“In the first halves of the years 2017 to 2020, the market was approaching the 90,000 m² mark rather than 100,000 m², let alone the record result to date of 150,000 m²,” adds Adriano Borgia, Managing Director of Realogis Immobilien Stuttgart GmbH.
 

“The availability of large spaces and three top deals in this category were what tipped the scales in the first half of the year,” reports Adriano Borgia. “This situation is definitely something special for the Stuttgart market.”By way of comparison, in the same period of the previous year there was only one major deal by Yahee GmbH for 20,800 m².

More than 70% of newly let space was in existing properties

“The strong take-up was mainly due to lettings in existing properties, which accounted for a share of 74.3% or 113,700 m²,” says Joel Adam. “Roughly a quarter of take-up was in new builds at 39,300 m².”

“In the first six months, Stuttgart was a clear tenant market,” explains Adriano Borgia. “All lettings without exception were in properties owned by third parties.”

Böblingen takes top spot from Ludwigsburg
The Böblingen district accounted for the highest take-up in the first half of the year at 56,900 m² or 37.2% (H1 2021: 27,000 m² or 21.8%) and is currently the region with the sharpest rise in relative importance at 15.4 percentage points.

Two of the top five deals in the reporting period are attributable to Böblingen. The biggest deal was signed by Rewe for over 35,000 m² in an existing property. In addition, Trumpf GmbH rented around 8,768 m² in a new build. These two deals totalled approximately 43,768 m², representing three-quarters of take-up in the Böblingen district.

In second place is the Esslingen district with 45,200 m² or 29.5% (H1 2021: 30,300 m² or 24.4%, +5.1 percentage points). Two more of the top deals were located in this region, both in new builds: Robert Bosch GmbH leased around 10,525 m² and Yusen Logistics around 9,087 m². Together, they accounted for 19,612 m² or 43.4% of take-up there.

In third place is the Ludwigsburg district with 25,200 m² or 16.5%, which had taken first place in H1 2021 with 57,000 m² or 46%. It thus saw the biggest relative decline out of all regions, with pro-rata take-up decreasing by 29.5 percentage points year-on-year. However, the Ludwigsburg district managed to gain a top e-commerce company in E. Breuninger GmbH & Co. KG, which leased around 22,282 m² in an existing property.

In fourth place is the Rems-Murr district, which totalled 12,800 m² or 8.4% after coming last in the same period of the previous year, when there were no lettings. Last but one is Göppingen with 7,900 m² or 5.2% (H1 2021: 400 m² or 0.3%). In last place is the Stuttgart urban region with 5,000 m² or 3.3% (H1 2021: 9,300 m² or 7.5%).

Retail leads sector ranking again

“As in the same period of the previous year, retail (including e-commerce) took the lead again out of all sectors,” reports Joel Adam. With take-up of 66,100 m², retail is responsible for 43.2% of total take-up (H1 2021: 49,400 m² or 39.8%; +3.4 percentage points).

“The breakdown between retail and e-commerce was more even in the past half-year period than in the same period of the previous year,” explains Joel Adam. Currently, 55.5% (or 36,700 m²) is attributable to traditional retail and 44.5% (or 29,400 m²) to e-commerce. In the same period of the previous year, e-commerce had been well ahead with 71.9% or 35,500 m² as compared to traditional retail with 28.1% or 13,900 m².

The majority of take-up in the retail/e-commerce sector came from the two top deals with Rewe and Breuninger (together amounting to approximately 57,282 m² or 86.7%).

Next in the sector ranking comes logistics/distribution with a share of 23.6% or 36,100 m² (H1 2021: 28.4% or 35,200 m²). One of the top deals, Yusen Logistics, was attributable to this sector and contributed around a quarter of its take-up (25.2%).

In third place is manufacturing with 27,300 m² or 17.8% (H1 2021: 18,400 m² or 14.8%). This sector recorded two top deals with Robert Bosch GmbH and Trumpf GmbH.

The miscellaneous category “Other” amounted to 23,500 m² or 15.4% (H1 2021: 21,000 m² or 16.9%).

Size category: large spaces stand out in reporting period

In the first half of the year, the size category of 10,001 m² and up accounted for 71,200 m² or 46.5% of the total take-up generated by all market participants in the Stuttgart metropolitan region. In the previous year, this category of large spaces had been in third place with 21,900 m² or 17.7%. It thus increased by a substantial 28.9 percentage points in terms of relative importance, while its take-up more than quadrupled in absolute terms.

However, all other size categories recorded year-on-year decreases in terms of their relative importance. Larger spaces between 5,001 and 10,000 m² accounted for 26,400 m² or 17.3% (third place). In the previous year, they had been in first place with 46,600 m² or 37.6%, meaning that they lost the most relative importance out of all size categories at 20.3 percentage points.

Medium-sized spaces between 3,001 and 5,000 m² took second place with 33,500 m² or 21.9% (H1 2021: 30,900 m² or 24.9%). Small to medium-sized spaces of between 1,000 and 3,000 m² ended up second-to-last with 19,800 m² or 12.9% (H1 2021: 20,300 m² or 16.4%), while the smallest spaces of less than 1,000 m² brought up the rear, as in the same period of the previous year, with 2,100 m² or 1.4% (H1 2021: 4,300 m² or 3.5%).

Average rent rises
The prime rent for modern industrial and logistics properties remained at the previous year’s level of €7.30/m², which represents the highest level to date for the first half of a year and resulted from an increase of 12.3% to €7.30/m² in the first half of 2021 (coming from €6.50/m² in H1 2020). The five-year average of €6.82/m² was exceeded by 7%.

The average rent on the Stuttgart market was much more dynamic, rising for the fourth time in the first halves of the past five years. It is currently at €5.60/m², representing an increase of 1.8% (H1 2021: €5.50/m², +5.8%). Average rents are 5.7% higher than the five-year average of €5.30/m².
 

REALOGIS press contact:
SH/Communication – Public Relations Agency
Silke Westermann
Press
Fritz-Vomfelde-Strasse 34, 40547 Düsseldorf
Tel: +49/211/53 88 3-440
e-mail: s.westermann@shcommunication.de
 

REALOGIS company contact:
REALOGIS Holding GmbH
Silja Schuppler
Marketing
Rundfunkplatz 4, 80335 Munich
Tel: +49/89/51 55 69 17
e-mail: s.schuppler@realogis.de
www.realogis.de

REALOGIS. No. 1 for industrial and logistics properties

The REALOGIS Group is Germany’s leading player for the consulting and brokering of industrial, logistics and commercial properties. Founded in 2005 as a pioneer for the asset class of logistics and industry, the owner-operated group has enjoyed healthy growth, is crisis-resistant and knows the German market like no other. In 2021 Realogis generated nearly 1,3 million m² of usable space alone in the letting segment. The net commission revenue of all services in the financial year 2021 are EUR 25 million.

In 2021, REALOGIS also won the German Real Estate Prize in the “Commercial Player” category, which honours companies for their outstanding commitment, creativity, innovative strength and sustainability.

Realogis is represented in the country’s seven top logistics locations of Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Leipzig, Munich and Stuttgart, while a dedicated organisational unit ensures transparency in around 15 additional regional logistics markets. 70 real estate professionals advise national and international companies from the fields of logistics, e-commerce, retail and industry as well as private and institutional investors. Quick, flexible, regional, customer-oriented and with a high volume of transactions.

REALOGIS four core competencies are arranging highly creditworthy tenants for new and existing properties, assisting investors with property investments and project development of greenfields and brownfields, outstanding service for locating or selling sites, and the development and implementation of holistic property strategies.

In short, REALOGIS creates more room for its customers’ success in every sense. Further information: https://www.realogis.de/