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Christian Dörner joins NAI apollo as Director of Office Letting, Radomir Vasilijevic becomes Director Investment

Frankfurt am Main, 18 January 2019 – Christian Dörner took up the role of Director of Office Letting at NAI apollo on 15 January and now leads the company’s office and retail letting team. The 47-year-old previously worked for CBRE, where he was most recently responsible for supporting major national and international customers as Senior Director in the Advisory & Transaction Services Team. Dörner has been involved in real estate for 20 years. “In Christian Dörner, NAI apollo is gaining a real expert for our office and retail letting business segment. In an increasingly difficult environment from the point of view of both tenants and owners, he can call upon his extensive experience with national and international customers. Christian really strengthens our team and is a further competitive advantage for our company,” says Andreas Wende, Managing Partner of NAI apollo.

“Searching for and managing space is becoming ever more difficult for small and medium-sized enterprises. In tense markets and especially sought-after locations in particular, options are becoming increasingly limited. In turn, this can lead to problems in the development of companies. But we are available as a partner and consultant so that we can work together to achieve the best possible result,” comments Christian Dörner, new Director of Office Letting at NAI apollo.

Radomir Vasilijevic (43), who has been working in the Frankfurt office letting market for 20 years and was previously NAI apollo’s Director of Office Letting for seven years, is now taking on a new challenge with immediate effect as Partner and Director Investment at NAI apollo. “The investment business plays a decisive role in day-to-day consulting. After Radomir Vasilijevic and his team achieved numerous successes in the area of letting, we are now delighted that he will play an active role in driving forward investment consulting for professional and semi-professional investors. Rado possesses in-depth market knowledge, particularly in Frankfurt and the Rhine-Main region where he knows every property and every square metre of space,” says Wende. “NAI apollo is pursuing a clear growth strategy in multiple sectors in order to offer our customers the right service. I am looking forward to fully concentrating on the field of investment in the next step of my career. Real estate investments have become a crucial component of the portfolios of national and international investors,” comments Radomir Vasilijevic, Partner and Director Investment at NAI apollo, on his new role.

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NAI apollo: Brexit could be the challenge of the century for the Frankfurt office property market

Frankfurt am Main, 16 January 2019 – Yesterday evening, the British House of Commons overwhelmingly rejected the Brexit deal that Prime Minister Theresa May had negotiated with the European Union. The British government is now faced with the challenge of finding a solution that minimises the economic damage to the United Kingdom should Brexit take place. The owner-operated real estate consultancy firm NAI apollo – a partner of the NAI apollo group – believes that this will cause enormous uncertainty for international investors and companies. “As no agreement with the EU seems to be in sight, the UK may leave the EU without a deal. As a result, numerous international companies from the financial sector in particular are now asking themselves whether they should leave London for continental Europe. Institutional investors are considering a regional redistribution of their investments. Frankfurt is one of the most attractive locations in this context with its proximity to the European Central Bank and the excellent infrastructure both clear arguments in favour of the city on the Main river,” explains Andreas Wende, Managing Partner of NAI apollo.

“The growing demand resulting from Brexit could even pose the challenge of the century for the Frankfurt office market,” comments Wende. After all, the available space is limited. According to the report on developments in the Frankfurt office rental market published by NAI apollo just a few days ago, only 743,000 square metres of empty office space is available on the market – the lowest level since 2001. As such, the vacancy rate is currently 6.5%. The reduction in space available at short notice in the central business district (CBD) is particularly noticeable. “Several submarkets in the CBD are even fully occupied. The vacancy rate in the banking district has fallen from 9.5% in 2015 to 2.6% today,” explains Dr Konrad Kanzler, Head of Research at the NAI apollo group.

The full analysis of the Frankfurt office rental market can be found here: https://www.nai-apollo.de/de/news/details/nai-apollo-buerovermietungsmarkt-frankfurt-feiert-zweitbestes-jahr-innerhalb-der-letzten-15-jahre

 

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NAI apollo: Warehouse and logistics property market passes 700,000-sqm take-up mark in Rhine-Main region

Frankfurt am Main, 16.01.2019 – The market for warehouse and logistics property in the Rhine-Main region finished 2018 with the third-best take-up result ever achieved. According to the analysis of the owner-operated real estate consultancy firm NAI apollo – a partner of the NAI apollo group – a total of around 741,000 sqm of logistics and warehouse area were taken up through leasing and owner occupancy last year. This makes it the third year in which this number exceeded 700,000 sqm after 2014 and 2017. As a result, the ten-year average has risen by 34,000 sqm and now stands at 586,000. “The strong take-up figures once again underline the importance of the Rhine-Main region as a central logistics location for Germany and Europe,” comments Andreas Wende, Managing Partner of NAI apollo.

Third-best take-up after 2017 and 2014

“2018 came close to the record results from 2017 and 2014,” says Dr Konrad Kanzler, Head of Research of the NAI apollo group. A total of 753,000 sqm were taken up in 2014, while the figure in 2017 was 769,000 sqm. Growing demand for space among both logistics service providers and retail due primarily to the boom in e-commerce has greatly enhanced the importance of the logistics markets in recent years. “While the five-year take-up figures for the logistics market in the Rhine-Main region were around 705,000 sqm per year on average between 2014 and 2018, the equivalent annual figure for the five years previous to that was 467,000 sqm. This is an increase of more than 50%,” explains Kanzler.

When analysing the overall result for 2018, stronger figures were recorded in the second half of the year. “The first six months were rather average with a take-up of 322,000 sqm. Contrastingly, in the second half of the year, some 419,000 sqm were taken up,” comments Michael Weyrauch, Head of Industrial Letting and Transaction at NAI apollo. With 194,000 sqm, the fourth quarter was the second strongest of the year.

Major transactions responsible for more than half of take-up

The second half of 2018 was primarily characterised by a higher take-up of large-area halls. As such, the 10,000 sqm-plus segment grew from eight deals with a total of 151,000 sqm in the first six months to ten deals with 274,000 sqm in the second half of the year. “For 2018 as a whole, take-up in the large-area segment adds up to around 425,000 sqm, which corresponds to a market share of 57.4%,” explains Weyrauch. “This almost reaches the level of the record year.” (In 2017 the corresponding figures were 445,000 sqm and a market share of 57.9%.) The biggest transactions of the year involved various logistics companies. ID Logistics was responsible for the top deal by leasing more than 40,000 sqm in Hammersbach, followed by logistics service provider RWL with over 39,000 sqm in Trebur and Seifert Logistics in Bürstadt with over 35,000 sqm. By leasing 32,500 sqm in M-Port³ in the Mönchhof area in Kelsterbach, Rewe is the top retail company in the ranking list at fourth place.

Project developments gaining in importance

All the deals mentioned above took place in or through project developments. In the large-area segment in particular, market activities are focusing on new construction. As such, 12 of the 18 deals in the segment for transactions above 10,000 sqm were leases within the scope of new building projects or owner-occupier developments. The share of take-up attributable to project developments in the reporting year 2018 amounts to 51.7% or 382,000 sqm, of which 298,000 sqm were project leases and 84,000 sqm were for owner-occupier developments. “Both absolute take-up and the share of take-up exceed the previous year’s figures. This once again underlines the large and growing market significance of the new build sector,” adds Weyrauch.

Transport, warehousing and logistics companies driving demand for space

The segment with by far the greatest demand for space is the transport, warehousing and logistics sector with a take-up share of 61.0% (452,000 sqm), followed by retail with 17.4% (129,000 sqm) and industrial and commercial enterprises with 10.5% (78,000 sqm). This ranking is the same as in the previous years. “What is new is the wide margin between the transport, warehousing and logistics sector and the others. This is also predominantly based on the market activities of logistics service providers in the large-area segment,” comments Kanzler.

As in previous years, market activities are concentrated in the south of the Rhine-Main region. The south-western submarket situated between the Main river and the A5 and A63 autobahns continues to dominate with a take-up share of 59.4%, which corresponds to around 440,000 sqm. It is followed by the south-east with approximately 109,000 sqm.

Continued high level of market activity expected for 2019

This high level of market activity is currently expected to be maintained in 2019. NAI apollo believes that the looming weakening of economic development will not have an effect on the warehousing and logistics market in Frankfurt and the Rhine-Main region until the end of the year, or in the best case until the following year. “In light of this, we anticipate another good take-up result above the ten-year average of 586,000 sqm. The trend of growing market activity at the peripheries of the market region will also continue,” comments Weyrauch. Due to the lack of suitable existing properties and buildable plots, developers and users will therefore increasingly focus on locations outside the traditional logistics areas. “Good transport connections and the right spaces for flexible and large-area utilisation are the prerequisites for this,” adds Weyrauch.

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Anke Fischer joins apollo valuation & research

Frankfurt am Main, 8 January 2019 – Anke Fischer (43) has been Associate Director at apollo valuation & research GmbH since the beginning of January 2019. In her new role at the NAI apollo group’s valuation and market research company she is responsible for valuation in compliance with German and international standards. Fischer has been involved in property valuation for more than 15 years, having worked for KENSTONE GmbH until December 2018 and, prior to that, Jones Lang LaSalle GmbH for almost seven years. She holds the CIS HypZert (F) certificate and is a chartered surveyor with accreditation from the Royal Institution of Chartered Surveyors (RICS), graduate geographer and real estate economist (ADI). As such, the Valuation Team now counts four employees who hold the HypZert (F) certificate.

“We are delighted that we were able to attract an experienced and highly trained employee like Anke Fischer. This appointment ensures we can maintain the high level of qualification in our very experienced team, enabling us to provide the best possible services for our customers,” explains Stefan Mergen, Managing Partner at apollo valuation & research GmbH.

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NAI apollo: Frankfurt office lettings market celebrates second-best year within the past 15 years

Frankfurt am Main, 4th January 2019 – The Frankfurt market for office space including Eschborn and Offenbach-Kaiserlei ended 2018 with an historically high take-up volume, according to the latest analysis by owner-managed real estate consultancy NAI apollo – partner of the NAI apollo group. Office space take-up for the year as a whole amounted to 622,100 sqm, which represents the second-highest result within the past 15 years after the record year of 2017. At the same time, the take-up volume was more than 30 % above the long-term average (475,500 sqm). “Once again, the office lettings market in Frankfurt achieved a very strong result in the past year, thus maintaining the clearly positive trend that led to the record result in 2017”, said Andreas Wende, Managing Director of NAI apollo. In the period from October to December 2018, take-up by tenants and owner-occupiers amounted to 181,200 sqm. Although the figure for the fourth quarter of 2018 was below the exceptional result of 279,400 sqm that was recorded at the end of the previous year, it still exceeded average take-up (about 140,000 sqm) for final quarters of the past 10 years.

2018 characterised by high number of deals

“The number of contract signings again increased significantly, which attests to the market’s strong momentum”, said Radomir Vasilijevic, Director Office Letting at NAI apollo. The figure increased from 712 in 2017 to 744 deals in 2018. As was also the case in the previous year, lease renewals by tenants following unsuccessful attempts to secure new premises still accounted for a moderate take-up of about 50,000 sqm.

The vibrancy of the Frankfurt office market is largely influenced by the strong lettings volume in the segment for smaller units. Take-up in the “sub-1,000-sqm” segment increased by 8.1 % to 220,400 sqm compared to the previous year. However, volumes fell in the other four size categories above 1,000 sqm identified by NAI apollo. “This was to be expected in view of the strong take-up in the previous year”, according to Vasilijevic. 

The largest deals during 2018 included the 36,100 sqm leased by Commerzbank in the Cielo office block at 100, Theodor-Heuss-Allee; the contract signed by Frankfurter Allgemeine Zeitung for 24,000 sqm in a project development at 92, Europa-Allee; 15,800 sqm leased by Deloitte in the Zebra development at 91-93, Europa-Allee; and the 9,200 sqm leased by Spaces in Global Tower at 32-36, Neue Mainzer Straße. NAI apollo provided advisory services to Spaces during the signing of this lease contract. 

Prime rent rises to above €43.00/sqm

The “banks, financial service providers and insurance companies” sector continued to dominate the market in 2018, accounting for 141,200 sqm or a 22.7 % market share. “Real estate and construction” was in second place with 13.9 % or 86,300 sqm, of which co-working providers accounted for more than half.

In terms of location preferences, office users continued to focus on the Central Business District (CBD) with take-up of 382,000 sqm (61.4 % market share). Regarding the individual sub-markets, the banking district and City West remained popular with shares of 16.2 % and 10.5 % respectively.

“Further high-priced lease contract signings in project developments also drove up rents during the fourth quarter. As a result, the prime rent now stands at €43.20/sqm, which represents the highest value since 2001. Compared to the previous year, the prime rent has increased by a further 7.2 %”, said Dr Konrad Kanzler, Head of Research at the NAI apollo group. Over the same period, the average rent increased by 4.8 % to €21.70/sqm.

Reduction in vacancies continues apace

The completions volume in the fourth quarter of 2018 reached a total of 22,900 sqm of office space. Only 76,400 sqm was ultimately completed in 2018 as a whole owing to building delays. After taking into account the removal of a similar volume of space from the office market, office stock amounted to 11.346 million sqm at the end of the fourth quarter.

“As things stand, a completions volume of 177,200 sqm can be expected in 2019. Only around a third of this is still available”, said Kanzler.

Market-active vacancies on the Frankfurt office market — that is, office spaces that can be occupied within three months of the lease contract signing — also experienced a considerable decline during the fourth quarter of 2018. “At the end of 2018, only 743,000 sqm of office space was available to the market at short notice. This represents the lowest level since 2001, when short-term vacancies amounted to 400,000 sqm. Thus the vacancy rate has dropped 2.1 percentage points to 6.5 % compared to the previous year’s figure”, said Vasilijevic.

The reduction in office space available at short notice in the CDB was particularly striking. “In Frankfurt’s CBD, the vacancy rate has fallen by 7.1 percentage points over three years to reach 6.2 % at the end of 2018. A number of sub-markets within the CBD are effectively now at full occupancy. For instance, the vacancy rate in the banking district stood at 9.5 % in 2015, but since then has fallen to just 2.6 %”, said Kanzler. However, significant declines in vacancies are also evident in non-central locations such as the Niederrad office centre, where the vacancy rate has fallen from 19.4 % to 10.6 % in three years and absolute vacancies have almost halved. 

Positive market outlook for 2019

According to NAI apollo, market conditions suggest that the current positive development is set to continue during 2019. “In addition to above-average take-up, we expect to see a further decline in space availability and rising rents on the office market”, concluded Vasilijevic.

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NAI brokers office space letting in central Munich for new "Treffpunkt Klett" branch

Owner-managed real estate consultancy NAI apollo has negotiated the letting of a 310-sqm office space at 15a Neuhauser Straße in Munich city centre to Stuttgarter Verlagskontor SVK GmbH of Stuttgart. The building is owned by Dr. Bauer Grundstücksverwaltung GmbH & Co. KG. Stuttgarter Verlagskontor SVK GmbH is a subsidiary of Ernst Klett AG.

According to the specialists at NAI apollo, the proximity to competitors was a decisive factor in the choice of location in addition to the central Munich address. Regional branches of publishing companies such as Cornelsen and Spiegel, the Westermann Group publishing house and Meister are close neighbours. The office is situated between two main squares (Marienplatz and Karlsplatz) within sight of St Mary’s Church (Marienkirche). It is well connected to the public transport network with easy access to several metro, tram and bus routes.

 

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NAI apollo strengthens investment expertise in Munich

Johannes Stubenrauch, who has worked for NAI apollo since September 2015, is relocating from the owner-managed property consultancy’s headquarters in Frankfurt to Munich in order to expand the investment business in the southern German branch. The team at the Munich office will increase to five members following Stubenrauch’s arrival.

In his role as a senior consultant for NAI apollo, Stubenrauch has managed a total transaction volume of about €220 million. The track record of the 30-year-old property expert includes the Bohomian micro apartment building in Frankfurt and the iconic Wappenhalle in Munich — the arrival hall of the former Munich-Riem airport. Before joining NAI apollo, Stubenrauch, who is a native of Germany’s Franconia region, studied international real estate management at the University of Applied Sciences in Aschaffenburg. 

Thilo Hecht, managing partner and founder of NAI apollo in Munich, said: “In the investment business, we will initially focus on structured cold calling as we did in the early days with office lettings. Off-market core-plus and value-add transactions will be the priority, and here we work closely with a select group of buyside investors. Johannes Stubenrauch has already managed numerous transactions and will be an excellent addition to our team.”

NAI apollo still sees considerable potential in the Bavarian capital despite the high property prices. “The very good regional infrastructure is a particular strength of Munich and the surrounding area. This means that investments on the outskirts of the city and in the suburbs are also of interest, and we expect activity here to pick up over the coming months,” added Stubenrauch.

The Munich branch of NAI apollo was established around four years ago. Since then, the team has managed several large lettings, including to companies such as WeWork and Lufthansa, as well as investment transactions. Only in October, the agency negotiated the purchase of an 18,000-sqm office property called “sunsquare” in Kirchheim for Godewind.

“From the outset, the Munich branch has exceeded all profit and revenue expectations in every year of operation,” said Hecht. “We have moved beyond the start-up phase and are now focusing on further business growth. We have a strong funding base to support this growth, owing to the lean cost structure and high profitability of the Munich business. NAI apollo plans to recruit more staff in the city, particularly at senior and team leader level for investment and office letting.”

 

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Stuttgart: IMMORAUM joins the NAI apollo group network as partner

The NAI apollo group had added another new member to its ranks. Commercial real estate consultancy IMMORAUM GmbH Real Estate Advisors further extends the group’s remit and will act as a strategic partner for the Stuttgart metropolitan region. This makes IMMORAUM the ninth partner to join the network of owner-managed real estate consultancies and the second new addition to the NAI apollo group this year. Commercial and residential property broker immovo from Düsseldorf joined the network in June 2018.

 IMMORAUM was founded six years ago by managing directors Sven Gruber, Roman Herdt, Sven Kersten and Benjamin Lauser during their studies. Its range of services includes lettings and investment consultancy as well as landlord and tenant representation. The team of 11 employees focuses on lettings in the Stuttgart metropolitan region as well as investment mandates throughout southern Germany. To this date, IMMORAUM has brokered office leases covering 75,000 sqm of total space and accompanied investment transactions worth €200 million.

 Benjamin Lauser, managing director of IMMORAUM, said: “Baden-Württemberg still offers enormous potential. The good infrastructure in the region provides an attractive environment for investments and lettings in numerous locations. We also plan to place a greater focus on Freiburg and Karlsruhe in the future.”

IMMORAUM is particularly interested in expanding its investment business. Previously, the company concentrated on transactions with a value of up to €30 million. “As part of the NAI apollo group, we are able to expand our network both nationally and internationally. The collaboration with partner companies provides us with better access to large-scale transactions and the know-how of highly qualified colleagues. At the same time, the partners benefit from our regional expertise,” added Benjamin Lauser. 

Andreas Krone, CEO of NAI apollo, said: “The arrival of two new partner companies within a few months showcases the quality and attractiveness of the NAI apollo group. Those who share our entrepreneurial attitude and demonstrate a high level of motivation are in a good position to develop their business with apollo group partners over the long term. IMMORAUM has exactly these qualities, and this will allow us to provide even more comprehensive advice to customers in the Stuttgart region by working together in future.”

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NAI apollo brokers leases for approx. 1,900 sqm of commercial space in Frankfurt and surrounding area

Owner-managed real estate consultancy NAI apollo has brokered lease contracts for around 1,900 sqm of office, retail and warehouse space at five locations in the Rhine-Main area.

 The largest individual lease concerns an almost 700-sqm warehouse unit in the Mörfelden industrial zone between Frankfurt and Darmstadt. The tenant of the property situated close to the motorway is Hagelschaden Douteil GmbH, which is active in the automobile industry. NAI apollo also advised an equipment construction company on the lease of about 600 sqm of office and warehouse space in the Wasserweg industrial area in Groß-Gerau. Otherwise, a company from the healthcare sector is renting around 250 sqm of office and retail space on Hebelstraße in a quiet location of Frankfurt’s Nordend district. In addition, NAI apollo brokered leases for two commercial spaces in Frankfurt with about 150 sqm apiece, one to an IT company at 5-7 Trakehner Straße in the Hauser industrial area of Frankfurt and another to an internist who is setting up a practice at 248, Eschersheimer Landstraße.

 

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NAI apollo brings ABACCO’S Steakhouse to Munich

Owner-managed real estate consultancy NAI apollo has negotiated the lease of a 400-sqm catering space in Munich. The city’s first ABACCO’S Steakhouse is opening its doors in a commercial and residential building called Angerhof at the beginning of February 2019. ABACCO’S prides itself on its fine dining experience and only uses high-quality US beef for its dishes.

The commercial section of the Angerhof building, which was built in 2008 and has three addresses with 19 and 20, Unterer Anger as well as 27-35, Oberanger and 1, Klosterhofstrasse, belongs to the PATRIZIA portfolio. In 2009, the property was one of only three buildings to be nominated for the MIPIM-Award 2009 in the Business Centre category at the international real estate trade show MIPIM in Cannes. The building’s unique character is further illustrated by examples of contemporary art within the property, especially the light art by Keith Sonnier and Ingo Maurer, the sounding stones from Andreas Schmeing-Häusle and the large-scale sculpture made from steel by Christopher Klein in the courtyard. The technology group Linde AG is the anchor tenant for the commercial premises. 

The Angerhof is situated in Munich’s city centre and is only minutes away by foot from Marienplatz and Viktualienmarkt, the daily food market. Good public transport links are also close by at Sendlinger Tor and Marienplatz

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