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According to a current analysis of the independent real estate consulting group NAI apollo a total of approx. 324,000 sqm storage and logistic space got transacted in Frankfurt and surrounding region in the year of crisis 2009. Compared to the turnover of the previous year this complies in a decrease of approx. 19 per cent, so the analysis of NAI apollo in their current market report. „With approx. 300,000 sqm our forecast for 2009 was exceeded,“ says Michael Weyrauch, Head of Industrial Letting and partner of NAI apollo. The letting performance of spaces between 1,500 sqm and 3,000 sqm has decreased by over 50 per cent, the demand for spaces between 3,000 sqm and 5,000 sqm has decreased by 10 per cent in 2009 compared to the previous year. Only regarding spaces up to 1,500 sqm a small increase of 3 per cent in the letting performance could be recorded.

„Just like in the previous year, the lettings of existing properties were crucial for the turnover of space in 2009“, says Weyrauch. The following lettings of existing properties are among the biggest: The letting to Sony in Heusenstamm with approx. 12,500 sqm, the lease of the company VW in Dreieich with approx. 12,000 sqm and the lease of the company Mühle in Groß-Ostheim with approx. 12,000 sqm storage space.

A total of seven noteworthy turnovers of space over 10,000 sqm were transacted in the defined sub-segment in 2009, of which only two conclusions were in the project development sector. First of all approx. 20,500 sqm central warehouse space was constructed for Alnatura in Lorsch. Secondly approx. 12,500 sqm logistic and service space, mediated by NAI apollo, will be built on the „Mainlog Gehespitz” site for the company Dachser.

In 2009 NAI apollo has supported and mediated 26 per cent of all contract conclusions and is assigned with the marketing of all important existing logistic spaces as well as new project developments in the Rhine-Main area.

„For many years there was a lack in development areas and high-quality new spaces of available use that conveniently placed as regards transport facilities, which meet the state-of-the-art requirements“, says Damir Milanovic, Head of Industrial Letting and partner of NAI apollo. „Here remedial action will be taken in 2010 on two major sites with increasing new construction activities“. The project development for Dachser on the “Mainlog Gehespitz” site, as well as approx. 12,000 sqm logistic space, which will be constructed in this context, will be available at the fourth quarter of 2010. „This will put the market in motion,“ Michael Weyrauch is sure. At the same time new tailor-made commercial and logistic spaces can be constructed in Obertshausen and the motorway A3 and on the site of the former depot of the German Armed Forces.

Status/Forecast of 2010
„Compared to the previous year we expect a turnover of space of approx. 280,000 to 330,000 sqm as result for 2010,” says Damir Milanovic. It is anticipated that the demand in storage spaces in the smallest segment up to 1,500 sqm will remain stable on the same level in 2010 and beyond. In the segment between 1,500 sqm and 3,000 sqm a slight upturn is estimated for this year.

The wish or rather the decision criteria of various companies for an instantly availably logistic space which meets the current requirements remains difficult. In this regard the major significance of project developments in the Rhine-Main-area, especially of speculative new buildings on the „Mainlog Gehespitz“-site and in Obertshausen, remain.

Project developments in 2010 (completion of partial spaces)

„GG 08“, Groß-Gerau: Approx. 24,000 sqm warehouse space can be constructed.

„Caltex-/ Mönchhof - site“, Kelsterbach/Raunheim: Approx. 20,000 sqm service, storage and office space are to be constructed on the „Caltex-/ Mönchhof - site“. Furthermore an expansion of a project development of approx. 15,000 sqm already completed in 2008 is possible.

„At the motorway A3“, Obertshausen: Over 217,000 sqm lot area is available for project developments on the former site of the German Armed Forces. The exclusive marketing is carried out by NAI apollo.
„Mainlog Gehespitz“, Neu-Isenburg
A new building with a warehouse space of approx. 23,000 sqm is being built. Of this approx. 11,000 sqm – divisible at approx. 2,500 sqm – are still available. Furthermore a total of up to 170,000 sqm logistic space can be developed here. The co-exclusive marketing is carried out by NAI apollo.

„Magna Park Rhine-Main“, Butzbach: Adjacent to an existing warehouse space of approx. 20,000 sqm, another 7,500 sqm high-quality storage space is being constructed for Iron Mountain.

Completed project developments
„Magna Park Rhein-Main“, Butzbach: The first unit with approx. 20,000 sqm logistic space is completed. For this unit NAI apollo has a co-exclusive brokerage agreement. Currently approx. 13,000 sqm are available. A total of approx. 183,000 sqm storage and logistic space can be constructed.

„Senefelderstraße“, Rodgau: The entire property contains approx. 25,000 sqm logistic space and is fully let.
Logistic in the Rhine-Main-area
Apart from the important logistic regions Berlin, Dusseldorf, Hamburg, Leipzig and Munich the region Frankfurt/Rhine-Main with the motorway interchanges Frankfurter Kreuz (A3 / A5) and the airport Rhein-Main also plays an important part.

The logistics field is favoured exceptionally strong due to the Frankfurt airport and the excellent connection to all modes of transport (motorway, railway). Therefore almost every important logistics service provider is present in this region, be it air freight or contract and intra logistics. Regardless of this, the crisis did not leave the logistic market unaffected and led to a decrease in demand and hence to a decrease of letting turnover.
Market definition

* The relevant, available storage and logistic spaces between Butzbach in the North and Worms in the South as well as Bingen in the West and Aschaffenburg in the East are defined as sub-segment. The city of Frankfurt/Main establishes the central spot of the described sub-segment.

The existing logistic spaces with approx. 2.8 million sqm space are described as assets.
The market report of NAI apollo differs from other reports due to the complete collection of all lettings in market segment including warehouse spaces under 3,000 sqm. (Source: industry report „Logistic and traffice Frankfurt Rhine-Main“).

About NAI apollo – www.nai-apollo.de / NAI Global – www.nai-global.de
NAI apollo is an independent real estate consulting group with its headquarters in Frankfurt a. M., Germany and is the partner of the world's largest network for owner-operated real estate companies, NAI Global, for Germany. Fortune 1000 companies and institutions are among the many NAI Global customers, who are jointly cared for by all of the partner offices. Corporate personalities, experts and their respective teams offer renters and investors - both individual and institutional - substantiates expertise in the areas of consulting and intermediation, investments, valuation, research as well as asset management, property management and building construction management. The market segments of industrial, commercial, office space, residential, retail and specialized real estate all belong to NAI apollo's knowledge portfolio. Individual consulting and both market and location analyses for regional, national and international customers are tailor-made.

Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 325 offices in over 55 countries, and completes over $45 billion in annual transaction volume. NAI Global ranks 5 among top 25 brokers worldwide according to the NREI’s Top Brokerage survey 2009 and among all owner-operated networks worldwide NAI Global takes first place (status 8/08). Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services.


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