Market Report No. 11 by the Initiative Unternehmensimmobilien

The demand for investment properties and new rental space for corporate real estate remains very high. But there is a lack of suitable properties. As a result, investment and letting volumes declined significantly in the first half of 2019 compared with the first half of the previous year - transaction turnover on the investment market fell by 40% to EUR 1.1 million and letting volume by 30% to 246,000 sqm. "The bottleneck in the investment market can only occur as a result of stronger new construction activity or the sale of owner-occupied properties," says Tobias Kassner, Head of Industrial and Logistics Real Estate at bulwiengesa and author of the market report. "The main reason for the slump in the rental market is the lack of available rental space. Currently, many tenants are striving for security. This includes new leases with longer terms being concluded and connection options being sought quickly."

What are Unternehmensimmobilien?

The term “Unternehmensimmobilien” refers to mixed-use commercial properties, typically with a tenant structure comprising medium-sized companies. Types of use normally include offices, warehouses, manufacturing, research, service, and/or wholesale trade, and open areas. Unternehmensimmobilien break down into four real estate categories, these being converted properties, business parks, light manufacturing properties, and warehousing/logistics assets. All four of these categories are characterised by alternative use potential, reversibility of use, and a general suitability for multi-tenant structures.

About the Initiative Unternehmensimmobilien

The INITIATIVE UNTERNEHMENSIMMOBILIEN currently comprises ten companies active in the German corporate real estate market: AAurelis, BEOS, Corestate Capital Group, Cromwell Property Group, Deutsche Industrie REIT-AG, Frasers Property, Garbe Industrial Real Estate, Investa, Siemens and Sirius. The common goal is to improve transparency in this market segment in order to facilitate access to this asset class. For this purpose, a reporting system has been set up in cooperation with bulwiengesa in which all transaction and rental data of the participants are evaluated. Investors and market observers are regularly informed about the volume and performance of the sector. This happens above all in the form of the market report, which appears every six months.

The INITIATIVE UNTERNEHMENSIMMOBILIEN continues to evolve. Visit us on the internet at unternehmensimmobilien.net to stay up to date.

Contact: Tobias Kassner, kassner [at] bulwiengesa.de, Phone +49 (0)40 - 4232 2220

Photo:
Exterior view of the Rheinhöfe, a converted property in Dusseldorf, Source: BEOS AG, Photographer: Jens Küster