Market Report No. 7 by the Initiative Unternehmensimmobilien

In the first half of 2017 alone, 1.9 billion euros were invested in corporate real estate. This emerges from the current market report of INITIATIVE COMPANY PROPERTY. Above all, new market players have triggered the latest boom. Overall, however, the supply of buildings and facilities is growing too slowly.

Key to the record volume were large portfolio transactions, some newly built properties and previously long-term properties now available for trading. Buyers are still willing to pay ever higher prices. Demand is constantly increasing. Particularly in demand are objects in top locations such as Berlin and Munich. But also cities like Hannover and Bremen register a yield compression.

The rental of corporate real estate in the first half of 2017 also set a new record. The reasons for this can be attributed to the very good economic situation in Germany and the rise in new construction volumes.

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 twelve companies active in the German corporate real estate market: ATOS, aurelis, BEOS, Cromwell Property Group, Garbe Industrial Real Estate, Geneba Properties, GSG Berlin, Investa, M7 Real Estate, SEGRO, 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.

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