alstria and IPD present the results of
the fifth German Office Rent Reversion Index (DMX)
Hamburg/Wiesbaden, Germany,
May 10, 2012
The results of the German Office Rent
Reversion Index (DMX), annually published by IPD and sponsored and initiated by
alstria office REIT-AG, show a very low rent reversion for the reporting year
to May 2012. After the strong result of 3.9% in the last reporting period the current
value of the DMX to May 2012 is only 0.3% and therefore shows a nearly balanced
relation between the average contract rents and the average sustainable rents
of office leases. The current contract rent for all running office leases is
12.85 EUR/sqm/month which is very close to the average sustainable rent of
12.89 EUR/sqm/month.
The German Office Rent Reversion Index
(DMX) shows the potential for rental growth for the German office market by
comparing the contract rents with the sustainable rents and thus creating more
transparency for the German office market. While in the last year nearly all analyzed
office markets showed a positive rent reversion, this reporting year shows much
more diverse results. “About half of the eight analyzed locations, including
the B-Cities segment, show a positive rent reversion and therefore potentially
increasing rents. The other half shows a negative rent reversion, which means
potentially decreasing rents”, explains Lars Dierkes, project manager at IPD
Investment Property Databank GmbH, Wiesbaden. “But the amounts of rent
reversion in the positive direction as well as in the negative direction are
very moderate in this reporting year – with the exception of Hamburg – compared
to the results of last year.”
Sustainable rents in all analyzed locations
decreased during the reporting year to May 2012
After the positive
growth of sustainable rents of 7.7% on average in the last reporting period to
May 2011, sustainable rents could not keep this level in the last 12 months.
The results of the DMX show a decrease of sustainable rents in all analyzed
locations. On average the decrease was -3.8%, whereas Frankfurt am Main shows
the strongest decrease with -7.0%. In contrast, the average contract rents were
nearly stable and only decreased by -0.3% compared to last year’s value. Most
of the analyzed locations even show a slightly positive growth of contract
rents in the last 12 months except Frankfurt am Main which shows the strongest
decrease of contract rents with -6.5%. The strongest increase of contract rents
was currently measured in Munich with 2.1%. “For us as an
investor, the DMX is a very useful tool”, says Olivier Elamine, CEO of alstria,
“however, we do not focus that much on the actual numbers, but are interested
in the trend. It shows that there is not much to be expected from the market in
terms of rent reversion. Value needs to come from hard work, the market will
not help.”
Hamburg shows the strongest positive
rent reversion
Due
to the decrease of sustainable rents and the nearly stable contract rents, both
values have become very close and result into a very small rent reversion of
0.3%. The highest positive rent reversion is currently measured in Hamburg with
6.3%, followed by Munich with 0.7%, Frankfurt am Main with 0.6% and Cologne
with 0.5%. Dusseldorf shows the highest negative rent reversion with -3.0%
followed by Stuttgart with -2.2% and Berlin with -1.3%. Average contract rents
and sustainable rents in the B-Cities segment are nearly balanced and therefore
only show a slight rent reversion of -0.3%
In
the long-term view of rent reversions over the last 10 years, Berlin shows the
strongest positive rent reversion of 6.1% on average per year, followed by
Frankfurt am Main with 2.4%. The highest negative potential in the long-term view
was measured in Dusseldorf with -4.8% on average per year, followed by Cologne
with -2.2%. B-Cities show a slightly positive rent reversion of 1.1% and
therefore nearly match the total long-term result of the DMX with 1.0% average
rent reversion per year.
“The
insights of the DMX and its regional sub-indices are reliable and a good basis
for further analyses, as IPD put together a very comprehensive database with
primary data”, explains Dr. Daniel Piazolo, managing director of IPD Investment
Property Databank GmbH. The results of the DMX are based on eight sub-indices
that are calculated out of 26,000 office leases with a monthly rental value of
EUR 336m. These leases are analyzed based on their market segments and their
lease term and lease age.
About IPD
Germany:
IPD devotes itself
as a global service provider in the objective performance measurement of
institutional investors. As a global leader in real estate performance
measurement and analysis IPD is present in more than 20 countries in Europe,
North America, Asia, Africa and Australia. Our services and products include
the publication of country indices, portfolio benchmarking, research,
organizing conferences for investors, managers, owners and tenants.
The country indices of IPD are a globally
recognized standard for performance and real estate markets and also form the
basis for trading in property derivatives.
Contact
IPD Investment Property Databank GmbH
Lars Dierkes
Head of Lease Intelligence
Tel.: +49 6 11 – 33 44 987
Email: lars.dierkes@ipd.com
Press IPD Investment Property Databank GmbH
Alexandra May
(Cert.) INVESTOR RELATIONS+COMMUNICATION
(Cert.) INVESTOR RELATIONS+COMMUNICATION
Tel.: +49 6 11 –
72 48 944
Email: am@alexandra-may.com
Email: am@alexandra-may.com
About
alstria:
alstria office
REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) is an internally managed Real Estate
Investment Trust (REIT), that exclusively focuses on acquisition, owning and
managing office real estate in Germany. alstria was founded in January 2006 and
converted to the first German REIT in October 2007. The company, based in
Hamburg, is listed at the Frankfurt Stock Exchange and member of the SDAX. The
Company owns a diversified portfolio of office properties in attractive
locations throughout Germany. Currently the portfolio of alstria comprises of 85
properties with a total lettable area of approximately 929,000 sqm and is
valued at approximately EUR 1.6 billion. alstria's strategy is based on active
asset and portfolio management as well as on establishing and maintaining close
and long-term relationships with customers and decision makers. alstria focuses
on long-term real estate values.
For further information:
Contact alstria office REIT-AG:
Ralf
Dibbern
Tel.: +49 40 - 226 341 329
