Industrial and Logistics Space

Market REPORT
Munich
Mid-year report 2016
Industrial and
Logistics Space
Accelerating success.
Take-up
Concluded Lease Contracts Mid-year 2016*
Size in m²
Number
Space iN M2
%
up to 500
9
3,026
3
501 - 1,000
6
3,592
3
1,001 - 3,000
22
40,136
36
3,001 - 5,000
9
31,743
28
from 5.001
3
34,518
30
Total
49
113,015
100
Rent Levels in ¤/M²
Number
Space in M2
%
up to 4.00
3
4,842
4
4.01 - 5.00
4
4,045
4
5.01 - 6.00
17
32,141
28
6.01 - 7.00
19
66,299
59
from 7.01
6
5,688
5
49
113,015
100
Total
* excluding owner-occupiers and portion used as office space
LOCATION
NUMBER
SPACE in M2
%
0
0
0
Centre
1
Centre North-West
2
0
0
0
Centre North-East
3
0
0
0
Centre South-East
4
0
0
0
Centre South-West
5
0
0
0
City North-West
6
8
15,541
14
City North-East
7
2
3,780
3
City South-East
8
6
12,541
11
City South-West
9
4
9,315
8
20
41,177
36
City
Periphery South-West 10
1
260
0
Periphery North-West
11
9
25,543
23
Periphery North-East
12
16
42,059
37
Periphery South-East
13
3
3,976
4
Periphery
29
71,838
64
Total
49
113,015
100
The Munich industrial and logistics market picked up speed after
a solid start to the year, generating a satisfactory 113,000 sqm in
take-up, excluding owner-occupiers and pro-rata office and common
areas. This reflects a steep yoy increase of 43%. A total of 49 leases
have been signed over the past six months, an increase of 20 leases
yoy. The average size of space leased dropped from 2,700 sqm in
2015 to roughly 2,300 sqm at mid-year 2016. Tenants were particu­
larly interested in space encompassing between 1,001 sqm and
3,000 sqm. This segment currently accounts for around 36% of total
take-up volume, up from 21% at mid-year 2015. Leases signed for
more than 5,000 sqm generated a 30% share, down 30% yoy, a
development that can be attributed to limited supply of new space
available for immediate tenancy. The largest lease at mid-year was
signed by electronic components provider TTI Europe for around
15,000 sqm of logistics space in Maisach-Gernlinden. Online retailer
mytheresa.com signed a lease in March for 14,000 sqm in Kirch-­
heim to the northeast of Munich.
Demand
Demand was highest among businesses from the logistics and
automotive sectors with a share in total take-up volume of almost
30%, followed by retail companies with around 23%. Roughly
72,000 sqm had been taken up in the areas surrounding Munich at
mid-year, generating a share in total take-up volume of almost 64%
(+3%). More than half of this activity was focused on the area to
the northeast of Munich, which connects the city and the airport. The
share of take-up generated within city limits increased from 11%
to a current 36%. This can particularly be attributed to the fact that
small-scale, city-based logistics are becoming increasingly impor­
tant, fueled by trends such as same-day delivery or, in some cases,
even same-hour delivery. A total of 20 leases featuring more than
41,000 sqm combined were signed within Munich city limits. These
included the lease signed with Aurelis Real Estate by construction
materials company Saint-Gobain, who will be occupying around
4,100 sqm of hall space, 1,600 sqm of office space and 11,500 sqm
of open space in the southeast of the city as of mid-2017.
Supply and Vacancy
One of the most significant project developments of the year is
recon­struction of the new Nova Neufahrn industrial park to the
north of Munich. A total of roughly 72,000 sqm of office, ware­
house, production and service space is being built near the Munich
airport at the former site of cosmetics company Avon. Construc­tion began in January 2016 and will add new space to the market.
With only 11,200 sqm of latest generation industrial and logistics
space available for immediate tenancy and the vacancy rate at an
all-time low of 0.7% at mid-year 2015, the amount of space avail­
able had increased to a total of 18,460 sqm by H1 2016, putting
the vacancy rate at a current 1.2%, up 0.5 percentage points yoy.
Nevertheless, we are still seeing a severe lack of industrial and
logistics space in the area south of Munich. Even if take-up has
2
Market Report Munich | Mid-year 2016 | Industrial and Logistics Space
Schwaig
Schwabhausen
Eching
Herbertshausen
A 92
Maisach
11
Gernlinden
A8
Eichenau
2
As in previous years, tenants were particularly interested in space
going for between €6.01 and €7.00 per sqm with this segment gene­
rating a market share of almost 59% at mid-year (H1 2015: 50%).
Space in the price segment of between €5.01 and €6.00 per sqm
increased its share yoy by 65%, totaling at around 28% in the first
half of the year. This is an indication that many tenants are ready to
pay high prices for industrial and logistics space despite the tension
on the market.
6
304
A 99
Feldmoching
Geisenbrunn A 96
Neufahrn
Eching
Eichenried
Dietersheim
Garching
Oberschleißheim
Ismaning
Hasenbergl
Unterföhring
7
Bergham
388
Fischerhäuser
11
12
Pliening
Landsham
Kirchheim
Hausen
Aschheim/
Dornach
Gelting
Obermenzing
2
Schwabing
Poing
471
Nymphenburg
Anzing
3
Feldkirchen
Neuhausen MaxA 94
vorstadt Bogenhausen
Pasing
Altstadt
1
Riem
A 99
Laim
Haidhausen
9
VaterAu
Gräfelfing
Hadern
5 Send- Ober- 4 Berg am Laim
stetten
Eglfing
Trudering
giesing
ling
Baldham
Haar
Fürstenried
Ramersdorf
Krailling
Unter8
giesing
Planegg
Perlach
Thalkirchen
304
Eglharting
Harlaching
Forstenried
A8
Zorneding
Stockdorf
Grasbrunn
Solln
Unter- Neubiberg
10
haching
Gauting
Harthausen
r
Ottobrunn
a
s
Reismühle
Pullach
Hohenbrunn
Westerham
im Isartal
A 95
Grünwald
Taufkirchen
Buchenhain
Moosach
Oberhaching
Peters- UnterBaierbrunn
13
Thal
brunn schorn
Doblberg
Schorn
Egmating
Straßlach
Brunnthal
11
Mühlthal
13
München
1
Starnberg
Isar
I
Frohnloh
13
Freimann
Am Hart
Allach
Langwied Untermenzing Moosach Milbertshofen
Lochhausen
Aubing
Puchheim
Germering
Gilching
Dachau
471
Eschenried Karlsfeld
Gröbenzell
Esting
Fürstenfeldbruck
A9
Unterschleißheim
Bergkirchen
Olching
Industrial and logistics space in Munich continues to be the most
expensive in Germany. Rents have once again increased due to the
scarcity of new-build space with prime rents for new-builds in the
city outskirts currently at €6.85 per sqm compared to €6.75 per sqm
at the start of the year. Average rent also increased by 10 cents to a
current €6.10 per sqm.
Flughafen
München
Hallbergmoos
471
Rents
Freising
Fahrenzhausen
Markt
Indersdorf
Isar
increased yoy by more than 30,000 sqm and demand remains stable,
there is still tension on the market. There is simply not enough space
on the market to meet high demand, and very little stock space is
currently available, particularly in the mid-sized space segments.
This supply bottleneck is also causing a steep rise in asking rents for
stock properties.
2
Schäftlarn
Balkham
Glonn
Straßlach
Aying
Sauerlach
Berg
The map above shows the economic area, on which our data is based.
Our assessments include warehouse, logistic, service as well as manufacturing
spaces. Adjoined office space was not included in the assessed industrial
space. Storage space, which was leased in connection with office space, was
not taken into consideration.
Take-up of Space
Greater Munich Area in 1,000 m²
350
300
Summary and Outlook
250
Businesses currently on the lookout for space will have to continue
to be willing to compromise and reach deep into their pockets. How­ever, the sale of previously owner-occupied properties to developers
has boosted supply somewhat, making it possible for some smallscale leases to be signed in the past few months and contributing to
a satisfactory mid-year result. The market could definitely use some
new, large-scale project developments, which would spur leasing
activity in Munich. There are no indications of the tension on the
market easing any time soon unless new space becomes available.
The fact that the availability of development sites is limited is
causing land prices to continue to rise.
150
200
Based on the current trend, we expect to see a favorable second half
of the year and consider it highly likely that previous year results of
202,000 sqm will be exceeded.
100
50
0
278
198
239
203
113
2012
2013
2014
2015
2016
Q1-Q2
Space take-up is based on the amount of leased logistics and industrial space
excluding owner-occupiers in the Greater Munich area (the city of Munich,
its surrounding areas and bordering administrative districts within a 30 km
radius). Calculations are based solely on logistics and industrial space,
excluding as­sociated office space and misc. areas.
Vacancy in 1,000 m²
Vacancy Rate in %
35
30
25
20
1.3%
2.3%
1.1%
0%
1.2%
2012
2013
2014
2015
18,460
0
0
17,800
5
34,801
10
18,675
15
2016
Q1-Q2
Vacancy refers to Class-A properties: > 5,000 m², > 8.0 m under beam height,
with doors or ramp access in Greater Munich.
The current amount of existing space is 1,56m m².
The vacancy rate is based on vacant logistics space and space to be available
within 3 months.
Associated office and misc. areas were not assessed.
Research: Tobias Seiler, tobias.seiler@colliers.com | Colliers International
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Authors:
Tobias Seiler
Associate Director | Research
+49 89 624 294-63
tobias.seiler@colliers.com
Alexander de Oliveira Kaeding
Associate Director | Research
+49 89 624 294-894
alexander.kaeding@colliers.com
Nicole Kinne
Research Consultant | Industrial & Logistics
+49 89 442 384-340
nicole.kinne@colliers.com
Colliers International München GmbH
Dachauer Straße 63
D – 80335 München
Phone +49 89 624 294-0
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in transaction volume with more than
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