market report on the letting ofmarket report on the letting of logistics properties and industrial...

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES

Rhine-Main metropolitan area for 2019

n Weakest result in the last five years: take-up

fallsby36%

n Logisticsexpectedtoremainatahighlevelin

theregion

n Rhine-MainSouthremainstheregionwiththe

strongestlettingactivity

n Units of 5,000 sqm or more account for just

under300,000sqmofspace;thosewithlarge

spacerequirementsof50,000sqmormoreare

havingtoswitchtotheoutskirts

n Prime rent increases by 8%, average rent re-

mainsunchanged

n Forecast: outskirts to become increasingly

attractiveforlogisticsproperties

Ourlatestanalysisonthelettingvolumeofstor-

age,logisticsandproductionspaceintheGreat-

er Frankfurt/Rhine-Main region* confirms the

downwardtrendthatstartedatthebeginningof

theyear.While take-upwasalreadydown13%

year-on-yearattheendofthefirsthalfof2019

(H12019:262,200sqm,H12018:300,000sqm),

454,000sqmofspacewasbrokeredbyallmarket

participantsintheyearasawhole(-36%).Con-

sequently,themarketdelivereditsworstresultin

thelastfiveyears,andalsofell22%shortofthe

five-yearaverageof578,800sqm.

Intheyearsleadingupto2019,theRhine-Main

region saw very high levels of construction of

large spaces with direct letting. However, the

declineintheresultlastyearshouldnotbeover-

statedforthetimebeing.Companieswithlarge

spacerequirementswilllocateintheoutskirtsin

future,i.e.inperipherallocations50kmormore

outsidethecoreregionofFrankfurt.

The Rhine-Main South region again posted the

strongestlettingactivityinthereportingperiod,

although the figure was approx. 200,000 sqm

lessthaninthepreviousyear.Atapprox.234,264

sqm, Offenbach, Gross-Gerau, Darmstadt and

Bergstrasse accounted for more than half the

spacebrokered.

Theregionswiththenexthighest take-upwere

Rhine-Main East (19%, 86,260 sqm), Mainz/

Wiesbaden(approx.10%;46,310sqm)and

Frankfurt(around8%;34,500sqm).“Rhine-Main

North” (27,240 sqm) and “Rhine-Main West”

(25,424sqm)eachhadashareofaround6%of

marketactivityin2019.

Totaltake-upin2019wasdominatedbyunitsof

5,000sqmormore(64%,290,560sqm),witha

focusonthe7,500sqmandundersegment.De-

mandforunitsupto20,000sqmwasalsostrong.

Around19%oftotaltake-upwasinthe1,000to

3,000sqmsizecategory,followedbythe3,000

to5,000sqmsegment(14%,63,560sqm).Deals

below1,000sqmmadeupjust3%ofall leases

uptotheendofDecember(13,620sqm).

Market report on the letting of logistics properties and industrial spaces in the Rhine-Main metropolitan area* for 2019

Take-up by regions

>> Take-upoflogisticspropertyandindustrialspacebysizeinthegreaterFrankfurtarea2019

>> Take-upoflogisticspropertyandindustrialspaceinthegreaterFrankfurtarea

MARKET REPORT ON THE LETTING OF LOGISTICS PROPERTIES AND INDUSTRIAL SPACES // Rhine-Mainmetropolitanareafor2019

≥5,001sqm 3,001-5,000sqm 1,001-3,000sqm ≤1,000sqm

>> Take-upoflogisticspropertyandindustrialspacebyregionsinthegreaterFrankfurtarea2019

*valuebyStatista(statista.com)

Take-up by size


Theprime rent fornewbuildings in thecityof

Frankfurt rose by 8% year-on-year to approx.

EUR 7.00/sqm (nominal) (2018: EUR 6.50/sqm).

The average rent remained unchanged at EUR

4.95/sqm.

Inrecentyears,themarketpostedrecordresults

drivenby thehigh levelof construction.This is

hard to repeat. For 2020, we forecast similar

take-uptothepreviousyear,withthoselooking

forlogisticspropertieswithlargespacesofover

50,000sqmhavingtoswitchtotheoutskirts.

Despitecurrent trends,weareoptimisticabout

the future. National and international trading

companieswithhighlogisticscapacitywillcon-

tinuetosupplythedenselypopulated,growing

metropolitan area. In addition, there are logis-

tics-relatedindustriessuchasthehighlyspecial-

isedchemicalandpharmaceuticalsectoraswell

ase-commerce.Consequently,majorfuture-ori-

entedtransportationindustriesarelocatedatthe

largest European cargo airport and one of the

most important road and rail hubs, which also

attractnumerousspecialistlogisticsservicepro-

viders.

Rents 2019

Forecast 2020

>> PrimeandaveragerentsoflogisticpropertyandindustrialspaceinthegreaterFrankfurtarea2019

1. IKEA

Rüsselsheim,33,000sqm(owner-occupier)

2. Geis Industrie

Rodenbach,31,000sqm

3. Coca Cola European Partners GmbH

Bodenheim,20,300sqm

4. Amazon S.à r.l.

Gernsheim,19,700sqm

5. Eichler Kammerer Gruppe

Dietzenbach,18,200sqm(owner-occupier)

>> Relevantdealsin2019

primerents averagerents


Logistics Property Market Frankfurt: Rental Prices 2019 (EUR/sqm)

*GreaterFrankfurtmarketarea

Realogisdefinesthesub-marketsastherelevantavailablewarehouse,logistics,industrialandproductionpropertieswithhallspaceofapprox.1,000sqm

orgreater(excludingofficeandancillaryspace)inthefollowingregions:Rhine-MainNorthincludingWetteraudistrict;Rhine-MainSouthincludingGross-

Gerau,Offenbach,Offenbach-Land,DarmstadtandDarmstadt-Dieburgdistricts;Rhine-MainEastincludingAschaffenburg,(partof)Main-Kinzigand(part

of)Aschaffenburg-Landdistricts; Rhine-MainWest includingHochtaunus andMain-Taunusdistricts,Wiesbaden/Mainz includingWiesbadenandMainz

districts,andFrankfurt(Frankfurtdistrict).

Rhine-Main North3.50 - 4.80

Rhine-Main South3.50 - 6.95

Rhine-Main East3.30 - 5.00

Rhine-Main West4.00 - 6.50

Wiesbaden / Mainz3.50 - 5.95

BERGSTRAßEBERGSTRAßEBERGSTRAßEBERGSTRAßEBERGSTRAßEBERGSTRAßEBERGSTRAßE

OFFENBACH-LANDOFFENBACH-LANDOFFENBACH-LANDOFFENBACH-LANDOFFENBACH-LAND

GROß-GROß-GERAUGERAU

HOCHTAUNUSHOCHTAUNUSHOCHTAUNUSHOCHTAUNUS

WETTERAUWETTERAUWETTERAU

MAIN-KINZIGMAIN-KINZIG

MAIN-MAIN-MAIN-MAIN-MAIN-TAUNUSTAUNUSTAUNUSTAUNUSTAUNUS

DARMSTADT-DIEBURGDARMSTADT-DIEBURGDARMSTADT-DIEBURG

ASCHAFFENBURG-ASCHAFFENBURG-ASCHAFFENBURG-ASCHAFFENBURG-ASCHAFFENBURG-LANDLAND

am RheinIngelheim

(Bergstraße)Heppenheim

der LahnLimburg an

am TaunusHofheim

Gießen

Worms

Bensheim

Gernsheim

Mörfelden-WalldorfGroß-Gerau

Dreieich Rodgau

Maintal

Neu-Isenburg

Groß-Umstadt

Mainz

Gelnhausen

Büdingen

Würzburg

Mannheim

Frankfurt a. M.4.00 - 7.00

Wiesbaden

Aschaffenburg

Bad Homburg

Hanau

Darmstadt

Offenbach

Rüsselsheim

Fulda

Wertheim

Fulda / Bad Hersfeld areaGießen / Wetzlar area

Alzey-Worms

Mannheim-Heidelberg-Rhein-Neckar

66

67

45

45

5

3

3

7

63

61

60

3

3

48

Koblenz

5

6

61

Friedberg

REALOGIS –

Pioneers in Logistics since 2005

WhenRealogiswasfirstestablished in2005,we

had an ambitious goal: to become the market

leaderforpropertylettingsinthe“industrialand

logistics” segment. The concentration and poo-

lingofourknow-howintothisnichemarkethas

proved successful: in 2015 we again gained

market leadership inGermany for space take-up

in industrial properties,warehouses and logistics

properties.What’smore,wehavealsocontinued

toexpandourshareoftheEuropeanmarket.

Today,theowner-managedRealogisgroup,which

isheadquarteredinMunichandalsohasofficesin

Berlin,Düsseldorf,Frankfurt,HamburgandStutt-

gart,notonlyofferslettingsandconsultancyser-

vicesbutisalsoasought-afterpartnerofinvestors

andinstitutionalinvestors,towhomweofferour

comprehensiveexperienceandin-depthregional,

nationalandinternationalmarketknowledge.

Extensive consultancy services in the areas of

logistics and fulfilment round off our range of

services. With a team of highly motivated and

well-trained professionals, we continually strive

to provide long-term support to our customers

andenablethemtobenefitfromourpositionas

marketleader.

Our services

n Preparationofadetailedandindividualrequi-

rementsprofile

n Targetedoffers

n Developmentofpossiblealternatives

(leasing,purchase)

n Integrated Realogis logistics consultancy to

define the optimal location and implement

internalprocessesinanexistingproperty

REALOGIS –

Available to you directly on-site in Frankfurt

Weareyourpointofcontactforthelettingofin-

dustrialandlogisticspropertyaswellasbusiness

parksintheRhine-Mainmetropolitanarea.You’re

looking for a certain type of property? We will

define the precise details of your requirements,

enhanceyoursearchprofileandprovideyouwith

exact property matches. Maybe you are looking

foranewtenantforyourproperty.Inthatcasewe

willassistyouinvaluingyourpropertyandsetting

theoptimalrentalprice.Wehandletheprofessio-

nalpresentationofyourpropertytothepublicand

ensureapromptletting.

Bothtenantand landlordbenefitfromthemany

yearsofspecialistmarketknowledgeofourseven-

strongconsultancyteamintheregion,aswellas

our market proximity and valuable contacts. We

onlyemploywelleducatedandexperiencedpro-

perty consultants, and also offer access to an

in-house site-department, which is specialised in

commercialandindustrysites.

Pleasecontactusaboutanydecisionsrelatingto

industrialandlogisticsproperty.

n Soundandrealisticvaluationofyourproperty/

land

n Individualmarketingconcept

n Adviceonoptimisingproperty

n Strategy consulting to minimise the risk of

vacanciesanddefaults

n Extensive regional, national and international

contactnetworkofpotentialtenants

REALOGISImmobilien

FrankfurtGmbH

BockenheimerLandstraße39

60325Frankfurt

phone:+49(0)69-8700401-50

fax:+49(0)69-8700401-99

email:[email protected]

www.realogis.de

Contact:

AdrianoBorgia(ManagingDirector)

phone:+49(0)69-8700401-50

fax:+49(0)69-8700401-99


Contact:

IrinaLysenko(ResearchAnalyst)

phone:+49(0)89-515569-287

fax:+49(0)89-515569-29



Alldatainthisreportcomefromdifferentsourceswhichweconsiderreliablebutwhosevalidity,exactnessandcorrectnesswecannotgarantee.Ourstetementsandforecastsherecorrespondtoourestimationsatthetimewhenthisreportwasprepared.Thisreporthasbeenpreparedforadvertisingpurposesanddoesnotrepresentanyrecommandationorbasisformakinganydecisionsaboutinvestmentorlettingproperty.ThismarketreportisthecopyrightpropertyofREALOGIS.Nopartofthisreportmaybeusedinanyformorbyanymeans,withoutthepriorpermissioninwritingofREALOGIS./16.01.2020

market report on the letting ofmarket report on the letting of logistics properties and industrial...

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