Stuttgart: Investment market with new record – office leases down
Stuttgart’s commercial property investment market delivered a record year in 2018. E&G Real Estate counted about 75 investment transactions, a good two-thirds of them in the two and three digit range. This boosted the transaction volume from about €1.42bn in 2017 to an impressive €2.34bn. The largest deals were the Allianz Campus, the Uhland-Carré, and the SI-Centrum. This year, the volume will probably fall short of €2bn due to lack of product, E&G expects. Office space take-up was already slowed in 2018 by a lack of available property, coming in at 218,000 sqm. That is 19 % less than 2017 and also falls short of the ten-year average of about 255,000 sqm. Due to the lack of new construction and subsequent low number of leases in the high-priced segment, top rents dropped from €24.30 to €23 /sqm/month. E&G is not expecting the situation to ease, as very few new spaces will be put on the market over the next three years.
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