Bidbook OMALA Benchmarking Amsterdam, Antwerp, Breda, Frankfurt and Lelystad. Ernst & Young International Location Advisory Services

Transcription

1 Bidbook OMALA Benchmarking Amsterdam, Antwerp, Breda, Frankfurt and Lelystad Ernst & Young International Location Advisory Services

2 Introduction In this bidbook, Ernst & Young International Location Advisory Services has compared the attractiveness of Amsterdam (1), Antwerp (2), Breda (3), Frankfurt am Main (4) and Lelystad (5) for logistic and manufacturing companies. In the first step, the five locations are compared and quantified in terms of cost variables. This analysis includes real estate costs and housing costs. The analysis provides insight into the costs differences for manufacturing or logistic companies in the five selected regions. In the second step, a comparison of the regions under study is made in terms of qualitative location factors. The comparison includes the following location factors: availability of space, quality of real estate, accessibility by road, distance to nearest international airport, availability of labor and flexibility of labor Page 2

3 Introduction The regions that we examine have the following characteristics: Stadsregio Amsterdam: Includes the following municipalities: Aalsmeer, Amstelveen, Amsterdam, Beemster, Diemen, Edam-Volendam, Haarlemmermeer, Landsmeer, Oostzaan, Ouder-Amstel, Purmerend, Uithoorn, Waterland,Wormerland,ZaanstadandZeevang. Population 1,406,348 Surfacein km² 807 Population density per km² 1742 Arrondisement Antwerpen: Includes the following municipalities: Aartselaar, Antwerpen, Boechout, Boom, Borsbeek, Brasschaat, Brecht, Edegem, Essen, Hemiksem, Hove, Kalmthout, Kapellen, Kontich, Lint, Malle, Mortsel, Niel, Ranst, Rumst, Schelle, Schilde, Schoten, Stabroek, Wijnegem, Wommelgem, Wuustwezel, Zandhoven, Zoersel andzwijndrecht. Population 954,680 Surfacein km² 1,000 Population density per km² 955 West-Brabant: Includes the following municipalities: Aalburg, Alphen-Chaam, Baarle-Nassau, Bergen op Zoom, Breda, Drimmelen, Etten-Leur, Geertruidenberg, Halderberge, Moerdijk, Oosterhout, Roosendaal, Rucphen, Steenbergen,Tholen,Werkendam,Woudrichem,Woensdrechtand Zundert. Population 681,710 (2009) Surfacein km² 1,699 Population density per km² 401 Frankfurt Rhine-Main Region: Includes the following districts: Hochtaunuskreis, Kreis Bergstraße, Groß-Gerau, Limburg-Weilburg, Offenbach, Darmstadt-Dieburg, Main-Taunus-Kreis, Mainz-Kinzig-Kreis, Odenwaldkreis, Rheingau-Taunus-KreisandWetteraukreis. Population 5,500,867 Surfacein km² 14,876 Population density per km² 370 RegioLelystad: Includesthe followingmunicipalities:almere, Dronten,Lelystad,Noordoostpolder,Urk, Zeewolde. Population 387,881 Surfacein km² 1,416 Population density per km² 274 Page 3

4 Executive summary Based on real estate costs, Lelystadcan be classified as an attractive city. Both costs for land and rent for industrial land/space are considerably lower in Lelystad than in the four benchmarked cities. Also housing costs in Lelystad are much cheaper compared to the other regions. The average purchase price per m² in Lelystad ( 1,835) is considerably lower then the average in the Netherlands ( 2,422). The average rent per m² per month in Lelystad ( 7.20) is also lower then the Dutch average ( 12.10). In Lelystad, a relatively large amount of constructible industrial space is available. Taking in account the (to be developed) Airport Garden City business park, a business park of 100Ha, the future of available industrial space in Lelystad is bright. The road density of 2.6 km road per km² of the Province of Flevolandis lower than the Dutch average. However, with a relatively small population and the presence of an important north-south corridor the Province is well connected. A short distance to an international airport (69 km from Lelystad) contributes to this connectivity. RegioLelystadhas an unemployment rate of 6.8%. The province of Flevolandoffers multiple courses in Transport and Logistics. This results in a good basis for logistic companies to invest in Lelystad, since (rightly skilled) labor is sufficiently available. Since temporary workers are very common in the Dutch labor market, the labor market can be considered flexible. Page 4

5 Step I: Overview of quantitative location factors Page 5

6 Step I: Overview of quantitative location factors In this step we compare the regions under study in terms of quantitative location factors. The quantitative location analysis includes the following factors: Real estate costs: Rentof industrial space per square meter per region; Land costs for industrial space per square meter per region. Housing costs: Rental prices; Purchasing prices. Page 6

7 Step I: Quantitative location factors Real estate costs (1/2) Rent of industrial space per m²/year in Euros = Bands based on information from different brokers = Average rent Average rent Region Amsterdam Antwerp Breda Frankfurt am Main Lelystad Amsterdam Antwerp Breda Frankfurt am Main Lelystad Frankfurt is the most expensive region in this benchmark, closely followed by Amsterdam. Lelystad is the most attractive region based on rents per m² for industrial space. There is no rental growth expected in 2011 for Amsterdam. However, in 2012 at the earliest, a slight increase between 1% and 4% is expected, depending on the location. A slight increase, between 3% and 4%, is expected in Antwerp by the end of 2011 and the beginning of 2012, due to shortages of new or grade A buildings, but an increase of 10% is expected between now and Prime rents in Frankfurt are expected to increase by 4% in the next year and by 5% in the next four years. The rent expectations for Lelystadshow a slight decrease in Sources: CB Richard Ellis, Cushman & Wakefield, DTZ Zadelhoff, FGHBank. Jones Lang LaSalle, King Sturge Page 7

8 Step I: Quantitative location factors Real estate costs (2/2) Land costs for industrial space per m² in Euros = Bands based on information from different brokers = Average cost Average costs Region Amsterdam Antwerp Breda Frankfurt am Main Lelystad Amsterdam Antwerp Breda Frankfurt am Main Lelystad Amsterdam is the most expensive city in this benchmark. The costs for industrial space in Antwerp, Breda and Frankfurt am Main are about the same, with Antwerp being slightly cheaper. Lelystad is by far the cheapest city based on land costs. Sources: CB Richard Ellis, Cushman & Wakefield, DTZ Zadelhoff, Jones Lang LaSalle, King Sturge, gemeente Amsterdam, Gemeente Breda, Provincie Flevoland. Page 8

9 Step I: Quantitative location factors Housing costs 18 Average rent per m² per month in the private sector in the main cities of the regions. (Average of all sorts of houses: apartments, family home, villa, etc.) Average purchase price per m² in the private sector for the main cities of the regions. (Average of all sorts of houses: apartments, family home, villa, etc.) , Amsterdam Antwerp Breda Frankfurt am Main Lelystad 0 Amsterdam Antwerp Breda Frankfurt am Main Lelystad Amsterdam is the most expensive region to live in, based on both rental prices and purchasing prices. Frankfurt experienced a reversal in the upward trend of rental prices seen over the past years. However, this is by no means an indication of a trend change, but instead a rest period with rental prices expected to again increase the coming years. Amsterdam experienced a slight increase in rental prices last year. In this benchmark, Lelystadis the most attractive city based on housing costs. Sources: Frankfurt Rhein Main GmbH, Pararius, POM Antwerpen, Stad Antwerpen, Page 9

10 Step II: Overview of qualitative location factors Page 10

11 Step II: Overview of qualitative location factors In this step we compare the regions under study in terms of qualitative location factors. These factors accomplish the comparison of quantitative factors as has been made in Step I. The qualitative location analysis includes the following factors: Availability of space; Quality of real estate; Accessibility by road; Distance to SchipholAirport; Availability of labor; Flexibility of labor. These factors often have been given relative scores (rankings), since they cannot always easily be expressed in numbers. Page 11

12 Step II: Qualitative location factors Availability of space Number of hectares of constructible industrial/logistics space available in the different regions Number of hectares of constructible industrial/logistics space available in the main cities Stadsregio Amsterdam Province of Antwerp West-Brabant Frankfurt Rhine-Main Province of Flevoland 0 Amsterdam Antwerp Breda Frankfurt am Main Lelystad Approximately 32% of the available space in the Amsterdam region is located in the city of Amsterdam. Within Amsterdam, this space is highly concentrated in the Northwestern part of the city (70%). 65% of the available space in the Province of Antwerp is located in the city of Antwerp. Although Breda is the largest and most important city in the West-Brabant region, only 21% of the available space in the region is located in Breda. The same goes for Frankfurt am Main; only 21% of the available space in the region is located in this city. When the total surfaces of the regions are taken into account, a relatively large amount of space is available in the stadsregioamsterdam and in the Lelystad region. Sources: Frankfurt Rhein Main GmbH, Gemeente Breda, Gemeente Amsterdam, OMALA, POM Antwerpen, Provincie Flevoland, Stad Antwerpen, Page 12

13 Step II: Qualitative location factors Quality of real estate The Netherlands and Belgium have traditionally attracted significant demand for large-scale logistics facilities, particularly around their major ports (Rotterdam and Antwerp) and airports (Schipholand Brussels). However, these markets were hit hard by the collapse in world trade in Even though trade returned to growth in 2010, demand has remained suppressed compared with pre-recession levels. Overall availability continued to trend upwards in both Belgium and the Netherlands last year, but available new and good quality modern logistics stock fell, largely because no new speculative development was delivered: Amsterdam is generally lacking high grade logistics property. The available units are usually of lesser quality or in secondary locations. The availability of large modern logistics facilities in Antwerp also remains limited with the majority of vacant supply here failing to meet current occupier requirements. In Antwerp, 37% of the total built industrial stock is modern warehousing. 57,4% of the industrial parks in Breda is outdated. Together with two other stakeholders, the municipality of Breda started to tackle this problem this year. In Lelystad the available space on industrial parks is mostly modern or is restructured. With the development of Airport Garden City business park, a business park of 100 ha with good spatial quality and accessibility is under construction. Germany is one of the top logistics locations in Europe. The logistics industry is the second-largest business sector in Germany after the automotive industry. In general, the industrial and logistic space in Frankfurt can be considered modern. New project developments which have not been pre-let are virtually non-existent at the moment. This is creating a further decline in supply. So in some favored areas, particularly in the proximity of the airport, it is in some cases no longer possible to meet demand adequately, particularly in the market segment of sizeable, modern logistics premises. Sources: CB Richard Ellis, Cushman & Wakefield, DTZ Zadelhoff, Jones Lang LaSalle, King Sturge, Gemeente Amsterdam, Gemeente Breda, OMALA, Provincie Flevoland. Page 13

14 Step II: Qualitative location factors Accessibility by road (1/2) Total number of roads in kilometers Region Stadsregio Amsterdam Arrondissement Antwerpen West-Brabant Frankfurt Rhine-Main Provinceof Flevoland All roads 4,585 5,407 5,491 11,990 3,699 Highways Roaddensity(km/km²) Region Stadsregio Amsterdam Arrondissement Antwerpen West-Brabant Frankfurt Rhine-Main Provinceof Flevoland The motorways A1, A2, A4, A7, A9 and A10 pass through the Amsterdam region. Nine junctions in the Amsterdam region are listed in the top 50 traffic jam list of the Netherlands. Amsterdam has the highest road density in this benchmark (5.7 kilometers road per km²). In 2010, the Antwerp region became the region with most traffic jams in the whole of Belgium (measured in length of traffic jam times the number of minutes the traffic jam is there). Antwerp has the second highest road density (5.4 kilometers road per km²) of the benchmark regions. The highways A16, A27, A58 and A59 pass through Breda. None of the junctions in the region of Breda are in the top 50 traffic jam list of the Netherlands. With 2.8 kilometer road per km², West-Brabant has the third highest road density. Frankfurter Kreuz is the junction between the south-north axis and the east-west axis. More than 300,000 vehicles pass through Frankfurter Kreuz every day making it the most frequented highway junction in Germany. The two principal traffic arteries of the German highway system meet at the Frankfurter Kreuz junction: the A3 and the A5. The Frankfurt Region has the lowest road density (0.8 kilometers road per km²) of the benchmark regions. The highway A6 and a small part of the A27 pass through the Province of Flevoland. One junction in the Province of Flevolandis listed in the top 50 traffic jam list of the Netherlands. The road density in the Province of Flevoland is 2.6 kilometers per km². Page 14

15 Step II: Qualitative location factors Accessibility by road (1/2) Out of the five regions, the Frankfurt region is the most congested region. According to the total time wasted combined with the number of drivers wasting it, Frankfurt is ranked sixth out of the 109 ranked regions. Lelystad is not in the top 109 regions. Based on the extra travel time in the peak period, Amsterdam scores the worst out of the five regions. On average, a trip in the Amsterdam region during the peak hours takes 29,7% longer then in a situation with no congestion. In Breda a trip during the peak hours takes 16,5% longer. Trafficscorecard City Amsterdam Antwerp Breda Frankfurt ammain Lelystad Peak period congestion rank EU or more Extra travel in peak period 29.7% 29.5% 16.5% 21.6% 3.8% or less Source: INRIX s national traffic scorecard, 2010 Page 15

16 Step II: Qualitative location factors Distance to nearest international airport Total distance in kilometers from nearest international airport by road: Distance City Amsterdam Antwerp Breda Frankfurt am Main Lelystad 16 Km 44 Km 110 Km 13 Km 69 Km From Frankfurt international Airport by road: Amsterdam 432 Km Breda 393 Km Antwerp 388 Km Frankfurt am Main 13 Km Amsterdam 16Km Schiphol Lelystad 69 Km Lelystad 441 Km Breda 110Km From Brussels International Airport by road: Amsterdam 200 Km Breda 95 Km Antwerp 44 Km Frankfurt am Main 397 Km Lelystad 226 Km Antwerp 160Km Frankfurt am Main 450Km Airport Garden Businesspark has its own business airport (Lelystad airport) with a 1,250 m runway (to be extended to 1,600 m in 2012). Distances from the airport by road to the other regions: Amsterdam 61 Km Breda 123 Km Antwerp 175 Km Frankfurt am Main 437 Km Lelystad 13 Km Source: Google maps Page 16

17 Step II: Qualitative location factors Availability of labor The highest unemployment rate is found in the Antwerp region, the lowest in West-Brabant. City Unemployment rate* Stadsregio Amsterdam Arrondissement Antwerpen West- Brabant Frankfurt Rhine-Main Regio Lelystad 5.8% 7.9% 5.9% 6.1% 6.8% * As a percentage of the labor force. Education in logistics: Amsterdam: The University Amsterdam offers a master program in Transport & Supply Chain Management; The University of Applied Sciences offers a bachelor program in Aviation Logistics, Event Logistics, International Supply Chains and Networks and Airport and Seaport Logistics. Antwerp: Both The Karel de Grote-University College in Antwerp and the University College of Antwerp offer a bachelor program in Logistics Management; At the Institute of Transport and Maritime Management Antwerp, a faculty of the University of Antwerp, there are two master programs (Transport & Maritime Management, Transport & Maritime Economics) and a PhD program (Transport & Maritime Economics). Source: Frankfurt Rhein Main GmbH, Gemeente Amsterdam, Gemeente Breda, Gemeente Lelystad, Stad Antwerpen Page 17

18 Step II: Qualitative location factors Availability of labor Breda: The NHTV Breda University of applied sciences offers two studies in logistics: Logistics & Economy Logistics & Transport Management In total approximately 150 students apply for these two studies each year. The Dutch Institute for Advanced Logistics (DINALOG) was established in Breda in This institute tries to unroll the Research and Development Program for Logistics and Supply Chain Management. The municipality of Breda has reserved an area of 14 hectares to develop a campus for logistics and supply chain related research and development activities. Frankfurt am Main: The University of applied sciences in Frankfurt (in combination with ECAD, the major airports of Germany and the German Air-Traffic Control) offers a bachelor program in Aviation management. The German counterpart of DINALOG is the House of Logistics and Mobility (HOLM), which is based in Frankfurt. HOLM is a unique cooperation model among educational institutes, business practice and public administration. The main objective is to link international partners with outstanding scientists and institutions in order to research, publish, develop, consult and teach together. Lelystad: In Almere-Buiten(approximately 25km from Lelystad), Regional training centre Flevoland (ROC Flevoland) offers multiple courses in Transport and Logistics. Source: Frankfurt Rhein Main GmbH, Gemeente Breda, Gemeente Lelystad Page 18

19 Step II: Qualitative location factors Flexibility of labor (1/2) All countries are considered less attractive in terms of hiring and firing practices. This indicates that hiring and firing of employees is hindered by multiple regulations, for instance by minimum wages or severances. Hiring and firing Rank out of 139 Score The Netherlands Belgium Germany Score: 1 = impeded by regulations, 7 = flexibly determined by employers Source: World Economic Forum, Global Competitiveness Report Both the Netherlands and Belgium score average on the redundancy costs. Germany scores bad with 69 weeks of salary. Redundancy costs (weeks of salary) Rank out of 58 Weeks The Netherlands Belgium Germany Source: IMD, World Competitiveness Yearbook 2010 Redundancy costs are the costs for terminating a redundant worker. Both Germany and the Netherlands don t score well in the rigidity of employment. Belgium is considered as a much more flexible labor market. Rigidity of employment Rank out of 139 Score The Netherlands Belgium Germany Score:0-100 (worst) scale Source: World Economic Forum, Global Competitiveness Report Page 19

20 Step II: Qualitative location factors Flexibility of labor (2/2) Temporary workers are very common in the Dutch labor market. The Netherlands has the highest percentage in Europe of people working as temporary employees. Employers in the Netherlands can offer employees a flexible contract. As a matter of fact, most of the recent growth in employment is generated through flexible workers. Another trend in the Dutch labor market are job pools. In job pools multiple companies share the same employees, resulting in flexible creative workers. Source: NFIA Page 20

21 Sources Agentschap wegen en verkeer, jaarverslag Chambers of Industry and Commerce IHK-ForumRhine-Main, Frankfurt RhineMain in figures2010/2011. Frankfurt RheinMain GmbH, Commercial sites in Frankfurt RhineMain. Gemeente Amsterdam. Gemeente Breda. Gemeente Lelystad. IMD, World CompetitivenessYearbook2010. INRIX, National TrafficScorecard NFIA, Landeninformatie Nederland. OMALA, Ondernemersplan OMALA NV. Pararius. POM Antwerpen, Logistieke Poort Antwerpen, Provincie Flevoland, Economische Barometer Flevoland April Stad Antwerpen. World Economic Forum, Global CompetitivenessReport Brokers: CB Richard Ellis Cushman & Wakefield DTZ Zadelhoff FGHBank Jones Lang LaSalle King Sturge Page 21

22 Ernst & Young Real Estate Advisory Services International Location Advisory Services Cross Towers Antonio Vivaldistraat HP Amsterdam The Netherlands