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Real Estate Market Report 2013 Rhine-Neckar Metropolitan Region
Wolf-Rainer Lowack Managing Director Metropolregion RheinNeckar GmbH
Ralph Schlusche Association Director Verband Region Rhein-Neckar
Dear Readers, The Rhine-Neckar Real Estate Market Report is a perfect example of a successful regional cooperative effort. Eight years ago, business and government experts joined forces to put this publication together. This collaboration had to meet high standards from the start: the aim was for the regional and supra-regional real estate sector to embrace this report as an unbiased fundamental assessment. The continued keen interest of readers in this publication evidences that it still meets these high quality and professional standards today.
Contents
The publication of neutral and transparent market data requires a great amount of trust and forthright exchanges between the parties involved in the region.
Business Destination Rhine-Neckar
We are committed to use this capital for further proj-
Metropolitan Region
2
The Rhine-Neckar Real Estate Network
4
Market Segment Office Space
6
investment destination.
Market Segment Retail Space
12
This latest edition of the Real Estate Market
Market Segment Commercial Land Parcels
19
Map Overview of the Region
22
Glossary
24
Legal and Contact Information
25
ects. You, our esteemed readers, are cordially invited to become a valuable part of the Rhine-Neckar real estate network. It will welcome with open arms new partners who contribute to the successful advancement of the Rhine-Neckar Region as a real estate and
Report focuses on the potential inherent in regional networking, which we aim to develop in partnership with you. We hope that you will find the contents enriching and helpful!
1
Towns and the region: you can travel from the Mannheim / Ludwigshafen Central Harbor to the countryside around the BergstraĂ&#x;e in just 20 minutes
Business Destination RhineNeckar Metropolitan Region
The Rhine-Neckar metropolitan region is a tristate region in the Southwest of Germany comprising Hessen
and
parts
of
Baden-WĂźrttemberg,
Rhineland-Palatinate.
Covering
an area of about 5,600 square kilometers, the region is home to approx. 2.3 million residents. The metropolises of Mannheim, Ludwigshafen and Heidelberg located in the heart of region form a polycentric geographic structure with 30 medium-sized towns, including Speyer, Viernheim and Eberbach. Along with neighboring regions Frankfurt/Rhine-Main to the North and politan Rhine-Neckar Region boasts one of the densest and strongest concentrations of businesses in Europe.
2
Source: MRN GmbH
Karlsruhe/Stuttgart in the South, the Metro-
BAD HOMBURG
v.d. Höhe
FRANKFURT
Legend
am Main
WIESBADEN
HANAU OFFENBACH am Main
Towns
Transportation infrastructure
Population more than 100,000
Interstate
Population 50,000 to 100,000
Railway line
RÜSSELSHEIM
MAINZ
ASCHAFFENBURG
HESSEN
DARMSTADT
Source: Own mapping VRRN edited based on GeoBasis data: © GeoBasis-DE/ BKG 2013
BAYERN
RHEINLANDPFALZ
M
ain
WORMS
The strong position of this business destination is – among other things – evident in its gross domestic product of about EUR 75 billion, its unemployment
LUDWIGSHAFEN
MANNHEIM
am Rhein
rate of 5.2 percent and its export quota of 57 percent (nationwide average 45 percent).
Ne
HEIDELBERG
NEUSTADT
a ck
a.d. Weinstraße
r
One of the key factors that make the region so attractive for businesses is its ease of access via all traffic vehicles enjoy optimum connections to the interstate
KARLSRUHE
network thanks to the East-West Axis (A 6) as well as multiple North-South bypasses (A 5, A 67, A 61 and A 65). Moreover, Mannheim has the second largest ICE distribution railway station in Germany, which offers
HEILBRONN
Rhein
infrastructure options. Private commuters and delivery
BADEN-WÜRTTEMBERG
FRANKREICH
LUDWIGSBURG
PFORZHEIM STUTTGART
around 230 long distance departures daily. From there, Frankfurt Airport can be reached in just 30 minutes. Also the Mannheim Cargo Train Station and the Inland
WAIBLINGEN
BADEN-BADEN
15 km
ESSLINGEN am Neckar
SINDELFINGEN
Port Center Mannheim/Ludwigshafen are the second largest in their categories in Germany. The chemical, automotive, machine and equipment manufacturing industries as well as IT, biotech and life sciences are key business pillars. International industry leaders in their respective fields such as BASF, SAP and Bilfinger have their headquarters in the region.
3:09 h
0:30 h
Mannheim MS – Paris
Mannheim MS – Frankfurt Airport
12,86 Min. 93,73% Average availability of IC/ICE stations in MRN
of the population commute less than 30 min. to ICE/IC stations
Another central regional success factor is its scientific infrastructure. Approximately 89,000 attending classes at 22 universities, more than 40 non-university research facilities and the fruitful exchange of theoretical and practice-based knowledge will safeguard the sustainability of the innovative capabilities of local enterprises in the long term. This close cooperation between businesses and science leads to the creation of regional clusters, e.g. in biotechnology (BioRN) and organic electronics (Forum Organic Electronics). Groundbreaking disciplines with
Population Development 2030 +7.4%
While Germany’s population will shrink by 3 percent by 2030, the developmental trend in the Rhine-Neckar region is positive. Source: Own graph MRN based on data from BBSR/IKM
Munich
+4.49%
Frankfurt/Rhine-Main
+4.3% Stuttgart
+3.85% Rhine-Neckar
+2.37%
Bremen-Oldenburg
+0.82% Hamburg
-1.91% Nuremberg
internationally identifiable competencies and profes-
-3.0%
sional cluster management can also be found in the
-3.07%
fields of geo information (GeoNet.MRN), energy and
-4.37%
environmental applications and energy storage systems (StoREgio).
Berlin-Brandenburg Rhine-Ruhr Hanover
-17.22%
Central Germany
3
Source: MRN GmbH
Information and networking opportunities ...
The Rhine-Neckar Real Estate Network To boost the visibility of the real estate industry and of
A steering committee ensures the effective and efficient
the Rhine-Neckar metropolitan region as a real estate
planning of the joint network activities.
destination, the Rhine-Neckar Real Estate Network was established at the end of 2012.
Publications, such as this annual Real Estate Market Report deliver market transparency and, as a result, facilitate the
Based on the informal cooperation between individual market
selection of sites for interested entrepreneurs. As a product,
players that has been active for many years, an industry
the report complements the regional Commercial Real Estate
network covering the entire Rhine-Neckar Region evolved
Portal (www.standorte-rhein-neckar.de) and the Real Estate
over a period of just a few months. What initially began with
Dialog (Immobiliendialog) hosted several times a year. The
five founding members (BIC Blum Immobilien Consulting
presentation of the Region on Europe’s Trade Fair for Prop-
GmbH, Treureal GmbH, Engel & VĂślkers Commercial, Rich
erty and Investment tradeshow, the Expo Real in Munich, is
Immobilien GmbH & Co. KG and DIC Onsite GmbH), is now
yet another activity.
a network of more than 20 partners. It targets all commercial real estate players – primarily architects and urban planners,
All of these activities require more than just a high degree of
insurance companies, banks and other service providers as
identification with the goals from the partners involved. They
well as construction enterprises, construction financing insti-
are simultaneously also evidence of the forthright and trust-
tutions and project developers, investors, real estate agents,
based cooperation of the network partners. As an impar-
property owners as well as municipalities.
tial cooperative platform, the Metropolregion Rhein-Neckar GmbH also accompanies the progress of the network and
Among the core goals are networking and joint marketing
the commonly agreed upon objectives.
activities promoting the location. As a result, fruitful synergies are generated and the awareness of the Rhine-Neckar Region as an investment destination is boosted. 4
Join us straight into the Real Estate location of tomorrow!
Source: MRN GmbH
... at the Immobiliendialog Rhein-Neckar
We support businesses in all phases of their relocation and settlement in the region. Strong partners within the Rhine-Neckar metropolitan region are of critical importance to help us make these endeavors successful. The Real Estate Network Rhine-Neckar ensures transparency and thus fair competition when it comes to entrepreneurial location-related decision-making. Herbert Bossinger, Management Board Member of Baden-W端rttemberg International
The new Real Estate Network Rhine-Neckar offers genuine added value. Intensive and solid neighborly relations among strong partners makes Germany a more attractive investment destination. The active collaboration between Immobilienwirtschaft Stuttgart e.V. and the Real Estate Network Rhine-Neckar helps us all master the global challenges as partners. Harald Alber, Management Board Member IWS Immobilienwirtschaft Stuttgart e.V.
Our central goals are the creation of market transparency and uniform scientific standards for the real estate industry. They provide the decision-making platforms for domestic and international investors. After the seven traditional markets, the RhineNeckar was among the first regional markets that were included in the gif office market study of 2009. This corroborates the strong development potential and importance of the regional real estate market. It is based on an originally grown trust-based cooperation between the local players. Ulrich Denk, Coordinator gif Office Market Study 5
Source: Schmucker und Partner Planungsgesellschaft mbH
Successful re-use of a former grain storage facility on the banks of the Rhine in Mannheim: Since May 2013, Speicher 7 houses a hotel and 3,400 m² of ofďŹ ce space.
6
Market Segment Office Space Despite the economic downturn, the German office
Compared to traditional office space markets, the regional
space market has remained stable in 2012 overall and
market offers affordable rent levels. The local rent prices
was able to just about retain its 2011 volume. The eval-
were again inconsistent in terms of their development. While
uation of the regional market is being conducted in a
peak rents paid in Ludwigshafen remained unchanged, they
trust-based dialog between the relevant market partic-
declined slights in Mannheim and Heidelberg. Current proj-
ipants and is being moderated by the Metropolregion
ects, such as the Bahnstadt in Heidelberg, the Glückstein
Rhein-Neckar GmbH and the Gesellschaft für Immobili-
Quarter and the Eastsite expansions in Mannheim or the
enwirtschaftliche Forschung (gif e.v.).
Rheinufer Süd in Ludwigshafen, it is safe to presume that rents will once again increase in the areas in close proximity
While the average marketing revenues declined slightly
to downtown.
as anticipated, the trend in the office space markets of the Rhine-Neckar metropolitan region’s three largest cities was
In the years to come, the urban development and the
inconsistent. Space sales dropped in Heidelberg and Ludwig-
advancement of the regional real estate market will be domi-
shafen while Mannheim generated a new revenue record.
nated substantially by conversion space that will become
Even if this jump in sales can be attributed to extraordinarily
vacant. The objective will have to be to integrate these – both
large transactions, these sales did confirm the developmental
functionally and from an urban design perspective. These
trend of the past three years.
spaces will affect the local office space market directly, given that the existing buildings already include office space that
The stability of the market is also evident from the low
will subsequently become available to the market. Mannheim
vacancy rates, which came in below the average for A and
and Heidelberg did both initiate important processes in
B locations (7.7 percent) in all three cities with a result of 5.5
connection with this situation. Moreover, under the motto
percent. Nevertheless, it must be presumed that the reduc-
“Wissen-schafft-Stadt,” Heidelberg has rolled out an interna-
tion of vacancies is almost complete and that in the short
tional building exhibit aiming at the depiction of flexible design
term only a moderate decline can be expected.
options and model solutions for the future of the town.
Peak rent developments downtown and proximity Existing office space trend (in m²)
16
2,0 Mio
14 Leerstand
in €/m²/month
12 10
1,5 Mio
*
8 6 1,0 Mio
4 2 * n/a for 2011
0,5 Mio
2008 2010
2011 2012 Mannheim
Source: gif / MRN analysis
2010
2011 2012 Heidelberg
2010 2011 2012 Ludwigshafen
2009
Mannheim city peak rent Heidelberg city peak rent Ludwigshafen city peak rent
2010
2011
2012
Mannheim prox. peak rent Heidelberg prox. peak rent Ludwigshafen prox. peak rent
Source: gif / MRN analysisw
7
Overview of Current Key Office Space Projects Location
Project Name
Investor/Occupant
Space
Investment vol. Schedule
Ludwigshafen
Office and conference complex D105
BASF
38,180 m²
not available
under construction, completion 2015
Ludwigshafen
Office complex
BASF
38,000 m²
not available
under construction, completion 2014
Mannheim
Quartier4
Diringer & Scheidel
15,500 m²
45 mn. €
construction start 2014, completion 2015
Heidelberg
Mathematikon
Mathematikon Heidelberg
12,000 m²
not available
under construction, completion 2015
Wiesloch-Walldorf Metropolpark
Pending
11,000 m²
27 mn. €
construction start 2015, completion 2017
Mannheim
Glückstein-Carré
Diringer & Scheidel
8,200 m²
20 mn. €
construction start 2013, completion 2014
Heidelberg
MVZ Dr. Limbach und Kollegen
Dr. Limbach
7,000 m²
not available
construction start 2014
Ludwigshafen
Prego Services
DC 2 Grundstücksgesellschaft
6,000 m²
15 mn. €
under construction, completion 2014
Mannheim
KWZ Jungbusch
Municipality of Mannheim
5,040 m²
17.6 mn. €
under construction, completion 2014
Mannheim
Q6 Q7
Diringer & Scheidel
5,000 m²
300 mn. €
under construction, completion 2016
Heidelberg
Office and business complex Kurfürstenanlage
STRABAG Real Estate
5,000 m²
40 mn. €
under construction, completion 2013
Sinsheim
Administration complex
Abfallverwertungsgesellschaft des Rhein-Neckar-Kreises AVR
4,800 m²
13.9 mn. €
completed 2013
Heidelberg
Business Park
Dulger Vermögensverwaltung
4,300 m²
7 mn. €
construction start 2013, completion 2014
Mannheim
P7, 16-18
DC Values
4,000 m²
55 mn. €
under construction, completion 2014
Mannheim
MAFINEX Technology Center (Phase 2)
Municipality of Mannheim
3,860 m²
13 mn. €
under construction, completion 2014
Mannheim
Eastsite 5
B.A.U. Bauträgergesellschaft
3,440 m²
11 mn. €
under construction, completion 2013
Mannheim
Rheinvorlandspeicher
Schmucker & Partner
3,400 m²
8 mn. €
completed 2013
Mannheim
Eastsite 7
B.A.U. Bauträgergesellschaft
3,280 m²
12 mn. €
planning underway
Mannheim
Eastsite 6
B.A.U. Bauträgergesellschaft
2,670 m²
10 mn. €
construction start 2013, completion 2014
Mannheim
O4, 4
LBBW Immobilien
2,400 m²
35 mn. €
construction start 2013, completion 2015
Mannheim
P5, 6-8
Heinrich Vetter Stiftung
2,400 m²
10 mn. €
under construction, completion 2014
Mannheim
Corporate Headquarters
Karl Berrang
2,300 m²
20 mn. €
construction start 2013, completion 2014
Mannheim
P3
Aachener Grundvermögen
2,240 m²
23 mn. €
under construction, completion 2014
Ludwigshafen
Werfthalle (Shipyard Hangar)
Cyperfection
2,040 m²
3.5 mn. €
under construction, completion 2013
Leimen
New Construction City Administration Building
Municipality of Leimen
1,730 m²
7.9 mn. €
construction start 2013, completion 2015
Source: Cyperfection Holding GmbH
Source: MRN survey (status 30th September 2013); space information provided by MF / gif
Room for creativity: new uses have also been found for the “Werfthalle” (shipyard hangar) on the Rhine river front in Ludwigshafen 8
Source: B.A.U. Bauträgergesellschaft mbH
Number VI brings yet another addition to the East Site
Office Market Mannheim Boasting 1.9 million square meters of office space, the largest
The availability of existing office space will continue to
market of its kind in the region has seen positive results for
increase in the future. On Mannheim’s east side, more new
three years in a row. In 2012, about 94,000 square meters
office space is being built: While East Site III and IV were
were leased and only 8.5 percent of space is being used by
completed in 2012, plans for Number VIII in 2014 already
the actual builders. Hence, compared to last year, Mannheim’s
exist. Additional space is under development in the Glück-
growth equals about 25 percent. Among the 15 locales studied
stein Quarter and in Squares Q6 Q7. Hence, the anticipated
by the gif e.V., besides Mannheim, only Frankfurt, Berlin and
completion volume for 2013 is 23,000 square meters (2012:
Bonn reported increased sales. The enormous gain can be
8,000). Regardless of whether the properties are in premium
attributed primarily to two leases BASF SE entered into (about
city proximate locations or downtown – all sites profit from
35,000 square meters) when it moved into temporary substi-
their good connections to transportation infrastructure.
tute facilities. In the years to come, the anticipated space volume will once again be approx. 60,000 square meters. Accordingly, the vacancy rate dropped from 6.1 percent (2011) to 4.6 percent. The peak and median rents tended to be slightly below 2011 levels given that the largest closings for existing
Existing office space in Mannheim
properties materialized in the EUR 8 to 10 per square meter range, while the 2011 leases included more newly constructed space. Unlike in other cities, there is no vast price difference between rents downtown and in city proximity areas. Rent increases are expected for 2013 thanks to the high demand.
Office Market Indices in Mannheim Indices
2012
2011
Existing space
Trend 2013
1.9 mn. m²
1.9 mn. m²
Space revenue
93,400 m²
74,500 m²
Vacancy rate
4.6 %
6.1 %
Downtown peak rent
14.10 €/m²
13.10 €/m²
Downtown average rent
10.70 €/m²
10.00 €/m²
City proximity peak rent
13.00 €/m²
14.00 €/m²
9.70 €/m²
10.60 €/m²
Periphery peak rent
10.00 €/m²
10.60 €/m²
Periphery peak rent
7.40 €/m²
7.80 €/m²
City proximity average rent
Source: gif / bulwiengesa / MRN survey
Legend Office locations 2,000 m 2 office space and up 20,000 m 2 and up 10,000 - 19,999 m 2 5,000 - 9,999 m 2 2,000 - 4,999 m 2 Facility types Office Admin Planned projekt
Source: Own mapping VRRN edited based on bulwiengesa / Baasner Stadtplaner; Cartography: VRRN
9
Source:: STRABAG Real Estate GmbH
Office and business complex Kurfürstenhof at the axis between the Main Station and Old Town
Office Market Heidelberg In comparison to the slight nationwide decline in 2012, Heidel-
rose to 6 percent last year due to the enormous construction
berg’s market for office space has been able to maintain a
volume.
high level of sales. Numerous new construction projects in the Bahnstadt quarter and on the Kurfürstenanlage have increased
In Heidelberg, the gap between rental costs in the periphery
the existing office space by about 6 percent over the past two
neighborhood, which can be as much as EUR 9.50 per square
years. By the end of 2012, the market totaled about 930,000
meter and in the downtown area, which peak at EUR 12.80,
square meters. However, the revenues of space declined mini-
continues to be minimal. This is primarily the result of short
mally for the first time in four years, which can be attributed
distances and the good connections available from the indus-
to a low number of large space leases. After the vacancy rate
trial parks and the city quarters to downtown as well as the
had dropped to 4.5 percent between 2009 and 2011, this index
availability of premium office space. The development of the Bahnstadt will continue to have an impact on the advancement of rents in the years to come. In the city proximity areas,
Existing office space in Heidelberg
another increase of peak and average rents is already evident. However, construction activities do not only move forward in the Bahnstadt, but also in the Kurfürstenanlage, where another office and business complex close to the administrative center is currently being built. Another project under construction is the “Mathematikon” on the “Neuenheimer Feld”, which will add about 47,000 square meters to the existing university space.
Office Market Indices in Heidelberg Indices
2012
2011
Existing space
0.93 mn. m²
0.90 mn. m²
Space revenue
33,000 m²
37,000 m²
Legend
Vacancy rate
Office locations 2,000 m 2 office space and up 20,000 m 2 and up 10,000 - 19,999 m 2 5,000 - 9,999 m 2 2,000 - 4,999 m 2 Facility types Office Admin Planned projekt
Source: Own mapping VRRN edited based on bulwiengesa / Baasner Stadtplaner; Cartography: VRRN
10
Trend 2013
6.0 %
4.5 %
Downtown peak rent
14.60 €/m²
14.00 €/m²
Downtown average rent
12.80 €/m²
12.00 €/m²
City proximity peak rent
12.50 €/m²
14.60 €/m²
City proximity average rent
10.70 €/m²
12.10 €/m²
Periphery peak rent
10.50 €/m²
11.00 €/m²
Periphery peak rent
9.50 €/m²
9.50 €/m²
Source: gif / bulwiengesa /MRN survey
Source: BASF SE Corporate Media Relations
Ludwigshafen BASF is building a new office complex in the Rhine Riverfront Quarter
Office Market Ludwigshafen In 2012, Ludwigshafen’s office market experienced hardly any
Downtown rents will likely increase thanks to the conversion
fluctuations. After the dynamic developments in 2010, the
of the Werfthalle (shipyard hangar) and the lease of the high
market stabilized over the past two years. The vacancy rate
priced office space under construction in this area. Another
has been less than 5 percent for three consecutive years. One
major BASF SE project is underway in a prominent headquar-
striking factor is the decline in space revenues from 13,000
ters location by Gate 2: an office complex for 1,400 employees.
square meters in 2011 to most recently only 5,000 square
The conversion aspect also has its place in Ludwigshafen, but
meters. This can be attributed to the fact that a lot of spaces
the facet is different: in this city, the objective is the reuse of
are pre-leased before construction even begins. Hence, these
old industrial buildings and spaces and/or the integration of
spaces never even appear on the market. Consequently, this
unused traffic zones as part of the urban development project
report can reflect only a part of the actual market activities.
“City West.” In the vicinity of the “Hochstraße Nord” these are slated to be developed as potential residential, commercial and
At EUR 9 and 9.20 per square meter the peak rents in the
service facilities.
downtown and city proximity locations are on similarly high levels. Rates are expected to rise in 2013. In particular the developments in city proximity – for instance on the Rheinufer
Existing office space in Ludwigshafen
Süd quarter like the new office building of Telekom, another
Legend
office complex for 1,500 employees of BASF SE which is still
Office locations 2,000 m 2 office space and up
under construction as well as the planned conversion of the old Tramway Hub – all point out the rent increases.
20,000 m 2 and up 10,000 - 19,999 m 2 5,000 - 9,999 m 2 2,000 - 4,999 m 2 Facility types Office Admin Planned projekt
Office Market Indices in Ludwigshafen Indices
2012
2011
Existing space
Trend 2013
0.85 mn. m²
0.85 M. m²
Space revenue
5,000 m²
13,000 m²
4.7 %
4.7 %
Downtown peak rent
9.00 €/m²
9.00 €/m²
Downtown average rent
7.80 €/m²
7.70 €/m²
City proximity peak rent
9.20 €/m²
k.A.
City proximity average rent
6.60 €/m²
k.A.
Periphery peak rent
8.10 €/m²
9.80 €/m²
Periphery peak rent
6.50 €/m²
9.60 €/m²
Vacancy rate
Source: gif / bulwiengesa / MRN survey
Source: Own mapping VRRN edited based on bulwiengesa / Baasner Stadtplaner; Cartography: VRRN
11
Source:: MRN GmbH
Mannheim’s new multi-functional quarter in squares Q6 Q7: Construction activities began in September 2012
12
Market Segment Retail 2013 is expected to be another growth year for retail
are responding accordingly. Based on the latest survey
sales. Given the positive economic outlook, consum-
conducted by the Institute for Retail Research (IFH), every
erspending rates continue to be high. Attractive retail
third brick and mortar retailer already operates its own online
locales are particularly well positioned to reap profits
store (multi-channel marketing). At the same time, these
from this. Thanks to the Rhine-Neckar Region’s large
retailers have to offer distinct added value compared to the
population and its high buying power, the region
Internet by providing additional services and interesting port-
provides an attractive market for both, retailers and
folio mixes and to create positive shopping experiences.
investors.
Such experiences can be enhanced by factors such as the quality of the time spent at a uniquely attractive destination.
In addition to important major centers – Mannheim, Heidel-
Considering that, the downtown areas of the Rhine-Neckar
berg and Ludwigshafen – the region boasts several medium
metropolitan region are well positioned.
sized centers that offer significant marketing potential. Towns such as Schwetzingen, Viernheim, Landau, Mosbach and
Nevertheless, the Rhine-Neckar region’s attractiveness is
Hockenheim generate outstanding central retail sales. While
not only evident in the numerous retail projects of downtown
Landau’s main shopping destination is its downtown area,
Mannheim. Investors and project developers also focus their
specifically the Gerberstraße, the Rhine-Neckar Center and
interests on the medium-sized metropolises. A large number
its surrounding specialty retail stores provide a highly central-
of major shopping and specialty retail stores are under devel-
ized shopping destination in Viernheim. Schwetzingen’s value
opment in these venues.
as a shopping option can to some extent be attributed to the presence of Möbel Höffner, a furniture retailer who draws
For instance, Hamburg-based project developer procom
customers from vast environs.
is building a specialty retail market center boasting 8,500 square meters of sales space in Bensheim on the terrain of
Online retail sales do play an increasingly important role
the former freight train terminal. Besides an Edeka store, the
and consequently compete with traditional brick and mortar
center’s tenants include Takko, Deichmann, dm, AWG and
retailers and downtown shopping destinations. Retailers
Alnatura. The grand opening is slated for Easter 2014.
Pedestrian traffic in 1a locations
Retail property peak rent development
10.000 9.000
160,00 Pedestrians / h
in € / m² / month
+15.4 %
140,00
8.000
120,00
+7.5 %
7.000 100,00
6.000
80,00
5.000 4.000
+9.1 %
60,00
3.000
40,00
2.000
Mannheim, Planken 2010
-31.4 %
20,00
1.000
2011
Heidelberg, Hauptstr. Ludwigshafen, Bismarckstr. 2012
2013
Source: Own graph MRN based on Jones Lang LaSalle data
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Mannheim
Heidelberg
Ludwigshafen
Average Germany
Source: Own graph MRN based on Jones Lang LaSalle data
13
Retail figures on key locations in the Rhine-Neckar Metropolitan Region
Centrality indices of select medium-sized metropolises 250
Municipality
Population
200 150 100 50
Sales index
Centrality ralitäts-index
Mannheim
294,627
99.2
138.1
139.2
Ludwigshafen am Rhein
160,179
94.9
108.6
114.4
Heidelberg
123.0
101.4
124.7
79,727
99.2
125.0
126.0
Neustadt an der Weinstraße
52,268
108.9
134.3
123.3
Speyer
49,764
106.5
143.8
135.0
Frankenthal (Pfalz)
47,035
102.1
88.6
86.8
Landau
43,641
103.3
155.0
150.0 109.6
e
150,335
Worms
de
av
La
er
nd
ag
au
ch M
os
ba
im he en ck
wi Ge
rm
an
y-
nh er Vi
Ho
Sc
hw
et
z in
ge
eim
n
0
Purchase power
Weinheim
43,315
117.5
128.8
Bensheim
39,395
111.2
108.2
97.3
Sinsheim
34,791
99.8
98.4
98.6
Hamburg-based investor AVW Immobilien AG is devel-
Viernheim
32,851
102.0
220.8
216.4
oping a specialty retail center in Weinheim boasting about
Lampertheim
31,358
106.1
74.9
70.6
20,000 square meters of sales space on the former freight
Leimen
25,581
97.5
52.3
53.7
Source: Own graph MRN based on GfK data (status 2013)
train station. An OBI DIY store is already open; a Roller Furniture Store will follow soon. Other tenants who have already signed leases are Dänisches Bettenlager, Matrazen Concord, Zoo & Co., Alldrink and Burger King. Weinheim-based Century Beteiligungsgesellschaft’s 3-Glocken Center is under construction near the railway station. Integrating the existing building’s substance, a shopping center is being constructed. The anchor tenant will be a HIT supermarket.
Wiesloch
25,135
105.1
86.5
82.3
Heppenheim (Bergstraße)
24,968
106.3
122.4
115.2
Mosbach
22,913
96.8
152.4
157.5
Schwetzingen
21,194
109.8
253.2
230.6
Hockenheim
20,874
104.7
174.2
166.4
Germersheim
20,019
83.6
104.9
125.6
Haßloch
19,854
101.2
81.8
80.8
Schifferstadt
19,011
104.6
61.3
58.6
Bad Dürkheim
18,222
108.7
99.6
91.6
Buchen (Odenwald)
17,614
94.0
126.8
134.9
The planned construction start date for the shopping center to be built in Germersheim in the old City Caserne complex,
Index: German average = 100; source: GfK (index status 2013); State Statistics Offices (population count as of 31/12/2012 based on the 2011 Census 2011)
which is on the National Register of Historic Places, is 2014. The zoning plan for the center, which will boast about 12,000 square meters of shopping space, is currently being completed.
Source: Municipal Government Ludwigshafen
Enhanced curb appeal: the new look of the Ludwigstraße in Ludwigshafen
14
Vahjen Architekten Gesellschaft mbH (vag)
Prime location, new construction: Project P7 in the “Planken” in Mannheim
Retail Destination Mannheim Mannheim is one of Germany’s preferred investment venues
is also scheduled for completion in 2014. The bank building
and attracts numerous retailers. Several projects are close
across from this complex in O 4 will be replaced with a newly
to completion downtown. Next year, the Heinrich Vetter
constructed structure by 2015. The former will have a historic
Foundation will bring to a close new construction projects
façade.
expanding the spaces occupied by Douglas und AppelrathCüpper in Square P5 near the Fressgass. Sports and textile
At this time, the largest construction project is City Quarter
retailer Engelhorn is in the process of converting its main
Q6 Q7, which is being developed and marketed by the
building in O5 after having already opened its new Trend-
Diringer & Scheidel Group of Companies. It has already been
house this past spring.
confirmed that the Radisson Blu will open a four-star hotel in the district. In addition, a Bauhaus DIY store and a parking
The business complex planned by Blocher Blocher Part-
garage complex are under construction in R 5. The store will
ners in P3, which will include approx. 5,000 square meters
open in early 2014.
of retail (e.g. Müller Drugstores), office and residential space After the demolition of the Zürich-Passage in P7, DC Values, a project developer from Hamburg, will erect a new complex in the same location by mid 2014, which will boast 5,500 square
Mannheim’s 1a locations
meters of retail space. Sports products retailer Decathlon is expected to open its third store in the Rhine-Neckar region as the anchor tenant in T 1 in an area comprising 4,000 square meters by spring 2014. Peak retail rents in the downtown area have remained stable at EUR 150 per square meter. As a result, Mannheim continues to hold rank 12 among the 183 retail locations in Germany surveyed by Jones Lang LaSalle.
Retail indices in Mannheim
Peak rent 2013 (rank) Progression 2003-2013 Pedestrian volume 2013 (rank)
Legend Pedestrian zone
1a-location
Source: GfK; cartography: VRRN
100 m
Percentage of branch operations 2011
Mannheim, Planken
GE overall
150 € / m² (12*)
62 € / m²
+ 15.4 %
+ 9.1 %
6,300 (26**)
-
81.7 %
-
Source: Jones Lang LaSalle (* based on 183 shopping streets in Germany; **ranking among 170 surveyed German shopping streets)
15
Source:: Stadt Heidelberg
Traditional 1a location in Heidelberg: Shopping with a unique flair
Retail Destination Heidelberg Heidelberg is a very popular destination thanks to its historic
The largest retail project underway downtown is the redesign
Old Town. Main Street – the Hauptstraße – is the dominating
and conversion of the heritage-protected Wormser Hof on
shopping mile: an outdoor pedestrian mall across its entire
the Hauptstraße, which will include the addition of a cinema
length. Numerous plazas and alleys that offer views of the
annex. Plans call for the conversion of the property into a
famous Heidelberg Castle make spending time here a partic-
higher end clothing retail store, which will comprise up to
ularly enjoyable experience.
3,500 square meters of contiguous retail space across three floors. The project is being accompanied by a citizens’ partici-
The large department stores make their homes on the
pation concept.
Bismarckplatz and the adjacent part of the Hauptstraße extending to the Akademiestraße. Gerry Weber, Brax as
In the spring of 2013, the newly established market hall cele-
well as Mango’s first German men’s fashion line store have
brated its grand opening in the old indoor pool west of down-
recently opened here.
town on Bergheimer Straße. In addition to various market booths, the property accommodates an Alnatura organic supermarket as well as several restaurants and event spaces.
1a locations in Heidelberg
Moreover, plans call for the construction of a shopping center designed for close-to-home convenience in the Bahnstadt quarter. The property is set to provide about 7,400 square meters of shopping space. Tenants of the close-to-home convenience shopping center will be Edeka, Aldi, a drugstore and several small specialty stores as well as restaurants and food services. Construction is expected to begin in the spring of 2014.
Retail indices in Heidelberg
Peak rent 2013 (rank) Progression 2003-2013
Legend Pedestrian zone
Pedestrian volume 2013 (rank) 1a-location
Source: GfK; cartography: VRRN
16
100 m
Percentage of branch operations 2011
Heidelberg, Hauptstraße
GE overall
115 € / m² (16*)
62 € / m²
+ 7.5 %
+ 9.1 %
5,100 (43**)
-
72.3 %
-
Source: Jones Lang LaSalle (* based on 183 shopping streets in Germany; **ranking among 170 surveyed German shopping streets)
Source: Stadtverwaltung Ludwigshafen
Premium dining options in a special venue: Restaurant Tialini on the Rhine Promenade
Retail Destination Ludwigshafen The area between the Town Hall Center, Rhine Gallery, Bahn-
The Rhine Gallery will also see several changes. Migros
hofstraße and the northern end of the Bismarckstraße has
will completely cease its business operations in Germany.
established itself as the premiere retail location in Ludwigs-
Part of the former Migros supermarket will be taken over by
hafen. The peak rent paid has remained stable since last year.
Germany’s second largest food retailer – Rewe. Fashion label
In terms of pedestrian volume, Ludwigshafen has advanced
Zara will occupy about 2,000 square meters. At the end of
seven rankings in the nationwide
GE overall comparison.
2012, the first Tialini Restaurant owned by former Porsche Chief Executive Officer Wendelin Wiedeking opened in one
At the Rathaus Center, an area covering 2,000 square meters
of the exterior facilities of the Rhine Gallery. The Walzmühle
in the basement that had been vacant for a long time has now
shopping center will be operated as a convenience shop-
been leased to the Toys"R"Us toy store chain. The conversion
ping center by MEC Metro-ECE-Center Management in the
costs totaled EUR 1.5 million. Textile discounters KIK and TK
future.
Maxx complete the occupancy of the Center. The only factor that still stands between the Bismarck Center and its new future at this point is its conversion. Rossmann is planning to open an 800-square meter drugstore, while 1a locations in Ludwigshafen
the already existing discount supermarket Penny intends to expand its current retail floor space. Moreover, boasting an investment volume of approx. EUR 2.5 million, the building complex located on Bismarckstraße 52-54 will undergo renovations. The available retail spaces (2,000 square meters) are currently being marketed to prospective tenants. Once the modernizations of the roadways and curb appeal are complete, the Bürgerhof, which boasts 5,200 square feet will be converted as well. The budget totals close to EUR 1 million. The adjacent Bismarckstrasse 70-74 has been acquired by municipal residential developer GAG Ludwigshafen and will be developed in the medium term. Retail indices in Ludwigshafen
Peak rent 2013 (rank) Progression 2003-2013
Legend Pedestrian zone
Pedestrian volume 2013 (rank) 1a-location
Source: GfK; cartography: VRRN
100 m
Percentage of branch operations 2011
Ludwigshafen, Bismarckstr.
GE overall
24 € / m² (156*)
62 € / m²
- 31.4 %
+ 9.1 %
1,315 (149**)
-
46.8 %
-
Source: Jones Lang LaSalle (* based on 183 shopping streets in Germany; **ranking among 170 surveyed German shopping streets)
17
Source: B. Bertram
Modern architecture in Old Town Worms: the Kaiserpassage
Retail Destination Worms Worms, population 80,000, is a medium-sized metropolis with
space; 30 percent of the former are smaller than 50 square
some of the functions of a large city. Located on the north-
meters. With its numerous specialty stores all over down-
western boundaries of the Rhine-Neckar metropolitan region,
town, which in combination with the modern shopping center
the “Nibelungen Town” currently already has a reach of approx-
“Kaiser-Passage” and the new “Wormser Einkaufspark” offer
imately 220,000 residents. As a result of the planned expansion
interesting selections, Worms attracts shoppers in droves.
of the suburban railway network to the Ludwigshafen-Mainz line as of 2015, this number will increase further. The retail
Worms’ 1a locations stretch along the Kämmererstraße,
centrality totals 126.0 and is consequently significantly higher
which connects the Marktplatz with the Ludwigsplatz. The
than the Germany-wide average. The business structure is
main entrance to the “Kaiser Passage” is located there. The
made up primarily of medium sized and small stores – about 80
“Passage” houses a Kaufhof department store and other
percent of the stores have less than 200 square meters of floor
smaller retailers. Fashion store Jost attracts shoppers like a magnet and has significantly elevated the value of the “Römischer Kaiser” location, which also has a positive impact on the second entrance to the downtown shopping passage.
1a locations in Worms
Large chain retailers who have stores in downtown Worms include C&A, H&M, Müller drugstores, dm and Woolworth; the former are complemented by smaller chains, such as wmf, pimpkie, Jack & Jones, Vero Moda, Gerry Weber and Taifun. The mix is perfected by owner operated retail stores. Based on its urban development concepts, which comprise retail, transportation infrastructure, green and outdoor areas, the municipality of Worms has made substantial investments into the downtown areas in recent years. In addition to restructuring the vicinity of the railway station, the town has also expanded the Parkring and redesigned numerous squares. Events such as “Worms blüht auf”, “Jazz & Joy” and the annual Christmas Market create a special atmosphere in the downtown area people enjoy year-round. Retailers also benefit from the nationwide popularity of the City of Worms thanks to
Legend Pedestrian zone
1a-location
Source: GfK; cartography: VRRN
18
100 m
its Nibelungen Festival.
Source: Pfenning Logistics
The new Pfenning-Logistics Center multicube in Heddesheim boasts more than 100,000 m² of hall space
Market Segment Commercial Land Parcels The industrial parks of the Rhine-Neckar metropolitan region enjoy optimum transportation connections thanks to the dense network of interstates. Rapid access to customers and suppliers is guaranteed virtually anywhere. As a result, the entire region is an attractive business location – not only for logistics companies. 19
Source: DIA179 German Industry Architecture GmbH
New production plant of automotive supplier Eberspächer in Landau
The Rhine-Neckar region offers enterprises in all sectors
For the 19 largest projects, the total came to more than
excellent investment opportunities. The advantages of
EUR 1.4 billion. Of the former, about EUR 1 billion can be
this business locale include of course its central European
allocated to the construction of a TDI facility by BASF at its
location, comprehensive space reserves for new business
Ludwigshafen domicile.
domiciles and expansions, but also a highly efficient infrastructure and a sustainable mix of industries (for more see
Two large logistics centers celebrated their grand openings
Page 2).
back in June 2013 – the Pfenning Logistics multicube in Heddesheim and the distribution center operated by sports
Based on a survey of municipalities and counties, 29 indus-
products retailer Decathlon in Schwetzingen. In the summer
trial parks offering 9.8 million square meters of space were
of 2013, TE Connectivity (Bensheim) and Prof. Wittke
analyzed for this 2013 Real Estate Market Report. Of this
Beratende
space, 2.2 million square meters – i.e. about 22 percent –
new corporate headquarters. As the most prominent local
are still vacant lots and available at short notice.
employer, Gelita AG is making investments into environ-
Ingenieure
(Weinheim) also moved into their
mentally friendly production technologies at its Ebersbach Depending on the location, prices vary significantly.
operation. Among other things, the company is planning to
Purchase prices for fully developed commercial land parcels
combine its newly installed flotation system with a biogas
range from 110 to 200 Euros per square meter in the heart
system with an adjacent block heating power plant.
of the densely populated Rhine-Neckar region. In some cases, buyers may pay up to EUR 250. In suburban areas, negotiable prices range from EUR 80 to 100. In periphery regions – which in some cases have excellent transportation
For more information on industrial parks in the Rhine-
connections – the average price is EUR 50.
Neckar region, please visit the location portal (www. standorte-rhein-neckar.de) and the websites of the
The investment volume for production and logistics proper-
individual municipalities and counties or read more
ties is significantly higher than it was in previous years.
detailed publications by the former.
Most important investments made into manufacturing and logistics properties No. in City map
Type of location
Investor/ operator
Investment volume
Land parcel size
Jobs
Schedule
2
Ludwigshafen
manufacturing
BASF
1 bn. €
30,000 m²
200
under construction, completion 2014
7
Wörth
manufacturing
Pfälzer Erfrischungsgetränke
100 mn. €
217,000 m²
150
under construction, completion 2013
12
Heddesheim
corporate headquarters
Pfenning Logistics
100 mn. €
200,000 m²
600
completed 2013
16
Eppelheim
manufacturing
Rudolf Wild Werke
60 mn. €
not available
80-150
under construction, completion 2013/2014
1
Worms
manufacturing
ROWE
30 mn. €
80,000 m²
240
under construction, completion 2013
14
Mannheim
corporate headquarters
Berrang
20 mn. €
52,000 m²
170
under construction, completion 2014
13
Mannheim
commercial vehicle center
Mercedes Benz
19 mn. €
43,500 m²
120
under construction, completion 2014
20
No. in City map
Type of location
Investor/ operator
Investment volume
Land parcel size
Jobs
Schedule under construction, completion 2014
9
Lorsch
logistics center
Alnatura
15 mn. €
9,000 m²
10
10
Bensheim
corporate headquarters
TE Connectivity
14 mn. €
5,500 m²
220
completed 2013
18
Eberbach
manufacturing
Gelita
13 mn. €
5,000 m²
not available
completed 2013
5
Landau
manufacturing
Eberspächer Controls
9 mn. €
12,000 m²
130
under construction, completion 2014
17
Hockenheim
logistics center
Haaf Spedition
7 mn. €
25,000 m²
15
completed 2013
15
Mannheim
logistics center
Ristelhueber Spedition
7 mn. €
10,500 m²
15
completed 2013 under construction, completion 2014
8
Groß-Rohrheim
corporate headquarters
Fenster Jäger
7 mn. €
7,000 m²
30
11
Weinheim
corporate headquarters
WBI
4 mn. €
4,000 m²
40
completed 2013
19
Buchen
manufacturing
Merklinger
3.4 mn. €
6,800 m²
5
under construction, completion 2014
3
Landau
manufacturing
Ronal
1.5 mn. €
84,000 m²
150
under construction, completion 2014
4
Landau
warehouse
Gillet Baustoffe
1.5 mn. €
4,500 m²
4
under construction, completion 2013
6
Landau
manufacturing
Pro Control
1.5 mn. €
2,000 m²
not available
under construction, completion 2013
Source: MRN survey (Status 30th September 2013)
Select industrial parks in the Rhine-Neckar metropolitan region No. in Municipality name mape
Name of the industrial park
Zoning Total space law/ type
Still available
Available lot sizes Guideline value
Purchase price
1
Worms
Worms-Rheindürkheim
GE, GI
1,000,000 m²
80,000 m²
1,000-35,000 m²
50-85 €/m² (2010)
from 85 €/m²
2
Frankenthal (Pfalz)
Unternehmenspark Nord
GE
235,000 m²
46,000 m²
3,000-25,230 m²
80 €/m² (2012)
75-100 €/m²
3
Bad Dürkheim
Bruch
GE
106,500 m²
20,000 m²
2,200-13,000 m²
70 €/m² (2008)
81 €/m²
4
Ludwigshafen
Technologiemeile
GE
117,000 m²
35,000 m²
1,000-18,300 m²
110 €/m² (2010)
not available
5
Altrip
In der Kehl
GE
46,000 m²
18,150 m²
1,140-3,200 m²
75 €/m² (2012)
77 €/m²
6
Schifferstadt
Mühlweg / Gernweg
GI
167,310 m²
30,450 m²
3,110-20,970 m²
80 €/m² (2013)
from 50 €/m²
7
Böhl-Iggelheim
Südlich der Bahnlinie / westlich der Iggelheimer Straße
GE, GI
77,500 m²
60,000 m²
4,500-8,000 m²
75 €/m² (2012)
not available
8
Haßloch (Pfalz)
Nördlich des Bahndamms
GE
134,000 m²
127,000 m²
1,000-40,000 m²
70 €/m² (2012)
from 70 €/m²
9
Speyer
Schlangenwühl-Süd
GE
23,000 m²
23,000 m²
from 1,500 m²
130 €/m² (2012)
not available
10
Edenkoben
Edenkoben-Venningen
GE, GI
350,000 m²
240,000 m²
1,000-200,000 m²
not available
59 €/m²
11
Germersheim
Wörth-West
GE, GI
297,500 m²
70,000 m²
4,500-50,000 m²
45-80 €/m² (2010)
75 €/m²
12
Landau
Am Messegelände
GE
620,000 m²
85,150 m²
1,000-36,500 m²
73-80 €/m²(2013)
73-80 €/m²
13
Offenbach
Interpark Rheinpfalz
GI
715,000 m²
70,000 m²
1,000-25,000 m²
not available
60 €/m²
14
Rülzheim
Nord II
GE, GI
82,000 m²
40,000 m²
2,000-12,000 m²
not available
65 €/m²
15
Hagenbach
Stixwörth
GI
68,000 m²
48,000 m²
not available
not available
65 €/m²
16
Bensheim
Campus Stubenwald
GE
300,000 m²
6,000 m²
6,000 m²
80 €/m² (2011)
not available
17
Heppenheim
Gewerbegebiet Süd
GE
244,000 m²
244,000 m²
from 2,000 m²
90 €/m² (2013)
100 €/m²
18
Weinheim
Technologie- und Industriepark
GE, GI
871,000 m²
165,000 m²
1,000-100,000 m²
150 €/m² (2013)
from 152 €/m²
19
Mannheim
Eastsite
GE
65,120 m²
22,410 m²
3,000-13,850 m²
205 €/m² (2010)
205 €/m²
20
Brühl
Schütte-Lanz-Park
GE
60,000 m²
60,000 m²
1,500-35,000 m²
not available
145-200 €/m²
21
SchwetzingenPlankstadt
Südliches Ausbesserungswerk / AReal!
GE
133,470 m²
133,470 m²
from 1,500 m²
145 €/m²
not available
22
Heidelberg
Pfaffengrund
GI
880,000 m²
52,000 m²
1,500-15,000 m²
200 €/m² (2013)
150-250 €/m²
23
Hockenheim
Talhaus
GE, GI
2,000,000 m²
48,000 m²
1,000-11,000 m²
85-130 €/m²(2012)
90-115 €/m²
24
Wiesloch-Walldorf
MetropolPark
GE, GI
50,000 m²
36,000 m²
2,670-15,000 m²
not available
120-150 €/m²
25
Lobbach
Spitzäcker III
GE
30,000 m²
30,000 m²
1,000-15,000 m²
55 €/m² (2013)
55 €/m²
26
Obrigheim
TECH-N-O
GE, GI
160,000 m²
100,000 m²
from 1,600 m²
40.90 €/m² (2008)
41 €/m²
27
Buchen
IGO
GE, GI
400,000 m²
100,000 m²
1,000-60,000 m²
42.50 €/m² (2011)
43-100 €/m²
28
GVV Hardheim-Walldürn
VIP Walldürn
GE, GI
250,000 m²
120,000 m²
500-100,000 m²
25 €/m² (2010)
25 €/m²
29
Osterburken
VIP Walldürn
GE, GI
250,000 m²
120,000 m²
500-100,000 m²
25 €/m² (2010)
25 €/m²
Source: MRN survey (Status 30th September 2013)
21
Map Overview Investment Projects and Industrial Parks in the Rhine-Neckar Region 8 1 16 9
1
10
17
18 11 2 12 2
19
3 4
13 5
14
15 20
6 8
22
21 16
7
17 9
23 24
10
11 3 4 5 12
13
6 14
7
15
28
27 19
18
29
25
26
Legend Select industrial parks and investments
Transportation routes Interstate with number
0
Industrial park and number (Table on Page 21)
Federal route
0
IInvestment and number (Table on 20/21)
Airport
Railway line
Port Towns
Borders
Settled area
National border
Population 100,000 and more
State line
Population 50,000 – 100,000
County line
Population 25,000 – 50,000 Population 10,000 – 25,000 Population count as of 31/12/2012 based on the 2011 Census Source: State Statistics Offices; Own Mapping amended based on GeoBasis data: © GeoBasis-DE/ BKG 2013; Cartography: VRRN
Glossary Market Segment Office Downtown City proximity
Best office location of the respective town. Locations that are directly adjacent to the (office) downtown area locations.
Periphery
All office locations that are not categorized as downtown or city proximate locations.
Peak rent
Top price segment (5 %) across all leases newly executed in 2012 (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Definitions in Reference to the Office Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008). All rents stated are nominal rent prices for market compatible office space, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).
Average rent
Average rent paid based on all leases newly executed in 2012 (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Definitions in Reference to the Office Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008). All rents stated are nominal rent prices for market compatible office space, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).
Existing space
Total space of completed office space available (in use or vacant) in the entire town limits on 31/12/2012 (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Definitions in Reference to the Office Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008).
Space revenues
Vacancy raate
MF/gif space definition
Profi ts
Total office space rented, leased or sold to an owner-user within the entire town limits over the course of 2012, including sub-leases (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Definitions in Reference to the Office Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008). Percentage of all unused completed office space offered for sale, lease or sub-leasing within the entire town limits as of 31/12/2012 and which are ready for move-in within a period of three months. All space information provided in Chapter Office Market are leased spaces as defined by gif. They refer to the “Richtlinie zur Berechnung der Mietfläche für gewerblichen Raum (MF-G)” (Guideline for the Computation of Leased Space for Commercial Spaces (MF-G) published by the Gesellschaft für Immobilienwirtschaftliche Forschung e. V. (latest version of May 2012). As a rule, the leased spaced according to gif is less than the gross floor space amount (BGF) pursuant to DIN 277, given that for instance, traffic / transportation areas are not included in the computation. For this Report, the basis used, according to the recommendations made by bulwiengesa AG was a conversion factor gif/BGF of 0.8. Average starting profi ts generated by market compatible office properties with good leasing statuses, i.e. average annual net rent income in 2012 compared to purchase price (pursuant to the recommendations made by the gif- Gesellschaft für Immobilienwirtschaftliche Forschung e. V.).
Market Segment Retail 1a location
Peak rent
Percentage of branch operations Pedestrian volume
Purchasing power index
Sales index
Centrality index
Part of downtown that enjoys the highest pedestrian volumes and the densest installation of large scale operations that draw shoppers like magnets and that have supra-regional store operations. Rent paid per square meter in EUR when space is newly leased based on a 100 square meter single floor sales floor in a 1a location with a 6 meter display front (definition Jones Lang LaSalle). Percentage of branch operations with nationwide business activity in the total local retail trade. Number of pedestrians passing by per hour, based on a specific counting location in the pedestrian zone on a survey date that is used uniformly across all of Germany: 27th April 2013, 1 – 2 pm (according to Jones Lang LaSalle). Index per resident, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that the residents in this town have a purchase power that is 10 % higher than the nationwide average in Germany (GfK definition). Index per resident, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that this town generates 10 % more revenues/sales than the nationwide average in Germany (GfK definition). Index, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that this town, compared to the nationwide average, offers 10 % more bound purchase power and centrality in retail (GfK definition).
Market Segment Commercial Land Parcels Guideline value
Zoning type
Average land value for a territory that has similar uses and value conditions. The guideline value provides the value per square meter of land for a factual land parcel that the represents the typical location properties of the affected territory. Type of structural land use according to the German Construction Land Usage Act (Baunutzungsverordnung =BauNVO). Abbreviations: GE = commercial land, GEe = commercial land for restricted uses, GI = industrial park, GIe = industrial park for restricted uses.
Legal Information and Liability Disclaimer
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Any publication, duplication and any sharing of this Report, even of parts thereof, shall be subject to the prior written consent of the Metropolregion RheinNeckar GmbH. The estimates and assessments provided in this Report shall be subject to the following reservations: We shall not assume any liability for losses, costs or other damages resulting from the utilization of the information published herein. The information provided is based on sources we consider reliable. However, we are in no position to guarantee that this information is correct and complete. The assessments made are based on the status of the information we had at the time of our editorial deadline (30th September 2013). The actual developments may differ significantly from the forecasts and projections as well as expectations expressed in this Report. The Publishers shall not assume any responsibility for the making of updates to the statements made. The information contained herein is provided for the sole purpose of sharing generally informative material and is not suitable as a substitute for professional consultations and advice.
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Uwe Hein, Olga Kahnert, Nadine Kastner Copyright Fee: Available as a complimentary pdf download and in a print version subject to a copyright fee of EUR 30 for up to 5 copies
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Metropolregion Rhein-Neckar GmbH Business Support / Innovation P 7, 20-21, 68161 Mannheim, Germany Tel. +49 621 10708-106 Fax +49 621 10708-100 info@m-r-n.com www.m-r-n.com