OFFICE MARKET REPORT VIENNA

Transcription

1 OFFICE MARKET REPORT VIENNA Autumn / Winter 2016 YOUR COMMERCIAL REAL ESTATE SPECIALISTS Austria Slovakia

2 VIENNA OFFICE MARKET OVERVIEW Rental fees Prime rents 26,00 Rents in good locations 12,50-15,75 Rents in peripheral locations 8,00-12,00 Leased office space sqm Vacant space 5,6 % Office space supply Existing space 10,9 Mio sqm Newly created space sqm Investment Investment volume ,5 Mrd. EUR Top yields 4,25 % Yields in class B locations 6,0 % - 6,5 % Yields for logistics space 6,5 % - 8,5 %

3 MODESTA REAL ESTATE MODESTA REAL ESTATE OFFERS YOU TARGETED AND INTEGRATED SOLUTIONS IN THE AREA OF COMMERCIAL REAL ESTATE, BOTH IN AND OUTSIDE OF AUSTRIA. WE PROVIDE ASSISTANCE WITH ANY ISSUES RELATING TO REAL ESTATE AND FIND SOLUTION-ORIENTED ANSWERS TO YOUR QUESTIONS. We support you if you are looking for an investment object, or for office, logistics, industrial or commercial space in Austria or the CEE area. From the location analysis through to contract negotiations. We are your partner if you own a commercial property and want to make the right property-specific decisions. We provide professional consultation, valuation of your property, corporate real estate services, and develop highly efficient marketing strategies. Andreas Polak-Evans, SIOR Managing Partner Offices & CRES evans@modesta.at Tel.: +43 (1) Our network stretches from our two offices in Vienna and Bratislava, across Austria and the CEE area, and also includes investment companies and investors from the UK and the US. Our focus is clear: a customer-oriented solution. Mag. Philipp Gruber Offices- and Commercial real estate gruber@modesta.at Tel.: +43 (1)

4 OVERALL ECONOMIC SITUATION The domestic economy is recovering slightly. While in 2015 the gross domestic product (GDP) rose by 1.0%, it is expected to increase by 1.7% in In recent years, GDP was negatively impacted mainly by the rising rental rates, the increased tax burden, the tangible pressure on the labour market, and the high infl ation in private households. From 5.7% up to 6% for the time being this is the rise in unemployment of the working population in Austria in Despite a rising employment rate, no real recovery in the labour market is expected in 2017, as the labour supply is too great. In a Europe-wide comparison, Austria is in 5 th place. The lowest unemployment rates can be found in Czechia, followed by Germany. The preliminary index level of the national consumer price index (CPI; 2015 base = 100) is in October This is a year-on-year increase of 1.4%. For the sake of comparison, these are the infl ation rates of the last three months: July , August , September For 2017 infl ation is expected to increase by 1.7%, which can be attributed mainly to the expected rise in crude oil prices. In 2015 public revenue totalled m. Public expenditure on the other hand amounted to m, which means the general government deficit was 2.03%. Public debt amounted to m in 2015, which is equivalent to 85.5% of GDP. In February 2016 the US credit rating agency Fitch confi rmed Austria s creditworthiness with an AA+ rating. *Sources: Statistik Austria; WKO

5 OFFICE LOCATIONS City centre and bordering areas (CBD) Vienna is and remains the top location for offices in Austria. The historic city centre, in particular, attracts many investors. High-quality refurbished old buildings are among the most sought-after properties in Vienna, as they guarantee a highclass flair combined with state-of-the-art technical facilities. They are used for office, residential and retail space. New buildings are hardly possible in the inner city, as many buildings are heritage protected. Goldenes Quartier sqm Directly on Tuchlauben, most exclusive facilities, completed in 2014 following a full renovation Kohlmarkt sqm This office building in a prime location offers office space with cutting-edge technical facilities. Underground connection U3, best infrastructure Schwarzenbergplatz sqm Centrally located office building, exclusive office equipment, good underground connection (U2, U3, U4) The areas bordering on the first district also boast new buildings with state-of-the-art facilities, such as Schwarzenbergplatz 3 and the Wien Mitte office complex.

6 Inner districts Vienna s inner districts the 2 nd to 9 th districts are home mainly to smaller companies and startups. The office buildings located between Ringstrasse and the Gürtel provide them with a representative office address. Excellent examples are the refurbished old buildings at the beginning of Mariahilfer Strasse, around the MuseumsQuartier and on Rennweg street. The new Post headquarters at Rochusmarkt are a highlight in this regard. Rochusmarkt, Post headquarters sqm New development at Rochusmarkt: modern office building with best possible infrastructure near U3 underground line. Completion 2017 Main station The area around the main station is Austria s largest construction site and will boast new hotels, offices and retail space by 2017/ ,000 sqm of gross floor space for commercial enterprises are planned, and more than 20,000 jobs will be created. On top of that, the headquarters of Erste Bank have been transferred to the new district around the main station. The heart of the office park is located in the triangle framed by Wiedner Gürtel Arsenalstrasse Main Station. QBC Construction phase sqm High-quality facilities, flexible space division, in Quartier Belvedere. Completion in 2017/18 The Icon Vienna sqm Right at the main station, perfect transport connections. Completion 2018 HBF sqm Located right at the new main station, modern architecture with ideal transport connections. Completion 2018

7 North-East (Donau City Prater - Lasallestraße Dresdner Spange) Some indisputable advantages of the North-East real estate submarket are its optimal underground connections and its proximity to the city centre. This area has become one of the most important office locations outside the inner districts. The redevelopment of the Praterstern and its train station greatly enhanced the district. In addition, UniCredit Bank Austria established its headquarters in Lassallestrasse, and many other large companies appreciate this area with its proximity to the Prater, Vienna s most important recreation area. The development of new office space around the Messezentrum exhibition centre, as well as the architecturally outstanding Vienna University of Economics and Business add to the area s appeal. Messecarre Wien Nord sqm Mixed use, tailored office space available, underground connection. Completion 2017 Austria Campus sqm New development at Vienna s former Nordbahnhof (north station): new office and residential campus at Prater. Completion 2018 Denk Drei, Viertel zwei sqm New development in Prater park near the horse racecourse: modern architecture and top facilities. Completion 2017 DC Tower sqm Austria s tallest building (250 m), urban centre in Donau City, underground connection (8 min to the city centre)

8 South-East (Erdberg-Gasometer) In recent years a major office property market has developed along the U3 underground line, especially in the areas of Neu Marx, Erdberg and around the Gasometers. The stable rental trend is thanks in particular to the new buildings with efficient floor plans and modern facilities. The A23 Südosttangente motorway and the A4 airport motorway are just a few minutes away and thus provide the best possible integration into the regional and international transport network. ORBI Tower sqm Energy-efficient high-rise building, flexible space division, U3 underground connection. Completion 2017 Smart Campus sqm New headquarters of Wiener Netze, U3 underground connection. Completion 2016 Brehmstraße sqm Near the Südosttangente motorway, excellent cost effectiveness, in an up-and-coming office cluster South (Wienerberg) Since the early 1990s, the area around the Wienerberg has developed into a major office location. In addition to office towers, a shopping and entertainment centre as well as a number of residential projects have been erected. Euro Plaza, BH sqm Flexible division of office space, rentable conference rooms, modern facilities, good infrastructure, close to Südosttangente motorway Twin Towers sqm Modern architecture, 127 m high-rise building, excellent local amenities, in-house conference centre Silo Plus + Next office buildings sqm Modern architecture with high-quality facilities, proximity to the U6 underground line in the 23 rd district

9 West (Schönbrunn) The office objects on Rechte Wienzeile and Linke Wienzeile, Linzerstrasse and Hietzinger Kai boast a convenient location close to underground line U4. This area does not have a cohesive office market. Cumberland Straße sqm Modern office building in Vienna s 14 th district, U3 underground connection Forum Schönbrunn sqm Interface south-west axis, U4 underground connection, flexible floor plan, modern facilities. Completion 2011 North (Heiligenstadt) The office locations in the north of Vienna are gaining significance thanks to their proximity to the city centre and a good infrastructure. The distinguishing features of many of the office properties in this submarket are their eye-catching architecture and high-quality facilities. Space2Move sqm Interesting architecture, underground parking, modern facilities, flexible space division, U4 underground connection, close to Q19 shopping centre Square Plus sqm Modern architecture, high-quality office facilities, right at U4 underground line. Completion 2017

10 RENTAL RATES The top rents in the 2 nd quarter of 2016 were 26.00*. The rent in the best areas of the city centre and with exceptional facilities has remained the same as the previous year. Rents in good locations (inner districts) saw a year-on-year increase from to 15.75*. Those locations in particular with a good underground connection and proximity to the city centre achieve higher rates. The price pressure is very high in peripheral locations without good underground connections. The average achievable rents in these areas are between 8.00 and 12.00*. The rental rates did not increase compared to * net per sqm/month OFFICE SPACE LETTING Current calculations point to a total rental of offi ce space in 2016 of about 290,000 sqm. This would correspond to an approximate 45% increase in leased space compared to the 200,000 sqm in In addition, the total leased space of 200,000 sqm is a clear upward trend on In the second quarter of ,000 sqm were already let. VACANT SPACE Since 2015 the vacancy rate in Vienna s offi ce market has decreased slightly and is currently about 5.6%. The vacancy rate is signifi cantly higher in older objects or at locations with poor public transport connections. Due to the stable demand and low increase in new space, the vacancy rate has remained quite constant. AVAILABLE OFFICE SPACE Existing office space in (million sqm) Newly created space in 2016: 60,000 sqm (according to current estimates) Forecast for 2017/18: In ,000 sqm of offi ce space will be created in Vienna and in 2018 around 350,000 sqm.

11 Rentals 2016 Objekt Mieter Größe in sqm Inner city CBD 1010, Wiener Börse Hypo Alpe Adria , Palais Herberstein Knötzl, Haugeneder Netal RA , fabricks Sparkassen Versicherung AG , Galaxy tower Bundesverwaltungsgerichtshof , Denk 3, Viertel 2 BIC / ARE Inner districts 1030, Kelsenstraße 2 Sigmund Freud Universität , City Point FCP-Fritsch-Chiari & Partner , Operngasse 21 TTTech Computertechnik , Zieglergasse 6 Radar Services Gmbh , BIG BIZ Sika Österreich Gmbh , Millennium Tower Regus , Shuttleworthstraße ÖSB Holding Gmbh , DC Tower PWC Nord-East 1220, DC Tower Oracle , DC Tower Voest Alpine , DC Tower Mass Telekom , DC Tower Regus , Seestadt Aspern Stadt Wien , MGC Office Park Strabag Property and Facility South-East 1030, MGC Office Park Bundesamt für Fremdwesen / Asyl , OCG MA , Gudrunstraße 10 BFI- Berufsförderungs Institut , Twin Tower Pool4Tool Gmbh , Oberlaaerstraße Equos , Quellenstraße Volkshochschule South (Wienerberg) 1120, Euro Plaza 5 Rewe Int. IT , Euro Plaza 5 Pöyry Energy , Euro Plaza ORF , Euro Plaza F Honeywell HLS , Triester Straße Coca Cola HPC , Euro Plaza Merchandising West 1150, Pfeiffergasse 2 Caritas der Erzdiözese Wien Main station 1100, QBC 4 BDO Austria Gmbh , QBC 4 WKO Inhouse , QBC 4 Your Office 1.000

12 OFFICE MARKET REPORT 2016 RENTALS OVERVIEW CZ PRAG A22 CZ BRÜNN S1 Office buildings 10,00-14,00 Office towers 13,00-17,50 NORTH U6 U1 NORTH-EAST Office towers 13,00-24,00 Office buildings 11,50-14,50 Office buildings 11,00-14,00 WEST U4 D INNER DISTRICTS Office buildings 11,00-16,50 Office towers 14,00-21,00 U3 U2 INNER CITY Office buildings 12,25-26,00 Office towers 15,00-26,00 MÜNCHEN SALZBURG - LINZ A1 U4 Office buildings 10,00-14,00 Vienna Main Station U3 SOUTH-EAST Office towers 13,00-18,00 Office buildings 11,00-15,00 Office towers 13,00-21,00 SOUTH A23 SALZBURG - LINZ D A 1 / A 21 U6 IT A2 GRAZ SLO S1 U1 Vienna International Airport A4 A4 / A6 SK BRATISLAVA BUDAPEST HU A3 / A2 HU

13 INVESTMENT MARKET In comparison to 2015 ( 3.0bn investment volume), the investment volume in the Austrian commercial real estate market amounted to almost 3.5bn in 2016 an increase of 16.67%. A large part of the transactions took place in the retail submarket, closely followed by the offi ce real estate market, which experienced a signifi cant upswing in Austrian and German investors continue to dominate the commercial real estate market. However, the number of fi nanciers from North America and the Asia-Pacifi c region is increasing. TOP YIELDS OFFICE REAL ESTATE In comparison to top yields in the rest of Europe, Vienna is in 5 th place with top yields of 4.25%, behind London, Munich, Frankfurt and Berlin. The top yield dropped slightly compared to the 4.65% of Class B locations continue to achieve yields of 6.0% to 6.5%. The prices of low-quality properties and those in bad locations are still sinking. Depending on their location, size, fl exibility, rental period, options for subsequent use and expansion, the yields for logistics and industrial properties are between 6.5% and 8.5% and thus remain constant in peripheral locations, by comparison, but are falling in top locations from 7% to 6.5%. THE MOST IMPORTANT INSTITUTIONAL TRANSACTIONS 2015/16 OBJECT Size in sqm Seller Buyer Florido Tower Union Investment Amundi Marximum BT HOCHTIEF ERGO IZD Tower Signa CBRE Global Investors Tech Gate Wr. Städtische Wien Holding FFG Strabag Solaris Union Investment Amundi QBC UBM Development AG BDO

14 OBJECT Size in sqm Seller Buyer Neue Mitte Lehen UBM Development AG Semper Constantia Bürohaus R KGAL Privatinvestor Büropaket Wien Immofinanz AG Privatinvestor FMZ Stadlau Privatinvestor Warburg HIH OBI Graz Supernova Family Office Privatinvestor OBI St. Valentin und Schärding Supernova Privatinvestor Triester Straße Immofinanz AG Privatinvestor Hilton Stadtpark 579 Zimmer Raiffeisen Zentralbank Villagio Group Falkensteiner Hotels 143 Zimmer Erste Bank Privatinvestor Falkensteiner Hotels 117 Zimmer Erste Bank Privatinvestor RAMADA Hotel Freitaggasse 106 Zimmer Family Office Privatinvestor Privatinvestor RAMADA Hotel Grieshofgasse 123 Zimmer Family Office Privatinvestor Privatinvestor Hotel Imperial 138 Zimmer Starwood Gruppe Al Habtoor Group La Stafa 186 Zimmer Privat Investor CBRE Global Investors Hotel The Ring 68 Zimmer Mohamed Al Jaber Aina Hospitality Fund (Rothschild) DHL Paket Austria CCG Nord Projektentwicklung Palmira Aviva Logistikportfolio Aviva Investors Tristan Capital Partners Forum Donaustadt Swiss Town Consult Signa ARE Funkhaus Wien ORF Rhomberg Bau GmbH Hillkaserne Republik Österreich Privatinvestor Conwert-Portfolio Conwert Immobilien Invest SE Immovate Schottenring Architekturbüro Schwanzer Austria Real Invest KAG

15 Austria: MG Real Estate GmbH 1010 Vienna, Dr. Karl-Lueger-Platz 5 Tel.: +43/1/ , office@modesta.at Slovakia: Modesta Real Estate, s.r.o Bratislava, Hviezdoslavovo námestie 7 Tel.: +421/2/ , office@modestagroup.com