Environs Report

Environs Report
Frankfurt | Full year 2013
Published in July 2014
The office property market in the Frankfurt Periphery
• Second best performance for 10 years
• Large-scale lettings responsible for the increase in take-up
• Industrial sector dominates
• Increase in take-up in the average-quality segment
• Rents are stable
JLL • Environs Report Frankfurt • July 2014
Frankfurt’s environs comprise numerous (office) markets of
different sizes. JLL has divided this heterogeneous structure
into four homogeneous office markets on a geographical basis
(see map).
Office
Market
Areas
in the
Frankfurt
Periphery
Office
Market
Areas
in the
Frankfurt
Periphery
Bad
Camberg
|2
Friedberg
(Hessen)
Rosbach
v.d.
Höhe
NeuAnspach
Altenstadt
Friedrichsdorf
Bad Homburg
€ 8.50 - 14.00
Oberursel
€ 7.50 - 11.00
Idstein
Königstein/Kronberg
€ 8.50 - 12.00
Kelkheim
Hofheim
am Taunus
A5
Schwalbach Schwalbach
€ 6.00 - 11.50
a
Nidd
Hofheim/Kriftel
€ 6.50 - 8.50
A 66
Hochheim
Hochheim
€ 6.00 - 11.00
WIESBADEN
A 60
Neu-Isenburg
€ 8.00 - 13.50
Dreieich
Raunheim
Mörfelden-Walldorf
€ 7.00 - 10.50
Obertshausen
Alzenau
in UFr.
Hainburg
ì
A3
Seligenstadt
Rodgau
Dietzenbach
Dietzenbach
€ 5.50 - 9.50
Langen
Langen
€ 6.50 - 10.50
Mörfelden
Rodenbach
Periphery East
Heusenstamm
€ 6.50 - 9.00
Dreieich
€ 6.50 - 10.50
A 66
A 45
Hanau
Hanau
€ 6.00 - 9.50
Heusenstamm
NeuIsenburg
Rhein-Main-Flughafen
Rüsselsheim
€ 6.00 - 11.00
Offenbach
excl. Kaiserlei
€ 7.00 - 12.50
ì
ì
Maintal
Mühlheim
Offenbach
am Main
A 648
o
Æ
Raunheim/
Rüsselsheim Mönchhof Areal
€ 8.00 - 12.50
A 671
Mainz
Kelsterbach
Flörsheim
ì
Bischofsheim
ì
ì
Kelsterbach
€ 6.00 - 10.00
Hattersheim
Hattersheim
€ 7.50 - 12.50
FRANKFURT
AM MAIN
inzig
Erlensee K sen
s )
(He
A 66
A 661
Langenselbold
Bruchköbel
ì
ì
Main
Hofheim Kriftel
Periphery North
Schöneck
Bad
Vilbel
Eschborn ì
Bad
Soden
Eppstein
ì
Bad Vilbel
€ 9.00 - 11.50
Oberursel
Kronberg
Steinbach
Königstein
Sulzbach/Liederbach/
Niedernhausen Bad Soden/Kelkheim
€ 7.00 - 12.00
Nidderau
Karben
Bad
Homburg
Rödermark
Babenhausen
Nauheim
ei n
Trebur
Periphery West
GroßGerau
Rh
Büttelborn
Weiterstadt
€ 6.00 - 9.50
Weiterstadt
ì
A 672
Griesheim
Riedstadt
Darmstadt
€ 8.00 - 13.00
Dieburg
Periphery South
Darmstadt
Roßdorf
Mühltal
ì
GroßZimmern
OberRamstadt
Heubach
Reinheim
A 67
Pfungstadt
0
10
Rüsselsheim
€ 6.00-11.00
20 Kilometer
Rental Band
(Euro/sqm/month)
GroßUmstadt
Höchst
im Odenwald
SeeheimJugenheim
Periphery North
Periphery South
Periphery East
Periphery West
Frankfurt/M
JLL Research 2013 Q4
JLL • Environs Report Frankfurt • July 2014
The economic situation in the region
After the weakening of the economic climate in the Frankfurt Chamber
of Industry and Commerce region in the first half of 2013, economic
development gathered significant momentum from autumn onwards.
At the start of 2014, sentiment amongst companies had reached its
Economic data
highest level for the past two years. The prospects are also optimistic:
91% of companies expect business to remain at its current level or improve. This also has an effect on companies’ manpower planning, with
one in five companies planning to take on additional staff over the next
few months.
Peripheral
area
Municipal trade tax
rate (End of 2013)
Population
(2013)
Employees (socially secured
at job location) 2013
Bad Homburg v.d. Höhe
North
385
52,300
32,500
Town
Bad Soden am Taunus
North
280
21,300
4,900
Bad Vilbel
East
300
31,800
9,500
Darmstadt
South
425
148,500
94,600
Dietzenbach
South
380
32,600
13,000
Dreieich
South
370
39,800
14,000
Hanau
East
430
89,200
45,400
Hattersheim am Main
North
330
25,400
4,700
Heusenstamm
South
350
18,300
5,100
Hochheim
North
310
16,800
3,600
Hofheim am Taunus
North
330
38,500
12,500
Kelkheim (Taunus)
North
310
28,000
5,000
Kelsterbach
West
380
14,000
6,700
Königstein im Taunus
North
345
16,000
5,000
Kriftel
North
330
10,600
3,000
Kronberg im Taunus
North
310
18,000
10,000
Langen (Hessen)
South
370
35,700
14,100
Liederbach am Taunus
North
310
8,800
2,000
Mörfelden-Walldorf
West
380
32,800
11,100
Neu-Isenburg
South
320
35,500
23,400
Oberursel (Taunus)
North
360
44,700
18,500
Offenbach
East
440
117,900
44,000
Raunheim
West
380
14,800
5,000
Rüsselsheim
West
420
60,500
32,100
Schwalbach am Taunus
North
350
14,900
9,600
Sulzbach (Taunus)
North
310
8,500
6,400
Weiterstadt
West
375
24,200
9,100
Source: Federal Employment Office; Statistical Office of the State of Hesse; local authorities
|3
JLL • Environs Report Frankfurt • July 2014
Second best performance for 10 years
Office space take-up in the Frankfurt Periphery was around
160,500 sqm in 2013, which was the second best performance of
the past 10 years. This exceeds the previous year’s result and also
the five year average (2008-2012) by around 25%.
Frankfurt Periphery: Office Take-up
Status: April 2014; Source: JLL
Industrial sector dominates
With 27% of volume and 25% of all deals, it was industrial companies which had, by far, the greatest share of office space take-up in
2013. Also over the long-term (based on the last five years), it has
been industrial companies which have dominated the sector ranking.
Other sectors contributing at least a double digit share in terms of
either volume or new leases in 2013 included telecommunications,
social and personal services, media/publishing, transport/storage
and retail/trade. In terms of geographical spread, it was again Frankfurt Periphery South which accounted for the lion’s share of demand:
67% of space take-up and 51% of all deals took place here in 2013.
In terms of the highly-priced segment, Periphery South dominated in
similar fashion: in the price category from €12.00/sqm/month, this
submarket accounted for 64% of space take-up volume and 62% of
all new leases in the Frankfurt Periphery. The highly-priced letting
transactions in Periphery South were mainly for new-build projects.
This follows the general trend of the past few years, that it is mainly
new-build space which is in demand from occupiers.
Take-up 2012 by Industry Sector – Top 5
Large-scale lettings responsible for the increase in take-up
Almost 70% of all new lease contracts in 2013 were in the size category <1,000 sqm; however it was not the smaller lettings but rather
the large lettings which again accounted for the very good year-end
result. At the upper end of the spectrum there were three lettings in
the size category >10,000 sqm in 2013. The lettings to Deutsche Telekom AG in Darmstadt (23,000 sqm), Samsung Electronics GmbH
in Schwalbach (10,500 sqm) and Bisnode Deutschland GmbH in
Darmstadt (10,000 sqm) together contributed 27% of the total takeup in the Frankfurt Periphery. At 14%, owner-occupied deals contributed significantly to space take-up in 2013. Five of these deals
were in the size category >2,000 sqm. Even if the volume and share
attributed to owner-occupier deals in 2013 was considerably less
than in the previous year, last year was still one of the best performances by this demand group over the long-term.
|4
Status: April 2014; Source: JLL
JLL • Environs Report Frankfurt • July 2014
Increase in take-up in the average-quality segment
In terms of space take-up, the high and average-quality segments
each accounted for 47% of the total volume in the Frankfurt Periphery in 2013. As expected, there was hardly any demand for outdated
space, which played almost no role in the letting market, at just 6%
of the take-up volume. On the other hand, in terms of the number of
new leases in 2013, 66% of all letting transactions were in the average-quality fitout segment. 30% of all letting deals were registered
for space in the high-quality segment. Again, outdated office space
brought up the rear in terms of the number of new leases at 4%.
Even if occupiers in the Frankfurt Periphery are concerned with the
quality of the space, it is actually cost optimisation and locational requirements which are paramount when leasing decisions are being
made. Furthermore, the fact that new-build activity has been significantly limited over the past few years has resulted in a scarcity of
supply in the top segment and thus driven the rising take-up levels in
the space categories available, which have been characterised by
average-quality fitout.
Rental Bands
Status: April 2014; Source: JLL
Prime Rent
Rents are stable
Office rental levels in the subject market area remained for the most
part stable during 2013. In the past year, most activity was in the
rental price bracket between €8.00 and €10.00/sqm/month; this price
category accounted for one third of all lettings. In 2013, the prime
rent was in a range between €12.50 and 14.00/sqm/month. The Bad
Homburg, Neu-Isenburg and Darmstadt office markets again led the
field in the prime rental segment in the Frankfurt Periphery. In 2014,
the revival of new-build activity is likely to result in a further rise in
prime rents, on the condition that the dynamic economic development in the Rhine-Main region continues unabated.
Status: April 2014; Source: JLL
|5
Contacts
Timo Tschammler FRICS
Management Board Germany
Office & Industrial Germany
Frankfurt
+49 (0) 69 2003 1110
[email protected]
Carlo Schöps MRICS
Team Leader Office Leasing Rhein-Main
Frankfurt
+49 (0) 69 2003 1515
[email protected]
Helge Scheunemann
Head of Research Germany
Hamburg
+49 (0) 40 350011 225
[email protected]
Authors
Jan-Henning Ihnen
Tenant Representation Rhein-Main
Frankfurt
+49 (0) 69 2003 1517
[email protected]
Mario Herbst
Office Leasing Rhein-Main
Frankfurt
+49 (0) 69 2003 1417
[email protected]
jll.de For further information about JLL please visit our Company website
jll.de/research For further Research reports please visit our Research website
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