetheless, 80 percent of space has already been

let. The consistently high level of demand in recent years,

in particular, has resulted in new buildings going up in

the central business district even before the required

advance rental agreement ratio has been met. The market

will continue to be dominated by demand for high-

quality, energy-efficient and optimally arranged space.

Several large transactions will be signed on the market

in 2013 which may have a significant impact on rental

take-up. These include the signing of the lease at Stuttgart

Airport by Ernst & Young.

record prices in the central Business district

Rent trends have also benefitted from strong demand.

Some contracts were signed in the central business

district for prices of over 20.00 euros per square metre.

Although rental rates have also developed positively in

submarkets, there are still structural deficits in some of

these areas. Opportunities for increasing rental volumes

will only be available if efforts are made in the future to

meet the requirements users have for a modern office and

service setting. This not only concerns the appearance of

properties but, above all, important factors such as energy

efficiency, local facilities and accessibility.

PROSPECTS ARE GOOD FOR 2013.

Although rental take-up in 2012 was somewhat lower than in the outstanding previous year, at 191,500 square metres it was still very good. demand has simply returned to normal levels. this is certainly in part due to the current state of the world economy. it is all but impossible to make economic forecasts for the year 2013 based on global economic developments and particularly on developments in the eurozone. nonetheless, turnover of office space of around 200,000 square metres is anticipated for 2013.

28

29

YOUR CONTACT PARTNERS.

ellwAnGer & GeiGer Privatbankiers is the ideal partner for marketing your office properties. our many years of experience and unique range of services enable us to move the market and proactively identify budding trends. For us, having a sixth sense isn’t a supernatural ability but simply part of the service we offer you. our team in Stuttgart is looking forward to your call or visit. contact us: Phone: +49 (0) 711 2148297, Fax: +49 (0) 711 2148290.on the internet: www.privatbank.de · www.bueroflaeche-stuttgart.de

Sebastian Degen

Consultant Office Letting

Phone +49 (0) 7112148166

Sebastian.Degen@privatbank.de

Alice Disam

Commercial Property Assistant

Phone +49 (0) 7112148297

Alice.Disam@privatbank.de

Ulrich Nestel

Head of Office Letting and

Retail Projects Stuttgart

Phone +49 (0) 7112148291

Ulrich.Nestel@privatbank.de

Matthias Hägele

Office Letting Consultant

Phone +49 (0) 7112148292

Matthias.Haegele@privatbank.de

Helga Schöner

Research and Commercial

Property Consultant

Phone +49 (0) 7112148269

Helga.Schoener@privatbank.de

disclaimer:Although this study has been prepared

with all due care, ELLWANGER & GEIGER

Privatbankiers accepts no liability for the

correctness of the assessments presented.

We are sure that you will understand this.

30

31

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