Facts and Figures Office market Frankfurt am Main H1 217
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Market Environment Population development Frankfurt a. M. Inhabitants 216: 729,624 74, 72, 7, 68, 66, 64, 62, 6, 3, 25, 2, 15, 1, 5, 29 21 211 212 213 214 215 216 Purchasing power per capita Germany and Frankfurt a. M. Purchasing power per capita Germany Purchasing power per capita Frankfurt a. M. Purchasing power per capita 217: Germany 22,239 / Frankfurt 25,532 21 211 212 213 214 215 216 217 Unemployment / employees subject to social insur. contribution 6, 5, 4, 3, 2, 1, Employees Frankfurt a. M. Unemployment rate Germany thereof tertiary sector 21 211 212 213 214 215 216 May 17 Consumer price index Germany and Hesse 11 15 1 95 9 85 Unemployment rate Frankfurt a. M. CPI Germany (base year: 21) CPI Hesse (base year: 21) 21 211 212 213 214 215 216 May 17 8.5 8. 7.5 7. 6.5 6. 5.5 5. 4.5 4. Source: Federal Statistical Office Source: State Statistical Office Hesse, Employment Agency Source: GfK GeoMarkting GmbH, Federal Statistical Office Source: City of Frankfurt a. M. The positive economic development in Frankfurt am Main has continued without interruption in 217, with falling unemployment and a growing number of employees that are subject to social insurance contributions. The rate of unemployment stood at 5.8 % in May 217 and therefore fell a further.5 % points compared to the previous year. In addition, the number of employees subject to social insurance contributions increased by 2.2 % to 559,563 based on the latest available data to 3 September 216. The Regional Statistical Office for Hesse also reported (price-adjusted) GDP growth of 1.5 % for 216. Significant boosts to the economy were provided by the construction industry with 8.1 % growth, as well as the retail, transport, hotel and restaurant, information and communication sector with growth of 2.9 % compared to the previous year. Office-related industry sectors also presented themselves in a positive light. The economic survey carried out by the Frankfurt Chamber of Industry and Commerce (IHK) in early summer showed that 95 % of all companies within the finance, credit, and insurance sector rated their business situation as good or satisfactory. Assessments of future business prospects were equally positive, with 91 % of companies expecting their situation to improve or remain the same. Among business service providers, 93 % rated their situation as the same or good, while 92 % had unchanged or increasing expectations for the future.
Market Data Take-up, vacancy, prime rent, average rent, prolongation 2,5 2, 1,5 1, Vacancy (in thousand) Take-up (in thousand) Prolongation after market screening (in thousand) Average take-up 1 years (in thousand) Prime rent (in /sqm) Average rent (in /sqm) 42. 4. 39. 39. 38. 38. 39.2 39. 39. 34.7 36.5 36. 1,95 sqm 1,79 sqm 1,59 sqm 17. 19. 21. 1,68 sqm 1,76 sqm 1,96 sqm 2.3 2. 19.5 1,52 sqm 2.5 2.5 2.5 2.5 1,34sqm 1,316 sqm 1,251 sqm 1,246 sqm 19.3 19.5 1,144 sqm 45. 4. 35. 3. 25. 2. 15. 6, 5, 4, 3, 2, 1, 5 55 sqm 47,7 sqm 35 Deals 547 sqm 51 sqm 35 sqm 472 sqm 427 sqm 26 27 28 29 21 211 212 213 214 215 216 H1 217 Office market Frankfurt with 248,3 sqm set for further growth The Frankfurt market for office space lettings, including Eschborn and Offenbach-Kaiserlei, maintained its positive take-up performance in the second quarter of 217 after its previous strong start to the year. From April to June, space take-up by tenants and owner-occupiers reached 123,8 sqm and thus exceeded the year-ago level by 22.8 %. In the first half of 217, space take-up amounted to 248,3 sqm in total. This not only surpassed the same period of 216 by 12.6 %, but also beat the average for the last 1 years by 15.7 %. Most size categories were affected by this strong take-up growth. Only the 2,51-5, sqm and 1, sqm plus segments registered a reduction in volumes compared to the previous year. The remaining categories recorded growth rates of between 2.8 % and 91.3 %. The number of deals also increased. This was especially the case in the 5, - 1, sqm segment, where contracts more than doubled from four in 216 to nine in the current year. Take-up according to location H1 217 Total: 248,3 sqm 31,1 sqm 56 Deals 21,5 sqm 23,2 sqm 3 Deals 12,6 sqm 1,9 sqm 22 Deals 11,4 sqm 11,7 sqm 36 Deals 7,1 sqm 12 Deals 14 Deals 7, sqm 2 Deals 1,6 sqm 5,2 sqm 1,4 sqm 4 Deals 11 Deals 3 Deals 11 Deals 6 Deals 515 sqm 452 sqm 369 sqm 21 sqm 394 sqm 97 sqm 541 sqm 74 sqm 248 sqm 16 sqm 1. 5.. 55,9 sqm 91 Deals Bankenlage Westend Bahnhofsviertel Stadtmitte City West Messe Westhafen Nordend Bockenheim Eschborn Niederrad (Büro) Mertonviertel OF-Kaiserlei other locations
Market Data Take-up according to unit size H1 217 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, 284 Deals 41,2 sqm 43,2 sqm 27 Deals 12 Deals 57,7 sqm 9 Deals 11,8 sqm 1 Deal < 1, sqm 1, - 2,5 sqm 2,51-5, sqm 5,1-1, sqm > 1, sqm Take-up according to rents H1 217 8, 7, 6, 5, 4, 3, 2, 1, Total: 248.3 sqm Total: 242.9 sqm* 15,8 sqm 67,6 sqm 13 Deals 74,8 sqm 93 Deals 15,1 sqm 39 Deals 32,5 sqm 53 Deals 37,1 sqm 19 Deals < 1 1 < 15 15 < 2 2 < 25 25 < 3 3 Take-up according to space quality H1 217 Total 248,3 sqm superior average ordinary 94,4 sqm 25 Deals *lettings only, no owner occupiers Take-up according to industry H1 217 Banking, Financial Services & Insurances Consulting, Marketing & Research Communication & IT Law Firms, Notaries & Legal Services Construction & Real Estate Others & n/a 22.4 % 37.1 % 9.3 % 12.2 % 9.5 % 17.4 % 65.4 % 12.4 % 14.3 % Large contracts completed in the second quarter of 217 included this year s first deal to exceed 1, sqm. Law firm Clifford Chance leased around 11,8 sqm on JunghofPlaza in the banking district (Bankenviertel). In addition, Axa Versicherung signed a contract for 8, sqm in a project development at 316 Berliner Straße in the Offenbach- Kaiserlei sub-market. The third-largest deal in the quarter also took place in the banking district and saw the Bundesbank extend its existing space in Trianon by a further 7, sqm. As a result of the large contract signings, banks, financial services and insurances retained the number one spot in the industry ranking. This group accounted for take-up of 43,2 sqm or a share of 17.4 %. Consulting, marketing and research occupied second position with 14.3 % or 35,5 sqm, while communications & IT accounted for 3,8 sqm or 12.4 % of the volume. The CBD remained the most popular location for office users and increased its market share significantly from 51.3 % in the previous year to 6.9 %. In terms of the individual sub-markets, the banking district was still the dominant area with 47,7 sqm of take-up, ahead of Westend with 31,1 sqm and the station district (Bahnhofsviertel) with 21,5 sqm. Large-scale and expensive lease contracts in the banking district and Westend pushed up the space-weighted average rent from 19.3/sqm in the previous quarter to 19.5/sqm in the second quarter of 217. The prime rent was unchanged at 39./sqm.
Office Locations Frankfurt a.m. Q2 217 We have divided the office market Frankfurt into the most important main locations and have colored them separately. In addition, every location is divided into the particular borough and identified with the corresponding apellation of site. Main Location Vacancy F-CBD 475, sqm F-WEST 6, sqm F-SOUTH 91, sqm F-NORTH 63, sqm F-EAST 48, sqm OFFICE CENTRES 47, sqm Total 1,144, sqm data as of 3.6.217 * inclusive subletting spaces in comparison to pervious reports changed main locations edition: January 28 / Stadtvermessungsamt Frankfurt a. M., 28 Frankfurt am Main Airport Office stock Take up Average rent Prime rent 371,2 sqm 14,8 sqm 2./sqm 27./sqm
Office Locations Submarkets Office stock (sqm) Vacancy (sqm) in % Ø-rent ( ) Prime rent ( ) Rentable objects 1. Höchst 189, 9,3 4.9 7. 16. 7 2. Eschborn-West 168,1 35,5 21.1 11. 12.8 11 3. Eschborn-Süd 386,3 83,9 21.7 1.5 15.3 25 4. Eschborn-Ost 123,9 8,6 6.9 11.5 15. 4 5. Sossenheim 87,3 11,6 13.3 11. 12.5 3 6. Nied 7. 8.9 11. 7. Rödelheim 115,5 22,2 19.2 9. 12.5 1 8. Griesheim 16,8. 6. 8.5 9. City West 517,1 79,6 15.4 13.5 21. 16 1. Gallus 58,3 16,6 2.9 11. 15. 8 11. Niederrad (Büro) 624,4 116,9 18.7 12. 16. 2 12. Niederrad (Stadt) 12,5. 1. 13. 13. Gutleutviertel 138,3 4.3 12. 13. 1 14. Westhafen 88,1 13,4 15.2 22. 27. 5 15. Bahnhofsviertel 46,2 48,1 11.8 16.5 26. 27 16. Messe/Europaviertel 313,4 37,7 12. 23. 34.5 5 17. Bockenheim 311,2 23,8 7.6 14.5 19. 9 18. Westend 659,6 96,5 14.6 22. 37. 64 19. Bankenlage 1,122,3 16,8 9.5 3. 39. 26 2. Stadtmitte 581,7 55,6 9.6 22.5 36. 59 21. Nordend 126,7 13,6 1.7 17.5 25. 9 22. City Ostend 226,3 2,1.9 14.5 17. 2 23. Sachsenhausen 444,6 4,5 9.1 13. 26. 28 24. Oberrad 4,5 7 15.6 12.2 15.5 2 25. OF-Kaiserlei 239,8 43,5 18.1 1. 12.5 11 26. Ostend-Ost 355,3 27,1 7.6 12. 18.5 2 27. Bornheim 36,9 3.8 9. 13.5 3 28. Riederwald/Fechenheim 226,4 11,8 5.2 8.5 11. 9 29. Bergen-Enkheim 5,6 4,9 9.7 6.5 11. 6 3. Seckbach 15,1 1,3 8.6 7. 9. 1 31. Eckenheim 13,9 4 2.9 12. 16. 1 32. Eschersheim 33,4 2.6 1. 16.5 1 33. Nieder-Eschbach 138, 35,9 26. 8. 1.5 13 34. Mertonviertel 275,5 118,9 43.2 12. 14. 8 35. Heddernheim 1,9 7 6.4 1. 12. 2 36. Praunheim/Hausen 18, 22,5 2.8 11.5 13.5 8 Total (inclusive other locations) 11,389, 1,144, 1. 19.5 39. 435
Market Data Geographical localisation of large-scale lettings H1 217 accor. to size categories (> 1, sqm) Lettings according to size > 1, sqm - 2,5 sqm > 2,5 sqm - 5, sqm > 5, sqm - 1, sqm >1, sqm Geographical localisation of office spaces completions 217 accor. to size categories (> 1, sqm) Office space completion according to size > 1, sqm - 5, sqm > 5, sqm - 1, sqm > 1, sqm - 2, sqm > 2, sqm
$ Market Data Vacancy according to vacancy size H1 217 6, 5, 4, 3, 2, 87,6 sqm 26 (sub-)properties 1, Total: 1,144, sqm (435 sub-properties), occupied within three months Vacancy Take-up H1 217 28,5 sqm 17,2 sqm 14 (sub-)properties 62 (sub-)properties 31,1 sqm 43 (sub-)properties 367,9 sqm 2 (sub-)properties 94,4 sqm 41,2 sqm 43,2 sqm 57,7 sqm 11,8 sqm < 1, sqm 1, - 2,5 sqm 2,51-5, sqm 5,1-1, sqm > 1, sqm Vacancy according to asking rent H1 217 6, 5, 4, 3, 168,6 sqm 79 (sub-)properties 2, 1, Vacancy according to quality of space H1 217 Total: 1,144, sqm (435 subproperties), occupied within three months superior average ordinary Completions 35, 3, 25, 2, 15, 1, 5, Total: 1,144, sqm (435 sub-properties), occupied within three months* Vacancy Take-up H1 217 481,5 sqm 158 (sub-)properties 187,6 sqm 94 (sub-)properties 15,8 sqm 67,6 sqm 74,8 sqm 15,8 sqm 67,6 sqm 74,8 sqm 15,1 sqm 32,5 sqm 37,1 sqm < 1 1 < 15 15 < 2 2 < 25 25 < 3 3 *average asking rent of all spaces per property Completions 8,1 sqm 9,2 sqm 157,4 sqm 1,1 sqm 115,2 sqm 41 (sub-)properties 4 (sub-)properties 26.3 % thereof rentable (before completion) 17,7 sqm 3,5 sqm 49,9 sqm 11,5 sqm 35,5 sqm 2.9 % 126,2 sqm 15,3 sqm 91,2 sqm 23 (sub-)properties 52.8 % 212 213 214 215 216 217 218 32,6 sqm 12,1 sqm 166,8 sqm 82,1 sqm Source: NAI apolloreal estate Source: NAI apollo real estatre The completions volume in Frankfurt amounted to a total of 4,8 sqm in the second quarter of 217 and was distributed between two projects. However, space removals reached a higher volume of 78,8 sqm, of which almost 6 % was converted into residential space. As a result, total office stock declined to 11.39 million sqm. In the April to June period, market-active vacancies on the Frankfurt market for office space that is, office space that can be occupied within three months of the contract signing fell markedly for the fourth time in succession. At the end of the second quarter, some 1.144 million sqm of office space was available at short notice. The resulting vacancy rate of 1. % has therefore declined by a further.4 %-points within the last three months. The positive development in the first half of 217 combined with upcoming lettings also point to an equally good performance in the second half of 217. Furthermore, the first contracts to be signed as a result of Brexit are expected to take place this year, triggering additional take-up. A double-digit number of banks have already cited Frankfurt as a future location. The take-up this year could exceed 55, sqm. Consequently, vacancies will also continue to fall and rents continue to rise. Outlook next 12 months Office stock % Vacancy Take-up Prime rent Average rent $ $ % Source: NAI apolloreal estate
Surroundings Market data surroundings of Frankfurt average and prime rents Kelkheim 7.8 / 12.7 /sqm Hofheim 6.6 / 13. /sqm Oberursel 8.4 / 13.1 /sqm Kronberg 1.5 / 14.8 /sqm Steinbach 6.9 / 1. /sqm Bad Soden 9.9 / 13.2 /sqm Schwalbach 1.7 / 12.7 /sqm Sulzbach 9.5 / 13.8 /sqm Liederbach 7. / 9.7 /sqm Kriftel 7.3 / 1.4 /sqm Kelsterbach 8.8 / 12.9 /sqm Hattersheim 9.4 / 12.8 /sqm Airport 2. / 27. /sqm Mörfelden-Walldorf 7.7 / 1.9 /sqm Friedrichsdorf 7. / 11.4 /sqm Bad Homburg 9.6 / 15.1 /sqm Neu-Isenburg 9.2 / 13.1 /sqm Dreieich 6.8 / 12.1 /sqm Langen 7.5 / 12. /sqm Bad Vilbel 8.6 / 12.4 /sqm Offenbach 9. / 14.5 /sqm Dietzenbach 6.4 / 1.5 /sqm Maintal 5.5 / 1.1 /sqm Hanau 6.9 / 12.4 /sqm Map Basis: RegioGraph GfK GeoMarketing GmbH On the basis of 5,498 offers (5/216-4/217) empirica-systeme Marktdatenbank
Top 5 Key Facts Cities Office space, take-up, vacancy, prime rent, average rent H1 217 Office space (in m. sqm) Take-up (sqm) Vacancy (in %) Prime rent ( /sqm) Average rent ( /sqm) Berlin 18.6 395, 2.5 29.6 17. Dusseldorf 9.12 22, 8. 26.5 14.7 Frankfurt a. M. 11.39 248,3 1. 39. 19.5 Hamburg 13.65 297, 4.9 26. 15. Munich 2.15 411, 3.8 35.5 16.5 Prime yields H1 217 Prime office yields Prime retail yields Prime logistics yields Berlin 3.2 % 3.3 % 4.8 % Dusseldorf 3.9 % 3.45 % 4.8 % Frankfurt a. M. 3.5 % 3.5 % 4.8 % Hamburg 3.25 % 3.35 % 4.8 % Munich 3.15 % 3. % 4.75 % Total Ø = 3.4 % Ø = 3.3 % Ø = 4.8 % Frankfurt a. M. Top take-up H1 217 Property + Location Junghof Plaza, Junghofstraße 18-26 / Bankenlage Tenant / owner occupier Clifford Chance Leased area in sqm 11,8 Berliner Straße 316 / Offenbach-Kaiserlei Axa Versicherung 8, Mainzer Landstraße 185 / Bahnhofsviertel Deutsche Bahn AG 7,2 Trianon, Mainzer Landstraße 16-24 / Bankenlage Deutsche Bundesbank 7, Japan Center, Taunustor 2 / Bankenlage European Central Bank 6,7 Top investments H1 217 Property + Location T8, Taunusanlage 8 Purchaser Mirae Asset Global Investments Co. Purchase price approx. 3,, WestendCarree, Grüneburgweg 14-18 Infrared Capital Partners approx. 136,, Frankfurt Airport Center 1 (FAC 1), Hugo-Eckener-Ring 1 Madison International Realty / Peakside approx. 12,, Colosseo, Walther-von-Cronberg-Platz 2-18 Patrizia approx. > 9,, (estimated) Signaris, Mainzer Landstraße 35-37 LBBW Immobilien approx. 8,, (estimated)
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