Real Estate Market Report 2015 Rhine-Neckar Metropolitan Region

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Real Estate Market Report 2015Rhine-Neckar Metropolitan Region

Anniversary

Edition

Dr. Eva Lohse,

Chair, Verband Region Rhein-Neckar

(Regional Planning Association Rhine-Neckar)

President, Deutscher Städtetag

(Association of German Cities)

2015 is a special year. After ten years of regional cooperation, the

Rhine-Neckar Metropolitan Region has laid a strong foundation for

realising its vision. By 2025, we aim to be renowned and acknowl-

edged as one of the most attractive and economically powerful

regions in Europe.

The Rhine-Neckar Region lies at the intersection of three federal

states – Baden-Württemberg, Hesse and Rhineland-Palatinate. Ten

years ago, no one would have believed that coordinated, collaborative

regional planning and development would now be a reality. We have

achieved a great deal since the signing of the Second State Treaty in

2005. We have built a strong and closely integrated network, which

brings together the best of business, science, politics and administra-

tion. Our conclusion: regional thinking works!

The Rhine-Neckar Metropolitan Region is already a leader in many

areas of business and science. Although it is the smallest of the

eleven German metropolitan regions by area, it occupies one of the

top spots in almost all of the key indices. Economic output has grown

by over 17 percent since 2005. Employment has risen by 100,000

and unemployment is below five percent. The region offers an

outstanding quality of life and is on track to become one of the most

competitive locations in Europe.

Strong growth is also reflected in new major projects and investment

in the real estate sector. The Real Estate Market Report 2015 offers

you a concise overview of the latest plans and developments.

We hope you find it stimulating and enlightening!

Dr. Eva Lohse

Dear Readers,

1

View of the Neckar valley: the city of Heidelberg is home to the oldest university in Germany and is a meeting place for science and business

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Table of Contents

Rhine-Neckar – A Leading Location for Business 4

Market Segment Office 10

Market Segment Retail 16

Market Segment Commercial Land Parcels 23

Regional Map and Overview 26

Glossary 28

Legal Notice and Contacts 29

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The fl yover in Ludwigshafen with a view over Mannheim

The Rhine-Neckar Metropolitan Region lies in the

south-west of Germany at the intersection of three

federal states: Baden-Württemberg, Hesse and Rhine-

land-Palatinate. Its seven rural districts and eight inde-

pendent cities cover an area of approx. 5,600 km² and

are home to around 2.4 million people.

Rhine-Neckar – A Leading Location for Business

Together with its northern and southern neighbours, Frank-

furt/Rhine-Main and Karlsruhe/Stuttgart, the Rhine-Neckar

Region is one of Europe's economic powerhouses. The

three regional centres – Heidelberg, Ludwigshafen and

Mannheim – and medium-sized towns, such as Neustadt

an der Weinstraße, Speyer or Worms, create an attractive

balance of urban, suburban and rural landscapes.

Rhine-Neckar impresses as a business location due to its

central position and outstanding road, rail, shipping and air

transport infrastructure. Car and truck drivers benefit from

excellent east-west (A 6) and north-south (A 5, A 67, A 61,

A 65 and A 81) motorway links. Mannheim central station

is the second largest ICE hub in Germany with 230 long

distance departures daily. From here, travellers can reach

Frankfurt International Airport, one of Europe's largest avia-

tion hubs, in just 30 minutes. City Airport Mannheim offers

scheduled flights to Berlin and Hamburg with a flight time of

only 75 minutes.

Mannheim’s marshalling yard is the second largest of its kind

in Germany while the Mannheim/Ludwigshafen Port Centre

is the second largest inland port in Europe. These are key

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WIESBADEN

MAINZ

FRANKFURTam Main

OFFENBACHam Main

HANAU

ASCHAFFENBURG

DARMSTADT

MANNHEIM

HEIDELBERG

LUDWIGSHAFENam Rhein

HEILBRONN

STUTTGART

PFORZHEIM

KARLSRUHE

LUDWIGSBURG

WAIBLINGEN

ESSLINGENam Neckar

SINDELFINGEN

BADEN-BADEN

NEUSTADTa.d. Weinstraße

BAD HOMBURGv.d. Höhe

RÜSSELSHEIM

HESSEN

BAYERN

BADEN-WÜRTTEMBERGFRANK-REICH

RHEINLAND-PFALZ Main

Neckar

Rhe

in

WORMS

15 km

Population Development 2030

+7.4% Munich

+4.49% Frankfurt / Rhine-Main

+4.3% Stuttgart

+3.85% Rhine-Neckar

+2.37% Bremen-Oldenburg

+0.82% Hamburg

-1.91% Nuremberg

-3.0% Berlin-Brandenburg-3.07% Rhine-Ruhr

-4.37% Hanover

-17.22% Central Germany

While Germany’s popula-tion will shrink by 3 per-cent by 2030, the devel-opmental trend in the Rhine-Neckar region ispositive.

Source: presentation by MRN

based on data supplied by BBSR/

IKM 2012

3:09 h Mannheim Central Station – Paris

0:30 h

Mannheim Central Station – Frankfurt Airport

1:15 h Flight time Mannheim MHG – Berlin TXL

1:15 hFlight time Mannheim MHG – Hamburg HAM

Source: Own Mapping amended based on GeoBasis data:

© GeoBasis DE/BKG 2013, Cartography: VRRN

transportation facilities in the European freight traffic

network.

With a gross domestic product of € 80 billion and an

export ratio of 59 % (German national average: 40 %),

the Rhine-Neckar Metropolitan Region is one of the top-

ranked business locations in the country. The region can

boast gross value added of € 72.1 billion (2012), which

justifies its reputation as one of Germany's economic

engines. Major international companies, such as Südzu-

cker, SAP, Fuchs Petrolub, HeidelbergCement, BASF

and Bilfinger, have their headquarters here.

Key industries include the chemical, automotive, machi-

nery and equipment manufacturing sectors as well as IT,

biotech and life sciences, energy and the environment.

In addition, the region has a strong cultural and creative

economy. Rhine-Neckar occupies a leading national and

international position in many of these areas.

Excellent scientific and IT infrastructure further

strengthen the region’s standing. As a percentage of

the workforce, the proportion of people employed in

research and development in Rhine-Neckar is almost

twice the German average. Its 22 universities with

around 88,000 students and over 30 non-university

research institutes are recognised leaders in their fields.

Moreover, they are closely integrated with manufactu-

ring industries – both in the region and all over the world.

These partnerships between businesses and scien-

tific institutions have led to the formation of a number

of regional clusters, e.g. in biotechnology (BioRN) and

organic electronics (Forum Organic Electronics).

The cultural and creative sectors have also enjoyed

significant successes. In 2015, Mannheim was granted

the title "UNESCO City of Music" and Heidelberg

"UNESCO City of Literature".

Legend

Towns

Population more than 100,000

Population 50,000 to 100,000

Transportation infrastructure

Interstate

Railway line

5

In July, the initiative group European Metropolitan Regions in

Germany published new data comparing the eleven German

metropolitan regions. This showed that the Metropolitan

Region Rhine-Neckar is close to the top of the table in all the

key indicators.

With a GDP of € 34,700 per head (2012), Rhine-Neckar

is ranked fifth behind Munich (€ 42,939), Rhine-Main

(€ 39,250), Stuttgart (€ 38,827) and Hamburg (€ 34,911). The

unemployment rate of 5.1 percent (2012) is the fourth lowest

and bettered only by the Munich (3.4%), Stuttgart (4%) and

Nuremberg (4.3%) regions. Rhine-Neckar is also one of the

three best performing metropolitan regions for youth unem-

ployment (8.9%) – the rate is lower only in Stuttgart (8.6%)

and Munich (8.8%). The proportion of highly qualified

employees is also impressive: 17.7 percent of the workforce

are involved in high-tech industries, which puts the region

in second place behind Stuttgart (19.8%). Rhine-Neckar has

the third largest creative economy of the German metropol-

itan regions employing 4.6 percent of the working population

(Munich 5.4% and Berlin 4.6%).

It is one of the three most valuable regions in Germany. This

fact was highlighted by an evaluation conducted by Metropol-

region Rhein-Neckar GmbH, which studied the market

capitalisations of Dax, MDax, SDax and TecDax compa-

nies based in the eleven German metropolitan regions. The

Munich Metropolitan Region led the list. A total of 27 compa-

nies listed on the major German stock market indices are

based there with a market capitalisation of € 404 billion. The

Rhine-Ruhr Metropolitan Region occupies second place with

28 companies valued at € 378 billion.

6

"The Rhine-Neckar Metropolitan

Region includes two of Germany's

most fashionable cities, which have

a particular attraction for young

people. However, the populations

of most other parts of the region –

with the exception of the rural Neckar-

Odenwald district – are also growing. This

is a remarkable trend in a country like Germany, which has a

shrinking population."

Prof. Harald Simons, Professor of Economics at HTWK Leipzig

Key transportation hubs for the economy: the Mannheim /

Ludwigshafen Port Centre

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The Rhine-Neckar Metropolitan Region claims third posi-

tion with ten listed companies worth a total of € 186 billion.

These include BASF, HeidelbergCement and SAP (Dax),

Bilfinger, Fuchs Petrolub and Südzucker (MDax) as well as

Heidelberger Druckmaschinen, Hornbach Holding, Horn-

bach Baumarkt and MLP (SDax). Positions four to eleven are

held by the Metropolitan Regions Rhine-Main (€ 175 billion),

Hanover-Braunschweig-Göttingen (€ 171 billion), Stuttgart

(€ 113 billion), Hamburg (€ 42 billion), Nuremberg (€ 21 billion),

Berlin-Brandenburg (€ 15 billion), Central Germany (€ 2.7

billion) and Bremen-Oldenburg (€ 0.4 billion) respectively.

Market capitalisation expresses the stock market value of a

company. It is the product of the share price and the number

of shares issued. The study was conducted on 16 July 2015

(source: finanzen.net).

The Rhine-Neckar Metropolitan Region is already a leader in

many areas of business and science. Although it is the smal-

lest of the eleven German metropolitan regions by area, it

occupies one of the top spots in almost all the key indices.

Economic output has grown by over 17 percent since 2005.

Employment has risen by 100,000 and unemployment is

below five percent. The Region offers an outstanding quality

of life and is on track to become one of the most competitive

locations in Europe.

Market capitalisation in € billion

Source: in-house research, data from fi nanzen.net (status: July 2015)

400

350

300

250

200

150

100

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Selected investments in certain rural districts and independent cities

Alnatura organic produce distribution centreKreis Bergstraße

Logistics centre and offi ces

Alnatura Produktions- und Verwal-

tungs GmbH

73,000 m² site area

€ 37 M

Completed in 2014

Source: Greenfi eld Development

1

GBZ Mannheim GmbH & Co. KG Frankenthal

Offi ce building and production hall

GBZ Mannheim GmbH & Co. KG

3,200 m² offi ce and production area

€ 2.5 M

Completed in 2008

Source: GBZ Mannheim

3

MonTech Werkstoffprüfmaschinen GmbHNeckar-Odenwald-Kreis

Manufacturing hall with customer centre

and laboratory

MonTech Werkstoffprüfmaschinen GmbH

3,000 m² area for expansion

€ 5.5 M

Completed in 2015

Source: MonTech Werkstoffprüfmaschinen GmbH

5

Uniwheels AGLandkreis Bad Dürkheim

Logistics centre

Gateway Real Estate AG


€ 15 M

Completed in 2012

Source: Uniwheels AG

7

Joseph Vögele AGLudwigshafen

Manufacturing

Joseph Vögele AG


€ 100 M

Completed in 2010

Source: Joseph Vögele AG

9

Wormser Einkaufspark (WEP)Worms

Retail park

Immobilien-Treuhand GmbH und Co.

30,000 m² total area

€ 50 M

Completed in 2008

Source: Kaiser Passage Worms

2

Pfenning Logistikzentrum multicubeRhein-Neckar-Kreis

Company HQ

Pfenning Logistics


€ 100 M

Completed in 2013

Source: Pfenning Logistics

4

Q6 Q7Mannheim

New city district for mixed use

Diringer & Scheidel Unternehmensgruppe

153,000 m² gross fl oor area

€ 300 M

Completed in 2016

Source: Blocher Blocher Partners, D&S

6

Frigo-Trans Unternehmensgruppe HQRhein-Pfalz-Kreis

Administration building with pharma-

logistics centre

Frigo-Trans Immobilien GmbH

30,000 m² operating area

€ 25 M

Completed in 2015

Source: Frigo-Trans GmbH

8

SkyLabsHeidelberg

Science and laboratory buildings

Max-Jarecki-Stiftung

19,500 m² offi ce and laboratory area

€ 60 M

Completed in 2013

Source: Image Agency-BHP GmbH

10

Legend:Project Name | Location | Type of location | Investor | Space allegation | Investment Vol. (partially indicated) | Schedule | Source

8

Source: in-house research; Cartography: VRRN

Le Quartier-HornbachNeustadt

Conversion of Turenne barracks

Hornbach Immobilien AG

15,000 m² total area

Construction started in 2007

Source: Hornbach Baumarkt AG

11

Eberspächer Controls Landau GmbH & Co. KGLandau

Production, development and offi ce

complex

Eberspächer Group


Completed in 2014

Source: jahreiss.com

13

Daimler Consolidation CenterSpeyer

Vehicle logistics, hall

Daimler AG


€ 90 M

Completed in 2015

Source: Daimler AG

12

Pfälzer Erfrischungsgetränke (PEG)Landkreis Germersheim

Beverage fi lling plant

Mitteldeutsche Erfrischungsgetränke GmbH & Co. KG

65,000 m² building area

Completed in 2013

Source: FLY-FOTO.de

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6

98

7

11

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13

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10

5

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Home to a number of departments: the new Südzucker administra-tive headquarters in the Oststadt Quarter of Mannheim

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The office market in the Rhine-Neckar Region is multi-

faceted and dynamic. It is built on a broad economic

foundation of leading industrial clusters, research and

development, university teaching and the service and

financial sectors. The region also profits from its central

location in Germany and excellent infrastructure.

The Rhine-Neckar office market is highly segmented – the

individual markets have different functions and target groups.

While Heidelberg has a strong education and research sector,

Ludwigshafen is dominated by the industrial companies,

which predominantly use their own buildings. As the largest

market, Mannheim sets the tone for office developments in

the region. New properties in the city centre and city centre

periphery have led to significant growth in rent levels. Heidel-

berg, too, has experienced lively growth in its office market

over recent years – driven principally by the development of

the Bahnstadt Quarter. The vacancy rate in all Rhine-Neckar

office markets is relatively low at 5 to 5.6 percent. This

reflects not only the stability of the region as a whole but also

the strength of the individual markets.

Regular market activity is taking place even outside the larger

centres. For example, the Freudenberg-Group has built a

Market Segment Offi ce

new administration building with approx. 14,000 m² of office

space in Weinheim and HeidelbergCement AG a new tech-

nology centre in Leimen.

However, the office market is not led exclusively by user

demand. The region's stable economic conditions and enor-

mous rent increases in major office markets, such as Frank-

furt, Berlin, Munich and Hamburg, are leading both national

and international investors to review their office commit-

ments on a regular basis. Growing demand, especially for

high quality properties with sustainable rental situations,

is reflected in falling net initial returns and rising purchase

prices. Due to the lack of alternative investments, we expect

this trend to continue and the Rhine-Neckar Region to attract

greater attention from real estate investors.

in €/m²/month

Existing office space (in million m²)

Source: gif/In-house research

Peak rents in the city centre and its periphery

2,0.

1,5.

1,0.

0,5.

2012 2013 2014 2012 2013 2014 2012 2013 2014Mannheim Heidelberg Ludwigshafen

Vacant premises in million m2

Mannheim city centre, peak rent

Heidelberg city centre, peak rent

Ludwigshafen city centre, peak rent

Mannheim city centre periphery, peak rent

Heidelberg city centre periphery, peak rent

Ludwigshafen city centre periphery, peak rent

Source: gif/In-house research

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14

12

10

8

6

4

2

2010 2011 2012 2013 2014

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Location Project name Investor/Occupant Space Investment Vol. Schedule

Ludwigshafen Offi ce and conference complex D-105 BASF n.a. n.a. Under construction, completion 2015

Ludwigshafen Integrated control centre State of RP, city authority, surrounding

municipalities

n.a. € 11.7 M Construction starts 2015

Heidelberg F&U Campus F&U Group 18,000 m² € 25 M Under construction, completion 2015

Mannheim Quartier4 Diringer & Scheidel 16,000 m² € 60 M Planned

Mannheim Südzucker company HQ Südzucker AG 15,600 m² n.a. Completed 2015

Weinheim New administrative complex Freudenberg Group 14,000 m² € 36 M Under construction, completion 2016

Heidelberg Mathematikon Mathematikon Heidelberg 12,000 m² n.a. Under construction, completion 2016

Leimen Technology Center Heidelberg Cement 11,000 m² n.a. Under construction, completion 2016

Wiesloch-Walldorf Metropolpark Pending 11,000 m² € 27 M Construction starts 2015, completion 2017

Weinheim 3-GLOCKEN-CENTER 3-GLOCKEN-CENTER GmbH & Co. KG 8,000 m² n.a. Under construction, completion 2015

Ludwigshafen Metropol Timon Bauregie 7,725 m² € 50 M Construction starts 2015

Heidelberg MVZ Dr. Limbach und Kollegen Dr. Limbach 7,000 m² n.a. Under construction, completion 2016

Heidelberg Colours Deutsche Wohnwerte 6,500 m² n.a. Construction starts 2015

Mannheim GBG company HQ GBG 6,380 m² € 27 M Under construction, completion 2016

Ludwigshafen Prego Services DC 2 Grundstücksgesellschaft 6,000 m² € 15 M Under construction, completion 2015

Bensheim Christoffel-Blindenmission (CBM) - New HQ complex Christoffel-Blindenmission (CBM) 5,800 m² € 14 M Under construction, completion 2015

Mannheim VR Bank VR Bank Rhein-Neckar 5,500 m² n.a. Completed 2015

Mannheim Q6 Q7 Diringer & Scheidel 5,000 m² € 300 M Under construction, completion 2016

Heidelberg Business Parc Dulger Vermögensverwaltung 4,300 m² € 7 M Under construction, completion 2015

Mannheim Eastsite 7 B.A.U. Bauträgergesellschaft 4,000 m² € 12 M Under construction, completion 2015

Mannheim MAFINEX-Technologiezentrum

(2nd construction phase)

City of Mannheim 3,860 m² € 13 M Under construction, completion 2015

Leimen New municipal administration complex City of Leimen 3,720 m² € 8.8 M Under construction, completion 2016

Speyer Offi ces & laboratories Thor Chemie 3,205 m² n.a. Completed 2015

Mannheim O4, 4 LBBW Immobilien 2,400 m² € 35 M Under construction, completion 2015

Mannheim Eastsite 8 B.A.U. Bauträgergesellschaft 2,000 m² € 6 M Under construction, completion 2016

Speyer Offi ce administration Daimler AG & CO 1,975 m² n.a. Completed 2015

Mannheim KWZ Jungbusch City of Mannheim 1,600 m² € 15 M Completed 2015

Source: In-house research (Date: 30 September 2015); space information based on MF/gif

Overview of Key Office Projects

MetropolPark – the 20,000 m² industrial park occupies an outstanding location between Wiesloch and Walldorf

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Offi ce Market Mannheim

Mannheim's office market has traditionally been character-

ised by a high level of owner-occupancy. This is partly due

to the city's strong industrial heritage and structures but also

to its large public administration sector. The construction of

the new Südzucker headquarters with a total area of approx.

15,600 m² is one current example.

The rental market is particularly important for small to

medium-sized areas. While it serves a wide range of sectors,

it is dominated by innovative companies with strong inter-

ests in technology and research as well as corporate service

providers and banks. Demand is increasingly focused on

superior quality premises. This is reflected in the high

number of rental properties under construction. The office

market continues to be in a state of flux. As well as tradi-

tional city centre office locations, new quarters are being

developed around the railway station, which could lead to

an expansion of the central business district. For example, a

Source: gif / bulwiengesa / In-house research

Indicators Trend for 2015 2014 2013

Existing space 1.983 M m² 1.95 M m²

Offi ce space turnover 52,000 m² 81,000 m²

Vacancy rate 5.6% 5.1%

City centre, peak rent € 15.00/m² € 13.40/m²

City centre, average rent € 11.50/m² € 11.40/m²

City centre periphery, peak rent € 13.90/m² € 14.00/m²

City centre periphery, average rent € 11.40/m² € 10.80/m²

Periphery, peak rent € 11.50/m² € 12.90/m²

Periphery, average rent € 8.60/m² € 9.80/m²

Office market data for Mannheim

The second section of the Mafi nex creative centre

has been completed in the Glückstein Quarter of

Mannheim

tower providing 16,000 m² of office space is currently under

construction in the Glückstein Quarter close to Mannheim's

main railway station (Quarter4). This will also stimulate new

ideas for urban development.

Further project development activities are also making their

mark on the city centre. As well as the project under the

management of LBBW Immobilien, further progress is being

made towards the completion of Quarters Q6 and Q7. This

is the largest project ever undertaken by Diringer & Scheidel

and one of the largest construction projects in Mannheim’s

post-war history.

The expansion of and strong demand for office space is

creating a dynamic, developing market. In 2013, peak rents

for commercial premises were still € 13.40 per m² (MF/G). In

less than a year, they climbed to € 15 per m² – an increase

of around 12 percent. It is expected that this level will be

sustained in Mannheim. There are additional relevant activi-

ties to report from outside the city centre. For example, the

Eastsite 8 project is currently in the planning phase following

the successful completion of Eastsite 7 in Neuostheim.

As spaces developed as speculative real estate now

come onto the market and are successively absorbed,

vacancy rates in outdated office spaces rose slightly in

2014. However, this is not the beginning of a trend; in fact,

marketing activities actually point towards stabilisation in

2015.

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Offi ce Market Heidelberg

The Heidelberg office market has experienced a watershed

over recent years. On the one hand, the Bahnstadt Heidel-

berg development on the site of the old rail freight terminal

has created a new segment in the market for those seeking

modern, innovative office spaces. On the other hand, the

periphery of the city centre continues to grow in importance,

especially along the Kurfürstenanlage. The withdrawal of the

U.S. military has opened up significant areas of Heidelberg

for conversion. These seem set to maintain the positive trend

in the development of the office market and will provide the

basis for the creation of additional, state-of-the-art office prem-

ises in attractive locations in the future.

Buildings for the education sector are currently the primary

driver for development activities in the city. One example is

the Mathematikon – a 12,000 m² complex under construction

at Neuenheimer Feld (near the university). It is noteworthy that

the project is funded not only by the public purse but also by

the Klaus Tschira Foundation. Another important initiative in

the education sector is the construction of the F+U Campus

close to Heidelberg's main railway station. This will provide

around 18,000 m² of office space for use by the F+U schools

themselves as well as furnished apartments.

New build projects outside the education sector, such as the

DIH Deutsche Wohnwerte office project "Colours" in the Bahn-

stadt Quarter, are also underway. This will create around 7,770

m² of space, some of which will be occupied by DIH Deutsche

Wohnwerte itself. The Heidelberg office market has a stock of

approx. 1 million m² of commercial office space and is there-

fore one of the small to medium sized markets in Germany. Source: gif / bulwiengesa / In-house research











Office market data for Heidelberg

Uniting work, shop-ping and residen-tial spaces – the COLOURS complex in Bahnstadt Heidelberg

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However, office space turnover is prospering and regular. The

5-year average for commercial rental and owner-occupancy is

40,000 m². Exceptional events such as large scale lease agree-

ments and openings of owner-occupied premises can produce

significant fluctuations in the annual figures.

The importance of the city centre periphery to the office

market is also reflected in the growth of rents in this area: at

€ 15 per m² for commercial premises, the peak rent is signifi-

cantly higher here than in the city centre where rent levels of

€ 14 per m² are achieved. The most dynamic development of

rents in Heidelberg, though, is in the periphery outside the

central locations. Commercial rents here rose from € 12 per m²

in 2013 to € 13 per m² in 2014. Forecasts predict similar values

for 2015.

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Offi ce Market Ludwigshafen

For many years, the office market in Ludwigshafen has been

shaped by two special features. Firstly, the city's strong

industrial legacy is closely associated with the manufacturing

sector and a number of owner-occupied properties. The

chemical company BASF regularly builds new complexes

for its own operational needs, such as the new office and

conference building D105 and the planned redevelopment

of the former Engelhorn building. The second factor is the

strong interest from investors who are often able to report

that their buildings are fully leased when construction has

only just begun.

Market activities in the small office segment with target

groups from the diversified sector of service providers are

less conspicuous. Commercial office space turnover in this

area is between 10,000 and 15,000 m² per year. Individual

leases of large office spaces, however, can result in strong

fluctuations in the turnover statistics. For example, in 2013

the level was very high (44,000 m²) while in 2014 it was

significantly lower (5,000 m²). The average volume of leased

and owner-occupied commercial premises per year over the

last five years is around 22,500 m².

The peak rent lies between € 8.50 per m² in the city centre

and € 6.60 per m² in the periphery. Small offices are primarily

located in legacy buildings. The "Metropol" will be built

at Berliner Platz and includes a 14-storey tower. This will

enhance the city skyline and replace the building popularly

known as the "Tortenschachtel" (cake box) providing a gross

floor area of 25,800 m² for various uses.

Ludwigshafen offers an alternative location for price-sensi-

tive demand in the Rhine-Neckar Region. As well as local

service providers and technology businesses, companies in

the health and public sectors are the principle customers in

the office rental market. Overall, the market is very stable

and has a healthy balance between supply and demand. The

vacancy rate is a modest 5 percent.

Source: gif / bulwiengesa / In-house research











Office market data for Ludwigshafen

Open plan offi ces, a modern confer-ence centre and canteen with green roof terrace – all features of the new BASF offi ce building in Ludwigshafen

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A number of parallel trends are currently influencing

the development of the high street retail sector. These

are accompanied by continuing demographic changes

and an associated drop-off in demand. The structural

changes in the retail sector caused by digitisation

and the advent of online retailing continue unabated.

According to the latest forecasts from the Institute for

Retail Research (IFH), one in ten shops could close by

2020. This will primarily affect the new federal states

(former GDR). In strong economic areas, such as the

Rhine-Neckar Region, the impact will be less severe.

Saturation effects and greater competition from online

shops will visibly slow the growth of retail sales areas

in Germany.

Several large retail project developments have been

completed in the Rhine-Neckar Metropolitan Region over

recent years. After large scale new developments in major

and secondary regional centres, the growth in retail sales

areas is gradually slowing and falling into line with the general

Market Segment Retail

market trend in Germany. Apart from new projected devel-

opments in the furniture and food sectors, such as the

Möbelhaus XXXL furniture store in the Bahnstadt Quarter

of Heidelberg, only a few large area retail developments

are planned. The focus is increasingly switching to restora-

tion and redevelopment of legacy premises, e.g. of the "real"

supermarket location in Mannheim-Sandhofen or the site of

the former "Hit" supermarket in Ludwigshafen-Rheingönheim.

In Weinheim, one such project resulted in the 3-Glocken-

Center, which is home to branches of Hit and Rossmann.

Other units in the property are still available for interested

tenants. There are also plans to expand the Bergstraße retail

park, which already has branches of Roller, Zoo&Co, alldrink

and Matratzen Concord. Construction of the final section

with an area of 6,200 m² is scheduled for the end of 2015 /

early 2016.

The retail park in Bensheim was opened on the site of the

former rail freight terminal. The area was developed by

City quarter of superlatives: the major project being built by Diringer & Scheidel in Mannheim will be completed in 2016

10.000

9.000

8.000

7.000

6.000

5.000

4.000

3.000

2.000

1.000

Footfall in top locations

Mannheim, Planken Heidelberg, Hauptstr. Ludwigshafen, Bismarckstr.

Pedestrians / hour

2012 2013 2014 2015

Source: presentation by MRN based on data supplied by Jones Lang LaSalle

20152005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Mannheim Heidelberg Ludwigshafen Average for Germany

Peak rents for retail property

Source: presentation by MRN based on data supplied by Jones Lang LaSalle

180,00

160,00

140,00

120,00

100,00

80,00

60,00

40,00

20,00

€ / m² / month + 34,6 %

+ 14,3 %

+ 15,5 %

-33,3 %

17

procom and has a retail sales area of around 8,500

m². It opened in mid-2015 and features retailers from

a variety of sectors but with an emphasis on food and

drink. The adjacent Aldi store is currently being rebuilt.

The old building was demolished in order to create a

link to the new retail park via the car park.

Individual specialist stores or a retail park are planned

for the business park to the north of the railway line in

Haßloch. These will sell ranges which are not appro-

priate for city centre locations and provide a sales area

of up to 13,000 m². Haßloch's municipal authorities

would welcome a furniture store with an area of 5,000

to 7,000 m² and a DIY and garden centre with a sales

area of 4,000 to 5,000 m².

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

Index German average = 100; Sources: GfK (indices: 2015), State Statistics Offi ces

(Population count as of 1.1.2014 based on the 2011 census)

The company headquarters of 3 Glocken in Weinheim have a history stretching back more than 130 years. The building has now been revitalised creating an area of over 39,000 m²

Municipality Population Purchasing power index

Retail turnover index

Centrality rating

Mannheim 296,690 99.81 150.98 151.26

Ludwigshafen am Rhein 161,518 93.05 108.88 117.01

Heidelberg 152,113 99.97 122.33 122.36

Worms 80,296 98.85 123.05 124.47

Neustadt an der Weinstraße 52,400 108.54 127.56 117.52

Speyer 49,740 107.2 143.08 133.46

Frankenthal (Palatinate) 47,332 100.7 88.55 87.93

Landau in der Pfalz 43,825 101.46 153.46 151.24

Weinheim 43,624 118.84 143.01 120.33

Bensheim 39,368 112.56 105.34 93.58

Sinsheim 34,674 100 98.1 98.09

Viernheim 33,120 100.89 219.44 217.49

Lampertheim 31,491 105.25 81.3 77.24

Leimen 25,812 97.14 57.1 58.78

Wiesloch 25,502 105.97 87.21 82.3

Heppenheim (Bergstraße) 25,013 105.73 131.89 124.73

Mosbach 22,735 97.92 159.18 162.56

Schwetzingen 21,147 111.39 248.71 223.27

Hockenheim 20,968 103.98 191.29 183.97

Germersheim 20,201 81.22 108.17 133.18

Haßloch 19,911 98.88 90.02 91.03

Schifferstadt 19,277 102.14 59.29 58.04

Bad Dürkheim 18,381 107.53 99.25 92.3

Buchen (Odenwald) 17,547 95.06 132.26 139.14

Sour

ce: C

+ S

Gm

bH

18

Retail Destination Mannheim

Mannheim occupies a leading position in the study "Vitale

Innenstädte" (Vibrant City Centres) conducted by the IFH,

Cologne (2015). Over 83 percent of the passers-by surveyed

declared themselves "very satisfied" or "generally satisfied"

with the shopping facilities. Mannheim is also ranked 7th out

of the 73 cities considered by the Comfort city rankings 2015.

This confirmed the attractiveness of the city centre.

As well as a new Decathlon store in the redeveloped "Prinz"

house in T1, there were further new openings, especially of

fashion stores. These included COS, Bershka, Planet Sports,

Only and Gero Schuhe in a new complex built by the devel-

oper DC Values on the site of the former Zürich-Passage in

P7 and KiK in H1. Other new suppliers include Butlers in Q5

and the furniture retailer Bretz in Q3.

The largest project in Mannheim, the city quarter "Q6/

Q7" being built by the developer Diringer & Scheidel, is on

schedule. Work on the shell has already been completed. The

19,000 m² shopping area Q6 is due to be finished in autumn

2016. The mixed use complex comprises apartments, a hotel,

fitness centre, rooms for offices and medical practices as

well as an underground car park with 1,376 parking spaces.

Diringer & Scheidel is also responsible for the separate devel-

opment "Kleine Fressgasse", Q7 23-26 with 8,000 m² for

retailers, 4,900 m² of offices and 800 m² of apartments.

Conversion work on the original Engelhorn building has been

completed. As well as expanding the sales area by 2,000

m², the food court has been extended once again. A branch

of the fashion chain Reserved will move into the "Palais auf

den Planken" O4, 4 – a new build project undertaken by the

investor LBBW Immobilien Development GmbH. It will open

in time for the 2015 Christmas shopping season.

Plans for increasing the appeal of the city centre are

becoming more specific. Work on the redevelopment of the

Planken shopping street is due to begin in March 2017. This

will include resurfacing the streets. Preparatory work on tram

lines for local public transport precedes this project.

Source: Source: Jones Lang LaSalle (*based on 185 shopping streets analysed in Germany,

** ranking among 170 shopping streets analysed in Germany)

Retail data for Mannheim

Source: GfK; Cartography: VRRN

Mannheim´s prime locations

Opening in Autumn 2015: the new O4 occupies a top

location in the Planken, Mannheim

Mannheim, Planken GER overall

Peak rent 2015 (ranking) € 175/m² (10*) € 64.60/m²

Change (2005-2015) 34.60% 18.00%

Footfall 2015 (ranking) 5,340 (42**) -

Percentage of chain store

operations in 2014

80.00% -

Sour

ce: L

BB

W Im

mob

ilien

LegendePedestrian zone prime location 100 m

19

Retail Destination Heidelberg

Heidelberg is a tourist hotspot. According to a 2015 study by

dwif consulting, retail sales to tourists in Heidelberg totalled

around € 200 million in 2013. Groups of international tourists

and large numbers of day trippers are highly visible among

the city’s pedestrians. The top locations are to be found along

Hauptstraße. Both the peak rents of € 120 per m² and footfall

continue to grow at a stable rate.

Premises in the centre of Heidelberg are in great demand

among chain stores. However, the potential for new leases

is limited due to the lack of available space. Nevertheless, a

number of new openings have taken place. Timberland, the

U.S. supplier of shoes and outdoor clothing, the fashion

store Liebeskind Berlin, chocolate manufacturer Lindt, break-

fast cereal specialist mymuesli and restaurant chain "Die

Kuh die lacht" have all recently opened new branches along

Germany's longest continuous shopping street. In addition,

the Markthalle in the Altes Hallenbad has re-opened after

restructuring work and now houses an ice cream shop and

espresso bar. The development of the Wormser Hof is taking

shape. After the original idea of a large office building was

rejected, the favoured plan is now to redevelop the premises

as a 1,400 m² area for the retail sector.

Outside the city centre, new retail developments are

underway in the Bahnstadt Quarter. The master plan for the

"Westarkaden" project has already been agreed. This will

create around 9,000 m² of retail space for an Edeka super-

market with a check-in concept, branches of Aldi and dm as

well as a further 1,000 m² for cafés, restaurants and small

retailers. Designed as a supply centre for the new Bahnstadt

Quarter, the complex will also provide around 300 additional

apartments for the rental sector.

Following the general trend, a new large furniture store is

planned for this regenerated area of the city. The XXXL furni-

ture store with a sales area of 25,000 m² will be built next to

an existing branch of the Bauhaus chain.

Source: Jones Lang LaSalle (*based on 185 shopping streets analysed in

Germany, ** ranking among 170 shopping streets analysed in Germany

Heidelberg´s prime locations

The longest pedestrian zone in Europe is loved by tourists and locals alike: Hauptstraße

in Heidelberg

Sour

ce: H

aubn

er

Retail data for Heidelberg

Heidelberg, Hauptstr. GER overall


Change (2005-2015) 14.30% 18.00%



operations in 2014

74.30% -

Source: GfK; Cartography: VRRNLegende

Pedestrian zone prime location 100 m

20

Retail Destination Ludwigshafen

The city centre of Ludwigshafen is on the move. Retailers are

increasingly focusing on the area between the Rathauscenter

and Rhein-Galerie. The northern end of Ludwigstraße can now

be described as a top location. Peak rents are unchanged at

around € 20 per m². Projects in the planning phase and under

construction signal a continuing trend of positive growth. The

revitalisation of the Bismarck-Zentrum and the completed rede-

velopment of the Bürgerhof are among the initial successes.

A new branch of Targobank has opened in Bahnhofstraße. The

shoe retailer CCC has moved into premises previously occu-

pied by Thalia in the Rathauscenter. Dänisches Bettenlager and

Xenos are planning to follow suit. Looking forward, the central

section of Ludwigstraße and parts of Bismarckstraße will focus

on high quality apartments and services and it is hoped that

encouraging mixed use of these areas will generate positive

effects. Raising the profile of city centre locations can boost

their appeal still further – this is the conclusion of a report on

the city centre management of Ludwigshafen produced by the

consultants CIMA and GIU on behalf of the local authority.

The face of Berliner Platz will be transformed over the coming

years. The demolition of the circular building known locally as

the "Tortenschachtel" (cake box) is in full swing. By 2018, the

former department store will be replaced by a striking new

building – the "Metropol". This will combine space for retailers,

offices and apartments. The property is being developed by

the investor Timon Bauregie in partnership with the City of

Ludwigshafen and will create a sales area of up to 8,000 m².

Another large scale project is taking shape around the Rathaus-

center. The plan is to replace the Hochstraße Nord flyover with

a city street at ground level. It is anticipated that the eastern

section of the Rathauscenter will be demolished during the

redevelopment. However, this could be extended to the west

in the direction of Jägerstraße. The project offers a major

urban development opportunity for transforming brownfield

sites and spaces into new residential and office areas.

Ludwighafen´s prime locations

The new face of Ludwigshafen's city centre at

Berliner Platz: the Metropol

Sour

ce: R

KW

Rho

de K

elle

rman

n W

awro

wsk

y A

rchi

tekt

ur

Source: Jones Lang LaSalle (*based on 185 shopping streets analysed in

Germany, ** ranking among 170 shopping streets analysed in Germany)

Retail data for Ludwigshafen

Ludwigshafen, Bismarckstr. GER overall


Change (2005-2015) -33.30% 18.00%



operations in 2014

35.10%



21

Retail Destination Schwetzingen

The town of Schwetzingen has a population of around 21,500

and lies between the cities of Mannheim, Heidelberg and

Speyer. It is a medium-sized centre for the neighbouring

municipalities of Brühl, Ketsch, Oftersheim, Plankstadt and

Hockenheim. The Zündholz retail park to the north of the

town, with a large Möbelhaus Höffner furniture store and

Hornbach DIY store, provides a high level of centrality.

In its otherwise decentralised locations, the retail sector is

dominated primarily by markets for short term needs, which

provide very good coverage. In the retail concept agreed in

collaboration with the neighbouring towns of Oftersheim

and Plankstadt at the end of 2010, Schwetzingen clearly

At the heart of the Rhine-Neckar Metropolitan

Region: Schwetzingen with Carl-Theodor-Straße and

Schwetzinger Palace

prioritised the development of its historic town centre.

Schwetzingen is an attractive place to spend time and

home to many smaller retailers. The top location is along the

western section of Carl-Theodor-Straße and the intersecting

Mannheimer Straße (pedestrian zone). In 2011, the opening

of a large Kaufland store at the end of Carl-Theodor-Straße

provided significant stimulus. The "Kleine Planken" has been

significantly upgraded with a Müller chemist, weekly market

and other attractive shops provides a counterpart on a smaller

scale. Clothing chains such as Esprit, Bonita and Street One

complement a diverse range of independent shops.

The palace and its gardens as well as a rich programme of

cultural events ensure that the town has a thriving tourism

industry, which also plays its part in boosting demand in the

retail sector. Thus, Schwetzingen has traditionally offered

visitors a wide selection of inviting restaurants and cafés.

Watchmakers, jewellers and opticians, who are all well-repre-

sented, also benefit from the tourist trade. In addition, the

town centre is popular among service providers and, after

the regeneration of a number of open areas, as residential

property.

The aim is to maintain the appeal of Schwetzingen’s town

centre as a whole in the future. Further elements in the plan

include the barrier-free redevelopment of the railway station,

which will also be suitable for local S-Bahn railway services,

new stimulus for the pedestrian zone and the development

of an appropriate concept for the site of the Alter Messplatz,

which is currently still used as a car park.

Sour

ce:F

uchs

/ Fe

nkel

Sch

wet

zing

en

Schwetzingen´s prime locations



22

Market Segment Commercial Land Parcels

Sour

ce: B

ASF

SE

The world's largest TDI plant is being built by BASF at its site in Ludwigshafen

2323

The Rhine-Neckar region offers excellent investment

opportunities for companies in all sectors. A central

location in Europe, extensive land reserves for new

settlement and expansion, a robust infrastructure and

several main branches of major companies in a variety

of important future-oriented industries are some of the

key advantages (see page 5).

A survey of municipal authorities conducted for the Real

Estate Market Report 2015 analysed 30 industrial parks

with a total area of around 9.34 million m². Of these areas,

approx. 24 percent (2.24 million m²) are still undeveloped and

available at short notice.

Purchase prices for fully accessible industrial land parcels are

dependent on the location. In the heart of the urban Rhine-

Neckar Region, prices generally range from € 110 to € 200

per m² – although they can even be as high as € 260 per m².

In suburban areas, prices of between € 80 and € 110 per m²

are the starting point for negotiations. In the periphery, these

fall to an average of € 50 per m² – usually with very good

transportation links.

Investment activity in the areas of manufacturing and logis-

tics was more or less unchanged from the previous year.

The world's largest TDI plant is being built by BASF at its site in Ludwigshafen

Over the next few years, a total of around € 1.3 billion will

flow into 20 identified projects. A large proportion of this is

due to the construction of a TDI plant at the BASF site in

Ludwigshafen, the largest integrated chemical facility in the

world.

The TDI plant represents the largest single investment in

the corporate history of BASF. It comprises eight compo-

nent plants, which are all scheduled to go online succes-

sively in the final quarter of 2015 after a construction period

of three years. The world's largest chemical company is

investing around € 1 billion in the project, which will create

200 new jobs and significantly reduce consumption of power

and materials in the manufacturing process of TDI – a basic

material used in making plastics.

The most important investments in manufacturing and logistics properties

1

2

4

5

6

7

Sour

ce: G

arbe

Log

istic

s A

G

No. in map

City Type of location Investor/Operator Site area Investment Vol. Jobs Schedule

Bürstadt Manufacturing, branch Rheinische Pilz-Zentrale 37,000 m² n.a. 100 Completed 2015

Ludwigshafen Manufacturing BASF 30,000 m² € 1 billion 200 Under construction, completion 2015

Neuhofen Construction materials

wholesaler

Union Bauzentrum Hornbach 32,200 m² n.a. 45 Completed 2015

Neustadt Branch Motoren Baader 24,000 m² € 7 M 60 Under construction, completion 2015

Neustadt Manufacturing ATEC Autotechnik 14,400 m² € 4.5 M 30 Under construction, completion 2015

Speyer Logistics centre Daimler AG & CO 100,000m² n.a. 400 Completed 2015

Landau Logistics centre Einrichtungshaus Ehrmann 13,200 m² € 4 M n.a. Under construction, completion 2016

3

You can find further information about industrial parks

in the Rhine-Neckar region at the Rhine-Neckar location

portal (www.standorte-rhein-neckar.de) as well as on

websites and in other municipal publications.

24

25

Selected industrial parks in the Rhine-Neckar Metropolitan Region

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Source: In-house research (Date: 30 September 2015)

No. in map

Municipality Name of industrial park Zoning law/Type of area

Total area Still available

Available lot sizes Guideline value Purchase price

Worms Worms-Rheindürkheim GE / GI 1,000,000 m² 80,000 m² 1,000-35,000 m² € 55-85/m² € 85/m²

Worms N 101 GE / GI 250,000 m² 66,000 m² On request € 70/m² € 85/m²

Frankenthal (Palatinate) Am Römig GI 200,000 m² 200,000 m² 35,000-200,000 m² n.a. € 120-140/m²

Ludwigshafen Technologiemeile GE 117,000 m² 10,143 m² 2,818-4,152 m² n.a. n.a.

Haßloch North of the railway embankment GE 154,933 m² 91,078 m² 1,000-60,000 m² € 70/m² (2014) € 75/m²

Böhl-Iggelheim GE south of the railway line and

west of Iggelsheimer Straße

GE / GI / MI 87,500 m² 60,000 m² 4,500-8,000 m² € 75/m² (2014) n.a.

Neustadt an der Weinstraße Naulott GE 150,000 m² 49,019 m² 1,147-14,500 m² € 55-90/m² € 48-100/m²

Neustadt an der Weinstraße Solarpark GE / MI 80,000 m² 40,000 m² On request € 55-110/m² € 60-70/m²

Edenkoben Gewerbepark Edenkoben-Venningen GE / GI 150,000 m² 50,000 m² 1,500-20,000 m² n.a. € 59/m²

Speyer Am Rübsamenwühl GE 30,000 m² 30,000 m² 1,500-6,000 m² € 130/m² (2015) € 120-130/m²

Offenbach Interpark Rheinpfalz GI 715,000 m² 50,000 m² 1,000-25,000 m² n.a. € 60/m²

Landau in der Pfalz Am Messegelände GE 272,042 m² 40,866 m² 3,139-15,358 m² n.a. € 73-81/m²

Rülzheim Nord GE / GI 101,200 m² 30,200 m² 800-11,000 m² n.a. € 65/m²

Herxheim Gewerbepark West 2 GE / GI 80,000 m² 60,000 m² 1,000-20,000 m² n.a. € 65/m²

Groß-Rohrheim Am Entenweg II GE / GI 150,000 m² 115,000 m² 10,000-90,000 m² On request On request

Bensheim Stubenwald GE 122,000 m² 75,000 m² 5,057-35,000 m² On request On request

Heppenheim Süd GE 230,000 m² 187,700 m² 2,000-44,300 m² On request On request

Weinheim Technologie- und Industriepark GE / GI 871,000 m² 107,000 m² 2,000-28,000 m² € 85-152/m² n.a.

Mannheim Eastsite GE 65,122 m² 22,410 m² 3,000-13,852 m² € 260/m² (2012) € 265/m²

Brühl Schütte-Lanz-Fläche GE 60,000 m² 60,000 m² from 10,000 m² n.a. n.a.

Plankstadt A Real! Plankstadt GE 100,000 m² 65,375 m² 1,500-65,000 m² € 145/m² from € 120/m²

Heidelberg Pfaffengrund GI 880,000 m² 52,000 m² 1,684-7,500 m² € 200/m² (2013) On request

Hockenheim Hockenheim-Talhaus GE / GI 2,000,000 m² 28,000 m² 1,000-11,000 m² € 80-130/m² (2014) € 90-115/m²

Neulußheim B36 GE 200,000 m² 200,000 m² n.a. n.a. € 40-100/m²

Wiesloch-Walldorf Metropolpark GE / GI 50,000 m² 40,000 m² 1,500-20,000 m² n.a. n.a.

Mosbach TECH-N-O GE / GI 160,000 m² 100,000 m² from 1,600 m² € 40.90/m² € 41/m²

GVV Hardheim-Walldürn VIP Walldürn GI 246,429 m² 68,600 m² 1,950-29,000 m² n.a. € 25/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 85,213 m² from 500 m² € 30/m² (2012) € 20-30/m²

Osterburken RIO GE / GI 330,000 m² 77,200 m² from 1,500 m² € 25/m² (2013) € 25/m²

23

24

25

26

27

28

29

30

No. in map

City Type of location Investor/Operator Site area Investment Vol. Jobs Schedule

Landau Logistics centre Schramm KG 36,000 m² € 7 M 30 Under construction, completion 2015

Germersheim Logistics centre Compass Logistics Interna-

tional AG

80,000 m² € 30 M 250 Under construction, completion 2016

Hagenbach Manufacturing GROKE Türen und Tore GmbH 22,000 m² € 8.3 M 50 Under construction, completion 2016

Lindenfels Manufacturing Kopp-Schleiftechnik 10,000 m² n.a. 40 Under construction, completion 2015

Heppenheim Logistics centre Henry Schein 31,000 m² n.a. 100 Completed 2015

Heppenheim Manufacturing KLN Ultraschall 12,000 m² n.a. 50 Under construction, completion 2016

Weinheim Manufacturing nora systems n.a. € 8 M n.a. Completed 2015

Weinheim European HQ ANCA n.a. € 4.5 M 30 Completed 2015

Mannheim Logistics centre Garbe Logistik 32,600 m² € 22 M n.a. Completed 2015

Mannheim Parcel centre Müller Projekt-entwicklung

GmbH / DHL

6,400 m² n.a. 120 Completed 2015

Heddesheim Warehouse Edeka Südwest 26,000 m² € 50 M 250 Under construction, completion 2016

Mannheim Administration, logistics Gutperle 11,000 m² € 15 M n.a. Completed 2015

Eppelheim Manufacturing Deutsche SiSi-Werke 70,000 m² € 70 M 70 Under construction, completion 2015

14

15

16

17

18

19

13

12

11

Source: In-house research (Date: 30 September 2015)

8

9

10

20

1

7

13

17

14

16

9

18

54

15

8

20

3

2

6

1

2

3

4

5 6

7

810

9

11

12

13

14

17

18

19

20

2122

23

24

25

12

10

Overview of investment projects and industrial parks in the Rhine-Neckar Region

16

19

15

26

27

30

28

29

Transportation routes

Motorway with number

Federal route

Railway line

Airport

Port

Borders

National border

State boundary

District boundary

Towns & cities

Settled area

Population 100,000 and more

Population 50,000 - 100,000

Population 25,000 - 50,000

Population 10,000 - 25,000

Selected industrial parks andinvestments

Industrial park with number

(Table on page 25)

Investment with number

(Table on page 24/25)

0

0

Legende

Population count as of 31/12/2013 based on the 2011 Census

Source: State Statistics Offi ces, Wiesbaden 2015; Own Mapping

amended based on GeoBasis data:

© GeoBasis DE/BKG 2013, Cartography: VRRN

11

28

Market Segment: Offi ce

City centre Best offi ce location in the respective town.

City centre periphery Locations directly adjacent to (offi ce) city centre.

Periphery All offi ce locations not categorised as city centre or city centre periphery.

Peak rent Top price segment (5 %) across all leases newly agreed in 2014 (in accordance with the “Defi nitionssammlung zum Büromarkt” (Collection of Defi nitions

for the Offi ce Market) published by gif, Gesellschaft für Immobilienwirtschaftliche Forschung e.V., 2nd Edition, June 2008) All rents stated are nominal rent

prices for marketable offi ce spaces, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).

Average rent Average rent across all leases newly agreed in 2014 (in accordance with the “Defi nitionssammlung zum Büromarkt” (Collection of Defi nitions for the Offi ce

Market) published by gif, Gesellschaft für Immobilienwirtschaftliche Forschung e.V., 2nd Edition, June 2008) All rents stated are nominal rent prices for

marketable offi ce spaces, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).

Existing space Total completed offi ce space available (in use or vacant) within the town area as of 31 December 2014 (in accordance with the “Defi nitionssammlung zum

Büromarkt” (Collection of Defi nitions for the Offi ce Market) published by gif, Gesellschaft für Immobilienwirtschaftliche Forschung e.V., 2nd. Edition, June

2008)

Offi ce space turnover Total offi ce space rented, leased or sold to an owner-user within the town area in 2014, including sub-leases (in accordance with the “Defi nitionssammlung

zum Büromarkt” (Collection of Defi nitions for the Offi ce Market) published by gif, Gesellschaft für Immobilienwirtschaftliche Forschung e.V., 2nd. Edition,

June 2008)

Vacancy rate Percentage of all unused completed offi ce space offered for sale, lease or sub-leasing within the town area as of 31 December 2014 and which are ready for

move-in within a period of three months.

MF/gif space defi nition All space information provided in Section Offi ce Market refers to leased spaces as defi ned by gif. They refer to the “Richtlinie zur Berechnung der

Mietfl äche für gewerblichen Raum (MF-G)” (Guidelines for the Computation of Leased Space for Commercial Spaces (MF-G)) published by the Gesellschaft

für Immobilienwirtschaftliche Forschung e.V. (latest version of May 2012). As a rule, the leased spaced according to gif is less than the gross fl oor space

(BGF) according to DIN 277, because, for example, traffi c / transportation areas are not included in the computation. The fi gures used in this report are

based on a conversion factor gif/BGF of 0.8 in accordance with the recommendations made by bulwiengesa AG.

Profi t Average starting profi t generated by marketable offi ce properties with good leasing status, i.e. average annual net rent income in 2014 compared to

purchase price (in accordance with the recommendations made by the gif- Gesellschaft für Immobilienwirtschaftliche Forschung e.V.).

Market Segment: Retail

Prime 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 fl oor sales area in a top location with a 6 meter display

front (defi nition Jones Lang LaSalle).

Percentage of branch operation Percentage of national chain store operations as a proportion of total local retail trade.

Footfall Number of pedestrians passing by per hour based on a specifi c counting location in the pedestrian zone on a uniform survey time and date used throughout

Germany: 21 March 2014, 1:00 – 2:00 pm (according to 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 defi nition).

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 defi nition).

Centrality index Index 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 defi nition).

Market Segment: Industrial Sites

Guideline value Average land value for an area that has similar uses and value conditions. The guideline value provides the value per square meter of land for a fi ctitious

land parcel, with location features typical of the area in question.

Zoning type Type of structural land use according to the Federal Land Utilisation Ordinance (BauNVO). Abbreviations GE = commercial land, GEe = commercial land for

restricted uses, GI = industrial park, GIe = industrial park for restricted uses.

Legal Information and Liability Disclaimer

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 the information we had at the time of our editorial deadline (31 August 2015). Actual developments may differ signifi cantly 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 state-

ments made. The information contained herein is provided for the sole purpose of sharing generally informative material and is not intended as a substi-

tute for professional consultations.

Glossar

Research Partners:

Sponsors:

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Publisher:

Metropolregion Rhein-Neckar GmbH

Location Marketing / Business

Development

N7, 5-6, 68161 Mannheim

Germany

www.m-r-n.com

Verband Region Rhein-Neckar

P7, 20-21, 68161 Mannheim

Germany

www.vrrn.de

Legal Notice and Contacts

Overall Coordination & Research:

Kevin Schmich, Mareike Polzer

Tel. +49 (0) 621 129 87-0

Fax +49 (0) 621 129 87-52

[email protected]

www.standorte-rhein-neckar.de

Cartography:

Uwe Hein, Olga Kahnert,

Nadine Kastner

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Metropolregion Rhein-Neckar GmbHLocation Marketing / Business DevelopmentN7, 5-6, 68161 Mannheim, GermanyPhone 0621 129 87-0Fax 0621 129 [email protected]

Real Estate Market Report 2015 Rhine-Neckar Metropolitan Region

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