After a brilliant start to 2007, the positive development has continued in the second quarter of the year.  In the first six months of 2007, office space totaling about 90,000 sq. m. was realized.  In comparison with the same period of the previous year the sales revenue has increased by 70 percent.

The largest share of the transactions is still taken by small areas of less than 500 sq. m. Large-scale leasing transactions with approx. 16,400 sq. m were made by the University of Stuttgart in Heilbronner Straße (in the first three months) and most recently with approx. 5,700 sq. m. by an international automotive supplier in the office complex in Wangen.

Empty space at a low level
A slight increase in free space at the end of last year was followed in the first six months of 2007 by a reduction of free space.  At the moment, approx. 450,000 sq. m. of office space is free from a total of  7.40 m. sq. m. This is a quota of 6.1 percent. This figure is still slightly above last year’s figure, but is the lowest in comparison to other office metropolitan regions monitored by Dr. Lübke.

Top rent at 19 euro
The nominal top rent of 19.00 euro/m² (net, excluding service charges) is clearly above last year’s figure.  This growth mainly results from changes in the second half of 2006. The first half of 2007, however, is characterized by a rent stability in almost all areas.  Thus the rent price span for exclusive areas has leveled off between 11.50 and 15.00 euro/sq. m. In medium-class areas the price ranges between 8.00 and 11.5 euro/sq. m.

Good areas and facilities are in demand
AS apposed to last year, it is not only the rent price that is of main importance when deciding on where to rent. More focus is now placed on sophisticated facilities and above-average locations.

Reserve areas are few
The continuously high demand for space – particularly in the city – cannot be met by the market. In the next two years there will be a larger volume of new buildings, but these are mainly pre-rented, even at this early stage. This background leads us to assume that moderate price increases may be possible.

Source: Dr. Lübke GmbH