MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE

Greater Hamburg area 1. half of 2015

Market report on logistics property and industrial

space leasing in the greater Hamburg area during

the first half of 2015

n Take-up in Hamburg‘s logistics market nearly

unchanged

n Reduction of large property vacancies in the

harborarea

n Developersonceagainbuildingspeculativesto-

rageandlogisticsspace

n Supply of commercial and industrial property

gettinglow–plansfortheOlympicGamescrea-

teinsecurityamongtenantsandowners

n Prognosis: Realogis expects an overall take-up

ofaround490,000sqmfor2015,basedonse-

verallarge-scalerequestsfromclients.

Hamburg‘s rental market for industrial and lo-

gistics properties* remained nearly unchanged

evenduring thefirsthalfof2015, compared to

the same period last year. According to the la-

test analysis from Realogis – Germany’s leading

consultingfirmfor logisticsproperties, industrial

properties,andcommercialparks–thetotalarea

leasedbyallmarketparticipantsintheregion,in-

cludingtheeconomically integratedouterareas,

cametoabout210,000sqmofspace(H12014:

215,000sqm).

Large-scale contracts (> 10,000 sqm) were on

theriseat39%ofthetotaltake-up.Thelargest

dealconcernedanewdevelopmentfortheRhe-

nus logistics company with around 52,000 sqm

inRade(southernmetropolitanarea),followedby

about31,000sqmforagroceriesretailerlocated

intheHamburgHarborarea.Theharbordistrict

alsosawcontractsfortwoproperties,eachwith

around10,000sqm,forcompaniesintheaviation

andaerospaceindustryplusan18,000sqmlease

fortheBLGlogisticscompany.Inaddition,freight

forwarderCarl BlockGmbH signed a long-term

lease for 12,500 sqm in the Altenwerder cargo

transportcenter.

“Due to short supply, itwasnotpossible to sa-

tisfy all clients searching for sites in the 3,000

to10,000sqmrange,primarilyclose to thecity

center intheHamburg-Ost,Billbrook,andAller-

möheareas.Therefore,themarketshareforthis

sizerangeslipped2percentagepointstoaround

20%.The1,000 to3,000 sqm rangeenjoyeda

solidleveloftake-upata35%shareofthemar-

ket,up2percentagepoints“,notedJörgLojews-

ki,headofRealogisImmobilienHamburgGmbH.

Several large-scale contracts in the harbor area

were responsible for reducing vacancies from

around 75,000 sqm in 2014 to around 47,000

sqmtoday.Thistrendisverypositive,considering

that about100,000 sqmof storage spacewere

stillavailablebetween2011and2013.Basedon

currentclientrequestsforlargeproperties,Realo-

gisexpectsthevacancyratetodropevenfurther

bytheendofthisyear.Thispositivedevelopment

intheharbordistrictwillresultinconfirmingthe

newprimeleaserateof5.60euros/sqm.Itisalso

expectedthatpropertyownerwillingnesstogrant

incentivestoprospectivetenantswilldecrease.

JörgLojewski:“Thepositivetrendonthedemand

sidehasresultedinmoredevelopersbuildingon

specagain.”Goodman,forexample,iscurrently

developinga roughly8,500 sqmstorage facility

in Hamburg Harbor with high third-party occu-

pancy,sotheycanquicklyrespondtoclients’re-

quests for space. The facility is scheduled tobe

completedinthefallof2015.

Thesupplyofcommercialandindustrialproperty

within Hamburg’s city limits and the metropoli-

tan region ingeneral remains limited.Nearly all

commercial districts are at full capacity, with a

fewsmall-scaleexceptions. For clients searching

forspace,lowinterestratesandapositiveorder

volume are tipping the trend toward the consi-

deration of owner-occupied commercial space

in preference to a lease. Furthermore, the City

of Hamburg’s application to host the Olympic

Gamesin2024hascausedinsecurityamongow-

ners and tenants in the Hamburg Harbor area.

The main focus for the event would be on the

Überseezentrum area along Kleiner Grasbrook,

whichwouldresultinanevenmorevolatilesitu-

ationwithgrowingdemand foreverdecreasing

space.

>> Take-upoflogisticpropertyandindustrialspaceinHamburg

>> RentrangeEUR/sqminHamburg

*forecast

800,000sqm700,000sqm600,000sqm500,000sqm400,000sqm300,000sqm200,000sqm100,000sqm

0sqm20142011 20132012 2015*

3,50€/sqm3,00€/sqm2,50€/sqm

4,00€/sqm4,50€/sqm5,00€/sqm5,50€/sqm6,00€/sqm

Ø 4,40

2011

3,20-

5,60

2013

Ø 4,45

3,30-

5,60

2014

Ø 4,45

3,30-

5,60

2012

Ø 4,40

3,20-

5,60

2015

Ø 4,50

3,40-

5,60

AccordingtotheRealogisanalysis,logisticscom-

panieswereoncemoreabletodefendtheirtop

positionasthetop-rankingindustrialsegmentby

stillreachinga63%marketshare(down4%from

lastyear).Thistakesintoaccounttherecentdeal

withRhenusinRade,aswellasdealswithEdeka,

BLG,andCarlBlockGmbHinHamburgHarbor.

Itremainstobeseenwhetherthedebtcrisis in

Greecewillhaveanegativeimpactontheove-

rall economic situation and consequently on

Hamburg’sstorageandlogisticsmarket.Clients

arealsomaintaininga critical eyeon the long-

termexpansionoftheA7Autobahnaswellas

the repair work of the Köhlbrand Bridge, both

resulting in ongoing traffic jams. “This means

that many logistics companies are increasingly

open to considering a move to the eastern or

southernpartsofthecitytoavoidthoseconst-

ructionsites”,JörgLojewskisaidinsummingup

thesituation.

Outlook

1. Rhenus,Rade,southernregion,52,000sqm

2. Edeka,HamburgHarbor,31,000sqm

3. BLG,HamburgHarbor,18,000sqm

4. CarlBlockGmbH,HamburgHarbor,12,500sqm

5. AIRBUS,HamburgHarbor,10,500sqm

6. DiehlComfortModules,HamburgHarbor,10,000sqm

Significant transactions during the first half of 2015:

>> Take-upoflogisticspropertyandindustrialspacebyindustrysectorinHamburgfirsthalfof2015

High-end logistics properties centrally located or close to the harbor with

thefollowingcharacteristics:minimumceilingheightof10.50m,rampac-

cesswithgenerousdockingzones,aminimumof1-2gatesper1,000sqmof

storagespace,andefficientheatingsystems.Rentalcostforstoragefacility:

5.40–5.60euros/sqm,associatedofficespace9.00–11.00euros/sqm

Functional existing properties in Hamburg-Ost/Billbrook/Allermöhe withthe

following characteristics: minimum ceiling height of 6.50 – 7.50 m, ramp

access,heatedorcoldbuilding.Rentalcostforstoragefacility:4.30–4.70

euros/sqm,associatedofficespace6.50–8.00euros/sqm

simple storage facility in Hamburg Harborwiththefollowingcharacteristics:

minimumceilingheightupto5.00m,coldbuildingwithoutinsulation,most-

lyfloor-levelaccessonly.Rentalcostforstoragefacility:3.70–4.30euros/

sqm,associatedofficespace5.00–6.00euros/sqm

Current rental prices for different types of properties in various locations:

Logistics companies continue to lead the indus-

trial sector

Distribution, Logistics63%Retailers

17%

Others4%

Manufacturing16%

255

253

261

25

23

24

1

1

1

1

1 7

7

39

JorkDollern

Bergedorf

Schwarzenbek

Geesthacht

Dassendorf

Kirchwerder

Winsen

SeevetalHollenstedt

Buxtehude

Moisburg

ApensenHarsefeld

Quickborn

NaheBarmstedt

Kollmar

HenstedtUlzburg

Rhen Kayhude

Bergstedt

Tangstedt

VolksdorfLangenhorn

Bad

Glinde

Steinburg

Oldesloe

Blankenese

Wandsbek

Harburg

Stade

Wilhelmsburg

BramfeldNiendorf

Pinneberg

Barsbüttel

Reinbek

Witzhave

Brunsbek

Ahrensburg

Trittau

Lütjensee

Schönberg

Barnitz

Norderstedt

Bargteheide

Uetersen

Elmshorn

Hasloh

HalstenbekHolm

Wedel

Hamburg

Buchholz

MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE // GreaterHamburgarea1.halfof2015

>>*ThegreaterHamburgarea

Realogisdefinesthissubmarketastherelevantavailablewarehouse,logistics,industrialandproductionspacewithinaradiusofapprox.50kmaroundHam-

burg,alongthefederalmotorwaysA1„Lübeck–Bremen“,A7„Hannover–Flensburg“andA39fromthe„MaschenerKreuz“junction.

Stellingen

WaltershofAltenwerder

Neu Wulmstorf

Hausbruch

Rade

Billbrook/Allermöhe

REALOGISImmobilien

HamburgGmbH

Gotenstraße21

20097Hamburg

Tel.:+49(0)40-5480857-0

Fax:+49(0)40-5480857-29

Email:hamburg@realogis.de

www.realogis.de

MARKET REPORT ON THE LEASING OF LOGISTICS PROPERTY AND INDUSTRIAL SPACE // GreaterHamburgarea1.halfof2015

RegionHamburg

REALOGIS Immobilien Hamburg GmbH

Contact:

JörgLojewski(headofdepartment)

Tel.:+49(0)40-5480857-0

Fax:+49(0)40-5480857-29

Email:hamburg@realogis.de

The first address for industrial and

logistics real estate

WhenwefoundedREALOGISin2005,wehadan

ambitious goal: to become the market leader in

the leasingof industrial and logistics real estate.

Concentratingandbundlingourknow-howinthis

nichehasprovenitsworthovertime:In2015we

areonceagaintheGermanmarketleaderinterms

of floor-space turnover in industrial, warehouse

andlogisticsproperties.AndourshareoftheEu-

ropeanmarketisalsorisingsteadily.

Today, the owner-managed REALOGIS Group,

with itsheadquarters inMunichandbranches in

Berlin,Düsseldorf,HamburgandStuttgart,isnot

onlyabrokerandadvisor,butalsoasought-after

partnertoprivateandinstitutionalinvestors,who

wesupportwithallourexperienceandawealth

ofknowledgeaboutregional,nationalandinter-

nationalmarkets.

Awiderangeofadvisoryservicesinthefieldsof

logisticsandfulfillmentroundsoffourconsultancy

offering.Withourteamofhighlymotivatedand

qualifiedstaff,westrivetopartnerourclientsover

thelongterm,andtohelpthembenefitfromour

positionasmarketleader.

Our services

n Compilingadetailedandindividualized

requirementprofile

n Welltargetedoffers

n Developingpossiblealternatives

(lease,buy)

n IntegratedRealogislogisticsconsultingto

definethebestpossiblepropertyand

location

REALOGIS –

For you in Hamburg

Weareyourpartnerwhen leasing industrialand

logisticsrealestateandbusinessparksintheHam-

burgarea,wherewehavebeenthemarketleader

since2006.Youarelookingforacertainkindof

property?Wespecifyyourrequirementsindetail,

optimize your search profile and find precisely

whatyouneed.Needanewtenant?Wehelpyou

determineyourproperty‘svalueandtheoptimum

rent.Wemarketitprofessionallyandfindtheright

tenantfast.Whetheryouarelesseeorlessor,you

profitfromourmanyyearsofmarketexperience

andspecialization,ourclosecontacttothemarket

andthevaluablerelationshipsthatoursix-person

team maintains in the region. We only employ

qualifiedrealestateconsultantsandhaveourown

RealPropertydepartmentthatspecializesincom-

mercialandindustrialrealestate.

Andifyouare lookingforproperties inthisseg-

mentelsewhereinGermany,wewillbehappyto

linkyouupwithourRealogisofficesinBerlin,Düs-

seldorf,MunichandStuttgart.

n Sound,realisticvaluationofyourreal

estateasset

n Individuallytailoredmarketingconcept

n Adviceonhowtooptimizeproperties

n Extensive regional, national and internati-

onal network of contacts with potential

tenants