The Region

Rhine-Ruhr
Metropolitan Region

01 LONDON METROPOLITAN REGION

14m inhabitants
14,188 sq km area

02 PARIS METROPOLITAN REGION

12.1m inhabitants
12,012 sq km area

03 RHINE-RUHR METROPOLITAN REGION

10m inhabitants
7,268 sq km area

BERLIN METROPOLITAN REGION

5.8m inhabitants
30,000 sq km area

MUNICH METROPOLITAN REGION

5.8m inhabitants
25,000 sq km area

FRANKFURT METROPOLITAN REGION

5.5m inhabitants
14,755 sq km area

Rhine-Ruhr
Metropolitan Region

01 LONDON METROPOLITAN REGION

14m inhabitants
14,188 sq km area

02 PARIS METROPOLITAN REGION

12.1m inhabitants
12,012 sq km area

03 RHINE-RUHR METROPOLITAN REGION

10m inhabitants
7,268 sq km area

BERLIN METROPOLITAN REGION

5.8m inhabitants
30,000 sq km area

MUNICH METROPOLITAN REGION

5.8m inhabitants
25,000 sq km area

FRANKFURT METROPOLITAN REGION

5.5m inhabitants
14,755 sq km area

University City,
Trade City & Tourism

160M

Inhabitants within a 500 km radius

31 %

Of the total EU population within a 500 km radius

50 %

Of EU purchasing power within a 500 km radius

University City,
Trade City & Tourism

160M

Inhabitants within a 500 km radius

31 %

Of the total EU population within a 500 km radius

50 %

Of EU purchasing power within a 500 km radius

DESTINATIONS WITHIN A ONE-HOUR FLIGHT

  • Amsterdam, Netherlands
  • Brussels, Belgium
  • Frankfurt, Germany
  • Hamburg, Germany
  • Berlin, Germany
  • Munich, Germany
  • London, Great Britain
  • Luxembourg
  • Paris, France
  • Zurich, Switzerland

RANKINGS OF „THE LARGEST GERMAN STUDENT CITIES“

  1. Berlin – 191,000 students
    (5% of the 3.64m inhabitants)
  2. Munich – 112,000 students
    (7.5% of the 1.47m inhabitants)
  3. Cologne – 104,000 students
    (9.5% of the 1.09m inhabitants)
  4. Hamburg – 93,000 students
    (5% of the 1.84m inhabitants)
  5. Frankfurt am Main – 73,000 students
    (9.5% of the 753,000 inhabitants)
  6. Münster – 61,000 students
    (19.5% of the 314,000 inhabitants)

RANKING OF THE „WORLD'S LARGEST EXHIBITION CENTRES“

  1. Hanover exhibition centre:
    463,175 sq m
  2. National Exhibition and Convention Center (NECC)
    Shanghai: 400,000 sq m
  3. Frankfurt am Main exhibition centre:
    366,637 sq m
  4. Fiera Milano: 345,000 sq m
  5. China Import & Export Fair Complex
    Guangzhou: 340,000 sq m
  6. Cologne exhibition centre:
    284,000 sq m

Cologne –
Economic powerhouse
on the Rhine

1.1m

Inhabitants

83,282

Companies

1.4m sq m

Retail space

7.9m sq m

Offices

43.2m sq m

Residential space

3

International airports
within less than an hour

19 %

Of all start-up formations
in the Rhine-Ruhr Metropolitan
Region (1st place)

The figures shown are approximate values.
Date: 01.01.2020.

Cologne –
Economic powerhouse
on the Rhine

1.1m

Inhabitants

83,282

Companies

1.4m sq m

Retail space

7.9m sq m

Offices

43.2m sq m

Residential space

3

International airports
within less than an hour

19 %

Of all start-up formations
in the Rhine-Ruhr Metropolitan
Region (1st place)

Dat Hätz vun dr Welt jo dat is Kölle
Dat Hätz vun dr Welt dat schlät am Rhing
Es och dr Himmel öfters jrau und et
Sönnche schingk jet mau doch die
Kölsche han em Hätze Sonnesching.

COLOGNE - A CITY WITH GREAT POTENTIAL

Cologne is a place with a sunny outlook on life and inhabitants who have a passion for their city. The fourth largest city in Germany is 2,000 years old and home to a World Heritage Site in Cologne Cathedral. The city currently has over 1.09 million inhabitants and positive population growth.

Cologne has been home to numerous economic sectors for many years. Notable examples include the chemicals and automotive industries, the media sector, insurance and food retail. Recent developments also indicate that a large number of innovative start-ups are making their way to Cologne, making the city an increasingly important start-up location. Within the last year, the number of start-ups has increased by more than 100 companies. Between May 2018 and May 2019, the number of companies rose from 120 to 225.

The cathedral city is gaining significantly on Berlin and, in terms of the inventiveness and capability of start-ups, is already level with the capital. Cologne is also renowned as a university city. The city currently boasts 24 colleges and four other institutions of higher education, making Cologne the third largest university city in Germany behind Berlin and Munich.

The cathedral city is also a trade fair city. Cologne exhibition centre hosts around 80 trade fairs, exhibitions, guest events and special events in Germany and abroad each year. For more than 25 sectors, these represent the leading trade fairs worldwide. Cologne exhibition centre has exhibition space totalling 284,000 sq m (date: June 2019), making it the third largest in Germany and placing it among the top ten worldwide. The trade fairs and events at Cologne exhibition centre attract approximately 3.2 million visitors.

COLOGNE - A CITY WITH GREAT POTENTIAL

Cologne is a place with a sunny outlook on life and inhabitants who have a passion for their city. The fourth largest city in Germany is 2,000 years old and home to a World Heritage Site in Cologne Cathedral. The city currently has over 1.09 million inhabitants and positive population growth.

Cologne has been home to numerous economic sectors for many years. Notable examples include the chemicals and automotive industries, the media sector, insurance and food retail. Recent developments also indicate that a large number of innovative start-ups are making their way to Cologne, making the city an increasingly important start-up location. Within the last year, the number of start-ups has increased by more than 100 companies. Between May 2018 and May 2019, the number of companies rose from 120 to 225.

The cathedral city is gaining significantly on Berlin and, in terms of the inventiveness and capability of start-ups, is already level with the capital. Cologne is also renowned as a university city. The city currently boasts 24 colleges and four other institutions of higher education, making Cologne the third largest university city in Germany behind Berlin and Munich.

The cathedral city is also a trade fair city. Cologne exhibition centre hosts around 80 trade fairs, exhibitions, guest events and special events in Germany and abroad each year. For more than 25 sectors, these represent the leading trade fairs worldwide. Cologne exhibition centre has exhibition space totalling 284,000 sq m (date: June 2019), making it the third largest in Germany and placing it among the top ten worldwide. The trade fairs and events at Cologne exhibition centre attract approximately 3.2 million visitors.

Facts, Figures & Data

Investment location Cologne

Facts, Figures & Data

Investment location Cologne

Cologne Office Market

IDEAL PROSPECTS FOR THE FUTURE

The local office market proved robust in 2019 with office take-up of 287,000 sq m demonstrating continued strength, albeit with a slightly lower total than in the previous year (approx. –6.5%). This was not attributable to lower demand, however, but rather to the scarce supply. Accordingly, the vacancy rate fell and currently stands at its lowest level in 10 years. The vacancy rate has decreased every year since 2009 and stood at 3.2% at the end of Q4 19, with the downward trend remaining intact. The consequence of this is an increasing supply shortage and rising rents.

Owners are also enjoying rental growth, with the prime rent reaching EUR 29.25 per sq m in 2019. Despite Covid-19, the vacancy rate and prime rent also remained stable in the 1st half of 2020. Only take-up declined significantly to 88,700 sq m, a decrease of 38.5% compared with 1H 19. While the completion volume for 2020 stands at approximately 84,000 sq m, only around 19,000 sq m of this remains available.

Once again, this cannot cover the projected demand. Hence, despite the coronavirus pandemic and its consequences, there is likely to be little significant relief of the strain in Cologne’s office market.

Cologne Office Market

IDEAL PROSPECTS FOR THE FUTURE

The local office market proved robust in 2019 with office take-up of 287,000 sq m demonstrating continued strength, albeit with a slightly lower total than in the previous year (approx. –6.5%). This was not attributable to lower demand, however, but rather to the scarce supply. Accordingly, the vacancy rate fell and currently stands at its lowest level in 10 years. The vacancy rate has decreased every year since 2009 and stood at 3.2% at the end of Q4 19, with the downward trend remaining intact. The consequence of this is an increasing supply shortage and rising rents.

Owners are also enjoying rental growth, with the prime rent reaching EUR 29.25 per sq m in 2019. Despite Covid-19, the vacancy rate and prime rent also remained stable in the 1st half of 2020. Only take-up declined significantly to 88,700 sq m, a decrease of 38.5% compared with 1H 19. While the completion volume for 2020 stands at approximately 84,000 sq m, only around 19,000 sq m of this remains available.

Once again, this cannot cover the projected demand. Hence, despite the coronavirus pandemic and its consequences, there is likely to be little significant relief of the strain in Cologne’s office market.

Cologne City Office Market

COLOGNE'S HOTSPOT

Cologne’s City submarket has been the centrepiece of the 2000-year-old Rhine metropolis since time immemorial when it comes to tourist landmarks and other points of interest, such as the Mediapark. Inside the Cologne Ring is a vibrant urban landscape.

The city‘s landmark and focal point is the cathedral, the largest Gothic building and third-largest church building in the world. Situated directly adjacent to the cathedral is the main railway station, the western hub of Deutsche Bahn. Cologne’s famous pedestrianised zones, which are among the busiest retail locations in Germany, include Schildergasse, Breite Strasse, Hohe Strasse, Ehrenstrasse and Mittelstrasse.

Cologne City is an established office location renowned for its variety of uses, such as offices and administration, retail, restaurants and residential. This submarket achieves the highest rents and the largest take-up.

1st QUARTER 2020

€29.60

Prime Rent

€19.50

Average Rent

10,506 sq m

Take-up

1.7 %

Vacancy Rate

Cologne City Office Market

COLOGNE'S HOTSPOT

Cologne’s City submarket has been the centrepiece of the 2000-year-old Rhine metropolis since time immemorial when it comes to tourist landmarks and other points of interest, such as the Mediapark. Inside the Cologne Ring is a vibrant urban landscape.

The city‘s landmark and focal point is the cathedral, the largest Gothic building and third-largest church building in the world. Situated directly adjacent to the cathedral is the main railway station, the western hub of Deutsche Bahn. Cologne’s famous pedestrianised zones, which are among the busiest retail locations in Germany, include Schildergasse, Breite Strasse, Hohe Strasse, Ehrenstrasse and Mittelstrasse.

Cologne City is an established office location renowned for its variety of uses, such as offices and administration, retail, restaurants and residential. This submarket achieves the highest rents and the largest take-up.

1st Quarter 2020

€29.60

Prime Rent

€19.50

Average Rent

10,506 sq m

Take-up

1.7 %

Vacancy Rate

Cologne Investment Market

MORE IS MORE

With a transaction volume of €3.3bn and an increase of 66% year on year, Cologne achieved record results in 2019. This was also the second highest increase in investment among the top seven cities behind Munich. Major contributors to these strong results include the sale of the Stadthaus to GEG for EUR 500m, the acquisition of Technologiepark Ehrenfeld by TPG Capital and the disposal of three Cologne properties in the course of the Millennium portfolio deal.

While the prime yield for high-street properties hardened by 10 basis points to 3.5% last year, office property prices rose significantly. The prime yield in the sector hardened by 50 basis points over the last 12 months to 3% – more than in any other top-seven city. The Rhine metropolis also proved extremely stable from an investment perspective in the first half of 2020 despite the lockdown owing to Covid-19.

The prime yield held at 3%, while the transaction volume reached approximately €600m, which was around 47% lower compared with the corresponding period last year. Many transactions were deferred owing to the pandemic and are likely to come to the market in the second half of the year. In view of the continued lack of product and sustained high demand, we expect the prime yield to harden slightly further.

€3.3bn

Investment volume 2019

€0.6bn

Investment volume H1/2020

3 %

Prime office yield

Cologne Investment Market

MORE IS MORE

With a transaction volume of €3.3bn and an increase of 66% year on year, Cologne achieved record results in 2019. This was also the second highest increase in investment among the top seven cities behind Munich. Major contributors to these strong results include the sale of the Stadthaus to GEG for EUR 500m, the acquisition of Technologiepark Ehrenfeld by TPG Capital and the disposal of three Cologne properties in the course of the Millennium portfolio deal.

While the prime yield for high-street properties hardened by 10 basis points to 3.5% last year, office property prices rose significantly. The prime yield in the sector hardened by 50 basis points over the last 12 months to 3% – more than in any other top-seven city. The Rhine metropolis also proved extremely stable from an investment perspective in the first half of 2020 despite the lockdown owing to Covid-19.

The prime yield held at 3%, while the transaction volume reached approximately €600m, which was around 47% lower compared with the corresponding period last year. Many transactions were deferred owing to the pandemic and are likely to come to the market in the second half of the year. In view of the continued lack of product and sustained high demand, we expect the prime yield to harden slightly further.

€3.3bn

Investment volume 2019

€0.6bn

Investment volume H1/2020

3 %

Prime office yield

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TENANT LIST

FLOOR PLANS

ENERGY CERTIFICATE

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GRUNDRISS

Contact

OUR CONTACT TEAM

Pierre Lechner
Leasing Management
Phone +49 173 819 610 3
lechner@bbreal.de

BLACKBEAR REAL ESTATE GMBH

Herzogstraße 18
D-40217 Düsseldorf

info@bbreal.de
bbreal.de

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