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Office Market Report Munich 2010 / 2011
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Office Market Report MUNICH 2010/2011
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PREFACE. The trend in the Munich office real estate market, which emerged in 2010, has been confirmed and can now be shown in figures. Ellwanger & Geiger calculated office space rentals of approximately 590,000 m² in 2010 (including around 12,000 m² owner occupiered) , which shows an increase of approx. 12%, compared to 2009. This is espe-cially a result of brisk rental activities in downtown Munich (approx. 47%) as well as the 2,000 m² rentals (approx. 50%).The strongest sectors were consulting agencies and law firms with approx. 17.8% of the rental activities of up to 2,000 m². There were a few major lettings (> 5.000 m²) in 2010. However expecta-tions for 2011 quite positive because of rising demand and the already existing applications. The weighted average office space rent remains stable compared to 2010 and is around € 14.20 /m². The weighted prime rent is almost unaffected by the market activity in 2010 and is constant at € 28.00 /m². A vacancy of about 1.8 million m² (8,3 %) was determined at the end of 2010. That means a vacancy rate of 8.3%. It is not expected that the vacancy rate will continue to increase significantly because new office building constructions keeps decreasing noticeably. A stable demand situation will thus support the upward movement of the Munich office rental market and is expected to bring a consolidation over the next few months, a slight reduction at best. Generally, due to the positive economic trend in Germany, an increasing positive development in the office rental market can also be expected in 2011. This could mean office space rentals beyond 600,000 m².
KEY FIGURES.
Source: Research Bankhaus Ellwanger & Geiger KG , 12/31/2010 Source: LHSt. München, Referat für Arbeit und Wirtschaft
ECONOMIC DATA
Area 310.4 km² Population ca. 1,370,000 Purchasing power/resident 25,237 € GDP/resident 56,655 € Employment rate 74.5 % Trade tax multiplier 490 %
OFFICE MARKET DATA 2010
Take-up 590,000 m² Prime rent 28.00 €/m² Average rent 14.20 €/m² Prime yield 4.8 % Space inventory ca. 21.8 Mio. m²Vacancy rate 8.3 %
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DEVELOPMENT OFFICE MARKET.
OFFICE SPACE TAKE-UP AND VACANCY RATE
-
200.000
400.000
600.000
800.000
1.000.000
1.200.000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
Take-up (m²) Vacancy rate
PRIME RENT- AND AVERAGE RENT in €/m²
-
5,00
10,00
15,00
20,00
25,00
30,00
35,00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Average rent (€/m²) Prime rent (€/m²)
RUNNING DEALS
Aufbau West Innovati-onspark GmbH
ca. 15,000 m² Munich-Sendling
_________
Franzis Verlag GmbH ca. 11,400 m²
Haar near Munich _________
Rodenstock GmbH
ca. 11,000 m² Munich-Westend
_________
GlaxoSmithKline GmbH & Co.KG
ca. 11,000 m² Munich-Bogenhausen
_________
Amazon.de ca. 8,800 m²
Muc.-Parkstadt-Schwabing _________
Heye Group ca. 8,600 m² Munich-City _________
VBG Verwaltungsberufs-
genossenschaft ca. 7,500 m²
Munich-Westend
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DEMAND DISTRIBUTION.
TAKE-UP BY RENT LEVEL
0
50.000
100.000
150.000
200.000
250.000
300.000
< 10 €/m² 10-15 €/m² 15-20 €/m² 20-25 €/m² >25 €/m²
TAKE-UP BY SIZE
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
< 500 m² 500 - 999m²
1.000 -1.999 m²
2.000 -4.999 m²
> 5.000 m²
SECTOR DISTRIBUTION IN %
7%8%
8%
18%
13%5%
7%
7%
7%
7%
13%
Pharma/Health Care
Banks, insurance, financial services
Construction, property
Consultants, attorneys, auditors
Computer, IT, telecommunications
Leisure, education
Trade and distribution
Industry
Media, publisher
Public administration
Other services
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OFFICE SUBMARKETS IN COMPARISON.
SUBMARKET RATIO
LOCATION TAKE-UP (m²) RENT AL PRICE RANGE(€/m²)
VACANCYRATE
City Centre 68,100 13.0 – 33.0 3.1%
City north 20,500 11.5 – 24.5 4.1%
City east 55,700 8.5 – 26.0 8.8%
City south 49,300 8.0 – 18.0 6.5%
City west 91,800 10.0 – 25.0 8.5%
Urban area north 44,200 8.0 – 22.0 10.9%
Urban area east 35,400 8.0 – 17.0 6.4%
Urban area south 18,700 7.5 – 14.0 24.0%
Urban area west 63,300 8.5 – 15.0 6.9%
Periphery 143,000 7.5 – 14.0 11.8%
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CONTACTS. BANKHAUS ELLWANGER & GEIGER KG Herzog-Rudolf-Str. 1 80539 Munich Phone 089/179598-0, Fax 089-179598-55 www.privatbank.de
Dieter MendlSenior Consultant Office Letting Phone 089-179594-22 [email protected]
Stephan SchörnigSenior Consultant Office Letting, contact person Research Phone 089-179594-26 [email protected]
Thomas BlessingConsultant Retail Letting Phone 089-179594-23 [email protected]
Tobias WäscherConsultant Office Letting Phone 089-179594-24 [email protected]
Markus LaermannSenior Consultant Investment Phone 089-179594-10 [email protected]
Alexander ZiganHead of office letting and retail letting Munich Phone 089-179594-20 [email protected]
Björn HolzwarthHead of commercial real estate Phone 0711-2148-192 [email protected]
Yvonne StrelowSenior Consultant Office Letting Phone 089-179594-25 [email protected]
DISCLAIMER:The preparation of this study was conducted with great care. Nevertheless ELLWANGER & GEIGER Privatbankiershas not verified the accuracy of the estimates. Therefore we make no guarantee about it. We ask for understanding.
