THE STUTTGART OFFICE MARKET

2010/2011
Overview of the Stuttgart office market

Year Volume Representative Average central Vacancies ­ Vacancies Total space Completion Pre-leased
(sq. m) peak rents business district (sq. m) (%) available ­volume (sq. m) ­volume (sq. m)
rents (mill. sq. m)

1993 140,000 €16.36 €14.50 160,000 2.80 5.609 345,000 No data

1994 120,000 €14.83 €13.60 225,000 4.00 5.926 317,000 No data

1995 120,000 €14.32 €13.35 190,000 3.30 6.056 130,000 No data

1996 135,000 €14.32 €12.75 290,000 4.90 6.108 52,000 No data

1997 140,000 €14.83 €12.65 270,000 4.50 6.231 123,000 No data

1998 180,000 €15.08 €13.85 186,000 2.80 6.266 35,000 No data

1999 230,000 €15.85 €14.80 118,000 1.80 6.296 39,000 No data

2000 205,000 €16.87 €14.90 100,000 1.50 6.356 60,000 No data

2001 160,000 €18.41 €15.34 137,000 2.00 6.516 160,000 130,000

2002 127,000 €17.89 €14.80 292,000 4.20 6.828 312,000 220,000

2003 149,000 €17.50 €14.50 379,000 5.30 6.973 145,000 80,000

2004 152,000 €17.00 €14.50 415,000 5.70 7.102 129,000 93,500

2005 145,000 €17.00 €13.50 402,000 5.60 7.170 68,500 51,400

2006 140,000 €17.50 €13.50 467,400 6.50 7.222* 52,500 20,500

2007 169,000 €17.50 €14.50 466,000 6.40 7.253 32,600 23,400

2008 180,000 €18.00 €14.50 460,000 6.20 7.367 117,000 116,000

2009 171,000 €18.00 €13.60 453,000 6.12 7.401 40,000 22,000

2010 194,000 €17.50 €14.30 480,000 6.46 7.425 42,400 22,400

* Data from a survey by BulwienGesa AG + Baasner, Möller & Langwald GmbH Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2010
 Stuttgart 21 ( site s ection A1)
Office + retail + residential
for details see page 9

LO O K 21
Phönixba u
Türlen-/Heilbronnerstrasse
Office + retail + residential Königstrasse 5
To be completed at unknown date Office
Po s tq uar tier completed in 2008
Lautenschlagerstrasse 17
Office + retail
To be completed in 2011

C i t y G at e
Kriegsbergstrasse 11
Office + retail
To be completed at unknown date
Mo tel ON E
Lautenschlagerstrasse 14 Bü l ow carré
Hotel Lautenschlagerstrasse 20
To be completed in 2011 Office + retail
To be completed in 2012
Qu a d r at
Büchsenstrasse 26a
Office + retail
completed in 2011

W indow‘s
Theodor-Heuss-Strasse 7
Office + retail P o st o ‘S
completed in 2009 Alte Poststrasse
Office + retail
gallio n haus completed in 20
Theodor-Heuss-Strasse 8 The o 10
h os p i ta l h o f Office + retail Theodor-Heuss-Strasse 10
Büchsenstrasse completed in 2011 Office + retail
Office To be completed in 2011
To be completed in 2013

Ca sa Nova
Paulinenstrasse 41
Office
To be completed in 2011

Source: Manfred Storck

 D a V in ci
Office + retail
To be completed at unknown date

3–5

009

E 65
Eberhardstrasse 65
Office + retail
To be completed in 2013

Qu a r t i e r S
Office + retail + residential
To be completed in 2013

Paulin e
Paulinenstrasse
Office
To be completed at unknown date
Ca l eido
Tübinger Strasse
Office + retail
To be completed at unknown date
 4
5

CONTENTS

Foreword 6

Stuttgart – well prepared for the future 8

Stuttgart 21 is on its way 9

Rental take-up exceeds all expectations 10

Take-up by sectors 12

Take-up by size of premises 13

Rent prices show a small decline 14

Slight increase in vacant office space 16

Upturn in the office market throughout Germany 18

Central Stuttgart: Big potential for new growth 20

Northern Stuttgart: New concepts needed 21

Eastern Stuttgart: In a waiting position 22

Southern Stuttgart: Positive development continues 23

Overview of the Stuttgart office market 25

Forecast: Upsurge in Stuttgart’s office market 27

Your contacts 28

Ellwanger & Geiger Real Estate 29

Foreword

Stuttgart – looking to the future.

Stuttgart is a city of innovations and ideas: a city in motion.

In terms of investment, productivity, services, recreation and urban development, Stuttgart is one
of the most active and attractive cities in Europe.

The global economic crisis has been largely overcome. The companies in Stuttgart now have
­well-filled order books, their products are in high demand throughout the world and more jobs are
available. Stuttgart today has some 17,000 enterprises in a wide range of sectors. Together they
­employ almost 350,000 people and generate gross value added of approximately 31 billion euros.
In the last three years, in spite of the economic crisis, employment has increased by about 1 percent.
This is an encouraging state of affairs, and it is the result of a municipal economic policy that has
pursued clear goals over many years and proved to be reliable. The city must continue on this path
to be fit for the future. We recently completed a study of the goals that Stuttgart should focus on in
the coming years. Taking the city’s existing business strength into account, we identified three are-
as that need promotion: sustainable mobility, education and tourism. Through strong growth in
these promising areas, up to 18,600 new jobs could be created by 2020.

We would like to thank ELLWANGER & GEIGER Privatbankiers for their many years of excellent co-
operation and for their continuation of the public-private partnership that has made it possible to
produce a new edition of this publication.

This issue of the Stuttgart Office Market provides you with detailed information on trends in this
part of the property market. We invite you to participate actively in its development.

Dr. Wolfgang Schuster Ines Aufrecht

Mayor of Stuttgart Director of Business Development, Stuttgart
 6
7

This city offers excellent opportunities. Let us take advantage of them.

In 2010, Germany’s seven most important property markets had a total turnover volume of
­approximately 2.74 million square metres, thus exceeding the previous year’s volume by more than
19 percent. What about Stuttgart? Last year new space amounting to 194,000 square metres was
let in the city. This is a good figure, and the high demand for space especially in the city centre is a
sign that the growth will continue. It nevertheless pays to take a closer look, because an analysis
often reveals important differences. For one thing, not all office locations in the city are developing
at the same rate. For another, prospective tenants now pay greater attention to differences between
new and old premises. Beyond doubt, that is because of the complex demands on building services
such as IT. Moreover, tenants are less and less willing to rent premises that fail to meet modern
standards in energy efficiency and facilities. What does this mean for landlords and investors?
In the coming years it will become more and more important for them to keep office premises in
an up-to-date ­condition. Tenants will be less inclined to tolerate delays in renovation, and they
will demand rent reductions when renovation is neglected. With the prospects for growth now so
­favourable, it is time to develop new, attractive locations and new office buildings. This will be a
challenge to the city and, of course, to private investors.

We hope that you find this publication interesting. If you have any questions concerning the office
market and rentals, we will be glad to help you.

Yours sincerely,

Mario Caroli Björn Holzwarth

Stuttgart – well prepared for the future
Stuttgart continues to be a location with a sound economic base and strong growth potential.
­Baden-Württemberg’s capital weathered the economic crisis of the past two years very well.
And for the years ahead, the Atlas of Future Business Sectors in 2010, published by the Swiss
think tank Prognos, rates the city’s prospects as excellent.

Wide range of business sectors High educational level

One major reason for Stuttgart’s strong growth potential
is its good mix of industries. Of central importance are
the automotive and automotive supply industries, which
are now enjoying especially strong growth owing to the
rising demand for electric vehicles and vehicles based on
other new technologies. In addition, there are numerous
companies specializing in engineering, environmental
technology, communications technology, publishing,
­media and finance. Efforts are also under way to form
new business clusters in the Stuttgart economic region.
Early signs of such activity can be seen in the programme
of study in medical technology that was established in
winter 2010/2011 at the University of Stuttgart in
­cooperation with the University of Tübingen, and in the
renewable energies programme that will start in the
­coming winter semester. Innovative technologies and
work processes will also be developed at the Fraunhofer
Centre for Virtual Engineering, which is currently under
construction.
Another factor in the region’s economic success is its
highly qualified workforce. No other major German city
has such a high concentration of university graduates as
Stuttgart, with 21.9 percent. With four large universities
and continuously rising numbers of students, Stuttgart
can expect to remain in this position.
Low unemployment rate
At the end of 2010, Stuttgart’s unemployment rate was
5.8 percent, well below the national average of 7.2 per-
cent. This was lower than at any time in the last 18 years.
Moreover, given the predicted economic growth of 2.5
percent for 2011, the employment situation can be
­expected to remain satisfactory. One reassuring fact is
that rising domestic consumption will lead to continued
economic growth even if exports stagnate.

Per capita purchasing power in 2010:

cities with 500,000 or more residents

Munich 25,713

Düsseldorf 22,668

Frankfurt 21,627

Stuttgart 21,219

Cologne 20,648

Hamburg 20,158

Berlin 16,880
All figures in euros

0 5,000 10,000 15,000 20,000 25,000

Data source: GfK GeoMarketing, June 2010

 8
9

sse ra
Türlenst
Site section 5 Site section 6 Site section 7
Still available Retail + residential Residential + office
To be completed in 2014

Wolfram
asse
nner Str
Heilbro
Site section 4

st
rasse
Still available Site section 8
Retail + residential
Library 21 To be completed in 2014
To be completed in 2011

Sparkassen Akademie
To be completed in 2013
Europe-Plaza Site section 9
Retail + residential
To be completed in 2014
Site section 13
Pariser Höfe
rt
tuttga

To be completed in 2012
Site section 12
Still available Site section 15
HBF S

Still available

Present railway lines, in future Site section A2

Residential

Stuttgart 21 is on its way

Construction work for the project Stuttgart 21 has now begun. The northern wing of the railway station
was torn down in autumn 2010, and other preparations were carried out in the area of the former bus
station at the south side of the building.

Following a change in planning for site section A1, the
Goldene Acht project originally proposed by LBBW was
replaced by the Sparkassen Akademie, a training institu-
tion run by the German Sparkasse banks. The new plan
comprises a training centre, some 160 apartments for
overnight accommodation, and office space for about
330 employees. Each year some 26,000 Sparkasse em-
ployees will receive instruction here, completing a total of
60,000 days of training. This will bring added life to the
district. The Library of the 21st Century, an important
­attraction that is expected to draw a million visitors each
year, has now grown to full size. Opening is set for the
fourth quarter of 2011. Construction for Europe Plaza, an
office project covering 16,300 square metres, can begin
now that advance rental agreements are in place. Pariser
Höfe, a project that includes some 250 apartments and
an office wing with approximately 8,000 square metres, is
under construction. Completion is expected by the second
quarter of 2012.
Site sections 6, 8 and 9 on Wolframstrasse again created
excitement in 2010. A joint building permit application
submitted just before the deadline by ECE, Strabag and
Bayerische Hausbau put an end to the discussion on better
integration of the complex into the urban development
plan. The innovative concept, made up of attractively
spaced small units, includes 43,000 square metres for
­retailers, 4,500 square metres for restaurants, a 4-star
­hotel with 160 rooms, and some 400 apartments. On the
corner of Heilbronner Strasse and Wolframstrasse the
planning calls for a high-rise building with 30 to 50 luxury
apartments plus office space in the first three stories of
the semi-basement.
Developments in the past year demonstrate that site section
A1 continues to offer interesting possibilities, both for
project developers and for users. In no other major city
are there such large, contiguous premises available for
­office and other use as at present in the heart of Stuttgart.
Rental take-up exceeds all expectations
In 2010, the figures for rental volume in the Stuttgart office market were surprising and encouraging.
Some 194,000 square metres were newly rented, reflecting the sharp rise in demand for office space
brought about by the economic upturn. This is almost the figure achieved in 2000, which was just under
200,000 square metres.

Rental take-up thus increased by about 14 percent over ministry for approximately 19,000 square metres on
the previous year’s level of approximately 171,000 square ­Willy-Brandt-Strasse. In the city centre the largest
metres. During the period under consideration 301 leases ­contract in 2010 was for a total of 5,400 square metres,
were concluded, 45 more than in the previous year. concluded by an IT service provider.

Continued strong demand in the central Upturn in city fringe locations

business district and city centre
In 2010, the locations with the strongest demand and the
highest number of leases were again in Stuttgart’s central
business district, that is, the area in the city ring between
the main station, Theodor-Heuss-Strasse, Hauptstätter
Strasse and Paulinenbrücke, plus the city centre. Although
more space was let in 2009, about 22,600 square metres,
this was largely the result of a contract by the interior
Thanks to rental transactions by large-scale users, the
fringe areas were able to post considerable gains. In
Stuttgart-Zuffenhausen, for example, the rental volume
received a strong boost from a contract for some 22,000
square metres. Significant increases in demand were also
recorded in Vaihingen/Möhringen, Fasanenhof and
­Leinfelden-Echterdingen.
 10
11

Rental take-up of office space in Stuttgart 1995–2010 in sq. M

250,000

200,000

150,000

100,000

50,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Rental take-up in greater Stuttgart in sq. M

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Central business district 35,350 25,350 19,000 4,600 55,100 33,300 43,000 61,500 44,400 38,200 32,800
City centre 36,600 25,710 45,000 28,400 21,700 43,200 31,300 46,600 41,700 83,800 66,600
Vaihingen/Möhringen 67,400 50,550 6,300 14,450 30,800 10,400 32,600 13,700 18,500 20,200 26,200
Fasanenhof 4,900 2,700 11,000 72,500 4,000 3,700 3,500 2,300 10,600 2,700 5,300
Feuerbach/Zuffenhausen 40,400 16,700 6,000 8,400 20,600 9,800 2,000 6,800 12,300 3,300 28,500
Degerloch 3,830 5,700 2,700 3,000 6,000 3,400 4,500 7,200 9,200 4,900 2,100
Weilimdorf 4,900 13,150 16,000 750 3,000 6,600 6,000 5,100 12,800 5,900 11,400
Bad Cannstatt/Wangen 2,000 5,000 18,000 14,000 7,700 24,600 13,500 15,400 12,500 8,100 8,300
Leinfelden-Echterdingen 10,230 14,040 3,000 2,900 3,100 10,000 3,600 10,400 18,000 3,900 12,800
Total 205,610 158,900 127,000 149,000 152,000 145,000 140,000 169,000 180,000 171,000 194,000

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Take-up by sectors
In 2010, the category with the highest demand was again
the other office users, which included doctors, architects,
engineers, and trading and industrial companies. The
rental volume, approximately 93,200 square metres,
again showed an increase over the previous year. This was
mainly the result of a large rental transaction for some
22,000 square metres on the Xcel BusinessCampus in
Stuttgart-Zuffenhausen.
The IT and telecommunications industry likewise showed
a significant increase in demand. In 2009, the rental
­volume was only 11,000 square metres, whereas in 2010
it came to about 34,900 square metres, corresponding to
roughly 18 percent of the total.
In the consultants category the previous year’s result of
approximately 25,900 square metres increased by almost
100 percent. Leases were concluded for this sector
­e specially in the central business district and city centre.
In the case of financial service providers, the demand for
space rose over the 2009 level by about 2,000 square
metres, to 16,300 square metres. The percentage of total
rental turnover remained about the same.
In the area of media/communication the financial crisis
made itself felt through company budget cuts, leading to
a decline in demand. In 2010, the volume was only about
7,900 square metres, compared to some 10,500 square
metres the previous year.
The public sector also showed a decline in new leases.
Whereas an usually high take-up was achieved in 2009
owing to the rental of some 19,000 square metres by the
interior ministry on Willy-Brandt-Strasse, the newly rented
space in 2010 came to about 15,800 square metres, a
­significant drop.

Take-up by sectors in %

2003 2004 2005 2006 2007 2008 2009 2010

Media/communication 5.02 4 8 6.64 6.27 5.56 6.14 4.07

Financial service providers 8.04 34 12 9.93 10.36 15.78 8.36 8.41
Consultants 7.03 5 10 20.29 18.4 13.39 7.72 13.35
Public sector 4.02 9 21 3.21 17.75 7.22 30.41 8.14
Others 73.21 38 41 48.07 37.28 36.94 40.94 48.04
IT/telecommunications 2.68 10 8 11.86 9.94 21.11 6.43 17.99

Total 100 100 100 100 100 100 100 100

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

 12
13

Take-up by size of premises

In keeping with the characteristic pattern on the Stuttgart office market, demand was
strongest for premises up to 500 square metres. In this segment there were 222 leases,
40 more than in the previous year.

In the central business district and city centre 137 office
premises in this category were let. The southern fringe
­areas also showed strong demand. About 27 percent of
the total rental take-up was in this category.
Premises between 501 and 1,000 square metres accounted
for 46 leases, corresponding to 17 percent of the total
turnover. For areas between 1,001 and 2,000 square metres
there were 14 leases in 2010, 1 more than in the previous
year. Most of the demand was in Stuttgart’s city centre.
In the segment from 2,001 to 5,000 square metres 15
premises were let, 5 more than in 2009.
There were 4 leases, for a total of 39,930 square metres,
for premises larger than 5,000 square metres. This
­corresponds to about 21 percent of the total rental take-
up. The lease concluded by Bosch for premises in Stuttgart-
Zuffenhausen accounted for 22,000 square metres of this
total. Premises totalling 5,000 square metres were let to a
private educational institution in Stuttgart-Feuerbach.
­Another 5,430 square metres were taken by an IT service
provider in the city centre, plus approximately 7,100 square
metres by an ­office supply company in Stuttgart-Vaihingen.

Comparison of new contracts by size

60,000

55,000

50,000 Total space 2010:

194,000 sq. m
45,000
Total space 2009:
40,000 171,000 sq. m
35,000

30,000

25,000

20,000

15,000

10,000

< 500 sq. m 501 – 1,000 1,001 – 2,000 2,001 – 5,000 > 5,000 sq. m

2010

2009

Comparison of new contracts by number

200 222
Total number 2010:
182 301

Total number 2009:

100 256

46 47 14 13 15 10
4 4
0

< 500 sq. m 501 – 1,000 1,001 – 2,000 2,001 – 5,000 > 5,000 sq. m

Source for both charts: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010
Rent prices show a small decline
The average rent in Stuttgart’s market for office premises as of 31 December 2010 was 11.00 euros
per square metre, slightly below the previous year’s level. In relation to product quality, rent prices
remained stable.
A total of 120 leases were signed in the price segment up
to 10.00 euros per square metre, 32 of which were at
prices of 8.00 euros or less. In the range between 10.01
and 13.00 euros per square metre there were 133 leases.
19 were at prices between 13.01 and 15.00 euros per
square metre. A further 19 leases were in the range
­b etween 15.00 and 17.00 euros per square metre, and
5 ­exceeded 17.00 euros per square metre.
Differing price trends in the central busi-
ness district and city centre
In the central business district there was a slight decline
in peak rents, from 18.00 to 17.50 euros per square metre.
In contrast, the average rent in the central business district
rose, from 13.60 euros to 14.30 euros per square metre.
One reason was that numerous leases were agreed for
premises in new buildings, although here the prices were
usually below the peak rate. In addition, premises were
sublet at subsidized prices in buildings that were almost
new. In the city centre the peak rent remained constant
at 14.90 euros per square metre. The average rent fell by
0.30 euros to 11.40 euros per square metre. Whereas
there were some leases at high prices, there were a
number of others for older office properties with simple
fittings and equipment.
Low price level in the outlying districts to
the north and east
In the outlying districts to the north (Feuerbach/­
Zuffenhausen and Weilimdorf) and east (Bad Cannstatt/
Hedelfingen/Wangen), most of the available office space
is in existing premises with simple fittings. The average rent
level is correspondingly low. Moreover, there is a fairly low
demand for office space in these districts. Instead of pure
office locations one generally finds a mixture consisting of
skilled trades, car repair shops, petrol stations, beverage
retailers and similar businesses.
Looking at these areas in more detail, however, one sees
that there were large transactions at prices below 8.00 euros
per square metre almost everywhere. In some cases these
were interim transactions in older premises or premises in
which most investments were made by the tenants.
 14
15

Peak and average central business district rents 1995–2010 in €/SQ. M

20.00

19.00

18.00

17.00

16.00
Peak rents
15.00

14.00

13.00

12.00 Average rents

11.00

10.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Peak and average rents 2010 in €/SQ. M

20.00
Peak rents
17.50 Average rents
15.00

12.50

10.00

7.50

5.00

2.50

Central business district City centre Outlying districts to the north Outlying districts to the east Outlying districts to the south

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Slight increase in vacant office space
As expected, the supply of vacant office space increased by 27,000 square metres over the previous year,
amounting to approximately 480,000 square metres as of 31 December 2010. With the total office space
at about 7.42 million square metres, this corresponds to a vacancy rate of 6.4 percent.

One reason for the increase in 2010 is the fact that some
33,900 square metres of space were added in the form of
newly built premises, plus about 8,500 square metres of
premises that underwent core renovation. Another is that
space became available in a number of major existing
buildings that had previously been sublet.
The increase was especially significant in Stuttgart’s central
business district. Whereas approximately 51,400 square
metres were vacant in 2009, the supply amounted to
some 71,600 square metres as of 31 December 2010.
When the Postquartier is completed in 2011, another
13,500 square metres of office space will be added. In the
city centre there was an increase in free premises as well,
amounting to about 10,000 square metres.
In Weilimdorf the vacancy rate fell by 12,900 square metres
in 2010 to 42,300 square metres. However, little further
improvement can be expected because demand in recent
years has been relatively low and the supply is much too
large in relation to the size of the location. In Leinfelden-
Echterdingen the vacancy rate increased owing to the
relocation of an IT service provider to a new office
­building, which freed the space in its former headquarters.
­Beyond this, the vacancy rate in the outlying areas
­remained constant.
Whereas only 42,400 square metres were completed in
2010, the completion volume in 2011 will amount to
about 71,500 square metres of office space. This includes
some 25,600 square metres of office space undergoing
core renovation.

Vacant office space as of 31 December 2010

Stuttgart central business district Bad Can

116,900 sq. m 19,700 s

15% 24 % 9% 4%

Stuttgart city centre Weilimdorf

73,100 sq. m 42,300 sq. m
 16
17

Completion volume in SQ. M

350,000

300,000

250,000 Building completion

Pre-letting

200,000

150,000

100,000

50,000

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

nnstatt, Wangen etc. Degerloch Fasanenhof Möhringen

sq. m 11,700 sq. m 28,200 sq. m 30,100 sq. m

16 % 2% 6% 6% 12 % 6% 100%

Leinfelden-Echterdingen Feuerbach, Zuffenhausen Vaihingen

75,100 sq. m 27,200 sq. m 55,700 sq. m

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Upturn in the office market throughout Germany
In 2008 and 2009, the rental take-up in all German cities was affected by the economic crisis. In 2010,
however, a distinctly positive trend emerged, and in some areas expectations were exceeded.

The marked increases in rental turnover reflected improved
economic figures for many businesses and the accom­
panying rise in demand for office space.
In the Big Seven (Berlin, Düsseldorf, Frankfurt, Hamburg,
Cologne, Munich, Stuttgart) the total rental turnover
amounted to some 2.74 million square metres, an increase
of roughly 19 percent over the previous year. Stuttgart
likewise posted a turnover gain of about 14 percent.
Most of the demand came in the second half of the year.
The peak rents varied widely from city to city. Whereas
Berlin, Düsseldorf and Frankfurt showed slight gains,
­Munich experienced a drop of 1.00 euro, down to 28.00
euros per square metre. Stuttgart also registered a slight
decline, but the peak rent here remains stable at 17.50
euros per square metre.
In spite of the rise in rental turnover throughout the
country, the supply of office space at the end of 2010
­increased. That was because many older buildings no
longer found users, which contributed to a significant
gain in vacant office space. Another factor affecting
­vacancy was the addition of newly built premises. In
­Munich, for example, a number of projects launched in
2007 and 2008 reached completion and were put on the
market. Now that the economic forecast is favourable,
the demand for office space, in particular modern premises,
can be expected to rise. Thus there will be a decline in
vacancies in the years ahead.
 18
19

Comparison of vacancy rates in Germany in %

20

2006
15 2007
2008
2009
2010
10

Frankfurt Düsseldorf Cologne Munich Berlin Hamburg Stuttgart

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Turnover of space of the “Big Seven” in SQ. M

900,000

800,000

700,000

600,000 Munich

500,000 Frankfurt
Hamburg
400,000 Berlin
Düsseldorf
300,000

200,000 Cologne
Stuttgart
100,000

2003 2004 2005 2006 2007 2008 2009 2010

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Stuttgart compared to other German cities

Average rent in the central

Rental volume in sq. m Peak rent in € Vacancy rate in %
­business district in €
2010 2009 2010 2009 2010 2009 2010 2009
Berlin 425,000 420,000 20.50 20.20 14.00 15.00 8.9 8.4
Düsseldorf 370,000 232,000 23.50 22.50 16.50 16.50 11.5 10.3
Frankfurt a. M. 500,000 360,000 35.60 35.00 22.00 22.00 15.1 14.3
Hamburg 440,000 387,000 23.00 24.00 13.50 13.50 9.8 7.5
Cologne 220,000 200,000 20.00 21.00 11.25 12.50 8.9 8.3
Munich 590,000 530,000 29.00 13.00 14.20 13.90 8.2 8.1

Stuttgart 194,000 171,000 17.50 18.00 14.30 13.60 6.5 6.5

Source: Research Bankhaus Ellwanger & Geiger KG ©, figures as of 31 December 2010

Central Stuttgart: Big potential for new growth
In 2010, the rental volume in the central business district, that is, the area within the city ring and the
­s urrounding parts of the city centre amounted to some 99,400 square metres. This represents a
decline of 22,600 square metres, or roughly 23 percent, from the previous year.

33 percent of this rented space, or about 32,800 square
metres, was in the central business district. This figure is
similar to that for 2005, when turnover was comparatively
low. Thus the forecasts made in past years of a steady
­decline in rental figures owing to a lack of new buildings
have been confirmed. Recently, however, a number of
new projects have been launched to fill the need for
large, contiguous premises. In addition, since 2010 about
15,000 square metres of sub-let space in a­ lmost-new
premises have been on the market. In ­c ontrast, the
­surrounding parts of the city centre showed the second
highest rental take-up of the last ten years: 66,600 square
metres. This demonstrates that many businesses think it
is important to have a central location.
67 percent of all new leases in central Stuttgart were for
premises in the city centre. In the central business district
about 12 percent more leases were signed than in the
previous year, even though the rental volume here was
lower.
Whereas about 58 percent of the premises in the central
business district were let for less than 14.00 euros per
square metre in 2009, the figure was only 37 percent in
2010, an encouraging development. In the price segment
between 14.01 and 16.00 euros per square metre, the
proportional share rose from 29 percent in 2009 to 48 per-
cent in 2010. In 2010, 14 percent of all leases were signed
for 16.01 euros per square metre and above, roughly the
same as the previous year’s figure of 12 percent.
In the city centre 92 percent of the premises were let for
less than 14.00 euros per square metre, as compared to
83 percent the previous year. The segment up to 500
square metres accounted for 28 percent of leases, an
­increase of 10 percent. 53 percent of leases were in the
segment up to 1,000 square metres. This was an increase
of 20 percent over 2009.
About 15 percent of the premises, corresponding to some
5,100 square metres, were let at prices above 16.01 euros
per square metre. This is a decline of approximately 38
percent. In 2011, an increase can be expected in this seg-
ment.

Northern Stuttgart: New concepts needed
Feuerbach/Zuffenhausen
A transaction for about 22,000 square metres on the Xcel
BusinessCampus in Zuffenhausen reflects the new confi-
dence in the automotive engineering and component
supply i­ndustries, which have always been strong here. ­
In past years the economic recession led to a significant
decline in rental figures in this sector. Thanks in large part
to the new transaction, the rental take-up is now at a ten-
year high.
In addition, a private educational institution has concluded
an important lease agreement for 5,000 square metres in
the OASIS II project in Feuerbach. Together, the two
transactions account for about 95 percent of the total
rental volume.
The other transactions were mostly in the segment up to
500 square metres and at prices of 9.00 euros per square
metre and below. Only 18 percent of the leases were
signed at a price between 12.00 and 13.00 euros per
square metre.
20
21
Weilimdorf
Weilimdorf also showed surprisingly good results, thanks
to a large rental transaction concluded by an IT/tele­
communications company for about 5,400 square metres
and another for approximately 2,200 square metres. The
total rental volume was 66.7 percent of the total turnover,
which came to about 11,400 square metres.
This is especially gratifying, because the location has been
experiencing a decline in transactions in recent years. The
average rental take-up in the past decade was only about
7,800 square metres per year.
The planned relocation of the auditors Ernst & Young to
the Stuttgart airport in 2015 will worsen the situation,
however, increasing the vacant office space by 45,000
square metres. As a result, it will be necessary for govern-
ment authorities and owners to address the problem of
the area’s overall structure.
A total of 10 leases were signed, 6 of which were for
premises below 500 square metres. For 8 leases the price
was less than 9.00 euros per square metre, and for 2 it
was between 9.00 and 10.00 euros per square metre.
Eastern Stuttgart: In a waiting position
Bad Cannstatt/Wangen/Hedelfingen
In the past two years, following the successful marketing
of new buildings such as the Cannstatter Carré and the
Otto Hirsch Center and of large, favourably priced
premises like the Kodak Areal in Hedelfingen, eastern
Stuttgart has seen a significant decline in rental take-up.
In 2010, a volume of only about 8,300 square metres was
achieved.
Work on the 22-hectare Neckarpark project, a new urban
district comprising apartments, offices and mixed use on
the site of the former goods station, has been halted. The
city of Stuttgart is now reviewing the financing. Besides
this, no other projects are being planned. New premises
therefore cannot be expected in eastern Stuttgart in the
near future.
In the segment of 500 square metres and less, 9 leases
were signed for a total of about 2,060 square metres,
­corresponding to about 25 percent of the total rental
take-up. 38 percent of the premises were in the segment
between 501 and 1,000 square metres, and 37 percent
were between 1,001 and 2,000 square metres.
60 percent of the premises in eastern Stuttgart were let
for less than 8.00 euros per square metre, and roughly
32 percent were let at prices between 8.00 and 10.00 euros
per square metre. About 8 percent of the premises were
in the price segment above 10.00 euros per square metre.
This is a clear sign that most of these premises were in
older existing buildings.

Southern Stuttgart: Positive development continues
Degerloch
With its direct access to central Stuttgart and to the B27
highway, the A8 motorway and the airport, Degerloch is
undoubtedly one of the most attractive locations in the
region. In spite of this, the rental figures here have
­declined for two years running. In 2010, the total volume
was 2,100 square metres.
The majority of the new leases were in the segment up to
500 square metres, and 2 were for premises between
501 and 1,000 square metres. The transactions were
equally divided between the Tränke area and the area
­surrounding Albplatz.
35 percent of the premises were let for prices below 12.00
euros per square metre, 65 percent were in the segment
between 12.00 and 13.00 euros per square metre.
The only new building project currently being marketed
in Degerloch is Wilhelmshöhe. Completion is planned for
the first quarter of 2011. Tenants have already been found
for 65 percent of the new premises. Further projects are
not expected.
22
23
Leinfelden-Echterdingen
In Leinfelden-Echterdingen, following a severe decline in
2009, leases were signed in 2010 for a total of 12,800
square metres of office space. This was an encouraging
development. There were 31 signings, an increase of 230
percent. The location generated particular interest among
IT and telecommunications companies.
Roughly 41 percent of the rented premises were in the
segment up to 500 square metres. The segment between
501 and 1,000 square metres accounted for 27 percent of
the leases. In addition, there was one contract for 4,000
square metres, signed by a consulting company.
63 percent of the premises were let for less than 9.00 euros
per square metre. 25 percent were in the segment between
9.01 and 10.00 euros per square metre. For approximately
11 percent of the premises the price was between 11.00
and 12.00 euros per square metre.
Fasanenhof
In early December 2010, Fasanenhof was connected to
the urban railway, allowing Stuttgart’s main railway station
to be reached in 26 minutes. This considerably added to
the location’s attractiveness. A significant revival of the
market was detectable already during that year. Turnover
of space rose from 2,300 square metres in 2009 to 5,300
square metres in 2010.
30 percent of the rented premises was in the segment up
to 500 square metres. In the segment between 1,001 and
2,000 square metres and between 2,001 and 3,000 square
metres there was 1 lease for an energy company and 1 for
an insurance c­ ompany. 90 percent of all leases were in the
range from 9.00 to 10.00 euros per square metre.
For AlphaHaus Stuttgart, the former headquarters of
­Debitel AG, a renovation concept has now been decided on.
These premises, which cover about 12,000 square metres,
will thus soon be available for a new user. The Business
Park is likewise being refurbished to meet modern office
requirements. The entire ensemble is to be redeveloped
by architects and engineers.
Vaihingen/Möhringen and STEP
The Vaihingen/Möhringen area, and especially STEP,
which celebrated its tenth anniversary in 2010, continues
to be one of the most sought-after office locations in
southern Stuttgart. The total rental volume in 2010 was
26,200 square metres, about 30 percent more than in
2009. STEP accounted for 61 percent of the newly rented
space.
35 percent of the rented premises were in the segment
below 500 square metres or between 501 and 1,000 square
metres. 19 percent were between 1,001 and 4,000 square
metres. There was 1 lease with an IT service provider
­be­tween 4,001 and 5,000 square metres and another with
a user in the same sector for more than 5,001 square metres.
For 68 percent of the rented premises the price was
­between 10.00 and 12.00 euros per square metre, and
for 25 percent the price was between 12.00 and 13.00
euros per square metre.
The STEP 8.2 office project, like its predecessor STEP 8.1,
was fully let before construction was finished. Completion
is scheduled for the first quarter of 2011. These projects
have been so successful that planning has already begun
for STEP 8.3.
The former IBM complex has been significantly improved
through a renewal of the grounds and the ensemble itself.
It is now called Carré 5. The attractive buildings, located
on some 40,000 square metres of campus-like terrain, are
ready to be let. An IT service provider has already signed
a contract for some 4,900 square metres.
A number of other projects are also under way in Vaihingen/
Möhringen. Planning rights have already been secured,
and construction can begin as soon as sufficient advance
rental agreements are in place.
 24
25

Turnover of office space in 2010

< 10,000 sq. m

10,000 – 20,000 sq.m

20,000 – 30,000 sq.m

30,000 – 40,000 sq.m

> 40,000 sq. m

Industrial/office locations

Overview of the Stuttgart office market

A 81
towards Heilbronn

A 81
towards Singen

Northen
Stuttgart

Central Eastern
Stuttgart Stuttgart

Western Stuttgart

Southern Stuttgart

A 8 towards
Karlsruhe

Motorway
intersection
Stuttgart
A 81

A 8 towards
Munich

Upsurge in Stuttgart’s office market
In 2010, 301 leases were concluded in Stuttgart’s office market, 45 more than in the previous year.
The total rented space, 194,000 square metres, was the highest in the last ten years.
This positive trend can be expected to continue in 2011,
as there are signs that demand will stay high. We are
therefore anticipating an office space turnover of approxi-
mately 200,000 square metres.
Peak rents on the rise
In the past year no uniform trend could be discerned in
Stuttgart’s price structure and in the size of premises.
In the light of the figures for other major cities, Stuttgart’s
peak rent of 17.50 euros per square metre is favourable.
It is still possible here to find office space of like-new
quality at good terms. However, rising property prices and
a short supply of vacant space are making it increasingly
difficult for project developers to implement new con-
struction projects at low cost. Thus the peak rent can be
expected to rise in the medium term.
26
27
Increasing demand for modern premises
Moreover, users who are willing to pay high prices for
premises are putting increasingly higher demands on the
quality of buildings and locations. A modern energy
standard like a Leed or DGNB certification, for example,
is becoming more and more important in leasing deci-
sions, as are the efficient use of space and a prestigious
atmosphere. Correspondingly, older existing buildings
that have been renovated in a superficial manner, like be-
ing given a new colour scheme, are very hard to position
on the market. As always, high service charges and ineffi-
cient use of space make continuous rent reductions nec-
essary in order to maintain a building’s competitiveness.
In conclusion, it can be said with confidence that rising
requirements will create a continued strong demand on
Stuttgart’s market for office space of high quality.
Your contacts
ELLWANGER & GEIGER Privatbankiers is the ideal partner for marketing your office properties. Our
many years of ­experience and unique range of services enable us to move the market and proactively
identify trends. For us, having a sixth sense isn’t a supernatural ability but simply part of the service we
offer you. Our team in Stuttgart is looking forward to your call or visit.
Contact us: Phone +49 (0) 711 21 48 297 or Fax +49 (0) 711 21 48 290.
On the Internet: www.privatbank.de · www.bueroflaeche-stuttgart.de

Ulrich Nestel Sebastian Degen Helga Schöner

Head of Office Letting and Consultant Office Letting Market Research and Office Letting
Retail Projects, Stuttgart Phone +49 (0) 711 2148 166 Phone +49 (0) 711 2148 269
Phone +49 (0) 711 2148 291 Sebastian.Degen@privatbank.de Helga.Schoener@privatbank.de
Ulrich.Nestel@privatbank.de

DISCLAIMER:
Although this study has been prepared
with all due care, ELLWANGER & GEIGER
Privatbankiers accepts no liability for the
correctness of the assessments ­presented.
We are sure that you will understand this.

Illustrations:
Manfred Storck: Pages 2, 3

Matthias Hägele Alice Disam

Consultant Office Letting Assistant Office Letting
Phone +49 (0) 711 2148 292 Phone +49 (0) 711 2148 297
Matthias.Haegele@privatbank.de Alice.Disam@privatbank.de

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