Market Report No. 8 by the Initiative Unternehmensimmobilien

Market Report No. 8 by the Initiative Unternehmensimmobilien

The volume of transactions for corporate real estate has never been greater than in 2017, according to the latest market report from INITIATIVE UNTERNEHMENSIMMOBILIEN. At around € 3.0 billion, the previous peak year of 2015 was exceeded by 27 percent. This was due to several transactions with very large portfolios. Partly entire companies were acquired with their assets. By contrast, the second half of 2017 was much more subdued than the first. Undisputed number one among investors were asset and fund managers/private equity with just under € 1.5 billion.

Unless external shocks occur, demand for 2018 is expected to be very good in both the investment and letting markets (+ 12 per cent in 2017). It is currently being slowed down by the scarce supply, which, however, will expand in perspective. This is shown by the new overview of the pipeline development.

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: ATOS, Aurelis, BEOS, Cromwell Property Group, Garbe Industrial Real Estate, Geneba Properties, 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.

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

Ongoing Market Observations