Location Report Rhine-Neckar 2017 by Rhein-Neckar

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An alliance of strong partners

The Metropolitan Region RhineNeckar comprises 15 urban and rural districts. Find out more about us.

Contents Metropolitan Region Rhine-Neckar

An innovative powerhouse with

An alliance of strong partners – an introduction to our 15 urban and rural districts

a high quality of life Landau i. d. Pfalz Market segment: Office

Bad Dürkheim

Booming market with low vacancy rate

Bergstraße

Südliche Weinstraße Overview map

20 Rhein-Pfalz

Market Segment: Industrial & Commercial

Market Segment: Office The positive trend continues

in the major centres.

Neckar-Odenwald 24

Speyer

Attractive area for commercial investment

Germersheim

Frankenthal Market segment: Retail

Heidelberg

An appealing destination for customers and investors In Focus

Mannheim

Worms

From small arcades to

Neustadt a. d. Weinstraße 36

Segment: Retail

large shopping centres

Networks support innovation Rhein-Neckar Glossary

Market

and the longest pedes-

trian zone in Europe – the

Ludwigshafen am Rhein

Title image Office building in Heinrich-von-Stephan-Straße DIRINGER & SCHEIDEL is building the “Kepler Quartier” near Mannheim’s main railway station. This mixed use quarter will include approx. 13,000 m² of office area, 168 residential units, 40 student apartments, a 3-star-plus business hotel and underground car park with 420 spaces. The project is scheduled for completion in 2019 at a cost of € 140 million. // www.kepler-quartier.de

Title image DIRINGER & SCHEIDEL; Page 3, top: Rhein-Neckar; top right: HeidelbergCement; bottom left: Uli Hillenbrand, Photography; bottom right: MVV Energie AG

region offers many attractive places to shop.

Market Segment: Industry & Commerce

A central location and efficient infrastructure guarantee strong demand in the commercial and industrial sectors.

Impressum Publisher: Metropolregion Rhein-Neckar GmbH, N7, 5-6, 68161 Mannheim, Tel. +49 (0)621 129 87-0, Fax +49 (0)621 129 87-52, info@m-r-n.com, www.m-r-n.com Cartography: Verband Region Rhein-Neckar, P7, 20-21, 68161 Mannheim, Tel. +49 (0)621 107 08-0, Fax +49 (0)621 107 08-34, info@vrrn.de, www.vrrn.de Concept and Design: Publik. Agentur für Kommunikation GmbH, Ludwigshafen, www.agentur-publik.de Printed by: NINO Druck GmbH, Neustadt, www.ninodruck.de Available as a complimentary pdf download and in a print version from www.m-r-n.com/publikationen

Add a strong economy to outstanding scientific institutions and a flourishing cultural scene and the results will be dynamic. Just like the Metropolitan Region Rhine-Neckar – one of the most attractive locations in Germany with a motivated population that welcomes the entrepreneurial spirit.

The Metropolitan Region Rhine-Neckar has many strengths

An innovative powerhouse with a high quality of life

Pristine natural scenery or a pulsating urban lifestyle? In the Metropolitan Region Rhine-Neckar you can have both. Apparent contradictions live in symbiosis in this sunny corner of south-west Germany at the junction of Hesse, Rhineland-Palatinate and Baden-Württemberg. Just a few miles from the unspoiled meadows and forests of the

agricultural land

and hidden champions power the German economy. The

5,637

37.9 % 17.8 %

region’s cultural life attracts a national audience and its university towns not only draw young people from all over the world but are also vital centres of research and innovation. So it is no surprise that the Metropolitan Region Rhine-Neckar – home to 2.4 million people – is one of the

km² total area

most dynamic and diverse conurbations in Germany.

forest

towns and transport network

1.9 % lakes and waterways

“The cradle of German democracy since May 1832: Hambach Castle on the Kastanienberg hill near Neustadt.”

Photo: imago/blickwinkel

41.7 %

River Rhine, the charming hills of the Neckar valley and the Palatinate Forest Nature Park, global corporations

The pioneering spirit runs deep In 1742, the new ruler of the Electoral Palatinate began promoting the arts and sciences – transforming the region into an important centre of innovation. The Metropolitan 5

FRANKFURT am Main

Market cap. of regional DAX companies

an innovative testing ground for the federal government’s “Intelligent Networking” strategy. In June 2017, Ludwig-

€ 200

DARMSTADT

shafen will host the National Digital Summit – Germany’s central forum for politics, business, science and communities in shaping the digital revolution. The region is not only home to global corporations such as ABB, BASF,

billion

„The proportion of the workforce engaged in R&D in the RhineNeckar Region is more than twice the national average.“

SAP and Roche but also SMEs which are leaders in their fields. Nearly 60 percent of the goods manufactured here are destined for markets around the world. Well-known brands, such as Lamy or Tempo, are also international ambassadors for the region’s economic strength. The region combines its central location in Europe with

LUDWIGSHAFEN am Rhein

excellent infrastructure including a dense network of

MANNHEIM

motorways. Mannheim’s main railway station is Germany’s second largest hub for ICE rail services while City Airport Mannheim and nearby airports in Frankfurt, Stutt-

HEIDELBERG

gart and Karlsruhe/Baden-Baden offer fast connections to destinations all over the world.

The cradle of science Every year, thousands of young people flock to the region’s 22 universities – ten percent of their students

Mannheim Hbf – Paris

2h58

Mannheim Hbf – Frankfurt Airport

0:30 h

Region now recognises outstanding achievements with

are international. Young scientists are not just attracted

the award named in his memory. “The Carl-Theodor Prize,

to Heidelberg’s university – Germany’s oldest founded

creates a link between the visionaries of the past and the

in 1386 – but to renowned research institutes such as

pioneers of today,” says Kirsten Korte, Managing Director

the German Cancer Research Center and the European

of Future Metropolitan Region Rhine-Neckar. In 2016, the

Molecular Biology Laboratory. These are also magnets for

award was presented for the first time to Muhammad Yunus, winner of the Nobel Peace Prize. The initiators of today’s European Metropolitan Region Rhine-Neckar achieved a milestone of their own when it was declared a Metropolitan Region by the Conference of Ministers for Regional Planning in 2005. A second state treaty officially recognised the historical cooperation which has grown between the cities and districts in this border triangle. Public authorities, businesses, scientific and cultural institutions and private individuals have been working together across state borders since 2006: the only public-private partnership model of its kind in

“Creative minds have been highly valued here since the reign of Carl Theodor. We are creating a link between the visionaries of the past and the pioneers of today.” 6

Germany.

Engine of the economy The strong local economy is one of the location’s key advantages. With a GDP of € 88 billion, the Metropolitan Region Rhine-Neckar is one of Germany’s economic powerhouses and a leader in many key sectors from the automobile industry to information technology. As a model region for smart networks and digital infrastructure, it is

Map: Geodatabase: © GeoBasis-DE / BKG 2013 (Data changed); Cartography: VRRN; Photo: Uli Hillenbrand, Photography

KARLSRUHE

16 30

Nobel laureates

internationally recognised research institutions

88,000 students

universities

Remodelled in the Renaissance Revival style in 1886: the Old Hall in the West Wing of the University of Heidelberg. 7

The Nibelungen Festival 2015 in the historic setting of the Imperial Cathedral in Worms.

The region between the Rhine and Neckar is home to three World Heritage Sites – Lorsch Abbey, the Impe-

Stronger together

rial Cathedral in Speyer and the Upper Germanic-Rhaetian Limes. 130 palaces, castles and cathedrals testify to the region’s historical importance. Magnificent gardens, such as those at Schloss Schwetzingen, “Monument of the Year 2016”, reflect human ingenuity in shaping the symbiosis of nature and culture. The Metropolitan Region Rhine-Neckar has a proud cultural heritage – the diversity is astonishing and ranges from World Heritage Sites to experimental performance.

Real Estate Network Rhine-Neckar Founded in 2012, the Real Estate Network Rhine-Neckar brings together around 50 stakeholders in the commercial real estate sector. It aims to create transparency, maximise synergies and actively market real estate in the Metropolitan Region. Members include architects, urban planners, insurers, banks, law

Nature lovers immediately feel at home in the Metropolitan Region Rhine-Neckar. Bustling urban life and green oases are less than 30 minutes apart. Three nature parks

firms, construction companies, property and project developers, investors, estate agents, owners and municipal authorities.

lie on the doorstep – pristine landscapes with space for contemplation, hiking or climbing adventures. The vine-

www.m-r-n.com/immobiliennetzwerk

yards of four wine regions are not just popular day trips but also the source of many award-winning vintages. After all, the region’s diverse cuisine and high quality bars, cafés

Volunteers make a difference

and restaurants play their part in making life between the

There is a strong tradition of volunteering in

Rhine and Neckar an experience to savour.

the Metropolitan Region Rhine-Neckar. Almost one in two people devotes part of their leisure

1,800

hours of sunshine per year

experienced, highly qualified specialists. This environment

activities for children, young people and adults

creates fertile ground for innovation and progress.

as well as a broad spectrum of services to

The region has directly or indirectly produced 16 Nobel

Day takes place every two years and, in 2016,

laureates and many revolutionary inventions including

around 7,300 people participated in 389 proj-

the bicycle and the automobile. Inventors and scientists

ects in 73 towns, cities and villages.

help other members of society. Volunteering

Around

240 museums

World Heritage Sites

feel at home in the Rhine-Neckar region. The proportion

www.wir-schaffen-was.de

of the workforce engaged in research here is more than twice the national average. Part of the attraction for these highly qualified professionals in the metropolitan region is undoubtedly the excellent quality of life. New ideas and

146,000

cultural diversity are closely connected here, the people

companies employing

A rich cultural life

895,000

Culture lovers have a choice of around 240 museums and galleries as well as 115 theatres and cabaret venues. Internationally renowned festivals – attracting more than 300,000 visitors per year – are highlights of the

staff and generating gross added value of

cultural calendar. For example, artists from all over the world perform at Enjoy Jazz in Mannheim, Heidelberg and Ludwigshafen. Music is particularly important in Mannheim, which was awarded the title “City of Music” by UNESCO as a member of its network of “Creative Cities.” Heidelberg’s outstanding and thriving literary tradition gained it the title “City of Literature.”

Photo: Bernward Bertram

“The Metropolitan Region Rhine-Neckar has a proud cultural heritage – the diversity is overwhelming.”

Work and family

More than

are cosmopolitan and active.

time to helping the community. They organise

Further information: www.m-r-n.com

€ 79.2

The Metropolitan Region Rhine-Neckar is the most family-friendly region in Germany. Many companies, municipal authorities and other institutions help people to balance their professional and family lives – for example, by assisting with childcare or care services for relatives. The Metropolitan Region also has a forum for reconciling professional and family life. This coordinates projects and initiatives which provide even better conditions for family life. www.m-r-n.com/vereinbarkeit

billion.

No. of employees: 21,628 Purchasing power index: 101.2 Business tax rate: 405 Rent price range – ofﬁce: 5.70 to 7 €/m² Rent price range – retail: 14 to 60 €/m²

At the crossroads of Rhine-Neckar and Rhine-Main

An alliance of strong partners

Population: 132,203 No. of employees: 49,713 No. of municipalities: 48

Landau

Lively centre in the Southern Palatinate Landau is a thriving university town in the heart of the beautiful countryside of the Southern Palatinate and well-known for its wine industry. A popular shopping centre with a strong SME service sector and catchment area of around 250,000 people, it offers ideal conditions for businesses. The “metropolis of the Southern Palatinate” is a very attractive place to live and the population is expected to grow further over the coming years. It is considered a “swarm town.” Landau has long had a strong service sector, flourishing automotive supply industries and been an important centre of printing and publishing. Over recent years, many software and technology companies have also recognised its advantages. The innovative business park “Am Messegelände” has a direct link to the A65 motorway, a total area of approx. 75 hectares and offers an attractive commercial location with excellent future prospects. // www.landau.de

Rural district of Bad Dürkheim

Strong SMEs and ideal connections The rural district of Bad Dürkheim has a population of around 132,500 and is a beautiful area of the Palatinate incorporating the Palatinate Forest, the plains of the River Rhine and vineyards of the Haardt wine region. The German Wine Route runs through the district from Bockenheim to Deidesheim. With a Mediterranean climate, it is home to a creative wine and tourism industry. The district’s economic success is based on its strong base of mostly small and medium-sized enterprises. The mid-sized centres of Bad Dürkheim,

Grünstadt and Haßloch offer excellent conditions for industry and commerce. These municipalities also have good reserves of areas with planning approval for commercial development, expansion and relocation. All locations are close to junctions with major national highways. For commuters to nearby centres in the Metropolitan Region Rhine-Neckar, this rural district provides an exceptional quality of life and moderate land prices. // www.kreis-bad-duerkheim.de

As a member of both the Frankfurt/Rhine-Main and Rhine-Neckar Metropolitan Regions, the Bergstraße district has a unique selling point: no other rural district in Germany belongs to two metropolitan regions. In prime position between Frankfurt am Main and Heidelberg, it has unique connections and outstanding traffic infrastructure: Frankfurt International Airport is just 25 minutes away and there is quick access to the A5, A6 and A67 motorways. The ICE station in Bensheim offers direct high speed rail services to Zurich, Stuttgart and Frankfurt and motorways link the district to other major cities. In addition, Mannheim has the second largest inland port in Europe and there is a container terminal in Gernsheim. The Bergstraße district has been a successful business location for decades. It is home to around 16,000 SMEs and global players. They value the location and its highly professional workforce. The district is ranked as one of the Top 10 places in Europe for training and professional development.

Photo Page 10, left: District administration, Bad Dürkheim, right: Dirk Laubner; Page 11, top: Thomas Neu, bottom: District administration, Südliche Weinstraße

The Metropolitan Region Rhine-Neckar comprises 15 urban and rural districts. They understand the needs of businesses, offer good transport links and a high quality of life. Embark on a journey of discovery!

Population: 266,928 No. of employees: 66,585 No. of municipalities: 22

Bergstraße district

Its reputation is further enhanced by “soft” factors such as excellent cuisine and tourist attractions. The picturesque countryside of the Bergstraße district make it a popular location for film and television productions. // www. kreis-bergstrasse.de

Population: 110,526 No. of employees: 44,000 No. of municipalities: 75

Southern Wine Route rural district

Enchanting landscapes, cuisine and history The Southern Wine Route rural district enjoys an attractive geographical location with around 12,000 hectares of vines and a mild southern climate. Its excellent transport infrastructure and dense network of national and international highways, the district offer persuasive advantages for businesses. These are well understood by both SMEs and major companies, such as Catem in Herxheim i. d. Pfalz, Automotive Tenneco in Edenkoben, prowell

in Offenbach a. d. Queich and the Hornbach DIY chain which has its headquarters in Bornheim. As well as standalone locations, the district is also home to three major business parks – located directly by the A 65 motorway: “Gewerbepark Edenkoben-Venningen” in Edenkoben, “Interpark Rheinpfalz” in Offenbach a. d. Queich and “Gewerbepark West II” in Herxheim i. d. Pfalz. // www.suedliche-weinstrasse.de

Mannheim will soon be home to a new interdisciplinary campus for medical technology. The Business Development Center is the ﬁrst phase of the project.

Existing office space (in m²)

2.0 Mio. Vacant premises 1.5 Mio.

1.0 Mio.

0.5 Mio.

2014

2015 2016 Mannheim

2014

2015 2016 Heidelberg

2014 2015 2016 Ludwigshafen

Source: gif / In-house research

owner-occupiers or built by owner-occupiers for their own use) grew by 35 percent in 2016 compared to the previous year and by around 65 percent compared to 2014. Due to the demand for high quality office space, peak rents in top locations have risen by between six and ten percent over the past year. This trend is expected to continue over the coming years as additional modern office real estate becomes available. Vacancy rates in the three largest office markets in the

The call of the city The office market in the Metropolitan Region Rhine-Neckar is growing strongly. Vacancy rates are remarkably low while office space turnover is increasing. New offices are primarily being constructed in city centre locations. Peak city rents have therefore risen significantly in Mannheim, Heidelberg and Ludwigshafen. 12

Foto: sander.hofrichter Photo: sander.hofrichterGmbH, GmbHStadt / CityMannheim of Mannheim

Market Segment: Office

The diversified economic structure of the Metropolitan

Metropolitan Region are at a very low level of between

Region Rhine-Neckar is also reflected in its office market.

1.4 and 4.5 percent and thus significantly below those of

On one side of the region is the highly industrial area of

the previous year. Ludwigshafen, in particular, enjoyed

Ludwigshafen where the office market is dominated by

even greater success in positioning itself as a lower cost

owner-occupied properties. On the other is the univer-

alternative for price-sensitive tenants. It currently has the

sity city of Heidelberg where the predominantly modern

lowest office vacancy rate of the three major centres in

office spaces are used by companies in the areas of

the Metropolitan Region Rhine-Neckar.

science and technology. In the middle – geographically and structurally – is Mannheim where the office market

Two major projects were completed outside the three

serves a wide range of sectors.

major cities – the Freudenberg Group’s new adminis-

The Rhine-Neckar office market has been growing very

Technology Center in Leimen. These owner-occupied

trative complex in Weinheim and HeidelbergCement’s strongly over recent years. Office space turnover (the

buildings created a total of 16,000 m² and 7,000 m² of

total of all office spaces leased to new users, sold to

office space respectively. Further projects outside 13

A new building is being constructed for Gerchgroup to the south of Mannheim’s main railway station. It will offer commercial premises with a gross ﬂoor area of 20,000 m².

Office market data Office market data for Mannheim Indicators Existing space

the key centres are planned in Landau, Ladenburg and

Ofﬁce space turnover

2016

2015

2014

2.015 M m²

2.012 M m²

1.983 M m²

91,000 m²

56,000 m²

52,000 m²

4.5 %

5.2 %

5.6 %

15.00 €/m²

Leimen and will offer between 3,200 m² and 4,000 m² of

Vacancy rate

office space MF/G (see Glossary, page 39). The positive

City centre, peak rent

16.40 €/m²

trend is therefore expected to continue for the Metropol-

City centre, average rent

12.60 €/m²

13.00 €/m²

11.50 €/m²

itan Region Rhine-Neckar as a whole.

City centre periphery, peak rent

14.70 €/m²

14.50 €/m²

13.90 €/m²

City centre periphery, average rent

13.10 €/m²

12.20 €/m²

11.40 €/m²

Mannheim

Periphery, peak rent

11.00 €/m²

10.50 €/m²

11.50 €/m²

Mannheim has the largest stock of existing office space

Periphery, average rent

8.80 €/m²

8.40 €/m²

8.60 €/m²

2016

2015

2014

0.970 M m²

0.966 M m²

0.935 M m²

56,000 m²

49,000 m²

42,000 m²

2.9 %

4.6 %

5.0 %

City centre, peak rent

16.00 €/m²

15.00 €/m²

14.00 €/m²

City centre, average rent

11.60 €/m²

12.70 €/m²

12.20 €/m²

proportion of owner-occupied properties. However, a

City centre periphery, peak rent

15.50 €/m²

15.00 €/m²

growing number of rental properties came onto the

City centre periphery, average rent

12.70 €/m²

13.40 €/m²

13.00 €/m²

9.50 €/m²

10.00 €/m²

10.30 €/m²

in the Rhine-Neckar region. It is considered a very stable market although it has become considerably more dynamic over the last few years. This is reflected in the

Office market data for Heidelberg

level of office space turnover which grew to a total of

Indicators

91,000 m² – an increase of 35 percent over the previous

Existing space

year. In contrast, the vacancy rate fell from 5.2 to 4.5

Ofﬁce space turnover

percent.

Vacancy rate

The Mannheim office market traditionally has a large

projects in the “Kepler Quartier” will each create more

Familienheim RN e.G.. Further office spaces are planned

Periphery, peak rent

and medium-sized office segment although larger deals

than 10,000 m² of rental space this year. The maps on

as part of a major conversion of the Taylor and Turley

Periphery, average rent

were also agreed in 2016, e.g. with Ernst & Young. The

page 16 show the locations of new project develop-

barracks.

market serves a wide range of sectors with innovative

ments. Outside the city centres there are a number of

technology and research companies, corporate service

significant, if slightly smaller, project developments in

providers and banks forming the largest groups. Demand

progress as well. For example, B.A.U. Bauträgergesell-

for prestigious, high quality spaces is particularly strong

schaft will complete three projects with approx. 12,000

in central locations. This is reflected in the current

m² MF/G at the Eastsite office park in 2017. There are

growth in premium office spaces and dynamic market

also a number of owner-occupier activities, e.g. the GBG

trend. Within one year, peak rents in the city have grown

company HQ in the north of the city and the new HQ of

by more than nine percent to € 16.40 per m² MF/G. Rents also rose slightly for the city as a whole due to the completion of a number of large projects. The average rent rose from € 11.40 per m² in the previous year to the current level of € 11.80 per m² MF/G. New city centre office spaces will come online in 2017 with the completion of an office tower in the “Glücksteinquartier” providing 14,000 m² of rental area. Another two 14

“The dynamism of the office market in Mannheim is reflected in the many project developments.”

Photo: GERCHGROUP / SCHMUCKER UND PARTNER planungsgesellschaft mbh

market in 2016. These focused principally on the small-

Heidelberg As well as the industrial, service and financial sectors, Heidelberg is a major centre for research, education and

Office market data for Ludwigshafen Indicators Existing space

development. These are major sources of office demand

Ofﬁce space turnover

in the city. Although the stock of existing office space in

Vacancy rate

Heidelberg may appear low at first, a number of major

City centre, peak rent

developments – such as Bahnstadt Heidelberg – and

City centre, average rent

owner-occupier projects prove that it has become a

City centre periphery, peak rent

highly dynamic market over recent years. Vacancy rates

2016

2015

2014

0.903 M m²

0.865 M m²

17,000 m²

15,000 m²

5,000 m²

1.4%

4.2%

5.0%

11.00 €/m²

10.00 €/m²

8.50 €/m²

9.70 €/m²

9.00 €/m²

8.30 €/m²

n.a.

7.00 €/m²

City centre periphery, average rent

n.a.

6.60 €/m²

have fallen even further from 4.6 to 2.9 percent over the

Periphery, peak rent

n.a.

7.60 €/m²

past year while office space turnover has increased to

Periphery, average rent

n.a.

7.30 €/m²

56,000 m². These statistics are further indicators of the positive trend. Interim rentals of high quality offices were one of the key factors for the growth in office space

Source: gif / In-house research

turnover. 15

26 27

Heidelberg is one of Germany’s top centres for science

value leases raised the average rent to € 11.80 per m². In

and research and its office market has traditionally been

2016, this fell slightly to € 11.60 per m² MF/G.

dominated by projects in the education sector. Bahn-

1 11 29

stadt Heidelberg is one of the most important develop-

Several further projects are in the planning phase outside

ment schemes in the city. The largest current project is

the Bahnstadt Heidelberg development. As a result, it

the Skylabs “SkyAngle” which will create over 17,000 m²

is expected that the dynamic office market trend will

MF/G. The “Colours” office project and “Westarkaden”

continue over the coming years. One important project is

are two further important Bahnstadt developments with

the Radiological Research and Development Centre with

no direct link to education.

around 4,000 m² of office space. Additional projects are

“In Ludwigshafen, the rental market absorbs many office spaces through pre-letting and owner occupation.”

planned for the conversion of the Campbell Barracks. area offers the potential for around 368,000 m² of gross

The revitalised market has also seen the level of peak

rents in Heidelberg city centre rise significantly. Whereas

Ludwigshafen

floor area in the office and residential sectors. This will

in 2014 rents were at € 14 per m² MF/G, and thus even

Ludwigshafen is dominated by the research and produc-

create a mixed use urban zone which also redefines the

below those of city centre periphery locations, city

tion facilities of global companies in the chemicals

gateway to the city along the banks of the Rhine.

centre offices are now commanding prices of up to €

industry, such as BASF, the healthcare company AbbVie

16.00 per m² MF/G. Despite this trend, the city centre

and road paver manufacturer Joseph Vögele. However,

As in Mannheim and Heidelberg, peak rents in the

periphery continues to be an important component of

service providers such as Telekom and companies in the

city have risen by nearly 30 percent over the past two

the office market. This is confirmed by its current peak

IT, healthcare and energy sectors also have important

years. Peak rents in the city centre of Ludwigshafen

rents of € 15.50 per m² MF/G. In 2015, a number of high

branches in the city. As a result, many new office spaces

are currently € 11.00 per m² MF/G. Demand for office

are either fully leased before completion or owner-occu-

space is primarily from public institutions and health-

pied and never come onto the open market.

care providers, local and regional service providers and

Many new ofﬁce buildings are currently under construction in Heidelberg, Ludwigshafen and Mannheim. You can ﬁnd their locations on the two maps. Further information about the projects is presented in the table on Page 19.

companies in the technology sector. The office market overall is very stable. Large deals

in Planung

in Bau

fertiggestellt

provide significant but temporary moves in the market,

e.g. when authorities relocate to new premises. This was the reason for the growth in office space turnover from 5,000 to 15,000 m² in 2014/2015. In 2016, this figure 10

increased to 17,000 m². The positive state of the market as a whole is underlined by the very low vacancy rate –

15 28 30

17 6 9

4 14

24 19 16

Map: Geodatabase: © GeoBasis-DE / BKG 2013 (Data changed); Cartography: VRRN

currently at 1.4 percent.

Peak rents in the city centre and its periphery

The most important new build project is the striking

“Metropol” tower at Berliner Platz. The high rise building

with around 9,000 m² of office space is scheduled for

completion in 2019. In the city centre, work has begun

on converting the former Galeria Kaufhof building. The

project developed by Pro Concept Holding AG will create

around 11,000 m² of office capacity. The main user will

be the municipal energy provider – Technische Werke

Ludwigshafen. The “City West” urban project development will create attractive areas in the heart of the city along the ground level road intended to replace the elevated highway

in € / m² / month

2012

2013

Mannheim city centre, peak rent Heidelberg city centre, peak rent Ludwigshafen city centre, peak rent

2014

2015

2016

Mannheim city centre periphery, peak rent Heidelberg city centre periphery, peak rent Ludwigshafen city centre periphery, peak rent

Source: Source: gif / In-house research

between Ludwigshafen and Mannheim. The 147,000 m² 17

In early 2016, JÄGER DIREKT – the electrical goods manufacturer – completed its new production and logistics centre at a 24,000 m² site in Heppenheim. The facility has created 100 jobs.

Investing in growth The Metropolitan Region Rhine-Neckar is one of Germany’s economic powerhouses and offers excellent investment opportunities for companies in all sectors. Advantages include a central location at the heart of Europe, efficient transport infrastructure and the availability of extensive areas of land for greenfield developments, expansion and logistics. The following section provides an overview of the largest investment projects in the region.

The Rhine-Neckar region

Overview of the most important investment projects in the Rhine-Neckar region

No. in Town/City map

16 8

17 10

9 1

Bürstadt

Project name

Investor/Operator

Space

Investment Schedule Volume

Heidelberg

Sky Angle

SKYLABS

17,000 m²

n.a.

Under construction, completion 2018

Settled area

Mannheim

No.1

Gerchgroup

14,000 m²

€ 70 M

Planned

Population 100,000 and more

Weinheim

Ofﬁce and administration complex

Freudenberg Group

14,000 m²

€ 36 M

Completed 2016

Mannheim

Keplerquartier

DIRINGER & SCHEIDEL Wohn- und Gewerbebau GmbH

13,172 m²

€ 140 M

Mannheim

Open Campus Mannheim

Roche Diagnostics Deutschland GmbH

11,300 m²

€ 36 M

Under construction, completion 2017

Ludwigshafen

Retail and service centre, Bismarckstr. 63, HBL

Pro Concept Holding AG

10,700 m²

n.a.

Under construction, completion 2018

Heidelberg

Stadttor-Ost

10,237 m²

€ 42 M*

Motorway with number

Mannheim

Postquadrat

Eyemaxx

10,000 m²

€ 160 M

Planned

Ludwigshafen

Metropol

Timon Bauregie GmbH

9,000 m²

€ 70 M

Under construction, completion 2019

Railway line

Mannheim

Das “E”

Mannheim Taylor Hotel- und Büroentwicklungsgesellschaft

7,500 m²

€ 32 M*

Under construction, completion 2017

Leimen

Technology Center

Heidelberg Cement AG

7,200 m²

€ 20 M

Completed 2016

Mannheim

Chamber of commerce building

Triwo

7,000 m²

n.a.

Under construction, completion 2017

Mannheim

Headquarters, Familienheim RN e.G.

Familienheim Rhein-Neckar

6,400 m²

n.a.

Planned

Mannheim

GBG Company HQ

6,380 m²

€ 27 M

Under construction, completion 2017

Mannheim

Eastsite 11

B.A.U. Bauträgergesellschaft mbH

5,400 m²

n.a.

Under construction, completion 2017

Mannheim

Taylor ofﬁce building

A61

DIRINGER & SCHEIDEL Wohn- und Gewerbebau GmbH

5,000 m²

greenﬁeld development GmbH

4,640 m²

€ 300 M*

Limburgerhof

HEIDELBERG

Neustadt

a.d. Weinstraße

District boundary

Plankstadt

Neckargemünd

Oftersheim

Ketsch

Leimen

Sandhausen 21

Speyer

Hockenheim

A65

Nußloch

St. Leon-Rot

Eastsite 12

B.A.U. Bauträgergesellschaft mbH

4,200 m²

n.a.

Under construction, completion 2017

Ladenburg

Business and industrial park

Burkhardt & Witteler Industriestr. GbR

4,000 m²

€7M

Under construction, completion 2017

Leimen

New municipal administration complex

City of Leimen

3,720 m²

€ 8.8 M

Completed 2016

Heidelberg

MVZ Dr. Limbach und Kollegen

Dr. Limbach

3,500 m²

n.a.

Completed 2016

Landau

Construction of ofﬁce and administration complex

VR Bank Südpfalz

3,200 m²

€ 15 M

Under construction, completion 2019

Mannheim Heidelberg

Eastsite 8

B.A.U. Bauträgergesellschaft mbH

praxisHochschule

CCH Development Real Estate GmbH & Co. KG / praxisHochschule

2,100 m² 2,000 m²

€6M n.a.

SE2

GGH

2,000 m²

n.a.

Construction starts in 2017

Heidelberg

Westarkaden

Unmüßig

1,960 m²

€ 100 M*

Under construction, completion 2018

29 30

Heidelberg Mannheim

Tom Bock Group

23 4 11 5

Herxheim bei Landau (Pfalz)

1,300 m²

Business Development Center Organic Electronics (BDC OE)

Technologieförderung Heidelberg GmbH 1,128 m²

SOHO Turley

Tom Bock Group

Under construction

Completed

n.a. € 17.3 M

Orte

Completed 2016

n.a.

Verkehrswege

Siedlungsﬂäche

Planned

Wörth

750 m²

Selected investments in production and logistics real estate

am Rhein

Completed 2016

No. in Town/City map 1

mehr als 100.000

Source: In-house research (Date: 31 January 2017)

Planned

6 12

A65

Heidelberg

SOHO Turley

Germersheim

i.d. Pfalz

Planned

Mannheim

Landau

B ölk

31 12 2015

Company Bundesautobahn mit Nummer (Investor/Operator)

Area of site or Investment Jobs Staatsgrenze gross ﬂoor area volume

Schedule (Start/Completion of construction)

Bundesstraße Logistics centre Ixocon / Metro

101,165 m²

Landesgrenze n.a. 400

Under construction, completion 2017

Logistics centre

VGP / Amazon

174,000 m²

n.a. 1,000 Kreisgrenze

Under construction, completion 2017

Car dealership

Cuntz

15,000 m²

€5M

Under construction, completion 2017

Landau i. d. Pfalz

Company HQ

Caratec GmbH

4,500 m²

n.a.

Construction to start in 2017

Landau i. d. Pfalz

Verkehrslandeplatz Production Leissing Druckveredelung GmbH & Co. KG

11,000 m²

€5M

Construction to start in 2017

Type of location

Neustadt a. d. Weinstraße

10.000 - 25.000 Einwohner

Many new ofﬁce buildings are currently under construction in Heidelberg, Ludwigshafen and Mannheim. You can ﬁnd their locations on the two maps on Page 16.

Kirchheim a. d. Weinstraße

Grenzen

25.000 - 50.000 Einwohner 5

Areas stated in accordance with the MF/G deﬁnition

2 Frankenthal Einwohner

50.000 - 100.000 Einwohner

* refers to the total investment volume

Construction started in 2016

200

Completion of assembly hall in 2017, construction of company HQ to start in 2017

Heppenheim

Logistics centre

Henry Schein

31,000 m²

n.a.

100

Completed 2016

Heppenheim

Production, ofﬁce

ESM Energie- und Schwingungstechnik Mitsch GmbH

26,000 m²

n.a.

Construction started in 2016

Heppenheim

Production, logistics centre

JÄGER-FISCHER GRUNDBESITZ

25,000 m²

n.a.

100

Completed 2016

Heddesheim

Warehouse

Edeka Südwest

26,000 m²

€ 50 M

250

Completed 2016

Ladenburg

Production

Renate Schmitt GmbH

4,000 m²

€6M

100

Completed 2016

Mannheim

Company HQ

Raben Group

n.a.

€ 15 M

Under construction, completion 2017

Schwetzingen

High bay warehouse, ofﬁce

Jünger+Gräter GmbH

8,000 m²

€ 4.5 M

190

Completed 2016

Leimen-St.Ilgen

Production, logistics, ofﬁce

Heidelberger Chlorella GmbH

3,800 m²

n.a.

Completed 2016

Walldürn

Production

Concad GmbH

4,500 m²

€ 4.5 M

n.a.

Completed 2016

Osterburken

Logistics centre, warehouse Spedition Rüdinger

42,000 m²

€5M

Completed 2016

7 8

Bellheim Germersheim Groß-Rohrheim

Schienenstrecke

Hafen

Logistics centre Logistics centre Production

Honold Service Logistik GmbH

66,000 m²

Compass Logistics International AG 80,000 m² Franz Jäger GmbH

1,800 m²

€ 12.5 M € 30 M €4M

50 250 35

Under construction, completion 2017 Completed 2016 Under construction, completion 2017

Name of industrial park

Zoning law/ Total area Type of area

Still available

Available lot sizes Guideline value

Purchase price

Worms

Worms-Rheindürkheim

GE / GI

80,000 m²

1,000–35,000 m²

55–85 €/m² (2016)

85 €/m²

Hettenleidelheim

Business park (Gewerbepark)

GEe / GE / GIe 50,000 m²

19,314 m²

1,500–4,285 m²

40 €/m² (2016)

40 €/m²

Frankenthal

Am Römig

200,000 m²

35,000–200,000 m² 65–100 €/m²

Ludwigshafen

Am Unteren Grasweg

98,000 m²

10,453 m²

1,000–4,622 m²

110 €/m²

On request

Dannstadt-Schauernheim Dannstadt-Schauernheim OST

120,578 m²

2,165–53,914 m²

n.a.

80–100 €/m²

Böhl-Iggelheim

87,500 m²

60,000 m²

4,500–8,000 m²

75 €/m² (2016)

On request

Neustadt a.d. Weinstraße Turenne

60,000 m²

2,500–20,000 m²

70 €/m²

90–130 €/m²

Neustadt a.d. Weinstraße Lilienthal (former Edon barracks)

100,000 m²

30,000 m²

1,500–30,000 m²

60 €/m²

65–75 €/m²

Edenkoben

Business park (Gewerbegebiet) Edenkoben-Venningen

GE / GI

150,000 m²

40,000 m²

1,500–20,000 m²

n.a.

65 €/m²

Speyer

Am Rübsamenwühl

30,000 m²

12,000 m²

1,100–3,500 m²

130 €/m² (2015)

130–135 €/m²

Landau i. d. Pfalz

Paul-von-Denis-Straße

GE / MI

40,000 m²

35,000 m²

On request

n.a.

On request

Offenbach

Interpark Rheinpfalz

715,000 m²

50,000 m²

1,000–20,000 m²

n.a.

75 €/m²

200,000 m²

25,000 m²

4,400–25,000 m²

95 €/m² (2016)

125 €/m²

Completed 2016

27 28

Sinsheim

Population count as of 31.12.2013 based on the 2011 census) Source: Federal Statistical Ofﬁce, Wiesbaden 2015; Map: VRRN, Geodatabase: © GeoBasis-DE / BKG 2016 (Data changed)

Mannheim

Mosbach

Wiesloch

Completed 2016

675

n.a.

Walldorf

Completed 2016

n.a.

15,734 m²

No. in Municipality map

A81

9 n.a.

30 20

Schwetzingen

Eppelheim

Brühl

Schifferstadt Böhl-Iggelheim A61 Haßloch

135,000 m²

Company HQ, assembly hall AVL Deutschland GmbH

Selected industrial parks in the Metropolitan Region Rhine-Neckar

21 22

National border

Logistics centre

Bensheim

Source: In-house research (Date: 31 December 2016)

A656

A65

Borders

Biblis

Dossenheim

Mutterstadt 5

Eberbach

ein

Q6Q7

Schriesheim Edingen-Neckarhausen

State boundary

Mannheim

20 15 Ladenburg

A650

A65

Under construction, completion 2017

am Rhein

Heddesheim14

n.a.

MANNHEIM

A650

Port 7,500 m²

(Odenwald)

LUDWIGSHAFEN 2 3

Airport

Schedule (Start/Completion of construction)

Buchen

(Pfalz)

Bad Dürkheim

Dietz AG / Action

Jobs

complex

Deutsche Wohnwerte

Weinheim

COLOURS

Wald-Michelbach

A659

Frankenthal

Under construction, completion 2018

Viernheim

A61

Heidelberg

20 3

Transportation routes Bahnstadt Heidelberg KG

27 19

Walldürn

Population 10,000 - 25,000

Federal route

Grünstadt 2

Population 25,000 - 50,000

Under construction, completion 2018/19

Hemsbach

BobenheimRoxheim

Population 50,000 - 100,000

Area of site or Investment gross ﬂoor area volume

(Bergstraße)

Lampertheim

Towns & cities

Heppenheim

12 18 13

A67

Nr. in Ort Karte

Fürth

Lorsch 11

Worms

Legende

Company (Investor/Operator)

Bensheim

A61

Selected key office projects

Type of location

Business park south of the railway GE / GI / MI line and west of Iggelheimer Str.

1,000,000 m²

On request

Germersheim

Wörth-West

Rülzheim

Nord III-IV

55,000 m²

14,000 m²

12 €/m² (2016)

65 €/m²

Leimersheim

Am Kapellenweg

40,000 m²

1,000–12,000 m²

12 €/m² (2016)

60 €/m²

Groß-Rohrheim

Entenweg

GE / GI

150,000 m²

90,000 m²

10,000–50,000 m²

70 €/m² (2016)

On request

Bensheim

Stubenwald

122,000 m²

75,000 m²

5,000–48,000 m²

n.a.

On request

Heppenheim

Süd

230,000 m²

97,800 m²

11,900–40,400 m²

n.a.

On request

Mannheim

Steinweg

111,434 m²

36,354 m²

1,300–7,000 m²

140–160 €/m² (2014) 140–160 €/m²

Weinheim

Technologie– und Industriepark

GE / GI

871,000 m²

107,000 m²

1,500–28,000 m²

85–152 €/m²

On request

Brühl

Schütte-Lanz-Fläche

60,000 m²

44,513 m²

2,160–29,972 m²

n.a.

195–240 €/m²

Schwetzingen

Ausbesserungswerk Nord

30,000 m²

10,000–30,000 m²

n.a.

125 €/m²

Plankstadt

Jungholz

GE / GI

144,814 m²

61,203 m²

2,263–39,742 m²

145 €/m² (2014)

On request

Heidelberg

Rohrbach Süd

GE / GEe / GI

719,000 m²

19,500m²

1,100–8,400 m²

220 €/m² (2015)

On request

Wiesloch-Walldorf

Metropolpark

GE / GI

50,000 m²

30,000 m²

1,500–20,000 m²

n.a.

On request

Mosbach

TECH-N-O

GE / GI

160,000 m²

50,000 m²

from 1,600m²

40.90 €/m²

41 €/m²

GVV Hardheim-Walldürn

VIP Walldürn

246,500 m²

51,000 m²

1,000–24,600 m²

n.a.

25–38 €/m²

Buchen

IGO

GE / GI

400,000 m²

100,000 m²

1,000–35,000 m²

42.50 €/m²

42.50–100 €/m²

Adelsheim

Business-Park

GE / GI

85,213 m²

from 500 m²

30 €/m² (2012)

20–30 €/m²

Osterburken

RIO

GE / GI

330,000 m²

50,000 m²

from 1,500 m²

25 €/m² (2016)

25 €/m²

Source: In-house research (Date: 31 December 2016)

In the ﬁrst quarter of 2016, Staehle – the can manufacturer– opened its new 8,000 m² warehouse and production hall with truck loading facility in Schifferstadt.

Market Segment: Industrial & Commercial

Ready to start The Metropolitan Region offers land in mixed use and dedicated business parks. For companies with greater service needs, the region offers numerous business parks with well-developed infrastructure and the potential for synergies within business cluster. Additional attractions include proximity to strong suppliers, workforces and markets.

of elastomer components for the isolation and damping

analysed 30 business parks with a total area of around

of vibrations in wind turbines. In Biblis, Dietz AG began

6.66 million m². Of these areas, approximatly 26 percent

building a distribution centre for Action – the Dutch

(1.72 million m²) are still undeveloped and available at

discounter. The groundbreaking ceremony took place at

short notice.

the end of June 2016. The site has an area of 135,000 m².

Purchase prices for fully accessible industrial land parcels

At the Stubenwald business park in Bensheim, AVL

are dependent on the location. In the heart of the urban

Deutschland is building a new company headquarters

Rhine-Neckar region, prices generally range from € 110 to

covering a site of over 15,700 m². The first stage will be

€ 200 per m² – although they can even be as high as € 240

the completion of the assembly hall in 2017. Construc-

per m². In suburban areas, prices of between € 80 and €

tion of the four storey HQ building will follow and begin

10 per m² are the starting point for negotiations. In the

in 2017. AVL is the world's largest independent developer

periphery, these fall to an average of € 50 per m² – usually

of powertrain systems for internal combustion engines as

with very good transportation links.

well as instrumentation and test systems.

Investment activity in manufacturing and logistics is below

These five developments alone have created over 1,000

the level described in the Real Estate Market Report

new jobs in the Bergstraße district. Another two major

2015. This was due to the construction of the TDI plant by

projects are also underway in the Palatinate area of the

BASF in Ludwigshafen – an exceptional project which was

Metropolitan Region Rhine-Neckar. In Kirchheim a. d.

completed in 2015. However, many other projects have

Weinstraße, METRO GROUP – the major international

In Baden-Württemberg, Edeka Südwest completed a

You can find further information about business parks

been initiated and implemented throughout the region.

wholesaler – is developing a 100,000 m² site for its new

beverages handling warehouse for its subsidiary A. Kempf

in the Rhine-Neckar region at the Rhine-Neckar loca-

distribution centre with a warehouse area of around

Getränkegroßhandel GmbH in 2016. The Raben Group

tion website (www.standorte-rhein-neckar.de) as well as

– which aims to be one of the Top 25 logistics compa-

on websites and in publications produced by municipal

nies by 2025 – is currently building its German headquar-

authorities.

In 2016, the specialist dental retailer Henry Schein and

49,000 m². In Frankenthal, Amazon is investing in a new

JÄGER DIREKT, an electrical manufacturer and systems

logistics centre which will have a total area of around

supplier, both completed new facilities in Heppenheim.

50,000 m². Once completed, these projects are initially

Nearby, and in the same year, ESM Energie und Schwin-

expected to create 1,000 new jobs. They will also provide

gungstechnik Mitsch GmbH started building a produc-

parking for 1,200 employees. Both are scheduled for

tion hall with offices. ESM is the foremost manufacturer

completion in 2017.

Source: G. Staehle GmbH u. Co. KG

This location report is based on municipal surveys and

ters at Mannheim’s Rheinau Port. In addition, the freight forwarder Rüdinger developed three halls with a total warehouse area of 11,000 m² on a 50,000 m² site at the Osterburken regional industrial park during 2016. 25

Rural district of Germersheim Population: 143,000 No. of employees: 45,000 No. of municipalities: 27

Rhein-Pfalz district

At the heart of Rhine-Neckar with outstanding connections The Rhein-Pfalz district – “Germany’s vegetable garden” – is home to nine percent of the country’s vegetable acreage. Yet nearly three quarters of its gross added value is generated by the service sector and the economy is dominated by SMEs. The consultants at “Der kurze Weg” offer professional advice to companies seeking opportunities to relocate, modernise and expand their commercial and industrial operations. The Rhein-Pfalz district has a well-developed public transport network. The A 6, A 61 and A 650 motorways and Mannheim’s high-speed ICE rail junction connect the district directly to the national highway and rail networks. The B9 dual carriageway provides a convenient link to surrounding towns and cities. With a central location in the Metropolitan Region Rhine-Neckar and surrounded by beautiful countryside, the Rhein-Pfalz district offers its 150,000 residents both a high standard of living and quality of life. // www.rhein-pfalz-kreis.de

Population: 151,546 No. of employees: 80,645 No. of municipalities: 25

Neckar-Odenwald district

A historic rural area with a bright future The Neckar-Odenwald district is a predominantly rural area with a strong tourist sector, unspoiled natural environment and high quality of life. Its 143,000 residents live in 27 municipalities including Buchen and the district town of Mosbach. Over 8,000 companies provide work for 45,000 employees subject to social insurance contributions as well as 1,500 apprenticeships. The district generates sales of around € 4.2 billion with manufacturing industry contributing € 2.2 billion of this total. Four inter-municipal industrial parks and a number of business parks allow companies to build facilities here at low cost. Health- and childcare, local rail services, a host of cultural events and seamless broadband internet coverage highlight the many commercial opportunities and excellent leisure value of the area. // www.neckar-odenwald-kreis.de

Speyer

Productive, mid-sized town with a balanced economy Speyer is a future-oriented location for business and technology companies in the heart of Europe. Diversity, short distances and healthy balance between the retail, commercial, industrial and tourism sectors create further benefits. A strong transport infrastructure with links to the motorway and rail networks, two ports on the River Rhine and a public airfield complete the package. The city is making good progress towards achieving its climate goals, is a certified Fair Trade Town and currently implementing KISS – Speyer’s own climate protection initiative. A historic trading post, Speyer

combines the best aspects of traditional life with the conveniences of the modern world. It is a popular place to live with an attractive range of shops, services and educational institutions. In addition, Speyer’s strengths in tourism, culture and cuisine also make it unique on the Rhine. The city’s slogan “Culture, tolerance and lust for life” underlines the values that typify Speyer and its population and makes it such an attractive place to live and work. // www.speyer.de No. of employees: 28,548 Purchasing power index: 106.9 Business tax rate: 415 Rent price range – ofﬁce: 5.50 bis 7.40 €/m² Rent price range – retail: 5.50 bis 40 €/m²

Photo Page 26, top right: District administration, Neckar-Odenwald; left: District administration, Rhein-Pfalz-Kreis; bottom right: Klaus Landry; Page 27, top right: Skylabs SARL; left: Sabath Media; bottom right: Business Development Corporation Frankenthal

An alliance of strong partners

Structural diversity and commercial sites with excellent potential Diversity underpins the exceptional economic strength of the rural district of Germersheim which is home to many successful SMEs and factories operated by major companies. The container terminals at Wörth and Germersheim are key ports for inland shipping on the Rhine and important links to the major seaports of northern Europe. A number of flagship employers highlight the success of the industrial sector in this rural district, such as the world’s largest truck assembly plant in Wörth (Daimler AG) and the factory with the world’s largest machine for making corrugated cardboard (Palm GmbH). Highly innovative, global technology companies also have locations here. The district of Germersheim has excellent transport infrastructure and local public transport services as well as business-friendly administrative structures. It offers an attractive environment with a high quality of life. // www.kreis-germersheim.de

Population: 127,303 No. of employees: 51,986 No. of municipalities: 31

No. of employees: 117,500 Purchasing power index: 99.4 Business tax rate: 400 Rent price range – ofﬁce: 7.50 to 15 €/m² Rent price range – retail: 18 to 28 €/m²

Heidelberg

Strong in science and research Heidelberg is famous around the world not only for its castle but also its excellence in business and science. The city is home to Germany’s oldest university. State-of-theart research facilities stand side-by-side with the attractive buildings of the historic old town. Heidelberg hosts worldclass cultural events and is an economic heavyweight – especially in the research and knowledge-based economy. The study Prognos Future Atlas 2016 confirms the city’s enormous potential and predicts that Heidelberg’s economic and labour market has the best prospects of any in Germany. Nearly 8,000 companies ensure a healthy mix of sectors in the city which is also at the top of national rankings for childcare, school and family. All these factors combine to make Heidelberg a very attractive place to live. According to current forecasts, the population is expected to grow by a further 9,000 people by 2020. They will be accommodated in completely new districts of the city, such as the Bahnstadt Quarter and areas formerly used by the US Army. // www.heidelberg.de

Frankenthal

Industrial heritage with a vision for the future The mid-sized town of Frankenthal has one of the richest traditions in the RhineNeckar area. Its location in the heart of Europe, excellent infrastructure and cosmopolitan charm are very attractive and make it a popular conference venue. Frankenthal is an important location for global players, such as KSB AG, GE Jenbacher, Siemens Turbomachinery Equipment and two subsidiaries of KBA, the printing machine manufacturer. Innovative SMEs in the areas of communication and IT technology, nondestructive materials testing and tool making

No. of employees: 15,738 Purchasing power index: 99.7 Business tax rate: 410 Rent price range – ofﬁce: 5 to 8 €/m² Rent price range – retail: 15 to 40 €/m²

also benefit from the opportunities available in this attractive business location. The new Amazon logistics centre, currently under construction, will create another 1,000 jobs. The Frankenthal Nord business park and reserved areas in the city’s “Am Römig” industrial park offer versatile commercial sites for growing companies with a direct link to the motorway. Nothing is ever very far away in this green town with an outstanding school system and welldeveloped local public transport network. // www.frankenthal.de

The Q 6 Q 7 city quarter: The largest project in the history of Diringer & Scheidel was ofﬁcially opened in September 2016 after four years of construction.

Market Segment: Retail

New concepts for shopping High purchasing power and the potential for future population growth make the Rhine-Neckar region an attractive location for both retailers and investors. And not only in the regional centres of Mannheim, Heidelberg and Ludwigshafen.

The Metropolitan Region is also home to important retail locations in mid-sized towns such as Schwetzingen,

Footfall in top locations 10,000

Viernheim, Landau, Mosbach and Hockenheim. With their

9,000

high retail centrality, they attract purchasing power from

8,000

the surrounding districts.

Pedestrians / hour

7,000 6,000 5,000 4,000

retailers here face the same challenges from digitisa-

3,000

tion, globalisation and demographic change as retailers

2,000

everywhere. Trends observed throughout Germany,

will upgrade the Planken while Ludwigshafen’s city * 2016: not counted

1,000

such as the consolidation of the city centre fashion retail

Mannheim, Planken

sector, a reduction in the store expansion plans of once

2013

2014

* Heidelberg, Hauptstr. Ludwigshafen, Bismarckstr. 2015

2016

fast-growing companies and the dynamic growth in the number of local grocery suppliers, are also affecting the region’s retailers. This trend cannot be explained solely in

Peak rents for retail property

terms of a migration of sales to online shops. It is also due to the growth of sales models with aggressive pricing

180.00

strategies, increasingly pernicious discount campaigns

160.00

and the emergence of off-price retailers and businesses.

140.00

The number of off-price suppliers is set to rise with the

120.00

market launch of the fashion chain Saks Off 5th.

100.00

+ 34.6 %

in € / m² / Monat

+ 14.3 %

80.00

In addition, retail locations are increasingly looking to compete through “soft skills” such as an attractive urban environment, inviting cafés, bars, restaurants and leisure facilities. The Rhine-Neckar region was quick to spot these new requirements. Heidelberg redeveloped its main shopping street – Hauptstraße. In 2017, Mannheim 28

+ 19.5 %

60.00 40.00

– 33.3 %

20.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mannheim

Heidelberg

Ludwigshafen

Average for Germany

centre development concept and management plan aims Maps: Presentation by MRN based on data supplied by Jones Lang LaSalle; Photo: DIRINGER & SCHEIDEL

Despite the Rhine-Neckar region’s strong economy,

to reinvigorate the retail sector in the area. Investors recognise and value the lure of the RhineNeckar region. Many retail properties have recently changed ownership – including the shopping centres

“Quarters are being used in new ways that increase the attractiveness of city centres with a mix of shops, hotels, bars and restaurants and apartments.”

Quartier Q 6 Q 7 and Kurpfalz-Center in Mannheim, the Weinheim-Galerie in Weinheim and the Am Sandloch retail park in Ludwigshafen. The opening of Quartier Q 6 Q 7 in Mannheim in 2016 marked the completion of one of the last major project developments with significant retail area. The number of

opening of Modepark Röther in the Weinheim-Galerie

projects on this scale is declining. Nevertheless, another

and the transformation of the former Real supermarket in

project is in the planning phase in Germersheim. A retail

Mannheim-Sandhofen into the Lilienthalcenter retail park.

centre which will be home to various shops, including Rewe, Lidl, Müller, AWG and Depot, is being planned

Heidelberg

on the site of one of the town’s former military barracks.

Heidelberg city centre with its top location in Hauptstraße

However, in future the focus will increasingly be on revit-

is one of the most highly frequented shopping streets

alising and restructuring existing properties. Examples

in Germany – partly due to the strength of the tourist

include projects such as the Postgalerie in Speyer, the

industry. Visitor numbers and peak rents of € 120 per 29

Popular attraction: Heidelberg’s shopping street during the Heidelberger Frühling music festival.

Retail data for Mannheim

m² for the best premises remain consistently high. The

in the Hauptstraße pedestrian zone are complemented by

large proportion of chain stores (76.1 percent) in this top

various cafés, bars and restaurants with attractive pave-

location and new tenac agreements with chain stores,

ment tables and independently owned specialist retailers

such as Only in Hauptstraße 59, Levis, the cosmetics

in the side streets. “Das Carré”, with the first residential

supplier Soap Stories or the restaurant Adelitas, reflect

high rise building in Heidelberg as well as shops/commer-

the enduring attraction of Heidelberg’s city centre. This

cial areas on the ground and first floor levels was sold to

may well have been a consideration when Hudson´s

Unmüssig last year. The Freiburg-based company plans to

Bay, the new owner of Galeria Kaufhof and Sportarena,

restructure and upgrade the shop areas over the medium

decided to open Germany’s first branch of Saks Off 5th

term. tegut is currently negotiating for the retail areas in

in the former premises of Sportarena. Saks Off 5th plans

the “Wormser Hof” at Hauptstraße 110.

to sell well-known designer brands in Germany. The loss of the Sportarena sports equipment store will be offset

The dynamic growth in this area is reflected in the expan-

by expanding the range of sporting goods sold in the

sion plans of local grocery suppliers. In spring 2016, the

two city centre branches of Galeria Kaufhof. The shops

“Mathematikon” retail park opened near the university

Retail data for Heidelberg Heidelberg, Hauptstraße Peak rent 2016 (ranking): 120 € / m² (19*) GER overall: 65.12 € / m² Change (2006–2016): 14.3 % GER overall: 19.5 % Footfall 2016 (ranking): 5,680 (37**) Percentage of chain store operations in 2016: 76.1 % Pedestrian zone

Prime location

Photo: City of Heidelberg, Tobias Dittmer; Maps: Jones Lang LaSalle (*based on 183 shopping streets analysed in Germany, ** ranking among 170 shopping streets analysed in Germany)

“As consumers have less and less time they expect their shopping experience to be rich and emotional.”

with branches of Rewe, Aldi, Rossmann and other stores. The “Westarkaden” retail park in the Bahnstadt Quarter

Mannheim, Planken

provides approx. 10,000 m² of retail space for Aldi, Edeka

Peak rent 2016 (ranking): 175 / m² (10*) GER overall: 65,12 € / m²

Scheck-In and dm in addition to a branch of Alnatura – the being created with the development of the former US

Change (2006–2016): 34.6 % GER overall: 19.5 %

military site “Mark Twain Village”. An XXXLutz furniture

Footfall 2016 (ranking): 4,155 (69**)

store with approx. 25,000 m² of sales area is also sched-

Percentage of chain store operations in 2016: 64.1 %

organic supermarket. Further local grocery outlets are

uled to open in the Bahnstadt Quarter in the next few years.

Pedestrian zone

Mannheim

Prime location

Source: In-house research

Quartier Q 6 Q 7 was opened in the “Fressgasse” in Mannheim’s city centre in September 2016. At a cost of over € 300 million, it was by far the largest construction project of recent years in central Mannheim and is

includes repaving the area, the installation of energy-effi-

considered an outstanding example of city centre devel-

cient lighting, new street furniture and barrier-free bus/

opment. As well as apartments, hotel and office spaces,

tram stops. These improvements to the public space will

it also houses the 3-storey Q 6 Q 7 shopping quarter. The

increase the quality of the shopping and leisure experi-

architecture is very attractive and high quality with a glass

ence enjoyed by visitors to the Planken.

bridge linking the Q6 and Q7 blocks. The new shopping centre complements the existing range of stores in the

In concert with the renovation work, new design guide-

city centre, e.g. with Zara home, & other stories, Kiehl´s,

lines are being developed for retail, café, bar and restau-

Superdry, Massimo Dutti and various concept stores. The

rant premises. From Paradeplatz to Marktplatz, the Breite

basement is home to an inviting food hall which sets new

Straße pedestrian zone is an attractive second boule-

benchmarks. The Irish clothing store Primark is the anchor

vard. With the closures of the Decathlon sporting goods

tenant in Q7 which can be accessed via Fressgasse.

store after just two years and the Mömax furniture store

Despite the significant expansion of its retail areas, peak

section of Breite Straße faces major challenges. The

announced for the end of March 2017, the northern rents in Mannheim have remained constant at € 175 per

Mömax premises have since been sold and it is believed

m². This confirms the strong attraction of Mannheim’s

that tenants have already been found for more than 50

city centre for retail companies. From spring 2017, the

percent of the area. Mannheim’s city centre as a whole

main shopping street – Planken – will be redeveloped at

will continue to become more attractive due to the large

a cost of nearly € 30 million. The winning design for the

number of new stores opening in the area and the rede-

project was developed by Dr. Hartmut Holl (Würzburg). It

sign of the Planken.

Source: In-house research

Ludwigshafen The process of opening Ludwigshafen’s city centre up towards the Rhine began in 2008. Further major projects are now underway. For example, Mannheim Pro Concept Holding AG has purchased the former GaleriaKaufhof building at Bismarckstraße 63. This is currently being gutted and the upper floors converted into an office

“The City of Ludwigshafen has introduced its city centre management strategy to enhance the city centre and highlight new potential uses.”

The development of the “Metropol” project at Berliner Platz continues. Here, a private investor is building a

Retail indices in the key centres of the Metropolitan Region Rhine-Neckar

retail/office/residential complex with around 28,500 m² of floor space. Construction should begin in late 2017. The

Municipality

Population

Retail purchasing power index

Mannheim

299,844

99.62

151.4

151.96

163,832

92.78

107.12

115.45

ground floor will create a retail space of up to 8,000 m². Potential tenants include a food market and drugstore.

Retail sales index

Retail centrality rating

complex. The new tenant, Technische Werke Ludwig-

Alterations to public street areas and redesigned car parks

Ludwigshafen am Rhein

shafen, will move into the building by spring 2018. The

have enhanced the appearance of Ludwigsplatz in the city

Heidelberg

154,715

99.43

120.34

121.02

ground floor will be retained as a retail space.

centre. The Europa-Hotel with 22 business apartments,

Worms

81,010

98.13

123.58

125.92

the new B&B-Hotel with 100 rooms that opened in 2016

Neustadt an der Weinstraße

52,564

108.01

122.9

113.78

Speyer

49,855

106.87

143.72

134.47

Frankenthal (Palatinate)

47,724

99.72

91.19

91.44

Planning for the major City-West project is taking shape

Landau in der Pfalz

44,465

101.16

150.98

149.24

with the inclusion of citizens’ groups and political commit-

Weinheim

43,892

118.88

143.44

120.65

tees. The elevated highway is beyond repair and will be

Bensheim

39,551

112.6

105.83

93.99

The municipal housing development agency GAG wants

and the Moxy “Ikea hotel” with 180 rooms (currently

by ECE at a cost of around € 5 million adding a touch of

to demolish the existing buildings and passageway to the

under construction) complete the picture.

marina style. As well as a new colour and lighting design,

Bürgerhof at Bismarckstraße 70-74. Two new five- and

significant changes are planned for the food court. Two

seven-storey buildings will offer a mix of spaces for apart-

new jetties installed by a private provider for river cruise

ments, offices and medical practices. They will enhance

ships will further emphasise the city’s orientation towards

the area’s appearance by creating a wide entrance to the

with the Rhine.

Bürgerhof and extending the field of view to Amtsstraße.

The Rhein-Galerie in Ludwigshafen has been welcoming customers to its 30,000 m² shopping area since September 2010.

Photo: City of Ludwigshafen; Maps: Jones Lang LaSalle (*based on 183 shopping streets analysed in Germany, ** ranking among 170 shopping streets analysed in Germany)

This year, the Rhein-Galerie will be completely renovated

replaced by a multi-lane city highway at ground level

Sinsheim

34,882

99.97

96.54

96.57

flanked by green areas. It will also create a new city centre

Viernheim

33,276

100.74

217.83

216.22

area offering 340,000 m² for apartments and offices.

Lampertheim

31,851

105.11

81.79

77.81

Leimen

26,097

96.92

56.47

58.26

Wiesloch

25,642

106.1

84.82

79.94

Heppenheim (Bergstraße)

25,001

105.69

136.93

129.55

Mosbach

22,781

97.81

170.16

173.97

Schwetzingen

21,494

111.34

239.4

215.00

Hockenheim

21,011

103.79

181.77

175.13

Germersheim

20,342

80.88

113.33

140.12

Haßloch

20,123

99.00

90.15

91.06

Schifferstadt

19,522

102.65

61.88

60.28

Bad Dürkheim

18,414

108.34

98.87

91.25

Buchen (Odenwald)

17,571

96.16

130.46

135.67

Retail data for Ludwigshafen

Index German average = 100; Sources: GfK Geomarketing (Indices: 2016), State Statistics Ofﬁces (Population count as of 1.1.2015 based on the 2011 census)

Ludwigshafen, Bismarckstraße Peak rent 2016: 20 € / m² GER overall: 65,12 € / m² Change (2006–2016): –3.33 % GER overall: 19,5 % Footfall 2015 (ranking)*: 1,185 (162) Percentage of chain store operations in 2016: 30.8 % Pedestrian zone

Prime location

Info about LU: JLL only publishes data for the 25 most important cities in the retail sector, Ludwigshafen is not one of these and thus has no ranking. Footfall was not counted in LU in 2016 – the data used is therefore from 2015. No ranking was determined for peak rent.

An alliance of strong partners

No. of employees: 32,656 Purchasing power index: 98.1 Business tax rate: 420 Rent price range – ofﬁce: 5 to 15 €/m² Rent price range – retail: 5.50 to 9 €/m²

Rhein-Neckar district

Business, science and administration in the ﬁrst European “smart county” IT is here! As the headquarters of SAP, the Rhein-Neckar district is the most important IT location in Germany. With companies in the chemicals/pharmaceuticals sector, food processing industry, retail, financial services, engineering and logistics sectors and 22 universities in the Metropolitan Region Rhine-Neckar, it is a centre for powerful drivers of innovation – from forward-looking SMEs to global players. As a “smart county”, the RheinNeckar district is taking a pioneering role in the digitisation of the economy and

No. of employees: 182,321 Purchasing power index: 99.6 Business tax rate: 430 Rent price range – ofﬁce: 8.40 to 15 €/m² Rent price range – retail: 11 to 145 €/m²

Worms

A future built on tradition

// www.mannheim.de

// www.worms.de

Cultural and economic centre of the Metropolitan Region Rhine-Neckar

No. of employees: 17,002 Purchasing power index: 108 Business tax rate: 400 Rent price range – ofﬁce: 4.50 bis 7.50 €/m² Rent price range – retail: 5.50 bis 30 €/m²

Neustadt an der Weinstraße

Historic town centre and global companies Neustadt a. d. Weinstraße lies at the halfway point of the German Wine Route and has excellent transport connections. With its direct link to the A 65 motorway and the Neustadt railway junction, all the important centres in the region are quick and easy to reach. Wine and tourism are among the most important sectors for this mid-sized town but companies in the healthcare, retail, trade, automotive, DIY, IT, sport, publishing and creative sectors have

also made it their home. Compared to other municipalities in Rhineland-Palatinate, it has low business taxes and a low level of public debt – much appreciated by local entrepreneurs. Moreover, Neustadt is an attractive town for shopping and leisure with a historic town centre, high standard of living and good quality of life. // www.neustadt.eu

// www.rhein-neckar-kreis.de Population: 541,859 No. of employees: 156,127 No. of municipalities: 54

Ludwigshafen am Rhein

Economic engine of Rhineland-Palatinate Photo Page 34, top left: Fulbert Hauk; top right: City of Worms; bottom left: WEG Neustadt; Page 35, top: Rhein-Neckar-Kreis; bottom: Kleb

Economic success – that is built on ideas and innovations, efficiency and productivity, diversity and openness, creativity, culture and lots of bright minds. Mannheim, at the heart of the Metropolitan Region RhineNeckar, has all these attributes. The city positions itself as a top location for successful and creative companies. As well as outstanding infrastructure, Mannheim has an attractive range of commercial and office premises. Around 500 hectares of former military bases are being developed with a lively mix of uses and social structures. In combination with funding programmes run by the state and national governments as well as the EU, the city offers companies a business-friendly environment with excellent growth prospects. As one of the leading cities for start-ups in Baden-Württemberg, it provides everything entrepreneurs need to bring their ideas to market. Renowned universities and research institutions guarantee a steady supply of highly qualified professionals and graduates.

Worms is more than the Nibelungen, the cathedral, Martin Luther and a flourishing wine industry. It is an important commercial centre with profitable industries and modern service providers – thanks to its location in the Rhine-Neckar and Rhine-Main Metropolitan Regions. Companies appreciate the businessfriendly atmosphere and excellent links to the wider world via road, rail, public airfield and river port. The business parks offer broadband internet at speeds of up to 200 Mbit/s. Its start-up centre supports new businesses with low-cost offices and a wide range of services. Worms has a university and a large number of schools. Leisure facilities and a diverse cultural programme, a high standard of living and equable climate make life here pleasant. The Worms Conference Centre hosts over 250 cultural events and conventions annually and is a beacon for the city and its surrounding region.

Mannheim

society and the development of a seamless fibre optic network. The Rhein-Neckar district not only has a central location at important nodes in the European road, rail and waterway networks with excellent links to international airports in Frankfurt and Stuttgart. It also offers a high quality of life in a charming rural environment on the banks of the Rhine and Neckar between the Odenwald and Kraichgau.

The former industrial city of Ludwigshafen has transformed itself into a centre of pioneering research and innovation. As well as the chemical company BASF, it is also home to the research departments of many other international corporations in the sector. Taking the slogan “today for tomorrow” as its inspiration, the city has repositioned itself and moved closer to the Rhine. The City-West project is transforming the city’s vision of its future into a reality – creating space for new urban concepts. This dynamic process has its foundation in a flourishing

economy with major companies such as BASF and Abbott as well as a large number of SMEs in the areas of engineering, communications, IT and food production. All these companies understand the value of the city’s outstanding transport connections, comprehensive range of educational and care institutions and a housing market which offers good value for money. It also has a thriving cultural life which attracts visitors from far beyond the city boundaries. // www.ludwigshafen.de

No. of employees: 100,902 Purchasing power index: 92.8 Business tax rate: 405 Rent price range – ofﬁce: 5.50 bis 11.50 €/m² Rent price range – retail: 7.50 bis 27 €/m²

In 2018, the new Business Development Center Organic Electronics will open on the site of the former Patton Barracks – Heidelberg’s future centre for innovation and science.

In Focus

Networks support innovation Research, knowledge transfer and innovation secure prosperity and the ability to compete in global markets. The Metropolitan Region Rhine-Neckar profits from excellent research institutions, future-proof networks and remarkable powers of innovation.

In the past, knowledge was primarily transferred through individual activities or bilateral partnerships. Now, the region invests in “open innovation.” This approach aims to strategically harness the collective knowledge base, creativity and innovative potential of research institutions, companies and the general population as a whole. Networks and clusters play an important role in facilitating the exchange of knowledge as they bring together human, structural and relational capital. The co-innovation model makes it possible to bundle the expertise of the partners

and offices as well as the support of an extensive network

cluster. The Cluster Management team was established

involved from many different disciplines and reduce the

of marketing and financial experts,” explains Dr. André

in 2011 and achieved an important milestone with the

time to market for knowledge transfer.

Domin, CEO of Technologiepark Heidelberg and Chairman

opening of the CUBEX41 centre for start-ups and exper-

of Heidelberg Startup Partners.

tise in medical technology in 2015. “Bringing product

Partnership platform for organic electronics InnovationLab is a partnership platform for research and

Mannheim Medical Technology Campus

development of organic electronics based in Heidelberg.

Mannheim is a medical technology hotspot. In the next

It is working to combine the know-how of companies,

few years, it will become home to the Mannheim Medical

universities and research institutions in the Metropol-

Technology Campus (MMT Campus) offering compa-

itan Region Rhine-Neckar. Technologiepark Heidelberg is

nies, university clinics and researchers – all based within

also planning to build its “Business Development Center

walking distance of each other – a unique opportunity

Organic Electronics” on the site of the former Patton

to link up even more efficiently. “From the workbench

Barracks. “Many companies and scientists work in this

to the operating theatre – your cup of coffee will stay

top class cluster to turn their research results into market-

hot,” promises Dr. Elmar Bourdon, Cluster Manager. The

able products. We want to offer them a favourable envi-

CUBEX ONE Business Development Center is the heart

ronment in our Business Development Center. This

of the MMT Campus and will continue to push forward

includes low rents for specialist laboratories, clean rooms

every strategic aspect of Mannheim’s medical technology

Photo: RKW Architektur + Rhode Kellermann Wawrowsky GmbH

developers, clinicians and researchers together under one roof enables them to develop medical products more

“No city, municipality or federal state will be able to solve the challenges of digitisation by itself.”

quickly and efficiently than elsewhere,” confirms Michael Grötsch, Mayor for Economic Affairs.

“Smart County” initiative

the Lernfabrik 4.0 initiative or the Smart Local Supply retail

In the Rhein-Neckar district, stakeholders in business,

project. “Smart County” placed second in the competition

science and administration have joined forces to create

“Germany’s Smart Regions.”

the first European “smart county.” The group aims to promote growth, start-ups and innovation, improve educa-

Start-ups welcome

tion and training and develop smart networks that connect

Innovation depends on a thriving ecosystem for start-ups.

different projects, e.g. by extending fibre optic networks,

In Ludwigshafen, the planned “Freischwimmer” innova-

linking up with Mannheim’s Smart Production network,

tion centre will create an alternative space and range of 37

Glossar

services for start-ups. Technische Werke Ludwigshafen is converting the former swimming pool in the north of the city into an interesting location for start-ups – principally in the areas of energy, services, modern city concepts and mobility – with an accelerator and co-working space. Support services range from mentoring and consulting to financial participation.

The road to Industry 4.0 The production facilities of the future will directly integrate

“‘Freischwimmer’ is designed as a platform which will allow startups to exchange ideas. This will allow them to use synergies efficiently and promote a culture of innovation.”

customers and partners into business and value creation processes. They will network people and objects using IT and communications systems. Led by the City of Mannheim, the Smart Production network is investigating the best ways to convert the region to smart production techniques.

supervisory building authorities and legal boards of construction of the building permitting procedure. It will operate

The Virtual Building Authority

upstream of the authority’s own specialist procedures and

As part of the model project “Cooperative E-Government in

create opportunities to participate in the process electroni-

Federal Structures”, the Metropolitan Region Rhine-Neckar

cally. The “Virtual Building Authority” aims to network admin-

is planning to introduce a uniform electronic access system

istrative departments and businesses, reduce processing

– available to companies and others – for the 26 subordinate

times and cut bureaucratic costs.

Digital Model Region: Rhine-Neckar Digital technologies are transforming every

focus will be on key aspects of public infra-

aspect of our lives. The Metropolitan Region

structure – education, energy, healthcare,

Rhine-Neckar sees this revolution as an oppor-

transport and administration. In addition, the

tunity and wants to play an active role in

coordination centre will contribute to a cross-

shaping it over the coming years.

section of important topics which are relevant to the region as a whole, e.g. in documenting

The first half of 2017 will see the develop-

progress in the extension of broadband

ment of a “coordination centre for smart

internet or identifying needs for action in the

networking.” It will be supported by the federal

area of digital expertise.

states and the German Federal Ministry for Economic Affairs and Energy and managed

These plans for digitising public infrastructure

jointly by Metropolregion Rhein-Neckar GmbH

will complement the wide range of Industry 4.0

and Verband Region Rhein-Neckar with the

projects already being developed and imple-

aim of integrating existing expertise and stake-

mented by businesses, chambers, districts and

holders in the region. By promoting close

municipal authorities in the region (e.g. in the

collaboration, the scheme aims to develop

network “Smart Production Rhine-Neckar”).

innovative, interdisciplinary digitisation proj-

// www.m-r-n.com/digitalisierung

ects and test them across state borders. The 38

Market Segment: Office City centre Best office location in the respective area of the city City centre periphery Locations directly adjacent to (office) city centre. Periphery All office locations not categorised as “city centre” and “city centre periphery.” Peak rent Top price segment (3 percent) for all new leases agreed in the respective area (city centre, city centre periphery, periphery) in 2016 (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Office Market Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in July 2015). All the rental prices stated are nominal rents for marketable office spaces, i.e. rent according to lease agreement (excluding taxes, incentives and utilities). Average rent Average rent for all new leases agreed in the respective area (city centre, city centre periphery, periphery) in 2016 (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Office Market Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in July 2015). All the rental prices stated are nominal rents for marketable office spaces, i.e. rent according to lease agreement (excluding taxes, incentives and utilities). Existing space Total area of all completed office spaces (in use or vacant) throughout the town/city on 31 December 2016 plus office areas under construction which will be ready for move-in within the next three months (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Office Market Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in July 2015). Office space turnover Total of all office spaces throughout the town/city which have been leased to new users, sold to owner-occupiers or built by owneroccupiers in 2016. The transaction is recorded using the date of the lease agreement (in accordance with the latest edition of “Leitfaden zur Büromarktberichterstattung” (Guidelines for Office Market Reporting) published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in July 2015). Vacancy rate The proportion of all existing office spaces throughout the town/city which were available for rent, sub-letting or sale on 31 December 2016 and ready for move-in within three months. Basis of calculation All quantitative statements in relation to office spaces (existing space, for office spaces / MF/G turnover etc.) are generally made in accordance with the area definition contained in the latest edition of the guideline MF/G “Rentable floor space for commercial spaces” published by gif Gesellschaft für Immobilienwirtschaftliche Forschung e.V. in May 2012. In this report, where only information on gross floor area (BGF) was available, this has been converted using the industry standard factor of 0.85.

Market Segment: Retail Top location The part of the city centre that enjoys the highest footfall and the greatest density of large stores that attract shoppers and chain stores with supra-regional operations. Peak rent Rent paid per square meter in EUR for a newly leased space based on a 100 square meter ground ﬂoor sales area in a top location with a 6 meter display front (deﬁnition Jones Lang LaSalle).

Percentage of Percentage of national chain store operations as a proportion of total chain store operations local retail trade. Footfall Number of pedestrians passing by per hour based on a specific counting location in the pedestrian zone on a uniform survey time and date used throughout Germany: 21 March 2015, 13:00–14:00; 16 April 2016, 13:00–16:00 (in accordance with Jones Lang LaSalle). Purchasing power index Index per resident, based on the national German average (index = 100). Example: an index of 110 means that the residents in this town have a purchasing power that is 10 % higher than the national German average (GfK definition). Sales index Index per resident, based on the national German average (index = 100). Example: an index of 110 means that retail sales in this town are 10 % higher per head of the population than the national German average (GfK definition). Centrality rating Index per resident, based on the national German average (index = 100). Example: an index of 110 means that this town offers 10 % more retention of purchasing power and centrality in retail than the national German average (GfK definition). This is a measure of the scope and strength of the retail sector in terms of its attractiveness to non-local consumers. The retail centrality rating is based on the ratio between the purchasing power loyalty that exists within the city and the inflow of purchasing power from outside. A centrality rating of greater than 100 indicates that inflows of purchasing power from the surrounding area exceed outflows of purchasing power from the area of the city itself (definition in accordance with Jones Lang LaSalle).

Market Segment: Industrial & Commercial Guideline land value Average land value for an area that has similar value conditions and can be used for similar purposes. The guideline land value provides the value per square meter of land for a ﬁctitious land parcel, with location features typical of the area in question. Type of area Type of structural land use according to the Federal Land Utilization Ordinance (BauNVO). Abbreviations: GE = Business park, GEe = Restricted-use business park, GIe = Restricted-use industrial park, MI = Mixed use area.

Legal Information and Liability Disclaimer Any publication, duplication and any sharing of this Report, even of parts thereof, shall be subject to the prior written consent of the Metropolregion Rhein-Neckar 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 utilisation 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 information available at the time of our editorial deadline (31 January 2017). 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 providing updates to the statements made. The information contained herein is provided for the sole purpose of sharing generally informative material and is not intended as a substitute for professional consultations.

Research partners

Immobilien Sparkasse Heidelberg