PROPERTY MARKET REPORT 2018 - BUSINESS PROMOTION - Wirtschaftsförderung Hannover
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PROPERTY MARKET REPORT 2018 BUSINESS PROMOTION
PROPERTY SUBMARKETS AT A GLANCE
OFFICES RETAIL
The number of office employees in the city of Hannover rose in
2018 to some 150,000. As a result, over the last five years the
number of office jobs has risen by around 15,000, a plus of 11 %.
The growing demand for office space is very visible in the office
property market. In 2017 turnover of office space amounted to Hannover Region stands out as one of Germany’s highest
around 145,000 m2. turnover retail locations. Estimates for 2018 see retail turnover
reaching some €7.85 billion. Hannover’s city centre, with its
Office 1 prime locations in the Georgstraße and the Bahnhofstraße,
is complemented by retail market centres, shopping centres,
Office space portfolio 2017 in m 2 MF-G* 4.95 m
district centres and attractive inner cities in the Region.
Of which Hannover city 4.48 m
Of which surrounding towns of Garbsen, Laatzen
0.47 m
and Langenhagen Retail 2
Office space turnover 2017 in m 2 MF-G* 145,000 Sales floor Hannover Region in m 2 2.1 m
City of Hannover 130,000
Surrounding area 1.15 m
Surrounding towns of Garbsen, Laatzen and
15,000 Hannover city 0.84 m
Langenhagen
Of which Hannover city centre (Mitte) 285,000
Vacancy rate 2017 in m 2 MF-G* 180,000
City of Hannover 150,000 Retail centrality index 2018 (Germany = 100)
Surrounding towns of Garbsen, Laatzen and Hannover city 122
30,000
Langenhagen
Region 107.1
Vacancy rate 2017 in % 3.6 %
Purchasing power 2018 in € 8.29 bn
City of Hannover 3.3 %
Hannover city 3.84 bn
Surrounding towns of Garbsen, Laatzen and
6.4 % Region 4.45 bn
Langenhagen
Prime office rent 2018 in €/m MF-G*
2 Retail turnover 2018 in € 7.85 bn
City centre 15.50 Hannover city 4.14 bn
City centre periphery 13.50 Region (including Hannover city) 3.71 bn
Average rent 2018 in €/m MF-G*
2 Rents 2018
City centre 10.60 Prime rent city, prime location in €/m 2* 185
City centre periphery 8.60 Average rent city prime location in €/m * 2
150
Net initial yield in prime locations, city centre 2018 4.3 % Returns 2018
Net initial yield in prime locations 4%
* MF-G: Standard method for calculating commercial rental space
Net initial yield, specialist retail centres 5.8 %
1
Source: bulwiengesa AG, Hannover Region surveys; details provided
by market players
*
Bahnhofstraße, Große Packhofstraße, Georgstraße
2
Source: retail portfolio surveys on behalf of Hannover Region (data status end
2016); MB research 2018: detail estimates provided by market players.
PROPERTY SUBMARKETS AT A GLANCE
HOTEL LOGISTICS
Tourism is growing in Hannover. The number of overnight
stays climbed in 2017 to more than 4 million in the city and the
Region. In addition to business and fair guests, the number of
city tourists visiting tourist attractions such as the Adventure
Zoo and the international fireworks competition in the Royal
Gardens of Herrenhausen is also up. This dynamism is reflected
in hotel property projects. Today’s figures indicate that by 2021
the ten hotels currently being planned and under construction Hannover Region is a European logistics hub and a vital,
will inject an additional 1,800 new rooms to the market. Another expandable seaport hinterland hub for North German
five hotel projects are in the planning phase. seaports. The regional logistics economy is dominated above
all by the demand from trading and industrial enterprises.
Hotel 3 Recent years have seen many contract logistics providers
move to the location, providing logistics services to other
Number of accommodation establishments 2017 341
companies and demonstrating high levels of in-house added
Hannover 103
value. Hall space turnover rose significantly during 2017, to
Region 238
around 260,000 m 2.
Hotels 2017 158
Hannover 43
Logistics 4
Region 115
Logistics area portfolio 2018 in m 2 3.0 m
Number of beds (all accommodation types) 2017 30,871
Of which built after 2009 0.97 m
Hannover 13,755
Logistics space turnover 2017 in m 2 260,000
Region 17,116
Prime rent 2018
Beds in hotels 2017 14,533
Prime rent in €/m 2 4.70
Hannover 8,806
Average rent in €/m 2
3.80
Region 5,727
Net initial yield logistics centres in prime sites 2018 5%
Arrivals 2017 2.20 m
Hannover 1.36 m 4
All values with respect to Hannover Region, area portfolio is an extrapolation of the
Region 0.84 m survey of 2016, data as of mid-2018.
Source: bulwiengesa AG; Details from market players
Overnights in hotels 2017 2.27 m
Hannover 1.47 m
Region 0.8 m
Average duration in days (all types) 1.7
Key indexes, chain hotels Hannover (Fairmas)
Occupancy rate, average 2017 64.8 %
Room price, average 2017 in € 102.10
RevPAR (revenue per room) average 2017 in € 66.20
Average initial yield, hotels in 2017 4.80 %
3
Values are annual average
Source: Lower Saxony state statistical office.
RESIDENTIAL
The residential property market is dominated by regional pro
viders and the demand for private homes. The population growth
in the State Capital Hannover and its neighbouring communities
is generating high demand for residential properties. Over the last
five years (since 2013 to end 2017) the population of Hannover has
climbed by approx. 17,300 (plus 3.3 %) to around 541,800. In the
same period only some 3,855 new apartments were completed in
Hannover such that at the present time there is and will continue
to be a considerable demand for new homes. Working together
with the housing industry, Hannover city plans to create building
rights for 500 to 700 new apartments.
Residential 5
Rents 2018
Newbuilds, prime rent in €/m 2 15.50
Newbuilds, average rent in €/m 2
12.20
Re-let property, prime rent in €/m 2
12.90
Re-let property, average rent in €/m 2 9.00
Home buying 2018
Owner-occupied apartments, newbuilds, prime group in €/m 2 5,650
Owner-occupied apartments, newbuilds, average in €/m 2 3,950
Multipliers 2018
Apartment blocks/investment properties, newbuilds,
26.5
prime group 2018
Apartment blocks/investment properties, newbuilds, average 2018 22.5
Apartment blocks/investment properties, stock, prime group 2018 23.5
Apartment blocks/investment properties, stock, average 2018 18.0
5
All values refer to State Capital Hannover.
Source: bulwiengesa AG; Details from market players
6 PROPERTY
PROPERTYMARKET
MARKETREPORT
REPORT2018
2018
CONTENTS
FOREWORD
Page 5
INVESTMENT OFFICE RETAIL
MARKET PROPERTY MARKET PROPERTY MARKET
Page 6 Page 16 Page 32
HOTEL LOGISTICS RESIDENTIAL
PROPERTY MARKET PROPERTY MARKET PROPERTY MARKET
Page 44 Page 54 Page 70
IMPRINT MAPS
Page 90 Pages 15, 29, 43, 53, 67, 87
3
LIVIN is a residential and commercial building providing 25 apartments in the upper floors and two business units for catering on the ground floor. The building, designed
by architects BKSP for developer HOCHTIEF Infrastructure GmbH Building Hannover, is situated directly adjacent to the "new" Leineufer river bank featuring a tree-lined
avenue and wide, open stairs down to the river. On the city side is the redesigned Platz am Marstall.
4 PROPERTY MARKET REPORT 2018
THE PROPERTY MARKET IN HANNOVER REGION
Dear Readers,
The property market in Hannover and the Region is moving forward, the cranes are turning, the
order books are full with new and innovative projects.
The commercial property market in Hannover stands for robust yields on investments with
development potential. Hannover city is one of Germany’s top shopping addresses. Logistics
areas in the Region are enjoying a high level of demand; the office market in the state capital is
Germany’s largest after the country’s seven A-locations. In the city, the number of hotel beds on
offer will continue to grow while the city and its environs are seeing strong demand for housing.
The same applies to all submarkets: Hannover offers attractive, interesting investment
o pportunities and is attracting investors seeking to invest in top quality locations.
Together with 20 prominent partners from the property industry, the regional business promotion
organisation has been collecting core data since 2003 from all relevant submarkets, presenting
them in a transparent and interesting fashion while ensuring compliance with the standards of
the Gesellschaft für immobilienwirtschaftliche Forschung e.V. (gif – property industry research
corporation). The results of these collaborative efforts have been reviewed and supplemented by
the well-known consultancy firm bulwiengesa AG.
Hannover is appreciated as a strong property location within Germany. The property market
report provides impressive documentation of the committed and trusting atmosphere of
cooperation existing within Hannover’s property business community.
Ulf-Birger Franz Sabine Tegtmeyer-Dette
Head of Business, Head of Business and Environment
Transport and Education Department, First Town Councillor
Department State Capital Hannover
Hannover Region
FOREWORD 5
Over the rooftops of Hannover: the terrace on top of the multi-storey car park in the Osterstraße provides panoramic views over Hannover’s city
centre. The GASTFREUNDSCHAFT creative workshop has been offering 600 m 2 of space for workshops and seminars since early 2018.
1.177 m 500,000
Population mid 2018 Employees paying social security
contributions, mid 2017
6 PROPERTY MARKET REPORT 2018
INVEST-
MENT
MARKET
Hannover Region is an innovative industrial
location, service metropolis and logistics hub
for national and international markets. The
positive development enjoyed by the regional
economy over recent years has created long-
€698 m term demand for properties in all submarkets.
The commercial property market in Hannover
Investment volume in commercial
property market 2017
has consolidated its position as the top
location outside of Germany’s seven major
A-locations.
INVESTMENT MARKET HANNOVER 7
FACT CHECK HANNOVER LOCATION
Famous brands, a strong business community char- The central jobs location in the Region is State Capital
acterised by strong SMEs and exceptional research Hannover, with around 320,000 employees, while a
organisations are all at home in Lower Saxony State further 180,000 are employed in its surrounding areas.
Capital Hannover and the Hannover Region.
The regional unemployment rate in June 2018 was a
Some 49,000 business enterprises help make relatively low 7.5 % (down 0.1 % on June 2017).
Hannover into Lower Saxony’s key economic area.
Almost 500,000 people had jobs in Hannover Region
in mid-2017.
Investment summary
The current market continues to be characterised by an Above all, Germany’s top 7 locations have experienced
ongoing super-cycle within the property sector, primarily extreme price rises. For some time now the B-locations
pushed by the extended period of low interest. With initial have become an interesting investment alternative
signs of a turnaround now apparent, the question is basi- for a number of investors – such that prices have also
cally when will the interest structure U-turn happen, what risen significantly here as well. Foreign investors have
will it look like and what will its impact be. At the same now gained confidence in activities outside of the top 7,
time, the global economy is presenting increasing signs of reflected in continuing demand and the expectation of
protectionism and an upturn in barriers to trade. None corresponding impacts on price structures.
theless in the last few years, the chain of events such as
Brexit or the financial crises within Europe have only had a
limited impact on the mood within the property invest-
ment markets. A forecast of how long the current dynamic
development will continue is, of course, extremely difficult.
Transaction volume commercial property market, distribution across
submarkets 2013 to 2017
100 1.000
90 900
Share of transaction volume in %
Transaction volume in million €
80 800
70 700
60 600
50 500
40 400
30 300
20 200
10 100
0 0
2013
2014
2015
2016
2017
Office Logistics and industry Volume in million €
Retail Hotel Other
Source: bulwiengesa AG, data for Hannover Region
8 PROPERTY MARKET REPORT 2018Selected transactions 2017/2018
No. Property name and/or address Quarter Year Vendor Purchaser Investor type Area
Office
1 Office and commercial building Q3 2018 LIST Develop RREEF Investment GmbH Special fund 25,000 m2
(Vahrenwalder Straße 11) Commercial
2 Office building 1-2-fly Q2 2018 Goldman Sachs Swiss Life AG Special fund 8,050 m2
(Im Heidekamp 9-11) International
3 Former Postscheckamt Q2 2018 Postbank BAUM Unternehmens- Project developer/ 45,000 m2
(Goseriede) gruppe/meravis Principal
Bauträger GmbH
4 Solvay Pharma Office Centre Q3 2017 Peakside Capital Intown Property Asset/fund manager/ 26,300 m2
(SPOC)/Landwirtschaftskam- Advisors GmbH Management GmbH private equity
mer Niedersachsen (LWK)
5 Tower 31 (Lange Laube) Q3 2017 Apollo Global Intown Property Asset/fund manager/ 23,000 m2
Management Management GmbH private equity
Business
6 Commercial building Q3 2018 Kristensen Properties Projekt Brühlstraße Project developer/ 3,100 m2
(Hildesheimer Straße 41-43) A/S GmbH Principal
7 Shopping centre Zuckerfabrik Q2 2018 Rockspring Property Warburg-HIH Invest Real Special fund 14,500 m2
Lehrte Investment Managers Estate GmbH
LLP
8 Commercial building Q2 2017 Private Investor Private Investor Private investor 500 m2
(Georgstraße 7)
Hotel
9 Intercity Hotel Q3 2018 bauwo Grundstücks- Instutional Investor Institutional investor 228 rooms
gesellschaft mbH
10 Arcadia Hotel Q1 2018 n/a HR Group Owner-occupier 120 rooms
Hannover-Laatzen
11 Sheraton Pelikan Hotel Q3 2017 Peakside Capital Intown Property Asset/fund manager/ 147 rooms
Advisors GmbH Management GmbH private equity
12 Star-Inn Hotel Q1 2017 Hirotani Projekt Bavaria Investments Closed fund 179 rooms
gesellschaft mbH GmbH
Logistics/production
13 Former Lidl central Q2 2018 Lidl Stiftung & Co. KG Garbe Industrial Project developer 24,000 m2
warehouse Wunstorf Real Estate
14 Sonepar Hannover Q2 2018 Ernst Russ AG n/a Asset/fund manager/ 13,000 m2
private equity
15 Delticom/Gourmondo Q1 2018 n/a Union Investment Open fund 28,400 m2
Hannover
16 FIEGE/Rossmann Burgwedel Q3 2017 FIEGE Gruppe Union Investment Open fund 48,650 m2
17 Weatherford Continental Q2 2017 Logicor (Blackstone) CIC China Investment Asset/fund manager/ 37,000 m2
Europe Center Langenhagen Corporation private equity
18 Krauss Maffei Berstorff Q2 2017 Hansteen Holdings PLC Blackstone Group (90 %)/ Asset/fund manager/ 38,900 m2
(An der Breiten Wiese 3-5) M7 Real Estate (10 %) private equity
All numbers refer to the map on page 15.
INVESTMENT MARKET HANNOVER 9Transaction volume commercial property market
Distribution across size classes 2013 to 2017
INVESTMENT
900
VOLUME IN THE
REGION ROSE
800
DURING 2017 BY
Share of transaction volume in million €
700
€220 MILLION
600 TO ALMOST
500
€700 MILLION.
400
300
More than 85 % of registered investment volume to date
200
in the current year covers transactions with an order of size
100 between €10 and 50 million. As has been typical in recent
years, the start of the year was slow. This also applies to
0 2018, with investments to date of almost €190 million.
Based on experience, however, the second six months will
2013
2014
2015
2016
2017
be more dynamic and further transactions from the first half
over €100 m €50-100 m €20-50 m of the year will become known, such that within Hannover
€10-20 m €5-10 m up to €5 m Region a transaction result of above €500 million for the
Source: bulwiengesa AG, data for Hannover Region
commercial property market is also considered realistic
for 2018. For example, a transaction was reported at the
start of Q3 of the sale of an office and retail complex of the
LIST Gruppe even before building work had started, with a
volume in the region of €50-60 million.
Logistics and production properties compete with
Significant rise in investment volume office properties on the transaction markets
During 2017 approaching €700 million investments Hannover is a crucial office location and this asset class
were registered in Hannover Region for commercial has a long tradition in dominating the Region’s investment
properties. The transaction result is higher by some €220 activities. Having said that, some shifts have been identified:
million compared with 2016. Once again, the majority of
the investments, with a share of almost 73 %, was for During 2017:
transactions in the medium volume categories of between The transaction result for office and commercial
€10 and 50 million. A transaction volume above €50 p roperties achieved a figure of some €270 million,
million was only registered in two cases, both within the a clear increase year-on-year.
Hannover city area: one concerned the sale of a portfolio Industrial and logistics properties registered
of residential and commercial properties while the second investments of over €210 million last year, and
was a change of ownership of an office complex as part of hence represented 31 % of the overall transaction
a portfolio transaction. volume, coming second. The run on logistics
properties observed during the first two quarters of
During the first half of 2018, the importance of transactions the year continued during the second six months.
in the medium size categories again rose for the Region’s Almost a quarter of all investments in the Region
commercial property market: during the past year, at just over €125 million, was in
10 PROPERTY MARKET REPORT 2018other property categories, in particular residential The transaction result for retail properties to date in
portfolios. the year is almost €32 million, about even with last
Hotels achieved a transaction result of almost €60 year’s figure.
million. The hotel sector has also reported activity in the
Retail properties recorded an overall investment of transaction market.
just over €33 million, representing a relatively weak In year-on-year terms, the investment activities for the
transaction result. other property categories are quite low at almost €30
million. Trading with major residential portfolios could,
The first six months of 2018 however, quickly change this picture.
Industry and logistics properties reached a regis-
tered €61 million, making this the category with the International investors up their presence in the
highest transaction volume, followed by office and Region’s core markets
commercial properties in which almost €52 million While international buyers were still reticent during 2016
has been invested thus far. within Hannover city, interest picked up in 2017. Some 18 %
of the registered transaction volume of greater than €500
million, around €88 million, was invested by international
Origin of capital in the commercial property market 2017
Assets/fund management/private equity
Special funds
Open funds
Project development/principal
Insurance/pension fund
Buyer type
Immobilien AG/REITT
Closed funds
Private
Open/state
Owner-occupied/industry
Other
Of which foreign investors
0
50
100
150
200
250
300
Transaction volumes in €million
Buyer Vendor
Source: bulwiengesa AG/data for Hannover Region
INVESTMENT MARKET HANNOVER 11investors. In the Region, the share of foreign capital was just Outlook: yields still under pressure
over 25 % (around €44 million), down on 2016. The current market situation is one dominated by a dearth
of offers. Many potential buyers are faced with just a
The share of international vendors in State Capital Hannover limited number of possible properties for sale – assuming
was very low during 2017 at some 2 %. In the surrounding the market has any at all. Under these conditions there
areas, the figure was actually 30 %, above that of buyers. are no reasons why the buoyant investment market in
Irrespective of nationality, the main players amongst both Hannover won’t continue.
buyers and vendors were asset and fund managers as well
as private equity, whereby the share of overall transaction With respect to the interest rate changes announced by
volume in the Region for both buyers and vendors was of the European Central Bank, and reflecting the already very
the order of 40 %. low levels of net initial yield, plus the multipliers in almost
all asset classes, a further significant compression of
yields is considered to be most unlikely. As a consequence,
yields in Hannover, and also on most other markets, are
expected only to soften marginally up until the end of
2018. Levels of around 4.3 % in central office locations
and 4 % in the retail sector are thought to be the lowest
threshold. Logistics projects will trend towards 5.1 %,
whereby – bearing in mind the massive market dynamism
in this sector – even lower levels with a 4 before the
decimal point are considered possible.
2019 and the years thereafter are forecast to continue at
a similar level. The yield might also possibly climb slightly
without any major changes compared with today’s level.
Net initial yields in prime locations in 2013 to 2018
Commercial property market Hannover
7
6,5
6
Net initial yield in %
5,5
5
4,5
4
3,5
3
2013
2014
2015
2016
2017
2018
Logistics Hotel Office Retail Residential
Source: bulwiengesa AG: in the case of yield spreads the respective lower end is given.
12 PROPERTY MARKET REPORT 2018The new Campus of the SAE institute opened for the start of the 2017 semester at the MARQ (a STRABAG Real Estate property development). The private college
boasts some 1,500 m 2 of space to offer ideal conditions for further and continuing education in the audio-visual media sector. The facilities include five control
rooms and three recording studios as well as a green screen studio for professional creation of picture, music, voice and sound recordings.
INVESTMENT MARKET HANNOVER 13The end of October 2017 saw the re-opening of the Lower Saxony Landtag parliament building complex after a three-year conversion and refurbishment phase. The
plenary hall building, built in 1962 on plans by architect Dieter Oesterlen, was reconfigured. The characteristic listed concrete facade was retained for the most part.
14 PROPERTY MARKET REPORT 2018B3
Großburgwedel
Selected investment market projects
A 352
17
Langenhagen
EN B 522
A 37
B 443
E 30 A2
2
M it
te lla ndkanal
11
B6
B3
1
SEELZE
B 441 12
HANNOVER 18 A7
7
3 9
4
5 8
14 15
6
B 65
B 443
B 65
B6
EHRDEN B 217 10
B 443
B3
Lein
e A 37
0 1 2 3 km
Laatzen
N
Office Hotel B 443 Key
B6
WENNIGSEN 1
Office and commercial building/ 9
Intercity Hotel * outside of map area
Vahrenwalder Straße
PATTENSEN
10
Arcadia Hotel Hannover-Laatzen
2
Office building 1-2-fly
11
Sheraton Pelikan Hotel Airport
3
Former Postscheckamt
4
B 217
12
B3
Star-Inn Hotel SARSTEDT
Exhibition grounds
Solvay Pharma Office Centre/
Landwirtschaftskammer Niedersachsen Main station/main line trains
B 494
5
Tower 31 Logistics Tram
e
E 45
n
13
Former Lidl central warehouse Wunstorf* S-train
Lei
A7
Commerce 14
Sonepar Hannover City boundary
SPRINGE
6 15
Commercial building/Hildesheimer Straße Delticom/Gourmondo Hannover
B6
7 16
Shopping centre Zuckerfabrik Lehrte FIEGE/Rossmann Burgwedel*
8 17
Commercial building/Georgstraße Weatherford Continental Europe Center
Langenhagen
18
Krauss Maffei Berstorff
B1
HILDESH
B3
B 243
INVESTMENT MARKET HANNOVER 15Glazed facade: Hannover’s power utility enercity is planning a newbuild directly on the River Ihme. Based on designs by Stuttgart architect’s office
haascookzemmrich Studio 2050, an office building for around 550 persons is planned for completion by 2021. The scheme includes a large atrium and
a covered inner courtyard with connecting bridges to the various parts of the building.
€15.50/m2 145,000 m2
Prime rent 2018 Space turnover 2017
16 PROPERTY MARKET REPORT 2018OFFICE
PROPERTY
MARKET
Hannover is the largest and also
one of the most dynamic locations
in Germany’s property market after
the country’s seven A-locations. In
the last five years some 190,000 m2
4.3 % office space has been built new and
a further 170,000 m2 refurbished. A
Net initial yield 2018
further minimum 190,000 m2 will
come online by 2020 (of which
50,000 m2 after refurbishment).
17FACT CHECK OFFICE MARKET
Includes Hannover city, Garbsen, Laatzen and Average annual turnover has been 122,000 m2
Langenhagen. since 2013.
4.95 million m2 office space (of which some The investment risk is low due to the relatively low
4.48 million m2 in Hannover) vacancy rates as well as thanks to the high level of
market transparency: the net initial yield was 4.3 %
Largest portfolio after Germany’s seven A-locations. in 2018.
150,000 office employees in Hannover (2018) In 2017 the vacancy rate in Hannover was a low 3.3 %,
whereas the average for Germany’s A-locations was
Over the last five years the number of office jobs 4.5 % and for B-locations 4.6 %.
has risen by around 15,000, or 11 %.
Investment transaction volume reached approx.
Since 2013, the office property market in Hannover €270 million (2017).
has seen a total of 610,000 m office space turnover.
2
Office space turnover 2013 to 2017
160
Office property turnover increased noticeably in 2017
The property report project group Hannover identified
140 some 145,000 m 2 newly rented owner-occupied office
areas in Hannover, Garbsen, Laatzen and Langenhagen
during 2017. Turnover climbed year-on-year by 25,000 m2
Space turnover in thousand m2 MF-G
120
to 145,000 m2 (plus 21 %) and is approx. 20 % above the
average for the years 2013 through 2017 (122,000 m2).
100
City periphery and arterial roads report strong turnovers
80 Most new contracts for office properties during 2017 were
in Hannover city: at just under 50,000 m2, this figure repre-
sents one third of office space turnover.
60
Prime rent climbs in city and on arterial roads
40
Prime rent climbed slightly and reached €15.30/m2 at the
end of 2017. Noticeable here is the development of rents
20 on the city periphery and the main arterial roads. Over
the last two years prime rent climbed up to €13.50, in the
years to date the rent was considerably lower at €11.
0
2013
2014
2015
2016
2017
Rent, Region Owner-occupied, Region
Rent, Hannover Owner-occupied, Hannover
Source: Hannover Region surveys, details provided by market players.
18 PROPERTY MARKET REPORT 2018The "Anna" office building forms, together with the "Dreiklang" residential project opposite, the gateway into the completely transformed
grounds of the former Südbahnhof goods station. The developer, Aurelis Real Estate, plans to install a day-care centre on the ground floor.
Directly opposite the planned newbuild for the
Siemens subsidiary, another large new office building
is being erected in Laatzen. Valentin Klein Immobilien
of Hannover is working with architects F+R BDA, also
of Hannover, to construct an office building offering
approx. 6,500 m 2 space on the site directly adjacent
to the Park der Sinne.
OFFICE MARKETS
IN NEIGHBOURING
TOWNS BENEFIT
FROM HANNOVER’S
HIGH LEVEL OF
ATTRACTION.
OFFICE PROPERTY MARKET 19The Lower Saxony Ärztekammer (medical association) is planning a representative newbuild for its Lower Saxony state offices designed by Berlin architects
G rüntuch Ernst (nonbinding draft). The building of up to 10 storeys is planned with a staggered roof line forming greened terraces along the Berliner Allee road,
and glazing to create a transparent frontage. The old structure is currently being demolished with building work scheduled to commence in January 2019.
20 PROPERTY MARKET REPORT 2018Office space turnover based on size categories 2017
6%
3%
9%
12 % 52 %
18 %
Up to 300 m2 301-500 m2 501-1000 m2
1001-2000 m2 2001-3000 m2 3001 and more m2
Source: Hannover Region surveys, details provided by market players, with respect to number of rental contracts (n = 145)
Public sector and industry dominate deals in 2017 Positive prospects for 2018
The biggest deal of the last 12 months comprised some In mid-2018, space turnover had already reached some
22,000 m2 space in a rental contract for an office complex 85,000 m 2. Special highlights here are two major rental
on the Joachimstraße: in a property previously used by the contracts at the EXPO Park/Kattenbookstrift in Hannover’s
Deutsche Bahn AG, the building is to be refurbished and used south (a 10,000 m 2 rental by the state of Lower Saxony
by Hannover city’s department for juvenile and family affairs and 14,000 m 2 by FinanzIT). Hannover market players
on a long-term lease. anticipate, based on projects either under construction or
subject to completion, that prime rents in the city will climb
Second in the ranking is a project in the Lindener Hafen during 2018 to €15.50/m2. The fact that significantly higher
area: automotive supplier WABCO is building the approx. prime rents not were achieved in the past was due to a lack
11,500 m2 WABCO Engineering Innovation Centre for its of offers of high-quality areas in central office locations.
own use. Work started in Laatzen on the newbuild of the Prime rents6 were actually in part significantly higher during
Siemens subsidiary. By 2020 the company will re-locate 2017 and also until mid-2018 in the city centre area, with up
approx. 750 jobs from its old site on the Hildesheimer to €18/m2 for exceptional newbuilds and high-quality refur-
Straße to a new, modern office complex offering around bishments. Exceptional properties can also achieve rents of
10,000 m2 of space on the Karlsruher Straße. up to €14/m2 at the city periphery and on arterial rods.
6
The prime rent achieved refers to the highest registered nominal net basic
rent for a rental contract concluded during the respective report period,
irrespective of the local submarket, the quality or size of the rented area.
In this case the data refers not only to rental contracts but also rental
contract extensions which are not included in the rental turnover.
OFFICE PROPERTY MARKET 21Office area turnover according to location 2017
Office property investments in demand
11 % In recent years Hannover has evolved into one of the most
2% sought-after German locations after the Top 7. Factors
including the low market risk, stable developments
5% and good growth prospects mean Hannover is now an
interesting option for investors from both Germany and
32 % abroad. 2017 saw office market transactions in Hannover
7% Region achieve a volume of approx. €270 million. The net
initial yield fell to 4.3 %.
14 %
29 %
City City periphery/arterial roads
Hannover, other locations Expo-Park
Roderbruch/Karl-Wiechert-Allee Lahe
Surrounding area
Source: Hannover Region surveys, data provided by market players, with respect to total areas in m 2
Net initial yield in prime locations 2013 to 2018 Office rents in Hannover 2013 to 2018*
6 16
5,6 15
5,3 14
5 13
in €/m2 MF-G
4,6 12
in %
4,3 11
4 10
3,6 9
3,3 8
3 7
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
Net initial yield, prime location, office Prime rent, city Prime rent, city periphery
Source: bulwiengesa AG, in the case of yield spreads the respective lower end is given.
Average rent, city Average rent, city periphery
Source: bulwiengesa AG, Hannover Region surveys, data provided by market players
* T he values given for 2018 are based on data provided by market players on developments
in the first two quarters 2018
22 PROPERTY MARKET REPORT 2018Moving within Laatzen: the Siemens subsidiary, with approx. 750 employees, is scheduled to move into a newbuild on Erich-Parnitz-Straße by mid-2020.
The building has an H-floor plan with two five-storey office tracts connected by a narrow bridge section. The floor plan is basically square, the total floor
area is some 10,000 m 2.
Gateway to the town: the first building phase of the "City Gate Nord" on the Vahrenwalder Straße was completed in
June 2018, and handed over to Vodafone Deutschland as main tenant. The building provides around 9,000 m 2 space
and facilities for more than 600 employees. The modern DGNB-Gold-certified office building features an elegant brick
facade typical of North Germany’s brick architecture.
OFFICE PROPERTY MARKET 23The last parts of the historic Hall 96 on the Hanomag grounds have been gutted and converted into loft flats and offices, without the
building losing its industrial look/feel.
The bauwo Grundstücksgesellschaft is planning to
erect an approx. 20,000 m 2 total floor space office
building on the Vahrenwalder Straße. The project is
on a former car sales showroom site, directly adjacent
to the Brinkhafen business park.
VACANCY RATE IN
HANNOVER DURING
2017 WAS 3.3 %,
CONSIDERABLY LOWER
THAN THE AVERAGE OF
A-LOCATIONS AT 5.5 %.
24 PROPERTY MARKET REPORT 2018Vacancies continue to fall
Despite many completions during the last five years, the Office vacancy rate 2013 to 2018*
vacancy rate has not increased; new areas entering the
300 7%
market are being fully absorbed. The vacancy rate7 closed
2017 at 3.5 %, 100 base points lower than 2016. Taken
250 6%
absolutely, vacancies available for rent in Hannover have
Vacancies in thousand m 2 MF-G
reduced by 55,000 m 2 to 150,000 m 2. Market players
anticipate that the vacancy rate will continue to fall during 200 5%
Vacancy rate in %
2018 and settle at a level just above 3 %. This is the lowest
vacancy rate experienced by Hannover since market 150 4%
reporting began.
100 3%
Dynamic completion volumes
During the last five years, around 190,000 m2 office space
50 2%
has been erected new and a further 170,000 m2 thoroughly
refurbished. By 2020 a further 190,000 m2 are anticipated
0 1%
(of which 50,000 m2 via refurbishments).
2013
2014
2015
2016
2017
2018
7
Estimate is based on an updated extrapolation of a full survey of office
space inventory and vacancies by bulwiengesa AG, end 2015/early 2016.
The forecast and model calculations of bulwiengesa AG are based on the Vacancies, Hannover Vacancy rate, Hannover
total inventory surveys of 2009, 2012 and 2015.
Vacancies, Region* Vacancy rate, Region
* Value for Region (Garbsen, Laatzen, Langenhagen)
The vacancy figures are based on office space full surveys in 2008, 2012
and 2015 for the Hannover market area and extrapolated in the following
years. For the surrounding towns, the survey is based on a specific vacancy
rate for 2015.
Source: bulwiengesa AG, Hannover Region surveys: details provided
by market players.
Completions in office market 2013 to 2020
100
90
80
70
in thousand m2 MF-G
60
A FURTHER 190,000 M 2
50
OFFICE SPACE FROM
NEWBUILDS OR
40
REFURBISHMENTS
WILL ENTER THE
30
20
MARKET BY 2020.
10
0
2020*
2018*
2019*
2016
2014
2015
2013
2017
Newbuild completions Hannover Refurbishments Hannover
Newbuild completions Region
*B
ased on the spring forecast of bulwiengesa AG; Hannover Region survey, details provided
by market players; data status Q3/2018
OFFICE PROPERTY MARKET 25Selected office property projects
Investor, Status
No. Property Address Area in m2 MF-G
developer or user completion
New builds
Completions
1 WABCO Engineering Am Lindener Hafen 21 WABCO Fahrzeugsysteme 11,500 m2 office/laboratory Q3/2018
Innovation Center GmbH Owner-occupation
(2. BA)
2 City Gate Nord Vahrenwalder Straße 236 Projektentwicklung HRG & 9,000 m2 office Q2/2018
(1. BA/Vodafone) Delta Bau GmbH & Co. KG
3 Pod BC Podbielskistraße 382 STRABAG Real Estate GmbH 6,500 m2 office Q4/2018
4 Prinzenareal Prinzenstraße 19-23 VGH Projekt GmbH & Co. 6,330 m2 office Q3/2017
Prinzenareal KG
5 Telekom AG Elfriede-Paul-Allee 15 DIBAG Industriebau AG 5,500 m2 office Q3/2018
6 MARQ Marstall Quarre Am Marstall STRABAG Real Estate GmbH 3,020 m2 office Q1/2018
520 m2 gastronomy
700 m2 residential
7 Hüttenes-Albertus Hansastraße 1 Hüttenes Albertus 2,500 m2 office/laboratory Q4/2017
(extension) Chemische Werke GmbH Owner-occupation
8 Office project Planetenring 39–41, Rahlfs Immobiliengruppe 2,450 m2 office/surgery Q4/2018
Planetencenter Garbsen
9 Schindler Boulevard der EU 23 Nebel Immobilien 2,000 m2 office Q3/2018
10 B6 Office Bremer Straße 29, Garbsen Langwost Unternehmens- 1,700 m2 office Q3/2018
gruppe (in part owner-occupation)
11 LIVIN Am Marstall/ HOCHTIEF Infrastructure 2,600 m2 residential Q2/2018
Am Hohen Ufer 5 a/b GmbH Building Hannover, 920 m2 gastronomy
hanova 750 m2 office
Under construction/in preparation
12 Continental AG Hans-Böckler-Allee 30/49 Continental AG 44,400 m2 GFA office 2021
Headquarters Owner-occupation
13 Deutsche Bahn AG Rundestraße/Hamburger Savills 25,500 m2 office Q2/2019
Allee (ehem. ZOB) KÖLBL KRUSE GmbH
14 Office and commercial Vahrenwalder/ LIST Develop Commercial 25,000 m2 GFA office/retail/ Q2/2020
building Vahrenwald Ecke Philipsbornstraße GmbH & Co. KG gastronomy/services/hotel
15 Admin building Public Schützenplatz 1 hanova 19,000 m2 office Q1/2019
Order
16 Siemens AG Erich-Panitz-Straße/ Siemens Real Estate 10,000 m2 GFA office Q3/2020
Karlsruher Straße, Laatzen Owner-occupation
17 Office building at Park Senefelderstraße, Laatzen VALENTIN KLEIN Immobilien 6,500 m2 office Q3/2019
der Sinne GmbH & Co. KG
18 DB Netz AG (extension) Lindemannallee 3 DB Netz AG 2,500 m2 office Q1/2019
19 State office of health Roesebeckstraße Land Niedersachsen 1,100 m2 office/laboratory Q2/2019
(extension) Owner-occupation
26 PROPERTY MARKET REPORT 2018Investor, Status
No. Property Address Area in m2 MF-G
developer or user completion
Detail planning
20 Sky City Hannover Airport Flughafenstraße Flughafen Hannover- 25,000 m2 GFA office
Langenhagen GmbH
21 Business Park Vahrenwalder Straße 321 bauwo Grundstücks 20,000 m2 GFA office 2020
Hannover-Nord gesellschaft mbH
22 Enercity headquarters Glockseestraße 33 enercity AG 20,000 m2 GFA office 2021
Owner-occupation
23 Office ensemble B3/Ecke Weetzener FIH Fürst Immobilien 18,000 m2 GFA office/surgery/ 2021
Hemmingen Landstraße, Hemmingen Hannover retail gastronomy
24 Forensic institute Waterlooplatz 11 Land Niedersachsen 10,1000 m2 GFA office 2021
Owner-occupation
25 Medical building Berliner Allee 20 Ärztekammer Niedersachsen 10,000 m2 office 2021
Owner-occupation
26 Immigration authority Akazienstraße Region Hannover 5,000 m2 office 2020
Owner-occupation
27 Businesspark Kirchhorster Straße 33/ BBH Immobilien GmbH 3,700 m2 office 2021
Hannover-Lahe Ecke Im Klingenkampe 46
28 Office and residential Willi-Blume-Allee HOCHTIEF Infrastructure 4,800 m2 residential Q4/2019
building Steinbruchsfeld GmbH Building Hannover 1,900 m office/surgery
2
790 m2 gastronomy/retail
Medium-term planning
29 Office project WA27 Weltausstellungsallee Delta HRG 22,000 m2 office/hotel 2021/2022
30 Office project former Am Weidendamm Aurelis Real Estate GmbH 12,000 m2 GFA 2021/2022
main goods station
31 City Gate Nord (2nd BP) Vahrenwalder Straße 236 Projektentwicklung HRG & 12,000 m2 office/retail
Delta Bau GmbH & Co. KG
32 Office project VS319 Vahrenwalder Straße 319 Delta HRG 15,000 m2 office/hotel
33 Office project MS4 Mailänder Straße Delta HRG 11,000 m2 office/hotel
34 Ratsquartier Bruchmeisterallee BAUM Unternehmensgruppe 12,000 m2 GFA office 2019/2020
35 Office project KWA62 Karl-Wiechert-Allee 62 Delta HRG 9,000 m2 office/hotel
36 Office project Laatzen Erich-Panitz-Straße/ phoenix Holding GmbH 10,000 m2 GFA office
Karlsruher Straße, Laatzen
37 Office project "Anna" Anna-Zammert-Straße Aurelis Real Estate GmbH 4,500 m2 GFA office Q1/2010
38 Office high-rise Bischofsholer Damm 87 HELMA 2,200 m2 GFA office/surgery
Bischofshol
OFFICE PROPERTY MARKET 27Investor, Status
No. Property Address Area in m2 MF-G
developer or user completion
Refurbishments
Completions
39 ÜSTRA headquarters Am Hohen Ufer 6 ÜSTRA Hannoversche 5,700 m2 office Q3/2017
Verkehrsbetriebe AG Owner-occupation
40 Rathaus Kontor Theodor-Lessing-Platz BAUM Unternehmensgruppe 4,200 m2 office Q4/2018
1-2/Ebhardtstraße 1
41 KRH Training academy Schützenallee 5 meravis Bauträger GmbH 3,700 m2 office/seminar Q1/2018
42 Office and commercial Osterstraße 63 privater Investor 3,000 m2 office Q1/2018
building 500 m retail
2
43 Office building Siemensstraße 10 Schramm & Schön 2,500 m2 office Q3/2018
44 Danish Pavillion Boulevard der EU 7 Grobe architect’s office 2,000 m2 office Q3/2018
Owner-occupation
Under construction/in preparation
45 Office lofts Drostestraße 14/16 BAUM Unternehmensgruppe 4,000 m2 GFA office 2018
Detail planning
46 Admin building Joachimstraße 8 JP Morgan 21,000 m2 2020/2021
Joachimstraße
47 State criminal Waterlooplatz 11 State of Lower Saxony 19,500 m2 GFA office 2021
police agency Owner-occupation
48 Office/commercial Am Klagesmarkt 12 BAUM Unternehmensgruppe 6,500 m2 GFA hotel/office/ Q2/2020
building gastronomy
Medium-term planning
49 Former Postbank-Areal Goseriede, Brüderstraße BAUM Unternehmensgruppe, 45,000 m2 office ( currently)
meravis Bauträger GmbH 19,000 m2 plot
Including residential/
hotel planned
28 PROPERTY MARKET REPORT 2018Großburgwedel
A 352
Selected office projects
Newbuilds Refurbishments
1 39
WABCO Engineering Innovation Center ÜSTRA headquarters
2 40
City Gate Nord Rathaus Kontor
20 3 41
B
Pod BC KRH Bildungsakademie
4 42
Prinzenareal Office and commercial building Osterstraße
Langenhagen
5 43
Telekom AG Office building Siemensstraße
6 44
MARQ Marstall Quarre Danish pavilion
Langenhagen-Centre
B 522 7
Hüttenes-Albertus (extension) 45
Office lofts Drostestraße
A 37
Garbsen
8 46
Office project Planetencenter Administration building Joachimstraße
Garbsen 9
Schindler 47
B 443
Lower Saxony State criminal police agency
Centre
10 10 48
B6 Office Office and Commercial building am
Klagesmarkt
11
LIVIN
A2 49
E 30 7 Lahe 12
Former Postbank-Areal
Continental AG HQ
8
21
Vahrenwalder-Straße 27
13
Deutsche Bahn AG
32 Completions
2 14
Office and commercial building Vahrenwald
M ittellandkanal
31 3
Under construction/in preparation
15
Administration building Public Order
Podbielskistraße Concrete Planning
16
Siemens AG
B6
Mid-term planning
B3 17
Office building am Park der Sinne
35
18
14
DB Netz AG (extension)
28 Key
HANNOVER
19
B 441 45 Landesgesundheitsamt (extension)
30
20 Airport
SkyCity Hannover Airport
48 13 Karl-Wiechert-Allee Exhibition grounds
21
49 Business Park Hannover-Nord
22
City 39 46
6 25 22 Main station main line trains
11
12
enercity headquarters
1 42 4
23 Tram
40
13 Office ensemble Hemmingen
15
Hans-Böckler-Allee
S-train
City centre periphery 47
34
26 37
38
24
Forensic Institute
19 18 25 City boundary
24 Ärztekammer Niedersachsen
5 43 26
Immigration authority
B 65
27
Business park Hannover-Lahe
Hildesheimer Straße B 443
28
Office and residential building
B 65 Steinbruchsfeld
29
Office project WA 27
41 B6
Expo-Park 30
Office project Hauptgüterbahnhof
Sehnde
31
City Gate Nord
32
Office project VS 319
33
B 217 23 Office project MS4
Laatzen 33
34
Ratsquartier
Centre 29
44 9 35 B 443
Office project KWA62
36
B3 16 17
36
Office project Laatzen
Lein
e
Laatzen 37
38
Office project "Anna"
Office high-rise Bischofshol
0 0,5 1 1,5 km
N
PROPERTY MARKET REPORT 2018 OFFICE PROPERTY MARKET 1 OFFICE PROPERTY MARKETSubzones of Hannover’s office property market (see also map of office projects on page 29):
The Hannover office market, comprising approx. 4.95 million m2 office space (MF-G), comprises the city of
Hannover and the neighbouring cities of Garbsen, Langenhagen and Laatzen which border the state capital
directly to the north and south and to which it has close functional ties.
Map Subzones location Office Number Of which
space in of office > 10,000 m2
m2 MF-G buildings
City centre: bordered by the city ring road. This area comprises Georgstraße, 1,18 m 220 20
Georgsplatz, Raschplatz, Friedrichswall, Aegidientorplatz and Schiffgraben.
City centre peripheral locations and arterial roads: High-quality office 1,88 m 323 37
locations are situated in the north and southeast of the city centre with the main
traffic axes comprising Vahrenwalder Straße in the north, Podbielskistraße in the
northeast, Marienstraße/Hans-Böckler-Allee in the east and Hildesheimer Straße
in the south and extends west towards the HANOMAG area
City periphery 584,000 145 4
Podbielskistraße 546,000 50 17
Vahrenwalder Straße 343,000 59 7
Hildesheimer Straße 238,000 42 4
Hans-Böckler-Allee 165,000 27 5
Office centre Karl-Wiechert-Allee: With direct access to the expressway this 322,000 36 9
location hosts the large sites and facilities of the Hannover Medical School and
the adjacent Medical Park, and in particular owner-occupied office complexes
for groups involved in the finance, insurance and tourism sectors.
EXPO Park: High-quality office buildings oriented towards IT, design and media, 148,000 14 6
partially comprising some of the original buildings and open spaces constructed
for the EXPO 2000 World Exposition. The buildings constructed on the nearby
Kronsberg (Kattenbrookstrift) are exceptional examples of modern architecture.
Office centre Lahe: Location in the north-east of Hannover boasting excellent 95,000 20 2
transport connections to the A 2 and to the tram system. A number of rezoning
and restructuring activities offer considerable scope for further developing the
potential at this location.
City of Langenhagen: Office buildings concentrated in the town centre 217,000 44 0
and around the LRT station Langenhagen-Mitte. Also, excellent transport
connections to the motorways and the airport. Additional office properties
in Godshorn and Airport business parks.
Stadt Garbsen: Office buildings concentrated around the centre of the city 121,000 36 0
and the new Mechanical Engineering Campus of Leibniz University. Excellent
transport connections including light rail transit, and direct proximity to the A
2 and B 6 roads.
City of Laatzen: Office buildings concentrated around the centre of Laatzen. 128,000 22 1
Directly adjacent to the Hannover Exhibition Grounds and the A 37/A 7 motor-
ways, excellent local public transport connections.
OFFICE PROPERTY MARKET 31Weitz is one of Hannover’s traditional shops: it re-opened in October 2017 following a brief conversion phase. The family-run outlet offers "the experience of kitchen culture"
on 570 m2 of sales floor. The range of porcelain and household goods has been complemented by an event area on which customers can experience products in use.
2.1 m m2 €185/m2
Sales floor/retail Prime rent 2018
32 PROPERTY MARKET REPORT 2018RETAIL
PROPERTY
MARKET
Hannover and its environs offer many
attractive retail opportunities. The
Georgstraße in Hannover is one of
Germany’s strongest retail locations.
Hannover Region itself also offers many
4% attractive shopping opportunities,
attracting shoppers from beyond the
Net initial yield 2018
Region’s borders.
33RETAIL FACT CHECK
Hannover’s Georgstraße has been ranked amongst The sales floor total in Hannover Region is approx.
Germany’s ten best shopping streets for many years 2.1 million m2, of which some 285,000 m2 are located
now and is one of the nation’s top locations in terms in Hannover’s city centre.
of pedestrian frequency and prime rent.
The communities of Laatzen, Langenhagen,
The centrality of the city of Hannover and the Region Isernhagen-Altwarmbüchen and Garbsen all
is high, with a catchment area stretching far beyond offer strong shopping centres and retail centres
Lower Saxony’s border in the west through to the state and are successful at a supra-regional level.
of North-Rhine Westphalia.
In 2017 retail properties worth around €33 million
Many communities in the Region offer attractive were transacted in the Region.
inner cities and district centres which customers find
very attractive.
The Region is one of the country’s highest Exceptional centrality
turnover retail locations Hannover is a retail location which is very much in
Despite the increasing share now enjoyed by e-commerce in demand. Compared with cities of a similar size, such as
retail sales in Germany, local retail turnovers have remained Bremen, Dortmund, Nuremberg, Essen and Leipzig, the
stable or have risen slightly. According to MB-Research, rents achieved in Hannover’s inner-city shopping streets
retail sales in Hannover Region topped €7.85 billion during are much higher. Hannover boasts excellent centrality and
2018. Hannover Region continues to rank amongst those actually beats metropolises such as Berlin, Hamburg and
Germany’s municipalities and cities with the highest turn- Munich in this regard.
over levels.
Retail indexes 2013–2018
130
125 Turnover index, Hannover
Turnover index, Region
120
Centrality index, Hannover
115 Centrality index, Region
Germany = 100
Purchasing power index, Hannover
110
Purchasing power index, Region
105
Source: MB-Research
100
95
90
2013
2014
2015
2016
2017
2018
34 PROPERTY MARKET REPORT 2018Purchasing power and turnover 2013-2018
9,000
8,000 Turnover Hannover
7,000 Turnover Region
Purchasing power relevant to retail, Hannover
6,000
Purchasing power relevant to retail, Region
5,000
Source: MB-Research
In € m
4,000
3,000
2,000
1,000
0
2013
2014
2015
2016
2017
2018
Region offers over 2.1 million m2 sales floor Area turnover in the city up again in 2018
The total sales floor for the Hannover Region as a whole is Hannover’s prime locations continue to be very interesting
estimated at 2.1 million m2. The sales floor available in State for many retailers vying for the few areas available in the
Capital Hannover is approx. 885,000 m2. Overall, the city prime locations. Over the last five years (2013-2017) the
centre (district of Mitte) offers approx. 285,000 m sales 2
average area turnover in Hannover city amounted to some
floor.8 The top four prime sites (Bahnhofstraße, Georg- 5,200 m2. During the course of 2015 the city of Hannover
straße, Große Packhofstraße and Karmarschstraße) have saw about 8,700 m2 sales floor marketed. In 2016 turnovers
a combined sales floor of approx. 190,000 m . 2
fell to approx. 1000 m2, while in 2017 area turnover achieved
a figure of only approx. 1000 m2. During the first six months
8
Data for Hannover Region, acquired as part of the d evelopment of 2018 area turnovers in prime locations have, however,
of the Regional Retail Concept. Data status 2016
started to climb again and reached approx. 1,600 m2, while
in the second half of the year there have already been
significant turnovers reported.
Pedestrian frequency (average per hour)
Road 2018 ø 2014-2018 National ranking
Georgstraße 10,985 11,718 5
Bahnhofstraße 8,775 8,390 11
Karmarschstraße 5,540 5,880 50
Große Packhofstraße 5,185 6,327 44
Source: James Lang LaSalle survey on Saturday 14.04.2018, 13:00-16:00 hours. The national ranking
represents placings from a total of 174 surveyed shopping streets.
RETAIL PROPERTY MARKET 35Rents and yields 2013-2018
240 8
220
200 7
Net initial yield, prime location in %
180
Prime rent city in €/m2
160 6
140
120 5
100
80 4
60
40 3
20
0 2
2013
2014
2015
2016
2017
2018
Prime rent, city (prime location) Net initial yield, retail parks, prime location
Average rent, city (prime location) Net initial yield, prime location
Source: bulwiengesa AG, market player estimates
Prime rents dip slightly
Prime rents in Germany’s top locations reached short-lived During the course of 2018, Hannover market players expect,
peaks in many locations during 2017, including Hannover. despite the limited availability of high-quality space and the
In part, prime rents hit the limits of that which retailers attractions of Georgstraße, to see a stagnation or a dip of
were able to generate in various locations. Only in isolated realisable peak rent to €185. In the course of 2018 moderate
cases are retailers still willing to accept higher rental levels, rental price increases are possible in terms of average values
and then only for exceptional locations, for example flag- and also in places outside of the prime locations.
ship stores.
Retail sector structure of prime locations Hannover, share of sales floor
17.8 %
1.5 % 27.2 % Textile
Shoes/leather goods
0.9 %
Health/beauty
1.5 % Jewellery/jewellers
Gastronomy/food
5.2 % Telecommunications/electronics
Home/house/fittings
Stationery/books
7.0 % Sports/outdoor
Others
19.2 % Source: JLL, Retail city profile 2017
12.2 %
7.5 %
36 PROPERTY MARKET REPORT 2018The Ace & Tate glasses brand of Amsterdam has moved away from pure e-commerce operations and now offers over the counter retail outlets.
In April 2018 the company opened its tenth German store in the Karmarschstraße.
RETAIL PROPERTY MARKET 37A very safe investment – since April 2018 guests have enjoyed meals in the converted vaults of the former Dresdner and Commerzbank.
The Vince restaurant is situated directly behind the Opera house in Hannover’s Börsenviertel.
THE SALES FLOOR IN
HANNOVER REGION TOTALS
APPROX. 2.1 MILLION M 2 ,
AROUND 285,000 M 2 OF
WHICH ARE IN HANNOVER’S
CITY CENTRE.
Swiss glasses brand VIU is expanding in Hannover – in mid-June it opened an approx.
40 m 2 shop on the Georgstraße. The company has 17 stores in Germany.
38 PROPERTY MARKET REPORT 2018Transaction market: Locations around Hannover
Prices reach peak level, yields fall In Hannover’s environs, the total sales floor available is
In Hannover’s inner city, the yields hardly differ between approx. 1.15 million m2, with municipalities boasting in
the various main shopping streets. More than 90 % of the part excellent retail centrality. The centres of Isernhagen,
investment volume in Hannover properties in recent years Laatzen and Langenhagen have undergone in part major
took place at prime locations. While the net initial return refurbishments together with extensions in recent years.
is only 4 % (down 15 base points), prices in Hannover have Main investors in these cases also include foreign investors,
again hit a new high. Here again the lack of properties who have invested in the shopping and retail parks while
available in attractive locations is helping drive prices up. also acquiring properties for their portfolios. The "Neue
Mitte" project in Garbsen is set to start shortly (15,000 m2
The net initial yield for decentralised locations is an average sales floor), where the Röther Beteiligungsgesellschaft
of 5.8 % (down 15 base points). Good retail centres in prime is planning a retail centre anchored around one of the
locations have, however, been traded at in part significantly company’s own fashion parks.
higher levels.
In early April 2018 the French Uniball-Rodamco company took over management of the Leine-Center Laatzen shopping mall.
The shopping centre at Laatzen’s city centre has approx. 40,000 m 2 sales floor and more than 100 shops.
RETAIL PROPERTY MARKET 39You can also read
