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Industrial and Logistics Market Report 2012
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INDUSTRIAL AND LOGISTICS PROPERTYSTUTTGART REGIONMARCH 2012
THE STUTTGART ECONOMIC REGION.
direction Karlsruhe
direction Heilbronn
direction Munich
direction Singen
County of Göppingen
County of Tübingen
County of Ludwigsburg
County of Esslingen
County of Rems-Murr
County of Böblingen
Ditzingen
Weilimdorf
Esslingen
industrial and logistics cluster*
* logistics space > 50,000 sqm industrial space > 100,000 sqm
2
MARKET TRENDS.
BOOMING INDUSTRIAL AND LOGISTICS
The Stuttgart Region is booming. The automotive industry
as well as mechanical engineering are back on track with
sustainable growth and excellent prospects.
This can be seen in high bonus-payments for automotive
employees, as well as a strong demand for industrial and
logistics property.
LOGISTICS IN THE WAKE OF INDUSTRY
The strong economic background of the Stuttgart Region
and the high density of logistics have intensified the
demand for modern logistics space. On the one hand,
industrial companies strive for highly-efficient supply chains,
on the other hand a continued trend for outsourcing of
production processes to logistics service providers can be
observed.
Such close ties between industrial and logistics are
characteristic for the economic Region of Stuttgart.
Despite these positive economic trends, not all communities
within the Stuttgart Region will benefit from a booming
industrial sector.
A survey by Bankhaus ELLwANGER & GEIGER has found a
widening gap between the counties of the Stuttgart Region
concerning the settlement of modern logistics between
2009 and 2012.
Especially counties along the A 81 motorway (Ludwigsburg,
Böblingen), continue to lead the way. By far the largest
growth in logistics space could be observed in these two
counties. This increase in logistics space was generated by
expansions of local companies as well as new settlements.
Proximity to major industrial estates of the Stuttgart Region,
in combination with excellent traffic links to nationwide
speed- and motorways, were strategic advantages for the
counties of Ludwigsburg and Böblingen. Furthermore,
these counties have adopted settlement and logistic-friendly
policies, which is reflected in a sufficient supply of suitable
plots at an adequate price.
Despite high demand not only for respective plots, but
also for flexible existing properties, the growth of modern
logistics property along the A 8 motorway (Munich –
Karlsruhe) has been lagging behind its potential. This
negative trend is the result of restrictive zoning policies
on the one hand, and above average land prices on the
other hand. As a consequence, all major new settlements
where either placed outside the Region of Stuttgart (Ulm,
Augsburg, Karlsruhe) or along the A 81 motorway.
ECONOMIC ATTRACTIVNESS IS NOT A GIVEN
The successful clustering of industrial and logistics
companies has generated sustainable economic growth in
the Stuttgart Region. To secure this positive trend for the
future, local authorities, companies and investors will need
to intensify their cooperation. The importance of industrial
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.
3
FACTS AND FIGURES.
Range of net rents € per sqm
Average net rents € per sqm
trend 2012/2013
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 4.70
Source: BANKHAUS ELLwANGER & GEIGER KG ©, March 2012 all prices above are per month
SPACE TURNOVER
In 2011, the letting volume of industrial and logistics
space in the Stuttgart Region has reached 165,000 square
metres, compared with 195,000 square metres in 2010.
Approx. 79 per cent of the total space turnover resulted
from lettings of existing property. The remaining 21 per
cent of leases were placed in newly built properties, for
examples 5,000 square metres in weilimdorf or 25,000
square metres in Böblingen and Untertürckheim.
Of that space turnover, brokers marketed approx.
117,000 square metres, which corresponds to approx.
71 per cent of the total volume. with a market share
of 25 per cent, ELLwANGER & GEIGER continues to be
market leader.
Counties with the largest space turnovers:
❚❚ Esslingen approx. 49,000 sqm
❚❚ Böblingen approx. 35,000 sqm
❚❚ Ludwigsburg approx. 33,000 sqm
In 2011 the transaction volume of developed plots and
industrial sites reached approx. 603,000 square metres.
TRANSACTION-STRATEGIES
❚❚ Owner occupancy
❚❚ Partial demolition/new development
❚❚ Demolition/new development
The largest transactions in this sector were the selling of
NXP-Areal in Böblingen with approx. 220,000 square
metres, the EllringKlinger commercial site in Ludwigsburg
with approx. 140,000 sqm, as well as the brick works of
winnenden with approx. 60,000 square metres and the
Coperions Areal in Stuttgart with approx. 45,000 square
metres.
RENTS
Average net rents for industrial and logistics space rose
significantly from € 4.50 per square metres in 2010 to
€ 4.70 per square metres in 2011. This increase is a result
of a continuous demand as well as shortage of industrial
and logistics space in the Stuttgart Region. The average
lease duration for existing properties lies between 3 to 5
years – 7 to 10 years for newly built property.
Like in 2010, peak rents reached € 6.20 per square metres
for newly built logistics space.
4
INvESTMENT.
INVESTMENT
A major trend from 2010 has been continued, as predomi-
nantly private investors were active on the market and
bought existing industrial sites with potential for new
developments. Demand of institutional investors for core
property has been high, but could not be met by suitable
investment opportunities. Only few institutional investors
were looking for brown fields with upside potential.
On the supply side, no suitable products where placed on
the industrial and logistics markets at all. New develop-
ments, no matter if initiated by private or institutional
investors were held in the portfolio of the respective
investor. Only one transaction, in the County of Rems-
Murr, with more than 10,000 square metres of logistics
space, reached an initial yield of 8 per cent.
Due to this lack of products and transactions, prime yields
cannot be forcasted at present. For any selling of core
products, ELLwANGER & GEIGER expects an initial yield
of less than 8 per cent.
OUTLOOK FOR 2012/2013
From the third quarter 2012 to the first quarter 2013
extensive newly built logistics properties will be completed
and ready to be listed. Currently more than 50 per cent
of these spaces are pre let. ELLwANGER & GEIGER will
exclusively market a total of approx. 45,000 square metres.
However, this will not be enough to satisfy the demand for
modern logistics space.
Against the backdrop of a continuously high demand in
combination with the completion of newly built logistics
property, we expect average rents to rise in 2012/2013
and forecast peak net rents for newly built logistics space
to the amount of € 6.50 per square metres
Top letting volumes are to be reached in Ludwigsburg
County, due to:
❚❚ Available plots
❚❚ Adequate ground values
❚❚ Excellent infrastructure
❚❚ Company friendly policies
Top yield for commercial properTies in %
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0
2006 2007 2008 2009 2010 2011 2012
LogisticsSpecial Retail Centres
OfficeOffice and Retail Buildings Prime-Location
7.0
7.07.5 7.5 7.5
9.5
7.2
10.5 10.5
7.5
Source: Research BANKHAUS ELLwANGER & GEIGER KG ©, March 2012
8.0
7.5
5.55.55.55.5 5.25 5.5
5.04.6
5.0 5.0 5.0 4.6
5
Informations about Investments
OUR SERvICES.
GESCHäFTSBEREICHINDUSTRIE
UND LOGISTIK
vermietung/
verkaufInvestment Consulting Research
Immobilien- wirtschaftliche Einschätzungen
YOUR CONTACT PARTNERS.
The industrial and logistics sector has its own characteristics. In this field, you should rely on specialists who know the
requirements 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)711/2148-286
or Fax +49 (0)711/2148-290.
Information on the Internet: www.privatbank.de
Markus Knab
Team Manager, Industrial and
Logistics Properties
Phone +49 (0)711/2148-227
Alexander Fink
Consultant, Industrial and
Logistics Properties
Phone +49 (0)711/2148-261
Moritz weeber
Consultant, Industrial and
Logistics Properties
Phone +49 (0)711/2148-383
Kathrin Ziegler
Assistant Industrial and
Logistics Properties
Phone +49 (0)711/2148-286
INDUSTRIAL AND LOGISTICS
Letting/Sale Investment Consulting Research valuations
6
ELLwANGER & GEIGER REAL ESTATE.
ellWanGer & GeiGer real estate offers you a one-stop shop for a comprehensive range of services relating to the asset class of real estate. With the very highest discretion and integrity, we enable you to keep your bearings in rapidly changing markets. our success is founded above all on excellent knowledge of the market and decades of experience in the real estate business.
COMMERCIAL PROPERTY
Extensive research is the basis for our
analyses of locations, portfolios and
cost-effectiveness that reflect market
conditions. From this, we derive
strat egies whose goal is to capitalize
on potentials for earnings and effi-
ciencies.
Apart from comprehensive leasing
services, our core expertise includes
project consulting and transaction
business. we adopt a holistic approach
in consulting on real estate invest-
ments: we partner you all the way –
from the development of market ing
strategies, to preparation of data on
properties, to implementation of
marketing processes.
OUR SERVICES
Research
Investment analysis and consulting
Transactions, renting and leasing
of office, retail, industrial and
logistics facilities
FUNDS & ASSET MANAGEMENT
we plan individual real estate invest-
ments and create special funds for
institutional investors and professional
private investors (family offices).
Each investment approach is devised
in close consultation with the customer.
An investment volume is selected
that permits niche investments and
individual mandates. By creating
portfolios for single investors or small
groups, we are able to provide indi-
vidual support for the duration of the
investment. Different investment
vehicles are selected depending on
the needs and product preferences
of each investor.
OUR SERVICES
Special funds in accordance with
the German Investment Company
Act (KAGG)
Closed investment models
(KG, GmbH)
Luxembourg security funds and
special funds, SICAv, SIF
Individual schemes for offshore
investors
OUR LOCATIONS
Head office Stuttgart
Börsenplatz 1
70174 Stuttgart, Germany
Phone +49 (0)711/2148-286
Fax +49 (0)711/2148-290
www.privatbank.de
Branch office Munich
Herzog-Rudolf-Straße 1
80539 München, Germany
Phone +49 (0)89/17 95 98-0
Fax +49 (0)89/17 95 98-55
www.privatbank.de
OUR OTHER PUBLICATIONS
Retail Market Report Office Market Report Investment Market Report
can be obtained free of charge from:[email protected]
7
Informations about ELLwANGER & GEIGER Real Estate
BANKHAUS ELLWANGER & GEIGER KG
Real Estate
Börsenplatz 1, 70174 Stuttgart, Germany
Phone +49 (0)711/2148-286, Fax +49 (0)711/2148-290
www.privatbank.de
DISCLOSUREThe data for this market report has been sourced directly from city and community authorities, as well as from realtors and owners. Our contact partners received standardised questions concerning quantitative factors like rental price, standard ground value, plot size and space turn- over, as well as the prospects for the future. The quality of the answers to our enquiry varied 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.
