Market Report No. 10 by the Initiative Unternehmensimmobilien

Market Report No. 10 by the Initiative Unternehmensimmobilien

Less than ever, German companies want to tie themselves to a property for a long time. This can be seen in the lease terms, which have fallen dramatically in recent years: Only just under 5% of tenants rent for 10 years or more. By contrast, the take-up of space in the past six months showed a significant increase in leases with a term of less than one year. The share of these contracts is now around 36%, a good 16% above the long-term average. In addition, the previously preferred lease lengths with average maturities of 3 to 5 years have lost relevance. Uncertainty about future economic development may play a role here (keywords Brexit, trade war and increasing political uncertainty). Flexibility - even with contractual obligations - is especially valued in increasingly uncertain times.

The strongest demand for space in the second half of 2018 came from the logistics and transport sector. Demand from the logistics industry remains high, as production steps are increasingly being outsourced to logistics. The flexibly usable corporate real estate offers the right amount of space.
Continue reading in Market Report No. 10, which you can download on the right.

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 ten companies active in the German corporate real estate market: Aurelis, BEOS, Corestate Capital Group, Cromwell Property Group, Frasers Property, Garbe Industrial Real Estate, 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 to stay up to date.

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

Photo: Aurelis

Ongoing Market Observations