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Real Estate Market Report 2014Rhine-Neckar Metropolitan Region

Focus

Conversion

Wolf-Rainer Lowack

Managing Director

Metropolregion Rhein-

Neckar GmbH

Those doing business in the real estate market of the Rhine-Neckar Region can

currently look forward to the exciting effects the conversion of military properties

will have on the this market.

Of the almost 1,000 hectares that will become available in the market step-

by-step by 2020, large sections are located in central areas of the core region.

However, their future use will affect the entire Rhine-Neckar Metropolitan Region.

We are eager to seize these opportunities in order to further minimize the dispari-

ties between urban and rural areas in conjunction with the conversion.

The generation of high levels of acceptance and a controlled, demand-driven

zoning development hinge on the intense and transparent dialog between citizens,

planners and investors in the metropolises and the region alike. The fact that

action is being taken on the regional level also offers additional options for the

implementation of innovative model projects, such as sustainable mobility solu-

tions or the integration of decentralized energy systems in conversion projects.

On the occasion of this year’s publication of the Real Estate Market Report we

once again invite you to gain an overview of the overall regional perspective with

its wealth of individual projects and detailed data. A highly efficient project team

consisting of representatives of the regional real estate industry and the munic-

ipal administrations in the region has prepared these latest insights into the region

for you.

The dynamics of innovative utilization concepts – in retail, the office space market

or in industrial parks – reflect the region’s prosperity. We are pleased to further

expand our successful track record and to now present the latest developments

and investment opportunities in the Rhine-Neckar Region in this Real Estate

Market Report 2014 to you.

We hope that it will be an inspiring read!

Dear Readers,

Ralph Schlusche

Association Director

Verband Region Rhein-Neckar

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Key transportation infrastructure to the Palatinate: Hochstraße Süd with pylon bridge in Ludwigshafen

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Contents

Business Destination Rhine-Neckar

Metropolitan Region 4

Focus Conversion Rhine-Neckar 6

Market Segment Office Space 10

Market Segment Retail Space 16

Market Segment Commercial Land Parcels 23

Map Overview of the Region 26

Glossary 28

Legal and Contact Information 29

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An economic powerhousein the heart of the Rhine-Neckar Region: Ludwigshafen am Rhein

The Rhine-Neckar Metropolitan Region is a tri-state region in the Southwest of Germany comprising

parts of three German states - Baden-Württemberg, Hessen and Rhineland-Palatinate. It spans

seven counties and eight urban municipalities. Covering a space of approximately 5,600 square

kilometers, the region is home to about 2.4 million residents. Along with its neighboring regions

Frankfurt/Rhine-Main to the North and Karlsruhe/Stuttgart in the South, the Rhine-Neckar Region

is one of Europe’s economic powerhouses. The three metropolises Heidelberg, Ludwigshafen and

Mannheim provide a balanced spatial structure in combination with medium-sized towns, such as

Worms, Speyer and Bensheim.

Business Destination Rhine-Neckar Metropolitan Region

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WIESBADEN

MAINZ

FRANKFURTam Main

OFFENBACHam Main

HANAU

ASCHAFFENBURG

DARMSTADT

MANNHEIM

HEIDELBERG

LUDWIGSHAFENam Rhein

HEILBRONN

STUTTGART

PFORZHEIM

KARLSRUHE

LUDWIGSBURG

WAIBLINGEN

ESSLINGENam Neckar

SINDELFINGEN

BADEN-BADEN

NEUSTADTa.d. Weinstraße

BAD HOMBURGv.d. Höhe

RÜSSELSHEIM

HESSEN

BAYERN

BADEN-WÜRTTEMBERGFRANK-REICH

RHEINLAND-PFALZ Main

Neckar

Rhe

in

WORMSThanks to its central location in Germany and Europe

paired with its excellent infrastructure, the Rhine-Neckar

Metropolitan Region is within easy reach from just about

anywhere. Automotive travelers and delivery services

enjoy the convenience of optimal interstate connections

thanks to the East-West-Axis (A6) as well as multiple

North-South bypasses (A 5, A 67, A 61 and A 65). Also,

Mannheim’s Main Station boasts 230 long distance

departures daily, making it the second largest ICE hub

in Germany. From there, Frankfurt Airport, Germany’s

international air transportation hub, can be reached in

just 30 minutes. Since March 2014, scheduled flights

once again depart for and arrive from the German capital,

Berlin. Mannheim’s Cargo Freight Depot is the second

largest of its kind in Germany.

Along with the Inland Port Center Mannheim/Ludwigs-

hafen, which ranks second in Europe, they provide

central cargo transportation hubs. Boasting a gross

domestic product of EUR 80 billion, just 5 % unemploy-

ment and an export quota of 59 % (national German

average 40 %), the Rhine-Neckar Metropolitan Region

is one of the top-ranked business locations in Germany.

The chemical, automotive, machine and equipment

manufacturing industries as well as IT, biotech and life

sciences are key business pillars. International conglom-

erates who are leaders in their respective fields, such as

BASF, SAP or HeidelbergCement, all have their head-

quarters in the region, as do medium-sized market

leaders including Freudenberg, Fuchs Petrolub, Roech-

ling or Renolit. The excellent scientific infrastructure

further strengthens the region’s standing. About 95,000

students are currently enrolled with the 22 regional

universities and colleges. There are also more than 40

non-university research institutions, such as the German

Cancer Research Center or the European Laboratory for

Molecular Biology in Heidelberg.

The close cooperation between businesses and scien-

tific institutions in a variety of clusters (e.g. BioRN or

Forum Organic Electronics) will safeguard the sustain-

ability of this innovative force inherent in the companies

domiciled here in the future.

15 km

Legend

Population Development 2030

+7.4% Munich

+4.49% Frankfurt/Rhine-Main

+4.3% Stuttgart

+3.85% Rhine-Neckar

+2.37% Bremen-Oldenburg

+0.82% Hamburg

-1.91% Nuremberg

-3.0% Berlin-Brandenburg-3.07% Rhine-Ruhr

-4.37% Hanover

-17.22% Central Germany

While Germany’s popula-tion will shrink by 3 percent by 2030, the developmental trend in the Rhine-Neckar region is positive.

Source: Own graph MRN based on

data from BBSR/IKM

3:09 h Mannheim MS – Paris

Towns

Population more than 100,000

Population 50,000 to 100,000

Transportation infrastructure

Interstate

Railway line

0:30 h

Mannheim MS – Frankfurt Airport

12,86 Min. Average availability of IC/ICE stations in MRN

93,73%of the population commute less than 30 min. to ICE/IC stations

15 km

Source: Own mapping edited based on GeoBasis data:

© GeoBasis-DE/ BKG 2013: Cartography: VRRN

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Conversion Rhine-Neckar: Internal Before External Development

One of the key characteristics of all of the solutions

implemented in the Rhine-Neckar Metropolitan Region

for the converted and post military use of such proper-

ties is the early and comprehensive integration of the

population. This gives investors planning certainty and

paves the way for sustainable usage concepts. Ulti-

mately, the dialog-based planning processes, most

of which have made a lot of progress, merge with a

general urban planning concept, which in turn provides

the foundation for the necessary zoning plans.

Teams of representatives of third party architecture firms,

businesses and societal organizations as well as citizens and

municipal administrators plus other experts work together

intensively to develop the best solutions for the planned

spaces and targeted usage concepts.

The development of all of the spaces offers a unique opportu-

nity to further boost the profile of the region. The application

of the necessary sensibility in the marketing and the needs-

driven approach allow the settlement structures in the region

to gain in terms of quality. Other challenges that have to be

taken into account during the conversion process are the

demographic changes underway in Germany and the neces-

sary space consumption restrictions.

Verband Region Rhein-Neckar 0621-10708-0 info@vrrn.de www.vrrn.de

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“The subject matter of conver-

sion in the Rhine-Neckar

region has reignited my ambi-

tions. In some places this region may

be misunderstood for no good reason. After all, thanks to its

level-headed and cosmopolitan population, it has a lot of

potential. I want to do my part to give in particular Mannheim

the kind of facelift that will bring to light the enormous impor-

tant of the city without taking away its identity.”

Tom Bock, Managing Director and Founder, Tom Bock Group

The usage conversion of the former Turley Barracks (Mannheim) into an urban

quarter is making progress

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Heidelberg

After the departure of the U.S. Forces from Heidelberg, about

180 hectares of space have become available for redevelop-

ment. The space is split across five properties, some of them

are in the downtown area. The conversion process is already

in full swing. For some of the properties, concrete usage

concepts have been sketched out, which have been developed

in close cooperation between the expert planners, citizens and

municipal commissions. Everything is based on the conver-

sion guidelines. Among the primary development goals listed:

affordable residential space, attractive outdoor areas and

premises for scientific, retail, cultural and recreational activities.

The city is planning to acquire all spaces in conjunction with

the first access option from the Federal Agency for Real Estate

Projects (Bundesanstalt für Immobilienaufgaben = BlmA). In

a second step, the plan is to transfer the spaces to investors

who are committed to supporting the city’s objectives.

Konversionsgesellschaft Heidelberg mbH 06221-58-13000 kaemmerei@heidelberg.de www.heidelberg.de

Mannheim

Within the Mannheim city limits, more than 500 hectares

of former U.S. military barracks will become vacant by 2015,

title to which will initially transfer to the Federal Republic

of Germany. To achieve an integral strategic development,

Mannheim is currently negotiating a potential acquisition with

the BlmA. A lively mix of usages is being planned for the

development of all spaces. Depending on the areas’ suitability,

different usage focal points will come to fruition. Besides

objectives such as residential and commercial space, innova-

tion and sustainability will be at the heart of these projects.

The Benjamin Franklin Village, which boasts 143 hectares of

floor space, is slated to become a model quarter for intelli-

gent energy usage and emissions free mobility (“blue village

franklin”), i.e. the residential neighborhood of the future. The

development of an engineering mile is underway alongside

the B 38, which will also include the Taylor Campus and its

46 hectares as an industrial park with premium outdoor space.

It offers spaces to innovative companies bordering on the

green zone and spans the entire area up to the Turley Barracks

in the district of Neckarstadt. The Coleman Barracks, which

span 216 hectares in the northern part of Mannheim, have

been designated as a space for natural landscaping combined

with a sustainable mix of businesses and to a lesser extent,

for residential space. The BlmA is already building a residential

neighborhood on the seven hectares previously occupied by

the Hammonds Barracks in the district of Seckenheim.

MWS Projektentwicklungsgesellschaft mbH 0621-293-9365 info@mwsp-mannheim.de www.konversion-mannheim.de

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Schwetzingen

Two former U.S. barracks are located in the northern part

of Schwetzingen: the Kilbourne Barracks, which occupy

close to six hectares and in its immediate vicinity the Tomp-

kins Barracks, which boast about 36 hectares of space. The

entire area is to be combined with municipally owned land

for uniform new development. On what will eventually be 53

hectares of space, i.e. about the equivalent of twelve percent

of the city’s current space that is already covered by struc-

tures, an entirely new city quarter with a minimal environ-

mental footprint will be developed.

Stadtverwaltung Schwetzingen Mathias Welle 06202-87-290 mathias.welle@schwetzingen.de www.schwetzingen.de

Germersheim

The historical buildings of the Stengel Caserne, which domi-

nate this cityscape, will be the town’s urban development

project for the next few years. At this time, the BlmA is

marketing the 2.4-hectares-spanning property. Depending

on whether a compatible project can be conceived, its use

for residential space complemented by restaurants, hotels or

small retailers appears likely.

Stadtverwaltung Germersheim Werner Nelles 07274-960-280wnelles@germersheim.eu www.germersheim.eu

Neckar-Odenwald-Kreis

The Coordination Office of the Municipal Administrations

Association Hardheim-Walldürn commissioned the University

of Trier – Environmental Campus Birkenfeld – to draft a devel-

opment concept for the conversion areas of the German

National Guard. The first results are in: The integration of

renewable energies, but also of international education facili-

ties, are aspects aiming at safeguarding the sustainable use

of the sites, which comprise about 63 hectares.

Gemeindeverwaltungsverband Hardheim-Walldürn Meikel Dörr 06282-67-188 meikel.doerr@gvv-hw.de www.gvv-hw.de

“In terms of dimension, the

conversion of former military

facilities of the U.S. Forces and

the German National Guard in the

Rhine-Neckar Metropolitan Region, is absolutely unique in

Germany. An immense amount of real estate with a high level

of structural density is being returned to the BlmA in an

extremely short amount of time. Moreover, a large portion of

the land is located right in the middle of the existing urban

landscape. The towns and counties, the businesses, the BlmA

and the residents will find themselves confronted with gigantic

tasks, that also offer enormous opportunities for the mutual

development of the region’s successful future.”

Michael Scharf, Project Manager Conversion Rhine-Neckar,Federal Agency for Real Estate Projects

The Patton Barracks in Heidelberg’s Kirchheim neighborhood covers an

area of 14.8 hectares

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* includes the adjacent Sullivan/Funari Barracks

Source: in-house research

Select Conversion Properties in the Rhine-Neckar Metropolitan Region

No. in Map

Location Location Total Floor Space Current Development Status

Coleman Barracks Mannheim, Sandhofen 226.6 hectares In possession of the U.S., citizen participation proceedings underway

Benjamin-Franklin-Village* Mannheim, Käfertal 144.3 hectares In possession of the BlmA, master plan approved, expert assessment underway

Turley Areal Mannheim, Neckarstadt-Ost 12.6 hectares All land sold or reserved, structural zoning process underway

Taylor Barracks Mannheim, Vogelstang 45.3 hectares Urban development plan broken down to details, ongoing demolition work

Spinelli Barracks Mannheim, Käfertal/Feudenheim 80.9 hectares In possession of the BlmA, land to be used for Federal Garden Show 2023, Idea Competi-

tion "Grünzug Nord-Ost"

Hectaresmmonds Barracks Mannheim, Seckenheim 6.9 hectares In possession of the BlmA, structural zoning process underway

STEM Barracks Mannheim, Seckenheim 3.0 hectares In Possession of the BlmA, feasibility study conducted

Kurpfalz-Kaserne Speyer 23.5 hectares 20 hectares in zoning Speyer, 3.5 hectares in zoning Otterstadt, master plan is being

compiled

Stengel-Kaserne Germersheim 24.9 hectares On the national register of historic places, research for secondary use concept underway,

currently no planning rights

Former casernes in

Schwetzingen

Schwetzingen 53 hectares 2014: citizens’ participation process and feasibility study for the zoning planning

procedures

Patrick-Henry-Village Heidelberg, Kirchheim 97.2 hectares Preparatory investigations underway

US-Airfi eld Heidelberg, Kirchheimer Flur 15.6 hectares Preparatory investigations underway

Patton Barracks Heidelberg, Kirchheim 14.8 hectares Preparatory investigations underway

US Army Hospital Heidelberg, Rohrbach 9.3 hectares Urban development idea completion still running through the end of 2014

Mark-Twain-Village/Camp-

bell Barracks

Heidelberg, Südstadt 43.4 hectares “Heidelberg Alliance for Conversion”: Master plan approved by the town council

Carl-Schurz-Kaserne Hectaresrdheim 38 hectares Some usage concepts have been presented

Depot Hectaresrdheim 20 hectares In possession of the BlmA

Mobilization Support Point Walldürn 5 hectares Currently under rededication to conversion area to be handed over to the BlmA

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15

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Source: In-house depiction, cartography VRRN

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The Print Media Academy and the X-House in Heidelberg: Numerous transportation options provide quick access

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The development on the regional office space markets

continues to be robust. In the coming years, experts

expect that new impulses will be triggered primarily

by the conversion of former military facilities. For

numerous sites, concepts are currently being devel-

oped in intensive discourses with the public, which

also include potential for commercial real estate devel-

opment. Properties located on the periphery of the

metropolises in particular offer the convenience of

excellent connections to the interstate and federal

highway network.

A closer examination of the situation in the three larger cities

– Mannheim, Heidelberg and Ludwigshafen – does, however,

reveal that not only the conversion of former military facilities,

but also the restructuring of the urban areas overall, leads

to untypical price disparities. The new use of the former

customs port in Ludwigshafen or the development of the

market in the vicinity of the former railway areal in Mannheim

as well as Heidelberg create large scale shifts in the office

space market and its pricing structure. The classic downtown

location is no longer the undisputed optimum site in cities.

Vast new construction areas that are close to city center are

gaining ground and are becoming benchmarks that influence

the market. The architecture of the 1960s and 70s, which is

Market Segment Offi ce Space

no longer considered contemporary and has to be viewed

critically, especially under energetic aspects, also drives

these dynamics.

The high percentage of owner use of office space is char-

acteristic for the industry-driven Rhine-Neckar Region. Only

about 60 percent of the total office space revenues gener-

ated by about 170,000 square meters were contributed by

the rental market last year. This combination of demand-

driven developments and economic strength ensures the

stability of the region as an investment locale with only minor

fluctuations.

What makes the market even more attractive are the devel-

opments in the environs of the large cities. In Weinheim, for

instance, a new administrative building for the Freudenberg

Group of Companies is currently under construction (13,000

square meters, see Photo on Page 12). In Walldorf, where

the Metropol Office (4,000 square meters) is being built,

space will also become available in the immediate vicinity of

the metropolises.

The region’s vast space potential in the favorable overall

economic situation – keyword “golden concrete” – give rise

to expectations of sideline growth in the market.

in €/m²/month

Existing office space trend (in m²)

Source: gif / In-house research

Peak rent developments downtown and proximity2,0 Mio.

1,5 Mio.

1,0 Mio.

0,5 Mio.

2011 2012 2013 2011 2012 2013 2011 2012 2013

Mannheim Heidelberg Ludwigshafen

vacancy

  Mannheim City peak rent

  Heidelberg City peak rent

  Ludwigshafen City peak rent

Mannheim Prox. peak rent

  Heidelberg Prox. peak rent

  Ludwigshafen Prox. peak rent

Source: gif / In-house research

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Location Project Name Investor/Occupant Space Investment Vol. Schedule

Ludwigshafen Offi ce and conference complex D105 BASF 38,180 m2 107 mn. € Under construction, completion 2015

Ludwigshafen Offi ce complex BASF 38,000 m2 n.a. Under construction, completion 2014

Heidelberg F&U Campus F&U Group 18,000 m2 25 mn. € Under construction, completion 2015

Mannheim Quartier4 Diringer & Scheidel 16.000 m² 60 mn. € Planned

Weinheim New administrative complex Freudenberg Group 13,000 m2 30 mn. € Construction start 2014, completion 2016

Heidelberg Mathematikon Mathematikon Heidelberg 12,000 m2 n.a. Under construction, completion 2016

Landau New construction offi ce complex Michael Münch/Auvesy 12,000 m2 3 mn. € Construction start 2014

Wiesloch-Walldorf Metropol Park Pending 11,000 m2 27 mn. € Construction start 2015, completion 2017

Mannheim Glückstein-Carré Diringer & Scheidel 8,200 m2 20 mn. € Under construction, completion 2014

Leimen Technology Center HeidelbergCement 7,800 m2 20 mn. € Under construction, completion 2016

Heidelberg MVZ Dr. Limbach und Kollegen Dr. Limbach 7,000 m2 n.a. Construction start 2014

Landau Expansion offi ce complex Michael Münch/Progroup 7,000 m2 2 mn. € Construction start 2014, completion 2016

Ludwigshafen Prego Services DC2 Grundstücksgesellschaft 6,000 m2 15 mn. € Under construction, completion 2014

Mannheim Power Plant Jungbusch City of Mannheim 5,040 m2 17.6 mn. € Under construction, completion 2015

Mannheim Q6 Q7 Diringer & Scheidel 5,000 m2 300 mn. € Under construction, completion 2016

Heidelberg Business Parc Dulger Vermögensverwaltung 4,300 m2 7 mn. € Under construction, completion 2014

Mannheim P7, 16-18 DC Values 4,000 m2 55 mn. € Under construction, completion 2014

Mannheim MAFINEX Technology Center (2nd construc-

tion phase)

City of Mannheim 3,860 m2 13 mn. € Under construction, completion 2014

Mannheim Eastsite 8 B.A.U. Trägergesellschaft n.a. n.a. Planned

Mannheim Eastsite 7 B.A.U. Trägergesellschaft 3,280 m2 12 mn. € Under construction, completion 2015

Mannheim Eastsite 6 B.A.U. Trägergesellschaft 2,670 m2 10 mn. € Under construction, completion 2014

Mannheim 04, 05 LBBW Immobilien 2,400 m2 35 mn. € Under construction, completion 2015

Mannheim P5, 6 – 8 Heinrich Vetter Foundation 2,400 m2 10 mn. € Completed in 2014

Mannheim Headquarters Karl Berrang 2,300 m2 20 mn. € Under construction, completion 2014

Mannheim P3 Aachener Grundvermögen 2,240 m2 23 mn. € Completed in 2014

Leimen New construction municipal administration

complex

City of Leimen 1,725 m2 7.9 mn. € Under construction, completion 2015

Source: In-house research (status September 30, 2014); space information based on MF/gif

Overview of Current Key Office Space Projects

The visualization of the new administrative complex for the Freudenberg Group in Weinheim: Plans call for 13,000 m2 of offi ce space

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Offi ce Market Mannheim

The good transportation infrastructure, the direct access to

key companies and the diversity of fledgling enterprises in

Mannheim’s business establishment centers have allowed

the large city to evolve into the Rhine-Neckar Region’s

economic powerhouse. Comprehensive developments,

which are underway at the military conversion areas here

in Mannheim will provide additional space for the expan-

sion of the growing sectors in the manufacturing industry, in

medical technology, the media industry and other sustain-

able sectors. In 2013, the about 81,000 square meters of

space were sold, which was below prior year’s turnover of

93,400 square meters. However, the high volume of the

previous year can be attributed to two lease agreements

made with chemical conglomerate BASF, which totaled

about 35,000 square meters.

The construction of the largest property since that of

Mannheim’s Palace is currently underway in the city: Q6 Q7,

Source: gif / bulwiengesa / In-house research

Indices Trend 2014 2013 2012

Existing space 1.95 mn. m2 1.9 mn. m2

Space revenue 81,000 m2 93,400 m2

Vacancy rate 5.10 % 4.60 %

Downtown peak rent 13.40 €/m² 14.10 €/m²

Downtown average rent 11.40 €/m² 10.70 €/m²

City proximity peak rent 14.00 €/m² 13.00 €/m²

City proximity average rent 10.80 €/m² 9.70 €/m²

Periphery peak rent 12.90 €/m² 10.00 €/m²

Periphery average rent 9.80 €/m² 7.40 €/m²

Office Market Indices in Mannheim

The Quartier4 features ultra-modern offi ce equipment and

is located in the heart of the Glückstein Quarter right by

Mannheim’s Main Station

the new City Quarter. On the two downtown squares, which

span an area of more than 16,000 square meters, 153,000

square meters of high-density gross floor space will be

completed by 2016. Of these, 28,600 square meters have

been reserved for retail stores and restaurants and another

8,000 square meters for offices and professional prac-

tices. At four sites between O4 and the P-squares as well

as between the Parade Plaza and the historic Water Tower,

large, ultra modern office and retail space is being built along

the largest shopping mile of the Region – the Planken. The

private investment volume in the downtown area totals

approximately 730 million Euro.

Three business foundation centers are currently under

construction: the new creative business center in an area

called Jungbusch – the “C-Hub” – as well as the Founda-

tion and Competency Center for Medical Technology – the

“Cubex41”, which is located in the center of the Univer-

sity Hospital premises and “MAFINEX II,” an expansion of

the existing Technology Center in the Lindenhof district. A

competency center for the textile industry – the “MATex” –

is also under construction.

“EASTSITE,” which is located 2.5 kilometers to the east of

downtown is an addition to the office sites in the center of

town. Besides the already planned “EASTSITE VIII” office

complex, 39,000 square meters of previously close to

65,000 square meters of city-owned commercial space are

still vacant and available as building sites. The current devel-

opments do lead to rising rents. The peak and average rents

tended to be slightly above the 2012 levels. The vacancy

quota rose slightly from 4.6 percent (2012) to 5.1 percent.

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Offi ce Market Heidelberg

Thanks to the Bahnstadt Heidelberg development project

and the conversion of the town’s former military proper-

ties, the town on the Neckar River will be engaged in one of

Germany’s largest urban development projects for the next

several years. A total of 16.5 hectares of commercial space

in the proximity of downtown built to passive solar home

standards attest to the high quality of the urban develop-

ment. Now that the distinct Skylab building by the Main

Station has been leased to tenants, the 15-theater “Luxor

Filmpalast” and the office complex “Stadttor,” which boast

a total of 10,000 square meters of floor space, have been

added as the latest construction developments in the

commercial segment. In addition, the completion of the

COLOURS Building, which comprises close to 8,000 square

meters designed for offices and retail stores by the end of

2015, will help accelerate the Bahnstadt development.

The City of Heidelberg is converting vacated military proper-

ties for vast city expansions at five locations that offer a total

space of 180 hectares. The concrete plans have progressed

to varying levels. The space of the Patton Barracks, which

comprises 14.8 hectares, is currently a good option for

commercial use and is located south of the Bahnstadt on

the Speyerer Straße.

Over the past two years, the available existing office space

has increased by 3.9 percent and totaled about 935,000

square meters at the end of 2013. The successful lease

of the Skylabs building pushed sales last year to 52,000

square meters, which was likely record-breaking. This was

the equivalent of an increase compared to the year prior by Source: gif / bulwiengesa / In-house research

Indices Trend 2014 2013 2012

Existing space 0,935 mn. m² 0,93 mn. m²

Space revenue 52.200 m² 33.000 m²

Vacancy rate 5,90% 6,00%

Downtown peak rent 13,90 €/m² 14,60 €/m²

Downtown average rent 11,90 €/m² 12,80 €/m²

City proximity peak rent 14,50 €/m² 12,50 €/m²

City proximity average rent 12,70 €/m² 10,70 €/m²

Periphery peak rent 12,00 €/m² 10,50 €/m²

Periphery average rent 10,40 €/m² 9,50 €/m²

Office Market Indices in Heidelberg

A new large scale project near the Heidelberg Main Station: The Campus of the F&U Group of Companies

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57.2 percent. After the vacancy quota has increased to 6

percent between 2011 and 2012, the level dropped slightly

in 2013 to 5.9 percent.

The classic city periphery price disparities do not apply to

Heidelberg. The newly built rental properties outside of the

historic Old Town city center attained – at the end of 2013

– the highest prices of up to 14.50 Euro per square meter.

Hence, the peak price level moved from the downtown area

to the periphery, mostly alongside the Kurfürstenanlage.

14

Offi ce Market Ludwigshafen

In recent years, the town has conquered the attractive loca-

tions on the banks of the Rhine River: the Rhein Galerie

shopping mall opened, the Rhine River Banks Promenade

was given a facelift and other improvements in the public

areas have introduced significant positive accents in the

downtown area and have therefore also boosted the attrac-

tiveness for corporations.

Compared to other sites in the region, the revenues of

44,100 square meters remain rather low. The vacancy rate

of 4.8 percent, though, is the lowest among the three large

cities of the Rhine-Neckar Region, so that market partici-

pants rate the overall developments in Ludwigshafen on the

Rhine positively.

For the first time in two years, the peak rents, which average

9.60 Euro per square meter, have exceeded the previous

years’ maximum of nine Euros per square meter. The same

rent levels are anticipated for 2014.

On the south side of the Rhine River banks, the completion

of the BASF office complex (38,000 square meters gross

floor space) in autumn 2014 will conclude the series of new

construction projects in the commercial sector for the time

being. An additional new construction project in the Tech-

nology Mile, a Prego Services building that will result in the

creation of about 250 jobs, can be added to the investments

made in the urban terrain in 2014.

The dynamic developments of the city are also evident in the

fact that additional cranes have been set up. By the end of

2014, the demolition of the BASF Engelhorn Tower will be

complete. The newly built complex that will be erected in

its place on the same land parcel will accommodate at least

600 employees on 20 floors. The construction is anticipated

to begin in 2016 at the earliest.

The urban conversion project “City West” will also intro-

duce new highlights. The demolition of the Hochstraße,

which will subsequently be ready for refurbishment, will be

a simultaneous challenge and opportunity (“room for new

urban development ideas”). In the years to come, plans for

new office locations can also be expected for the interface

between the City am Rhein and the college site, alongside

the Technology Mile in the southwest of the city.

Source: gif / bulwiengesa / In-house research

Indices Trend 2014 2013 2012

Existing space 0.826 mn. m2 0.85 mn. m2

Space revenue 44,100 m2 5,000 m2

Vacancy rate 4.80 % 4.70 %

Downtown peak rent 9.60 €/m² 9.00 €/m²

Downtown average rent 8.40 €/m² 7.80 €/m²

City proximity peak rent 7.00 €/m² 9.20 €/m²

City proximity average rent 6.60 €/m² 6.60 €/m²

Periphery peak rent 8.50 €/m² 8.10 €/m²

Periphery average rent 6.80 €/m² 6.50 €/m²

Office Market Indices in Ludwigshafen

Prego Services expanded its pres-ence at the Rhine-Neckar Data Center in Ludwigshafen

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Mannheim’s new multi-functionalquarter in squares Q6 Q7: The foundation stone was laid down in April 2014

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The general economic conditions for retail remain posi-

tive. The solid job market and the low inflation rate

both helped increase consumption. This is reflected in

the GfK Consumer Spending Index, which reached its

highest level, i.e. 8.9 points, since December 2006 in

August 2014.

For brick and mortar retail stores the constant increase of

online sales does pose a central challenge. Its dynamics

continue to be very positive. According to the forecast of

the Federal Association E-Commerce and Mail Order Sales,

the merchandise revenues online in 2014 will increase by

25 percent to 48.8 billion Euro. Especially in merchandise

segment books and entertainment electronics, changes are

becoming evident as a result. The sales spaces of brick and

mortar businesses in this segment are declining. At the same

time, an increasing number of retailers are betting on multi-

channel or cross-channel approaches. According to the latest

HDE Economic Survey, about 44 percent of the retailers

interviewed anticipate increasing sales for 2014.

According to the survey, another key topic among retailers

besides online sales is the decline of the attractiveness of

downtown areas. Both lead to dropping customer volumes in

the streets where clusters of retailers can be found.

Market Segment Retail

This trend has also been evident in the large cities in the

Rhine-Neckar Region in recent years; however, in 2014, the

number of pedestrians in 1a locations in Mannheim, Heidel-

berg and Ludwigshafen has once gain been on the upswing.

The Rhein-Neckar business region distinguishes itself from

others thanks to the fact that its largest and medium sized

towns offer a very diverse range of retail stores. Besides the

three metropolises – Mannheim, Heidelberg and Ludwigs-

hafen – it is primarily the smaller medium-sized towns,

including Schwetzingen, Viernheim, Hockenheim, Mosbach

and Landau that boast centrality indices that are higher than

150. The current and planned developments will continue to

strengthen and expand the retail store offerings in the smaller

towns.

Sports products retailer Decathlon opened a third branch in

Rhineland-Palatinate at the end of 2013 in Neustadt an der

Weinstraße. It boasts 2,500 square meters of floor space.

As a result, the diverse range of products already available

through the specialty retailers cluster “Chemnitzer Straße”

received yet another upgrade.

In the aftermath of the Praktiker DIY store bankruptcy, the

property in Frankenthal was acquired by DIY chain Toom.

10.000

9.000

8.000

7.000

6.000

5.000

4.000

3.000

2.000

1.000

Pedestrian volumes in 1a locations

Mannheim, Planken Heidelberg, Hauptstr. Ludwigshafen, Bismarckstr.

Pedestrians/h

 2011  2012  2013  2014

Source: In-house research MRN based on data by Jones Lang LaSalle

20132003 2004 2005 2006 2007 2008 2009 2010 2011 2012

160,00

140,00

120,00

100,00

80,00

60,00

40,00

20,00

in €/m²/month

 Mannheim  Heidelberg  Ludwigshafen   Average Germany

Retail property peak rent development

Source: In-house research MRN based on data by Jones Lang LaSalle

+ 23,1 %

+ 14,3 %

+ 15,5 %

-33,3 %

17

Regional furniture distributor Ehrmann also invested in a new

furniture outlet boasting 19,000 square meters of floor space.

Ehrmann/Gilb now operates four brick and mortar stores with

a total of 80,000 square meters of exhibition space and is

therefore one of Palatinate’s leading furniture stores.

Construction of the new specialty retailer center has begun on

the former freight railway terminal in Bensheim. The shopping

center, which will offer stores by Edeka, Takko and Deichmann,

is slated to celebrate its grand opening of 8,500 square meters

of sales space in July 2015.

In Heidelberg’s immediate vicinity, in the Town of Eppelheim,

a building permit has been issued for the construction of a

neighborhood specialty retail center boasting 3,200 square

meters of floor space on the former printing company prem-

ises. Possible tenants of the property built by the Inwo Projekt-

gesellschaft are Netto, Das Futterhaus, Quick Schuh and AWG.

In Weinheim’s “Bergstraße", where a cluster of retailers are

going to set up shop, construction is progressing well. Besides

the stores who are already open – Obi and Roller – Matratzen

Concord and Burger King have recently opened their doors.

Moreover, the completion of additional construction phases is

imminent this year, which will result in the availability of 6,200

additional square meters of sales space. One tenant who is

already confirmed is PLANA Küchenland.

In Germersheim, the concentration of retailers will continue to

evolve at the “Stadtkaserne Shopping Center.” Based on the

provisions in the zoning plan, 12,000 square meters have been

approved as the maximum total sales space. No information

on the concrete tenant structures is available at this time.

Retail indices in the key centers in the Rhine-Neckar Metropolitan Region

Index German average = 100; sources: GfK (indices status 2014); State Statistics Offi ces

(Population Count as of 1/1/2013 based on the 2011 Census).

The new retail store center in Bensheim on the terrain of the former freight railway depot

Municipality Population Purchase power index

Salesindex

Centrality index

Mannheim 294,627 100.76 143.7 142.61

Ludwigshafen am Rhein 160,179 94.7 108.89 114.98

Heidelberg 150,335 101.03 122.42 121.17

Worms 79,727 100.12 123.03 122.88

Neustadt an der Weinstraße 52,268 109.15 129.09 118.27

Speyer 49,764 106.66 143.04 134.1

Frankenthal (Palatinate) 47,035 101.97 84.59 82.95

Landau 43,641 102.06 154.09 150.97

Weinheim 43,315 118.99 132.28 111.16

Bensheim 39,395 112.05 107.58 96.01

Sinsheim 34,791 100.17 98.14 97.97

Viernheim 32,851 101.21 219.55 216.92

Lampertheim 31,358 105.31 77.81 73.88

Leimen 25,581 98.5 54.78 55.62

Wiesloch 25,135 106.65 89.78 84.18

Heppenheim (Bergstraße) 24,968 105.91 123.42 116.53

Mosbach 22,913 98.17 159.04 162

Schwetzingen 21,194 111.28 242.96 218.32

Hockenheim 20,874 104.97 184,87 176.11

Germersheim 20,019 82.67 109.83 132.86

Hassloch 19,854 99.99 87.26 87.26

Schifferstadt 19,011 103.65 63.75 61.51

Bad Dürkheim 18,222 108.56 105.07 96.78

Buchen (Odenwald) 17,614 94.89 132.3 139.42

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Retail Destination Mannheim

Downtown Mannheim is one of Germany’s most popular

shopping destinations. It ranked 9th among 60 shopping

towns depicted in the Comfort City Ranking 2014 announced

in conjunction with the High Streets Report. The peak rents

for retail stores in its 1a locations have developed positively in

recent years and to date have reached a level of 160 Euro per

square meter.

The flourishing retail landscape of Mannheim is being further

upgraded through the attraction of new stores who move

in while many construction activities are continuing. In the

fashion segment, Peerless has opened a new store in P6

and Mango celebrated a grand opening in O6. Additional

new stores are the Müller drugstore in P3, shoe store Gero in

P7, Thomas Sabo in P7, Galerie Lumas in N6 as well as Dörr

Heimtex in Q7. Also new: the Coffee World by Nespresso in

the Engelhardt House.

The largest project in downtown Mannheim is Diringer &

Scheidel's’ “Q6 Q7” (see also Page 16). Besides a Radisson

Blu Hotel boasting 225 rooms, it has brought Fitness First

on board as a tenant. By autumn 2016 the City Quarter will

also offer rental apartments as well as retail store, office and

professional practice space. At this time, department store

Engelhorn is expanding its flagship property in O5 by adding

two more floors. Besides the expansion of its sales floor

space, a fine dining restaurant has already opened.

The demolition of the former Bank Palais, which is being

funded by investor LBBW Immobilien development GmbH is

underway in Square O4. The horizon for completion is spring

2015. On 2,400 square meters, the property’s first two floors

will remain and be converted into retail space. At the end of

October, sports and athletic equipment retailer Decathlon will

open a 4,000 square meter store in T1. This is the first sales

concept of this kind opened by the retailer in a downtown area.

In addition to these private investments, another large scale

public project is about to be implemented in Mannheim’s

downtown. The Planken conversion is slated to be imple-

mented in 2017 and 2018 after two prior delays and will

consume an investment volume of 20 million Euro.

Source: Jones Lang LaSalle (*based on 183 shopping streets analyzed in Germany, **

ranking among 170 shopping streets analyzed in Germany).

Retail indices in Mannheim

Source: GfK; Cartography: VRRN

Mannheim’s 1a locations

Shopping magnet in the Rhine-Neckar Region: Mannheim’s Planken

Mannheim, Planken GER overall

Peak rent 2014 (ranking) 160 €/m² (11*) 63.55 €/m

Development 2004-2014 23.10 % 15.50 %

Pedestrian frequency 2014 (ranking) 6,415 (35**)

Percentage of chain store operations 80.00 %

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LegendPedestrian zone 1a-location 100 m

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Retail Destination Heidelberg

Heidelberg’s charming Old Town attracts with its main shop-

ping mile, which actually stretches across a length of 1.6

kilometers, making it one of Germany’s longest pedestrian

outdoor malls. Peak rents have remained stable on last year’s

level of 120 Euro per square meter. The City of Heidelberg

enjoys a significant amount of incoming spending power and

has a centrality rating of 121.

A few new stores opened in the university town this

year. Besides shoe retailer Gabor, the furniture and inte-

rior design store chain NANU-NANA celebrated the grand

opening of a new Hauptstraße store as well. Shirt designer

Olymp actually opened its first store outside of a shopping

center in downtown Heidelberg (also in the Hauptstraße).

The “Markthalle” (Market Hall) in the “Altes Hallenbad”

(Old Indoor Pool; Bergheim District) went through a few

changes.

The dining options at this location have been updated and the

focus is now on “lifestyle-oriented retail and gourmet foods.”

Sporting goods retailer Planet Sports opened a 500-square-

meter store in the Hauptstraße. Thanks to these new

entrants, the industry mix has remained stable and at a solid

level, so that even towards the end of the Hauptstraße shop-

pers will find interesting stores to browse in.

The development of the Wormser Hof also has the potential

to make contributions to this evolution. As part of the conver-

sion, it will be necessary to tear down some of the historic

building, given that its prior partial use as a movie theater

mandates structural modifications. Overall, the project will

result in the creation of retail space (2,500 square meters of

sales space) as well as service, cultural and residential real

estate.

A conversion process was initiated to further develop the

Hauptstraße. Its attractiveness has been further enhanced

thanks to the addition of new outdoor furniture, green spaces

and the installation of bicycle stands. A new lighting concept

has also introduced cheerful accents. The key activities

aiming at improving the beauty of downtown to beckon visi-

tors to linger have now been completed.

Source: Jones Lang LaSalle (*based on 183 shopping streets analyzed in

Germany, ** ranking among 170 shopping streets analyzed in Germany).

Retail indices in Heidelberg

Source: GfK; Cartography: VRRN

Heidelberg’s 1a locations

A traditional 1a location in Heidelberg: the “Hauptstraße”

(Main Street) offers a unique fl air of shopping and

entertainment

Heidelberg, Hauptstraße GER overall

Peak rent 2014 (ranking) 120 €/m² (16*) 63.55 €/m²

Development 2004-2014 14.30 % 15.50 %

Pedestrian frequency 2014 (ranking) 6,065 (38**)

Percentage of branch operations 2013 74.30 %

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LegendPedestrian zone 1a-location 100 m

20

Retail Destination Ludwigshafen

Ludwigshafen’s shopping venues stretch from the Rathaus-

Center to Bismarckstraße and Bahnhofstraße and then to

the Rhein-Galerie, as well as from Ludwigstraße to Berliner

Platz. Compared to last year, peak rents may have declined

somewhat, but the numbers of pedestrians frequenting the

1a shopping mile – the Bismarckstraße – has increased.

A few new developments were completed downtown

this year. The reconstruction of the Bismarck Center has

been finalized. The former market hall has been turned into

numerous attractive stores. Drugstore chain Rossmann

has opened a new store, the Penny supermarket has been

expanded; fitness center XFit and mobile phone service

provider O2 are soon expected to celebrate grand open-

ings. Point-by-point changes have been implemented in the

Rhein-Galerie. The former Palmers space will be occupied by

Thomas Sabo, and the streetwear distributor Snipes will soon

open a new store in the mall.

To make itself more attractive for visitors and shoppers, the

City of Ludwigshafen is currently investing 2 million Euro

into the remodeling of the downtown squares Bürgerhof,

Theaterplatz, Rathausplatz and the Rhine Promenade. More-

over, “Downtown Management” – a joint undertaking of the

CIMA and GIU offices commissioned by the City – began

in March 2014. In coordination with real estate owners and

tenants, the inner city concept made substantial progress.

Location profiles are being used as visions to bring clarity into

the promotion of downtown locales and their development,

manage vacant properties, support the development of real

estate in the respective profiles and designate some parts of

the space, which was previously being used strictly for retail,

for different uses.

The architecture downtown will see significant changes soon.

The so-called “Cake Box” – a former Kaufhof department

store complex – located on the Berliner Platz, the central

regional public transportation hub used by about 45,000

passengers daily, was sold in 2013 and is scheduled for

demolition in early 2015. In the place occupied by the round

tower built in the 1950s, Timon Bauregie will erect a sophis-

ticated modern complex that will accommodate retail stores,

offices and apartments.

Source: Jones Lang LaSalle (*based on 183 shopping streets analyzed in

Germany, ** ranking among 170 shopping streets analyzed in Germany).

Retail indices in Ludwigshafen

Source: GfK; Cartography: VRRN

Ludwigshafen’s 1a locations

A supra-regional point of attraction: The Rhein-Galerie in Ludwigshafen

Ludwigshafen, Bismarckstr. GER overall

Peak rent 2014 (ranking) 20 €/m² (169*) 63.55 €/m²

Development 2004-2014 -33.30 % 15.50 %

Pedestrian frequency 2014 (ranking) 1,575 (152**)

Percentage of branch operations 2013 32.50 %

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LegendPedestrian zone 1a-location 100 m

21

Retail Destination Frankenthal

As a town of 47,000 residents, Frankenthal is actually growing

and is considered a medium sized towns in this part of the

Palatinate. It is close to the region’s largest cities – Ludwig-

shafen and Mannheim. Although its centrality index is lower

than the average, Frankenthal remains an attractive retail loca-

tion for a wide range of sectors. The expansion of the S-Bahn

(regional train) network on the Ludwigshafen-Mannheim line

as of 2015 will likely introduce further positive effects. More-

over, the fact that furniture retailer Ehrmann, a company that

is popular and renowned in the Palatinate Region, opened

a close to 19,000 square meter large store here in October

2013, did have a positive impact and has made Frankenthal a

more popular shopping destination in the region.

Shopping fun in Frankenthal: the Speyerer Straße

A distinct hallmark of the retail structure is that it comprises a

mix of long established and owner managed speciality stores

and a variety of chain stores. The stores themselves are

smallish to medium-sized boasting up to 250 square meters

of floor space. A traditional department store is located in the

downtown area.

The slogan “FT – Freunde treffen” (FT the license plate abbre-

viation for Frankenthal) – Where you meet friends) describes

Frankthal’s charm perfectly. The very personal and relaxed

congenial atmosphere of the buildings nestled between the

historic city gates in the north and south make downtown a

great place to be. It is also the heart of the town’s cultural,

social, shopping and communal activities. The north-south-

axis of the town more or less designates the 1a locations of

this retail destination: the Speyerer Straße and the Wormser

Straße attract the highest shopper frequencies, trailed by the

Bahnhofstraße, which runs to the west and connects the

railway station to downtown.

Among the large chain stores in the downtown area are C&A,

Deichmann, drugstore chains Müller and dm, Parfümerie

Douglas and small fashion label stores, such as engbers,

Gerry Weber, Taifun, Bonita or Gina Laura. The retail mix is

further complemented by the old-timey owner operated retail

stores that still exist here.

In the near future, important projects for downtown in terms

of urban development as well as ease of accessibility and

availability of merchandise will be the impending conversion

of the square in front of the railway station and the opening of

a mass merchandiser on the periphery of downtown, which

will go hand in hand with improvements in all of the surroun-

ding areas.

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Source: WFG Frankenthal; Cartography: VRRN

Frankenthal’s 1a locations

LegendPedestrian zone 1a-location 100 m

22

Market SegmentCommercial Land Parcels The industrial parks of the Rhine-Neckar Metropolitan Region enjoy optimum

transportation connections thanks to the dense network of interstates.

Rapid access to customers and suppliers is guaranteed virtually anywhere.

As a result, the entire region is an attractive business location – not only for

logistics companies.

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The largest investment in company history: The Deutsche Si-Si-Werke GmbH (Capri-Sunjuice manufacturer) is expanding its Eppelheim headquarters 2323

The Rhine-Neckar Region offers companies in all industries

excellent investment opportunities. Some of the advan-

tages of setting up operations here are the central location

in Europe, the availability of vast space reserves to new busi-

nesses who move into the region or are planning to expand,

the highly efficient infrastructure as well as the presence

of several head offices of large corporations representing a

variety of sustainable sectors (see also Page 5).

Based on a survey of municipalities and counties, 30 indus-

trial parks offering 9.35 billion square meters of space were

analyzed for this 2014 Real Estate Market Report. Of this

space, about 30 percent (2.6 million square meters) are still

vacant lots and available at short notice.

The purchase prices for fully developed commercial land

parcels are contingent upon their locations and range

from 110 to 200 Euros per square meter in the center of

the densely populated part of the Rhine-Neckar Region;

however, prices of up to 250 Euro are attainable. In the

suburban areas, prices negotiated range from 80 to 100

Euros per square meter. On the periphery – where some

properties have excellent transportation connections – they

average about 50 Euros per square meter.

The new Porsche Center in Mannheim-Friedrichsfeld opened in April 2014

The investment activities in the production and logistics

sectors have dropped slightly below those of last year.

Overall, about EUR 1.3 billion have been committed to 20

known projects for the coming years. About one billion

Euros will be invested into the construction of a TDI facility

by BASF at its Ludwigshafen location, which is slated to be

completed before the end of 2014.

Three large scale projects were rolled out back in April and

May 2014 in Mannheim and have celebrated their grand

openings: the new Porsche Center, the Mercedes-Benz

Commercial Vehicles Center and the corporate headquarters

of Karl Berrang GmbH. Hence, the marketing and construc-

tion activities for the industrial park Friedrichsfeld-West in

Mannheim with its barely 40 hectares have virtually been

concluded. In just three years about 700 jobs were created

in this area.

For more information on the industrial parks in the Rhine-

Neckar Region, please visit the site portal (www.stand-

orte-rhein-neckar.de) and check the websites and other

publications of the individual municipalities and counties.

Most important investments made into manufacturing and logistics properties

1

2

4

5

6

7

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No. in map

City Type of location Investor/operator Investment volume

Land parcelsize

Jobs Time table

Ludwigshafen Manufacturing BASF 1 bn. € 30,000 m2 200 Under construction, completion 2014

Neustadt Branch Motoren Baader 7 mn. € 24,000 m2 60 Under construction, completion 2015

Neustadt Manufacturing ATEC Autotechnik 4.5 mn. € 14,400 m2 30 Under construction, completion 2015

Speyer Logistics Center Daimler n.a. 238,000 m2 400 – 600 Construction started in 2014

Landau Manufacturing Ronal 1.5 mn. € 84,000 m2 730 Under construction, completion 2014

Landau Logistics Center Schramm 7 mn. € 36,000 m2 30 Under construction, completion 2015

Landau Manufacturing Eberspächer Controls 9 mn. € 12,000 m2 250 Under construction, completion 2014

3

24

25

Select industrial parks in the Rhine-Neckar Metropolitan Region

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Source: In-house survey, status 30th September 2014

No. in map

Municipality Name Name of the industrial park Zoninglaw / type

Total space Still available

Available lot sizes

Guideline value Purchase price

Worms Worms-Rheindürkheim GE/GI 1,000,000 m² 80,000 m² 1,000-35,000 m² 55-85 €/m² 85 €/m²

Hettenleidelheim Gewerbepark GE/GI 50,000 m² 16,000 m² 2,000-4,000 m² 40 €/m² (2014) 19-40 €/m²

Bobenheim-Roxheim Auf dem Wörth GE 80,000 m² 70,000 m² 1,500-68,000 m² 75 €/m² (2008) 85 €/m²

Bad Dürkheim Bruch GE 106,500 m² 20,000 m² 2,200-13,000 m² 70 €/m² (2008) 81 €/m²

Frankenthal (Pfalz) Am Römig GI 400,000 m² 200,000 m² 20,000-200,000 m² n.a. 110-115 €/m²

Ludwigshafen Technologiemeile GE 117,000 m² 10,143 m² 2,818-4,152 m² 110 €/m² n.a.

Haßloch Nördlich des Bahndamms GE 154,933 m² 108,844 m² 1,000-60,000 m² 70 €/m² (2014) 75 €/m²

Neustadt Naulott GE 150,000 m² 60,715 m² 1,147-14,500 m² 55-90 €/m² 48-100 €/m²

Edenkoben Edenkoben-Venningen GE/GI 150,000 m² 70,000 m² 1,500-20,000 m² n.a. 59 €/m²

Speyer Parkstadt am Rhein GI 1,000,000 m² 132,000 m² 7,000-62,000 m² 55 €/m² (2014) 42-80 €/m²

Germersheim Wörth-West GE/GI 492,800 m² 86,000 m² 3,200-50,000 m² n.a. 75-125 €/m²

Offenbach Interpark Rheinpfalz GI 715,000 m² 70,000 m² 1,000-25,000 m² n.a. 60 €/m²

Landau (Pfalz) Am Messegelände GE 620,000 m² 83,000 m² 1,000-36,500 m² n.a. 73-81 €/m²

Herxheim Gewerbepark West 2 GE/GI 80,000 m² 60,000 m² 1,000-20,000 m² n.a. 59 €/m²

Rülzheim Nord GE/GI 101,200 m² 30,200 m² 800-11,000 m² n.a. 65 €/m²

Groß-Rohrheim Am Entenweg GE/GI 150,000 m² 130,000 m² 10,000-90,000 m² n.a. n.a.

Bensheim Stubenwald GE 122,000 m² 122,000 m² 5,000-48,000 m² n.a. n.a.

Heppenheim Gewerbegebiet Süd GE 230,000 m² 230,000 m² from 2,000 m² n.a. n.a.

Weinheim Technologie- und Industriepark GE/GI 871,000 m² 120,000 m² 2,000-28,000 m² 150 €/m² (2013) from 152 €/m²

Mannheim Eastsite GE 65,120 m² 22,410 m² 3,000-13,850 m² 205 €/m² (2010) 205 €/m²

Brühl Schütte-Lanz-Fläche GE 65,000 m² 65,000 m² from 2,000 m² n.a. n.a.

Schwetzingen-Plankstadt A Real! Plankstadt GE 100,000 m² 77,500 m² 1,500-65,000 m² 145 €/m² (2012) 120 €/m²

Heidelberg Pfaffengrund GI 880,000 m² 52,000 m² 1,500-15,000 m² 200 €/m² (2013) 150-250 €/m²

Neulußheim B36 GE 200,000 m² 200,000 m² n.a. n.a. 40-100 €/m²

Wiesloch-Walldorf Metropolpark GE/GI 50,000 m² 40,000 m² 1,500-20,000 m² n.a. n.a.

Sinsheim Gewerbe- u. Industriegebiet Süd GI 254,325 m² 151,979 m² 18,849-56,566 m² 80 €/m² n.a.

Obrigheim TECH-N-O GE/GI 160,000 m² 100,000 m² from 1,600 m² 40.90 €/m² (2008) 41 €/m²

Buchen IGO GE/GI 400,000 m² 100,000 m² 1,000-35,000 m² 42.50 €/m² 42,50-100 €/m²

GVV Hardheim-Walldürn VIP Walldürn GE/GI 250,000 m² 90,000 m² 500-45,000 m² 25 €/m² (2010) 25 €/m²

Osterburken RIO GE/GI 330,000 m² 77,200 m² from 1,500 m² 25 €/m² (2013) 25 €/m²

23

24

25

26

27

28

29

30

No. in map

City Type of location Investor/operator Investment volume

Land parcel size

Jobs Time table

Groß-Rohrheim Corporate Headquarters Fenster Jäger 7 mn. € 7,000 m2 30 Under construction, completion 2014

Lorsch Logistics Center Alnatura 15 mn. € 9,000 m2 n.a. Under construction, completion 2014

Lorsch Manufacturing Prisman n.a. 4,000 m2 85 Under construction, completion 2014

Lindenfels Manufacturing Kopp-Schleiftechnik n.a. 10,000 m2 40 Construction began in 2014

Weinheim Manufacturing Freudenberg Group 10 mn. € n.a. n.a. Under construction, completion 2014

Heddesheim Warehouse Edeka Südwest 50 mn. € 26,000 m2 250 Under construction, completion 2015

Mannheim Commercial Vehicles Mercedes-Benz 19 mn. € 43,300 m2 120 Completed in 2014

Mannheim Branch Porsche 13 mn. € 20,000 m2 n.a. Completed in 2014

Mannheim Corporate headquarters Berrang 20 mn. € 52,000 m2 170 Completed in 2014

Eppelheim Manufacturing Deutsche Si-Si-Werke 70 mn. € 70,000 m2 70 Under construction, completion 2015

Wiesloch Logistics Center REWE Group 23 mn. € n.a. n.a. Under construction, completion 2014

Leimen Logistics Center Deutsche Post DHL 9 mn. € 16,800 m2 110 Under construction, completion 2014

Buchen Manufacturing Merklinger 1.3 mn. € 6,800 m2 5 Under construction, completion 2014

1

7

13

17

14

16

9

18

5

4

15

8

20

32

6

1

2

3

4

5

6

7

8

10

9

11

12

13

14

15

17

18

19

20

21

2223

24

26

25

27

30

28

29

12

1014

15

16

17

18

19

13

12

11

Source: In-house survey, status 30th September 2014

8

9

10

Map Overview Investment Projects andIndustrial Parks in the Rhine-Neckar Region

20

16

11

19

Transportation routes

Interstate with number

Federal route

Railway line

Airport

Port

Borders

National border

State line

County line

Towns

Settled area

Population 100,000 and more

Population 50,000 – 100,000

Population 25,000 – 50,000

Population 10,000 – 25,000

Select industrial parks and investments

Industrial park and number

(Table on Page 25)

IInvestment and number

(Table on 24/25)

0

0

Legend

Population count as of 30/06/2014 based on the 2011 Census.

Source: State Statistics Offi ce, in-house research amended based on GeoBasis data:

© GeoBasis DE/BKG 2013, Cartography: VRN

28

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Market Segment Offi ce

Downtown Best offi ce location of the respective town.

City proximity Locations that are directly adjacent to the (offi ce) downtown area locations.

Periphery All offi ce locations that are not categorized as downtown or city proximate locations.

Peak rent Top price segment (5 %) across all leases newly executed in 2013 (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Defi nitions

in Reference to the Offi ce Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008). All rents

stated are nominal rent prices for market compatible offi ce space, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).

Average rent Average rent paid based on all leases newly executed in 2013 (in accordance with the “Definitionssammlung zum Büromarkt” (Collection of Defi nitions in

Reference to the Offi ce Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008). All rents stated

are nominal rent prices for market compatible offi ce space, i.e. rent according to lease agreement (excluding taxes, incentives and utilities).

Existing space Total space of completed offi ce space available (in use or vacant) in the entire town limits on 31/12/2013 (in accordance with the “Definitionssammlung

zum Büromarkt” (Collection of Defi nitions in Reference to the Offi ce Market) published by the gif, Gesellschaft für Immobilienwirtschaftliche Forschung e.

V., 2nd Edition, June 2008).

Space revenues Total offi ce space rented, leased or sold to an owner-user within the entire town limits over the course of 2013, including sub-leases (in accordance

with the “Definitionssammlung zum Büromarkt” (Collection of Defi nitions in Reference to the Offi ce Market) published by the gif, Gesellschaft für

Immobilienwirtschaftliche Forschung e. V., 2nd Edition, June 2008).

Vacancy rate Percentage of all unused completed offi ce space offered for sale, lease or sub-leasing within the entire town limits as of 31/12/2013 and which are ready

for move-in within a period of three months.

MF/gif space definition All space information provided in Chapter Offi ce Market are leased spaces as defi ned by gif. They refer to the “Richtlinie zur Berechnung der Mietfläche

für gewerblichen Raum (MF-G)” (Guideline for the Computation of Leased Space for Commercial Spaces (MF-G) published by the Gesellschaft für

Immobilienwirtschaftliche Forschung e. V. (latest version of May 2012). As a rule, the leased spaced according to gif is less than the gross fl oor space

amount (BGF) pursuant to DIN 277, given that for instance, traffi c / transportation areas are not included in the computation. For this Report, the basis

used, according to the recommendations made by bulwiengesa AG was a conversion factor gif/BGF of 0.8.

Profi ts Average starting profi ts generated by market compatible offi ce properties with good leasing statuses, i.e. average annual net rent income in 2013

compared to purchase price (pursuant to the recommendations made by the gif- Gesellschaft für Immobilienwirtschaftliche Forschung e. V.).

Market Segment Retail

1a location Part of downtown that enjoys the highest pedestrian volumes and the densest installation of large scale operations that draw shoppers like magnets and

that have supra-regional store operations.

Peak rent Rent paid per square meter in EUR when space is newly leased based on a 100 square meter single fl oor sales fl oor in a 1a location with a 6 meter display

front (definition Jones Lang LaSalle).

Percentage of branch operation Percentage of branch operations with nationwide business activity in the total local retail trade.

Pedestrian volume Number of pedestrians passing by per hour, based on a specifi c counting location in the pedestrian zone on a survey date that is used uniformly across all

of Germany: 29th March 2014, 1:00 – 2:00 pm (according to Jones Lang LaSalle).

Purchasing power index Index per resident, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that the residents in this town have a

purchase power that is 10 % higher than the nationwide average in Germany (GfK definition).

Sales index Index per resident, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that this town generates 10 % more

revenues/sales than the nationwide average in Germany (GfK definition).

Centrality index Index, based on the nationwide average in all of Germany (index = 100). Example: an index of 110 means that this town, compared to the nationwide

average, offers 10 % more bound purchase power and centrality in retail (GfK defi nition).

Market Segment Commercial Land Parcels

Guideline value Average land value for a territory that has similar uses and value conditions. The guideline value provides the value per square meter of land for a factual

land parcel that the represents the typical location properties of the affected territory.

Zoning type Type of structural land use according to the German Construction Land Usage Act (Baunutzungsverordnung = BauNVO). Abbreviations: GE = commercial

land, GEe = commercial land for restricted uses, GI = industrial park, GIe = industrial park for restricted uses.

Legal Information and Liability Disclaimer

Any publication, duplication and any sharing of this Report, even of parts thereof, shall be subject to the prior written consent of the Metropolregion

Rhein-Neckar GmbH. The estimates and assessments provided in this Report shall be subject to the following reservations: We shall not assume

any liability for losses, costs or other damages resulting from the utilization of the information published herein. The information provided is based on

sources we consider reliable. However, we are in no position to guarantee that this information is correct and complete. The assessments made are

based on the status of the information we had at the time of our editorial deadline (30th August 2014). The actual developments may differ signifi cantly

from the forecasts and projections as well as expectations expressed in this Report. The Publishers shall not assume any responsibility for the making

of updates to the statements made. The information contained herein is provided for the sole purpose of sharing generally informative material and is

not suitable as a substitute for professional consultations and

Glossary

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Real Estate Market Report 2014Rhine-Neckar Metropolitan Region

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