Market Report No. 9 by the Initiative Unternehmensimmobilien

Developments in the first half of 2018 are directly linked to the end of 2017: Demand for corporate real estate remains high. At just under EUR 800 million in investment revenue, the result was nevertheless almost 17% lower than in the previous half-year or around 32% lower than in the long-term average of the previous half-years.
The reasons for this are missing offers and a changing market environment. Most of the properties available on the market have been traded in previous years - sometimes in the form of large-volume portfolio transactions, often involving international investors. These transactions were mostly well-documented properties in locations with high market transparency. Such objects are not available for the time being in the desired quantity on the tableau.

What's next? Since top properties are becoming increasingly scarce, major international investors are beginning to buy entire companies and their holdings. The market is and remains hot.

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 eleven companies active in the German corporate real estate market: Aurelis, BEOS, Corestate Capital Group, Fraser Property, Garbe Industrial Real Estate, GSG Berlin, Investa, 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.

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: GSG Berlin