THE STUTTGART OFFICE MARKET 2011 / 2012

BANKHAUS ELLWANGER & GEIGER KG
STUTTGART ON THE MOVE.
Real Estate
Börsenplatz 1, 70174 Stuttgart, Germany THE STUTTGART OFFICE MARKET 2011/2012
Phone +49 (0) 711/2148 297, Fax +49 (0) 711/2148 290
www.privatbank.de

OVERVIEW OF THE STUTTGART OFFICE MARKET

Year Volume Representative Average central Vacancies Vacancies Total space Completion Pre-leased
(sq. m) peak rents business district (sq. m) (%) available volume volume
rents (mill, sq. m) (sq. m) (sq. m)

1994 120,000 €14.83 €13.60 225,000 4.00 5.926 317,000 no data

1995 120,000 €14.32 €13.35 190,000 3.30 6.056 130,000 no data

1996 135,000 €14.32 €12.75 290,000 4.90 6.108 52,000 no data

1997 140,000 €14.83 €12.65 270,000 4.50 6.231 123,000 no data

1998 180,000 €15.08 €13.85 186,000 2.80 6.266 35,000 no data

1999 230,000 €15.85 €14.80 118,000 1.80 6.296 39,000 no data

2000 205,000 €16.87 €14.90 100,000 1.50 6.356 60,000 no data

2001 160,000 €18.41 €15.34 137,000 2.00 6.516 160,000 130,000

2002 127,000 €17.89 €14.80 292,000 4.20 6.828 312,000 220,000

2003 149,000 €17.50 €14.50 379,000 5.30 6.973 145,000 80,000

2004 152,000 €17.00 €14.50 415,000 5.70 7.102 129,000 93,500

2005 145,000 €17.00 €13.50 402,000 5.60 7.170 68,500 51,400

2006 140,000 €17.50 €13.50 467,400 6.50 7.222* 52,500 20,500

2007 169,000 €17.50 €14.50 466,000 6.40 7.253 32,600 23,400

2008 180,000 €18.00 €14.50 460,000 6.20 7.367 117,000 116,000

2009 171,000 €18.00 €13.60 453,000 6.12 7.401 40,000 22,000

2010 194,000 €17.50 €14.30 480,000 6.46 7.425 42,400 22,400

2011 285,000 €18.80 €14.30 424,000 5.7 7.449 45,900 41,200

* Data from a survey by BulwienGesa AG + Baasner, Möller & Langwald GmbH Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2011

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PA U LI N E
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5

CONTENTS.
Foreword 6

Stuttgart – an attractive and promising location 8

Stuttgart 21 – Section A1 is coming alive 9

Rental volume at an all-time high 10

Increased demand for office space in many sectors 12

Renewed interest in large premises 13

Rental rates exceeding previous year’s level 14

Marked decline in vacant office space 16

Nationwide upturn continuing 18

Central Stuttgart: Persistently strong demand 20

Northern Stuttgart: Mixed trends 21

Eastern Stuttgart: Untapped potential 22

Southern Stuttgart: A top location with a sunny outlook 23

Overview of the Stuttgart office market 25

Forecast: Stuttgart’s office market – stronger than ever 27

Your contact partners 28

ELLWANGER & GEIGER Real Estate 29

FOREWORD.

STUTTGART – MOTOR FOR TOMORROW.

The future of humanity is in cities. Two hundred years ago, about 97 percent of the world’s
population lived in rural areas. Today half of all people live in cities. According to United Nations
predictions, that figure will be three-quarters by the middle of this century. Cities are motors
of future growth. Their expansion is driven by factors like quality of life, economic vigour and
education. At the same time, they face a major challenge: while continuing to grow, they must
preserve their quality of life.

How can Stuttgart do this?

The instruments to do so can be found in the many topics that hold promise for the future: a wide
range of sustainable technologies, especially in mobility, construction, tourism, health services
and “knowledge for tomorrow”. Stuttgart is making rapid progress in these areas, and its related
business clusters have become an important source of its economic strength. One major milestone
in the field of “knowledge for tomorrow” was the opening of the large new city library, which
will draw 1.2 million visitors each year. A mobility map will explain Stuttgart’s integrated mobility
services, and sustainable mobility networks will foster the development of public and private
transport. Architects, urban planners, civil engineers and tradespeople are working to supply urban
districts with renewable energy, build zero-energy houses and develop mixed-use residential,
working and leisure areas. By constructing new buildings and expanding its existing ones, the
Stuttgart Clinic is enhancing the city’s healthcare profile. These are just a few examples of how
the city is promoting the local economy with extensive measures. Because Stuttgart is committed
to being a motor for business development and it intends to stay that way.

We would like to thank ELLWANGER & GEIGER Privatbankiers for their many years of excellent
cooperation and for their continuation of the public-private partnership that has made it possible
to produce a new edition of this publication.

Dr. Wolfgang Schuster Ines Aufrecht
Mayor of Stuttgart Director of Business Development, Stuttgart

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STUTTGART – THE OFFICE MARKET IS BOOMING.

“If you had another chance to decide, would you select this city as your place of business?” This
was the question that IW Consult put to a number of companies in a survey. “We’d do it again”
is what almost 90 percent of the companies in Stuttgart replied. In terms of positive responses,
Stuttgart took fifth place among German cities, well ahead of most. So Stuttgart seems to have all
the right ingredients as a business location, and demand for office space is correspondingly brisk.
Established businesses in particular have expanded in Stuttgart and stimulated the market by
renting premises on a large scale. As a consequence, the rental volume for 2011 was the highest
of all time. But current developments should not make landlords and investors complacent: they
must continue to work on meeting modern requirements in areas like energy efficiency, certification
according to the LEED or DGNB standards and the provision of ample parking space. Expectations
among users of office space are rising, and in some areas, particularly in the central business
district and city centre, premises are still in short supply. Steps should be taken now to renovate
and modernise existing buildings, invest in attractive new construction projects and promote the
development of other locations. Project development is an especially effective way of creating
demand for high-quality premises, and it helps to give the city a fresh and modern appearance.

What is the current situation in the office market and how has it developed? What trends can we
observe and how will they affect the rental situation? This report on the office market will provide
detailed information and give you new things to think about. We hope that you will benefit from
reading it, and we would be glad to answer any questions you may have about these topics.

Mario Caroli Björn Holzwarth

STUTTGART – AN ATTRACTIVE AND PROMISING LOCATION.
In Stuttgart the waves of the economic crisis have now receded. The city weathered the crisis well,
thanks to its versatility and innovative spirit. During the current period of recovery, its economy
is also being boosted by factors like traditionally low unemployment and a highly qualified workforce,
creating an attractive market.

VARIETY INSTEAD OF MONOCULTURE project Car2go, for example, has been a major success.
Although the region experienced a sharp rise in un- The city of Stuttgart has likewise taken the initiative and
employment, it was able to recover very quickly: in less is drafting a master plan for a Mobility Card. Projects like
than twelve months the unemployment rate dropped this make the region more attractive, because mobility
by 40 percent, clearly demonstrating that the region is is the key factor for investors seeking a location. In the
not exclusively dependent on the automotive industry. ADL mobility check, Stuttgart now holds fourth place
In fact, the diversity of the region’s industries is what among major German cities.
enabled it to respond so quickly to economic fluctuations.
And business diversity is continuing to increase: bio- FRUITFUL INTERACTION BETWEEN ACADEMIA AND
technology and medicine, for example, are growing in BUSINESS
importance. Companies that are in close touch with events and have
access to corresponding research results are able to
FORWARD-LOOKING INVESTMENTS detect trends at an early stage and prepare themselves
The local automotive industry is also preparing itself for better for change. The Baden-Württemberg Cooperative
future challenges, investing in electric vehicles and future State University and the University of Hohenheim provide
forms of mobility which have considerable potential. Stuttgart with the necessary transfer of knowledge between
According to a worldwide study carried out by the con- academia and local business. This fruitful symbiosis fosters
sulting firm Arthur D. Little (ADL), investments in net- an awareness of systemic risks – a key factor for economic
worked urban mobility could almost triple by 2050 from success.
the current level of 300 billion euros per year. Stuttgart,
the home of major automakers and suppliers, is especially
well positioned to benefit from these developments.
And its companies have not been napping: the Daimler

PER CAPITA PURCHASING POWER IN 2011, IN €
CITIES WITH 500,000 OR MORE RESIDENTS

Munich 26,863

Düsseldorf 23,708

Frankfurt 22,929

Stuttgart 22,131

Cologne 21,788

Hamburg 21,320

Berlin 17,808
© Stuttgart-Marketing GmbH

Data source: GfK GeoMarketing, figures as of November 2011

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Development model
S PAR KAS S E NA KA DE MIE
Training + residential
SITE Under construction or completed
To be completed 3rd quarter
SE CTION 4
of 2014 Available space

PA R I S E R H ÖF E
Office + residential
To be completed 1st SITE
quarter of 2012 CITY L IBRA RY SE CTION 5 SI T E SE C T I O N 7
Hotel + residential
To be completed 3rd
E UR O PE PLAZA
quarter of 2014
Office
To be completed
at unknown date
SI T E
SE CTIO N 12

SITE
SECT I O N 15

MIL A NE O
Wol Office + retail + residential
framst
rass To be completed 3rd quarter of 2014
e

sse
Wolframstra

STUTTGART 21 – SECTION A1 IS COMING ALIVE.
The referendum of 27 November 2011 gave a clear go-ahead for Stuttgart 21, the project to rebuild
Stuttgart’s main railway station, putting an end to the uncertainty which had blocked progress in
construction, and will allow work to move forward.

The dedication of the new “Library of the 21st Century” has now started, almost at the same time. This is a joint
in October breathed new life into Section A1. In the period project of ECE, STRABAG and Bayerische Hausbau with
up to December alone, the library drew more than some 43,000 square metres of retail space, 7,400 square
100,000 visitors, and it is expected to attract more than metres of office space, roughly 417 apartments and a
a million each year in the future. Construction work on 160-room hotel. For those who will some day live and work
another project, “Pariser Höfe”, is making good progress. in the new district, this project will be a considerable
Work on its 250 apartments and the office wing with enhancement.
approximately 8,000 square metres should be finished by
the first quarter of 2012, and this too will bring new life Construction of the planned hotel and residential tower
into the area. block at the corner of Heilbronner Strasse and Wolfram-
strasse will start in late 2012; completion is expected in
The next planned construction phases have also gained the second half of 2014. The planning for “Europe Plaza”
momentum: Sparkassenakademie, a training institution is now complete, and construction will begin as soon as
run by the German Sparkasse banks, is expected to sufficient advance rental agreements are in place. Most of
complete a training centre by mid-2013. Covering the projects in Section A1 are thus ready to start or are
11,400 square metres, it will provide space for some already in progress. By late 2014, construction in this area
26,000 training course participants and have roughly should be finished except in site sections 4/5/12/15, at which
160 apartments for them too. In addition, the building time Stuttgart’s urban scene will have a new addition.
will offer 1,200 square metres of office space. There is
also a plan to include a day nursery in this complex,
to serve the new Section A1. Construction of “Milaneo”

RENTAL VOLUME AT AN ALL-TIME HIGH.
The economic upturn of 2011 allowed the Stuttgart office market to set an all-time record: the total rental
volume for office space was 285,000 square metres, of which some 45,500 square metres were used by
owner-occupiers. This represented a 47 percent improvement over the previous year’s strong results.

CENTRAL BUSINESS DISTRICT DOUBLES ITS OUTLYING AREAS CONTINUE TO SHOW
RENTAL VOLUME STRONG DEMAND
Stuttgart’s central business district, namely the area in the Demand was also strong in Vaihingen/Möhringen and
city ring between the main station, Theodor-Heuss-Strasse, Fasanenhof, the areas to the south. Two transactions
Hauptstätter Strasse and Paulinenbrücke, almost doubled by Bosch, for about 12,000 and 4,000 square metres,
its rental volume, which was 32,800 square metres in 2010. were especially prominent. To the north, Feuerbach and
Rental transactions by public institutions, which came to Zuffenhausen had another good year thanks to large
approximately 35,000 square metres, accounted for a contracts signed by Bosch and Porsche, which are head-
large part of this increase. The largest single transaction quartered there. In Bad Cannstatt a 6,000 square-metre
in this period involved the relocation of the Ministry of transaction by Deutsche Telekom made a considerable
Education to the Postquartier, and amounted to about impact. Thus the eastern area of Stuttgart, which also
14,000 square metres. includes Wangen and Hedelfingen, saw a 61 percent
increase in office space over 2010. In contrast, Leinfelden-
Echterdingen in the south experienced a decline in
demand, as did Weilimdorf in the north.

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285,000
RENTAL TAKE-UP OF OFFICE SPACE IN STUTTGART 2000 – 2011 IN SQ. M
205,000

194,000
180,000

171,000
169,000
159,000

152,000
149,000

145,000

140,000
127,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2011

RENTAL TAKE-UP OF OFFICE SPACE IN GREATER STUTTGART IN SQ. M

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Central business district 25,350 19,000 4,600 55,100 33,300 43,000 61,500 44,400 38,200 32,800 63,000
City centre 25,710 45,000 28,400 21,700 43,200 31,300 46,600 41,700 83,800 66,600 97,500
Vaihingen/Möhringen 50,550 6,300 14,450 30,800 10,400 32,600 13,700 18,500 20,200 26,200 56,300
Fasanenhof 2,700 11,000 72,500 4,000 3,700 3,500 2,300 10,600 2,700 5,300 12,500
Feuerbach/Zuffenhausen 16,700 6,000 8,400 20,600 9,800 2,000 6,800 12,300 3,300 28,500 24,800
Degerloch 5,800 2,700 3,000 6,000 3,400 4,500 7,200 9,200 4,900 2,100 4,000
Weilimdorf 13,150 16,000 750 3,000 6,600 6,000 5,100 12,800 5,900 11,400 5,500
Bad Cannstatt/Wangen 5,000 18,000 14,000 7,700 24,600 13,500 15,400 12,500 8,100 8,300 13,400
Leinfelden-Echterdingen 14,040 3,000 2,900 3,100 10,000 3,600 10,400 18,000 3,900 12,800 8,000

Total 159,000 127,000 149,000 152,000 145,000 140,000 169,000 180,000 171,000 194,000 285,000


INCREASED DEMAND FOR OFFICE SPACE IN MANY SECTORS.
The “industry” category played a significant role in the category, which accounted for 22,800 square metres of
2011 office market. Transactions for a total of 45,000 rented space, also showed a decline, but the drop was
square metres were concluded, including 32,000 square small and did not reflect a downward trend. By contrast,
metres for Bosch alone. Of similar importance was the demand by financial service providers rose again, coming
public sector, which had a demand of some 39,000 to 24,700 square metres, although their share of the total
square metres. The reason here was that one ministry turnover remained unchanged. The preferred locations
moved to a new location while others reorganised them- for office space among both financial service providers
selves on existing premises. As in previous years, however, and consultants were in the central business district and
the category with the highest demand was “other office city centre.
users”, which included service providers like doctors,
architects, engineers and retail companies. With around Users in the “media/communication” category reacted with
115,200 square metres of office space they accounted for stronger demand for office space as the economy picked
40 percent of the total rental volume. up. Advertising and media agencies profited from greater
willingness among businesses to spend money on adver-
Companies in the IT and telecommunications sector leased tising and marketing, and so increased the size of their
27,400 square metres of office space, considerably less premises, especially in the segment up to 500 square
than in the previous year. As a result, their share of the metres, bringing the total up to 10,900 square metres.
total turnover came to only 10 percent. The “consultants” This represented a 38 percent gain over the previous year.

TAKE-UP BY SECTORS IN %

2003 2004 2005 2006 2007 2008 2009 2010 2011
Media/communication 5.02 4 8 6.64 6.27 5.56 6.14 4.07 3.82
Financial service providers 8.04 34 12 9.93 10.36 15.78 8.36 8.41 8.67
Consultants 7.03 5 10 20.29 18.4 13.39 7.72 13.35 8.00
Public sector 4.02 9 21 3.21 17.75 7.22 30.41 8.14 13.68
Other 20.98 29 28 35.21 37.28 36.94 40.94 48.04 40.42
Energy/industry 52.23 9 13 12.86 – – – – 15.79
IT/telecommunications 2.68 10 8 11.86 9.94 21.11 6.43 17.99 9.62
Total 100 100 100 100 100 100 100 100 100


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RENEWED INTEREST IN LARGE PREMISES.
Small premises are still the mainstay of Stuttgart’s office market. Once again, most of the contracts
signed were for surface areas up to 500 square metres. There were 249 transactions in this segment,
27 more than in 2010. The total for the office market as a whole was 361.

Of the transactions for less than 500 square metres, compared to four the previous year. This segment accounted
142 were in the central business district and city centre. for 36 percent of the rental turnover.
In Weilimdorf, almost all of the recorded transactions
were in this segment. In all, 21 percent of the total rented Leases in the range from 501 to 1,000 square metres
volume was in this size range. made up 16 percent of the rental turnover. There were
62 contracts, mainly for premises in the city centre and in
But in 2011 there was also demand for premises larger Vaihingen to the south. This is well above the previous
than 5,000 square metres, with the main interest coming year’s ﬁgure of 46.
from the public sector and Robert Bosch GmbH. The
largest contract of all, for 14,000 square metres, was There were 24 signings in the range from 1,001 to 2,000
signed by the state of Baden-Württemberg. Porsche AG square metres, and 14 between 2,001 and 5,000 square
expanded on its home turf, Zuffenhausen, with a trans- metres. Among the major owner-occupiers, AOK,
action for 10,000 square metres. These developments Ed. Züblin AG and Sparkassenakademie made an impact
led to a signiﬁcant overall increase in demand for spaces by erecting their own buildings, which together account-
above 5,000 square metres. There were 12 signings as ed for 31,000 square metres of space.

COMPARISON OF NEW CONTRACTS BY SIZE
103,200
59,500
51,500

49,000
44,500

41,900

40,000
35,900
32,000

21,500

2010 2011

Total space 2010: Total space 2011:
194,000 sq. m 285,000 sq. m

< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 sq. m

COMPARISON OF NEW CONTRACTS BY NUMBER
249
222

62

2010 2011
46

24

15
14

14

12

Total number 2010: Total number 2011:
4

301 361

< 500 sq. m 501 – 1,000 sq. m 1,001 – 2,000 sq. m 2,001 – 5,000 sq. m > 5,000 sq. m

Source for both charts: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2011

RENTAL RATES EXCEEDING PREVIOUS YEAR’S LEVEL.
The rental rates in Stuttgart’s office market showed an encouraging trend. On 31 December 2011,
the city average was 11.60 euros per square metre, 0.60 euros above the level a year before.

In the price segment up to 10.00 euros per square metre, actions for premises in new buildings, where rents
a total of 149 leases were signed, 65 of which were for between 17.50 euros and 22.00 euros per square metre
8.00 euros or less per square metre. The latter, however, were achieved. The peak rent also rose in the city centre,
were mainly for older ofﬁce properties with simple ﬁttings and at year’s end was at 15.90 euros per square metre.
and equipment, or for leases with a short duration. A large The average rent, at 11.50 euros per square metre,
proportion of the total contracts, 141, were in the range remained at the level of the previous year.
from 10.01 to 13.00 euros per square metre. In the range
from 13.01 to 15.00 euros per square metre, there were FAVOURABLE DEVELOPMENTS IN THE SOUTH,
46 signings, as compared to only 19 the previous year. NORTH AND EAST
In addition, there were 13 contracts between 15.01 and Thanks to strong demand, the peak rent in southern
17.00 euros per square metre and 12 for more than 17.00 Stuttgart rose to 13.30 euros per square metre, exceeding
euros per square metre. the previous year’s value. At the same time the average
rent fell slightly to 10.20 euros per square metre, mainly
CENTRAL BUSINESS DISTRICT AND CITY CENTRE: owing to rent reductions necessary for older premises
PEAK RENTS ON THE RISE that had been vacant for some time. In northern Stuttgart,
In Stuttgart’s central business district the average rent the average rent showed a gratifying increase, thanks
stayed at the previous year’s level of 14.30 euros, whereas especially to several major transactions in Feuerbach.
the weighted top rent showed a marked increase, from Zuffenhausen and Weilimdorf, in contrast, continued to
17.50 euros to 18.80 euros per square metre. In a have low rent levels. In eastern Stuttgart, a new project
favourable development, there were about 12 trans- contributed to a rise in both the peak rent and average rent.

PEAK AND AVERAGE CENTRAL BUSINESS DISTRICT RENTS 2000 – 2011 IN € / SQ. M
• 18.80
• 18.41

• 18.00

• 18.00
• 17.89

• 17.50

• 17.50

• 17.50
• 17.50

• 17.00

• 17.00
• 16.87

Peak rents
15.34
14.90

14.80

14.50

14.50

14.50

14.50

14.30

14.30
13.60
13.60
13.50

Average rents

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011


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15

PEAK AND AVERAGE RENTS 2011 IN €/SQ. M
18.80

15.90
14.30

13.30
11.90
11.50

11.00

10.20
9.60

9.00
Peak rents Average rents

XXX
Central busi- City centre Outlying districts Outlying districts Outlying districts
ness district to the north to the east to the south

MARKED DECLINE IN VACANT OFFICE SPACE.
The supply of vacant office space declined significantly over the year. On 31 December 2011, some
424,000 square metres were unoccupied, including roughly 24,700 square metres of sub-let space.
With the total ofﬁce space being about 7.43 million square metres, this corresponds to a vacancy rate
of just under 5.7 percent.

COMPLETION VOLUME IN SQ. M
312,000

Building completion Pre-letting
220,000
160,000

145,000

143,500
130,000

131,500

115,600

109,500
104,900
80,000

68,500

57,000
51,400

49,000

50,500
45,900
42,400
40,000

41,200

41,500
32,600
28,500

23,400

22,000

22,200

5
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

In 2011, new premises totalling almost 31,300 square volume in some outlying areas, resulted in a shortage of
metres were completed in Stuttgart and 14,600 square premises in certain cases. In Stuttgart’s central business
metres underwent core renovation. However, most of this district the available supply declined by about 12,500
space was already pre-let or quickly leased to new tenants. square metres to about 60,600 square metres. The city
Moreover, a large amount of sub-let space in the central centre saw an even sharper decrease: here the supply
business district was taken off the market. These two of ofﬁce space with short-term availability dropped from
factors, in conjunction with a surprisingly high rental about 116,900 square metres to 93,500 square metres.

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17

VACANT OFFICE SPACE AS OF 31 DECEMBER 2011

Degerloch > 11,800 sq. m

Bad Cannstatt, Wangen etc. > 19,300 sq. m
B Wange
e

3%
Feuerbach, Zuffenhausen > 22,500 sq. m
F
5%
Stuttgart city centre > 93,500 sq. m
0
5
5%
Vaihingen > 27,800 sq. m
Va
a

22% 7%

100%
(corresponds s
to approx. Fasanenhof > 31,000 sq. m
7%
424,000 sq. m)
0 q )

17%
7%

Leinfelden-Echterdingen > 73,500 sq. m
10%

14% Möhringen > 41,900 sq. m
M
Möhr
Möhr
10%
0%
0%

Stuttgart central business district > 60,600 sq. m
district
s district 0 sq Weilimdor f > 42,100 sq m
Weilimdorf
Weilimdorf sq.
q

Source for both charts:
Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2011

In southern Stuttgart there were some conspicuous shifts: In 2012, some 47,500 square metres of ofﬁce space will be
whereas the available supply was reduced by half in completed. However, since almost 32,000 square metres of
Vaihingen, Möhringen made considerable gains. In the this is already pre-let, the ofﬁce market will gain hardly any
north and east, there were no major changes because the new premises. In 2013, the situation might improve some-
good rental volume was balanced by new vacancies. what because 110,000 square metres will be completed,
of which about 50,500 square metres is currently pre-let.

NATIONWIDE UPTURN CONTINUING.
In 2011, the positive trend from the previous year continued: throughout Germany, the rental
turnover in most office markets increased considerably. The supply of vacant office space declined
at almost all locations.

The “Big Seven” showed a continued upward trend of As expected, vacancy rates in the “Big Seven” fell sharply
15 percent. In 2011, the rental turnover for Berlin, Düssel- from the levels of the previous year. The main factor here
dorf, Frankfurt, Hamburg, Cologne, Munich and Stuttgart was increased demand for modern office space, plus the
came to a total of 3.28 million square metres. The boom fact that premises in older buildings increasingly found
was strongest in southern Germany, with Stuttgart post- tenants, albeit at much lower rates. Some areas are again
ing an increase of about 47 percent over the previous experiencing a shortage of office space owing to a rather
year and Munich an increase of 45 percent. Düsseldorf low completion rate for new premises. This improves the
and Frankfurt each showed declines in turnover of about prospects for construction in 2012. Thanks to a positive
14 percent from the previous year. economic forecast and steady demand, most locations
can currently reckon with favourable conditions for the
Most cities benefited from a positive trend in rental rates. rapid implementation of new building projects.
Increases in rental volume, coupled with a decline in
vacant office space, caused rates to rise at many locations
or allowed them to stay at the previous year’s level.
The peak rents in Berlin, Cologne, Munich and Stuttgart
increased by 1.00 euro and more per square metre.
Average rents held steady as well.

18
19

2007
2008
COMPARISON OF VACANCY RATES IN GERMANY IN % 2009
2010
2011
15.1
15.0

14.4
14.3
13.9

11.8
11.5
10.3

10.3
10.3

9.8
9.8

9.7
9.6

9.4
9.1
8.9

8.9
8.3

8.3

8.4
8.4
8.2

8.2

8.1
7.9

7.7

7.5
7.2
6.7

6.5
6.4
6.2
6.1

5.7
Frankfurt Düsseldorf Cologne Munich Berlin Hamburg Stuttgart


TURNOVER OF SPACE OF THE “BIG SEVEN” 2003 – 2011 IN SQ. M

853,000
820,000

765,000

Munich
620,000

590,000
580,000

540,000
510,000

480,000

Berlin
Hamburg

Frankfurt
Düsseldorf

Stuttgart
Cologne
280,000
194,000
180,000

171,000
169,000
152,000
149,000

145,000

140,000

2003 2004 2005 2006 2007 2008 2009 2010 2011


STUTTGART COMPARED TO OTHER GERMAN CITIES

Average rent in the central
Turnover of space in sq. m. Peak rent in € Vacancy rate in %
business district in €
2011 2010 2011 2010 2011 2010 2011 2010
Berlin 572,000 503,000 21.70 20.50 16.00 14.50 8.4 8.9
Düsseldorf 365,000 375,000 23.50 23.50 17.00 16.50 11.8 11.5
Frankfurt a. M. 410,000 475,000 36.00 35.60 21.50 22.00 14.4 15.1
Hamburg 515,000 485,000 23.00 23.00 13.50 13.50 8.1 9.8
Cologne 280,000 220,000 21.00 20.00 11.00 11.25 8.2 8.9
Munich 853,000 590,000 30.50 28.00 14.20 14.20 7.7 8.3
Stuttgart 285,000 194,000 18.80 17.50 14.30 14.30 5.7 6.5


THE STUTTGART OFFICE MARKET 2011 / 2012

THE STUTTGART OFFICE MARKET 2011 / 2012

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THE STUTTGART OFFICE MARKET 2011 / 2012