Office Market Report Vienna. Autumn / Winter 2015 YOUR COMMERCIAL REAL ESTATE SPECIALISTS. Austria Slovakia

Transcription

1 Office Market Report Vienna Autumn / Winter 2015 YOUR COMMERCIAL REAL ESTATE SPECIALISTS Austria Slovakia

2 Modesta Real Estate Office Market Vienna / Overview Rents Prime rents Rents - inner districts Rents - peripheral locations Take up 250,000 m 2 Vacancy 6.5 % Future supply Offi ce stock 10.8 Mio m 2 Development 120,000 m 2 Investment Investmentvolume Mrd. EUR Prime yield 4.75 % Yield in B grade location 6.65 % Yield for logisticspace 7.00 % - 9,00 % Modesta Real Estate offers focused and integrated commercial real estate solutions at national and international levels. We support our clients real estate decisions and use their questions to fi nd answers. Our principles of professionalism, transparency and attention to detail guarantee results for our clients. Are you looking for investment property, offi ce, logistics, industrial or commercial real estate in Austria or the CEE region? We will support you throughout the entire process from the initial search and location analysis through to contract negotiations. Do you own commercial property and need market information to inform your decision making? Our indepth knowledge of the CEE markets, market-specifi c assessment expertise and professional consulting services allow us to position and offer your property in the right market and to the right target audience. Our network extends from our two offi ce locations in Vienna and Bratislava accross Austria and the CEE region and consists of British and American investment companies and private investors. Contact: Andreas Polak-Evans, SIOR Managing Partner Commercial Real Estate/CRES evans@modesta.at Tel.: +43 (1) Mag. Philipp Gruber Commercial Real Estate Consultant gruber@modesta.at Tel.: +43 (1)

3 Economy According to WKO (Austrian Federal Economic Chamber) the Gross Domestic Product (GDP) growth in 2014 was 0.3 %. GDP continued to increase during 2015, growing to 0.5 %. However, next year s GDP growth is expected to be at 1.3 %. The effects of increasing inflation on household purchasing power, high rent levels and a high tax burden as well as growing tension on the labour market all contributed to weak GDP growth for the last 3 years. In 2014 the unemployment rate within the labour force was 5.6 % and in 2015 the unemployment rate is expected to increase to 5.7 %. Statistics from the WKO predict a slight increase in the unemployment level for 2016 to an estimated 5.8 %. In comparison with the rest of the European Union, Austria s unemployment rate between the years is second behind Luxemburg, with an average unemployment rate of just 4.8 %. The Austrian Consumer Price Index (VPI 2010=100) was measured in July 2015 at The Inflation rate currently stands at 1.2 %. By comparison, the Austrian Consumer Price Index for recent months has been: April 1.0 %, May 1.0 %, June 1.0 %. However, the Consumer Price Index for 2016 is expected to be at 1.7 %. The Austrian budget deficit in 2014 was 2.4 % of the Gross Domestic Product. The public debt in 2014 is standing at 84.5 % of the GDP. Current forecasts for 2016 predict an increase up to 87.0 % of the GDP. In February 2015 Austria s creditworthiness was downgraded to AA+ due to Austria s growing debt level. *Source: Statistik Austria, WKO

4 Office Locations City Center (CBD) Vienna s city center is still the prime location for offices. The historic 1st district is one of the most prestigious addresses in Austria. The traditional old buildings are typically mixed use, with retail at ground floor level and offices and residential above. The high percentage of old buildings in the City Center is mainly due to the blanket conservation policy which restricts new development. The only form of development allowed has been refurbishments, which tend to be costly when bringing the space up to international office standards. Current office projects include: Goldenes Quartier 3,300 m 2 Directly on Tuchlauben, luxurious finishes, complete redevelopment. Fleischmarkt 1 5,600 m 2 Modern high quality office space, very good transport connectivity, subway U4, U1. Rathaustraße 1 9,000 m 2 Completion due 2017, exclusive fixtures and fittings, subway U2, U3. The CBD includes the areas around Schwarzenbergplatz and a few sub-districts bordering the center, especially the area around Wien Mitte, where planning restrictions are much lighter as it does not fall within the conservation area. Examples within these adjacent districts are: Sky Offices Hotel Hilton, Bürokomplex Wien Mitte.

5 Inner Districts Similar to the City Center, the Inner Districts are characterized by mixed use buildings with no single main office location. The Inner Districts however do still represent an important office location for many, mainly smaller, companies. The areas around Mariahilferstrasse, Rennweg and the Museum Quarter are seeing some redevelopment: Rennweg 9 1,400 m 2 Refurbishment completed in 2015, under ground car park, comfort cooling, near city centre. Mariahilfer Str ,300 m 2 Small office units, situated on Mariahilfer Straße, very good public transport and subway connections. Main trainstation Hauptbahnhof The Hauptbahnhof construction site is currently the largest in Europe. Offices, retail space and hotels are being developed around the main trainstation, with approximately 550,000 m 2 planned for commercial use. The entire area will create 20,000 jobs. Erste Bank have already relocated their headquarters here. The most important office buildings in this area are: QBC 79,000 m 2 Completion , high quality office space, flexible room layout, located at Main trainstation/quartier Belvedere. The Icon Vienna 85,000 m 2 Completion 2018, located directly at Vienna main trainstation, fantastic public transportation links. Seven Senses 4,000 m 2 Near main train station, serviced office space, modern fixtures and fittings, commercial storage space and parking available.

6 North-East submarket (Donau City / Lasallestraße / Dresdner Axis) Due to its excellent public transport links (Subway U1 giving direct access to the 1st district) and proximity to the city center, the North East has continued to grow in recent years into the most important office location outside the inner districts. Numerous renowned companies (e.g. the headquarters of Unicredit Bank) have settled around Lassallestraße. The area has further benefited from the reconstruction of the Prater railway station, the newly constructed exhibition centre and the relocation of the Vienna University of Economics. DC Tower 20,000 m 2 Tallest building in Vienna (250 m), urban centre, near the Donauinsel recreation area, Subway (8 mins. to city center). River Gate 4,500 m 2 Modern architecture, sustainable construction, near Milleniums City, good infrastructure. Messecarre Wien Nord 4,600 m 2 Completion 2017, flexible room layouts, subway connection, modern fixtures and fittings. South-East (Erdberg / Gasometer) The area around Neu Marx, Erdberg and Gasometer along the U3 underground line has developed during the past few years into an important office district. Newly built office parks with high quality fittings and attractive layouts has meant the rental demand remains stable. The Südostangente A23 and the A4 motorways (connection to the Vienna Airport) can be easily reached within a few minutes. Important office buildings in the South-East area are: ORBI Tower 21,800 m 2 Completion due 2017/2018, energy-efficient building, flexible room layout, subway U3. Brehmstraße 9,000 m 2 Near highway Süd-Ost-Tangente, very good value for money in a modern office area.

7 South (Wienerberg) The area around Wienerberg was the first significant office location outside the City Center when it was created at the beginning of the 1990s. The Vienna South submarket incorporates a shopping center, cinema complex and numerous new residential projects. Euro Plaza 23,000 m 2 Flexible office space, conference rooms, modern fixtures and fittings, good infrastructure, close to the Süd-Ost-Tangente highway. Twin Tower 9,000 m 2 Modern Architecture, high-rise building (127 m), very good infrastructure, conference rooms. West (Schönbrunn) There is no distinct office district in the west of Vienna. Office buildings are to be found in various different locations, such as along the U4 underground line and Linke and Rechte Wienzeile, and along the Hietzinger Kai and the Linzer Straße. Wirtschaftspark Breitensee 1,400 m 2 Creative office space in a former industrial building, 5 km into Vienna city centre, modern design. Forum Schönbrunn 6,000 m 2 Link between South/West, subway U4, flexible room layout. North (Heiligenstadt) The office buildings in the North were first developed around the beginnings of the 1990s. Due to its close proximity to the city center and its good infrastructure, this area will continue to grow. The submarket north is mainly characterized by its distinctive architecture and modern fittings. Heiligenstädter Lände, Kay 29 1,700 m 2 Modern architecture, underground parking, modern fixtures and fittings, Near Q19 shopping centre, flexible room layout, subway U4. Space2move 2,900 m 2 Sustainable contruction, comfort cooling, subway U4, glass frontage.

8 Rents City Center (CBD) Office buildings e Office towers e Nord-East (Donau City/Lasallestraße/Prater/Dresdner Spange) Office buildings e Office towers e Inner Districts Office buildings e Office towers e North (Heiligenstadt) Office buildings e Office towers e PRAG CZ A22 U6 U1 South-East (Erdberg/Gasometer) Office buildings e Office towers e BRÜNN CZ S1 U4 U2 U3 MÜNCHEN D SALZBURG - LINZ U2 A1 U4 Wien Hauptbahnhof U3 A23 SALZBURG - LINZ D A1 / A21 U6 S1 A2 GRAZ IT SLO A3 / A2 HU U Vienna International Airport A4 BRATISLAVA SK A4 / A6 BUDAPEST HU West (Schönbrunn) Office buildings e Office towers e South (Wienerberg) Office buildings e Office towers e

9 Rents Compaired to the previous year the prime rents in the 2nd quarter of 2015 remained stable at 26.00*. These prime rents were achieved in exceptional locations and in properties with the highest quality of fi t out. Rents in the inner districts, which border the city centre and benefi t from good access to the underground railway, currently range between and 15.75*. Rents increased slightly in this area above 2014 levels. Rents in peripheral location also increased slightly and range between 8.00 and 12.00*. However, older, unmodernised space without public connection links is still proving hard to let. * per m²/month net E / m 2 / Month E Prime Rents % 7 6 Yield Take up In comparison to 2014 (total take up of 210,000 m 2 ) the forecast for 2015 is at 250,000 m 2, which is an increase of 16 %. However, this is a large increase in comparison to 2013, when only 80,000 m 2 had been let. By Q2 of ,000 m 2 had already been let. Demand was highest for offi ce space in the south-west (Wienerberg) and north-east submarkets with good underground railway connectivity. m 2 500,000 Take up 450, , , , , , , ,000 50, * *Prediction

10 Rentals 2015 Property Tenant Space in m , Goldenes Quartier Collection BC Austria Gmbh 1,200 City Center 1010, Fleischmarkt 1 VHM Rechtsanwälte 1, , Laurenzberg 2 Ruby Hotels 3, , VZ13 BNP Paribas 1,000 Inner districts 1080, Palais Strozzi IHS 5, , Mariahilfer Str. 20 Wirtschaftsagentur 3, , IZD Tower Austro Control 10, , IZD Tower Zumtobel 1, , Rivergate Global Blue 4,700 North-East 1200, Rivergate Mars 2, , Rivergate MSC Shipping company 1, , Big Biz Thermo Fisher 1, , Ares Tower MSD 2, , Schlachthausgasse Fonds Soziales Wohnen 3,800 South-East 1110, Marximum Wiener Wohnen 2, , Bleibtreustrasse General Dynamic 5, , Wienerberg Vaillant 3,800 South-West 1120, Europlaza Automic 3, , Europlaza Bechtle 1, , Europlaza Beiersdorf 2,500 West 1140, Workstation Wien-West Allianz 2,500 Main trainstation 1100, QBC Wirtschaftskammer 4,000 Vacancy The vacancy rate has remained stable since 2014 and is currently at 6.5 %. Vacancy rates are higher for older offi ces and buildings in poor locations with poor public transport connectivity. Due to a stable demand and low supply the vacancy rate settled at a steady level. m 2 800, , , , , , , ,000 0 Vacancy Vacancy Vacancy rate % Future supply Office stock 2015: (Mio m²) Development 2015: 120,000 m² (according to current estimates)

11 Investment Investment Market In comparison to 2013, when the investment volume for commercial real estate in Austria was 1.7 billion EUR, 2014 was a very successful year with an investment volume of 3 billion EUR. This represents an increase of 76 %. The largest investments were made in the retail sector, followed by offi ce properties, which was signifi cantly growing in Austrian and German investors continue to dominate the Austrian investmentmarket. However, there is a growing number of investors from Eastern Europe and Asia. Yield The prime yield for prime offi ces outside the fi rst district slightly increased to 4.75 %. In an European comparison Austria ranks the 5th place behind London, Munich, Frankfurt and Berlin. Yields for modern offi ces in B grade locations range between 6.0 % and 6.5 %, and also remain stable. For offi ces in poor locations, of low quality or without good public transport the yields continue to fall. Yields for logistics and industrial real estate remain stable and range between 7.00 % and 9.0 %. Institutional transactions during the past 12 months: Property Size in m 2 Vendor Buyer Millenium Tower 90,000 MPC Cc Real MSREF Shopping Center G3 60,000 BAI ECE Gate 2 34,000 BAI DEKA Shopping Center SCN 32,000 APN Property Tristan Capital Bank Austria Zentrale 30,600 Bank Austria Private investor Euro Plaza Unit 5 30,500 Strauß & Partner Union ÖBB Zentrale 30,000 BAI Bank Austria Real Invest Workstation Wien West 18,000 RPHI Warburg Henderson Shopping Center SC17 13,900 CBRE Private investor OPEC headquarter 10,200 Pramerica Privatinvestor Mariahilfer Str ,460 Privatinvestor Warburg Henderson Haas Haus 5,890 Uniqa Do & Co Mariahilfer Str ,600 Bank Austria Real Invest Private investor The Mall - Wien Mitte 130,000 BAI Morgan Stanley VZ13, Vorgartenstraße 13 18,000 Signa Allianz Real Estate

12 Austria: MG Real Estate GmbH 1010 Vienna, Dr. Karl-Lueger-Platz 5, Tel.: +43/1/ , Slovakia: Modesta Real Estate, s.r.o Bratislava, Hviezdoslavovo námestie 7, Tel.: +421/2/ ,