The rental volume in 2010 exceeded all our expectations. New leases were signed for 194,000 square metres, a gain of 14 percent over the previous year. The only year with a better turnover was 1999. Thus, after a period of ups and downs, conditions look better than ever for a positive future. Everyone in the market should take advantage of this opportunity to enhance Stuttgart’s attractiveness and in this way ensure its future competitiveness. Below you will find the PDF-Download of this year's office market report, which we have carefully revised to present these encouraging facts and figures in an attractive format.

1. THE STUTTGART OFFICE MARKET
2010/2011

2. Overview Of the Stuttgart Office market
Year Volume Representative Average central Vacancies Vacancies Total space Completion Pre-leased
(sq. m) peak rents business district (sq. m) (%) available volume (sq. m) volume (sq. m)
rents (mill. sq. m)
1993 140,000 €16.36 €14.50 160,000 2.80 5.609 345,000 No data
1994 120,000 €14.83 €13.60 225,000 4.00 5.926 317,000 No data
1995 120,000 €14.32 €13.35 190,000 3.30 6.056 130,000 No data
1996 135,000 €14.32 €12.75 290,000 4.90 6.108 52,000 No data
1997 140,000 €14.83 €12.65 270,000 4.50 6.231 123,000 No data
1998 180,000 €15.08 €13.85 186,000 2.80 6.266 35,000 No data
1999 230,000 €15.85 €14.80 118,000 1.80 6.296 39,000 No data
2000 205,000 €16.87 €14.90 100,000 1.50 6.356 60,000 No data
2001 160,000 €18.41 €15.34 137,000 2.00 6.516 160,000 130,000
2002 127,000 €17.89 €14.80 292,000 4.20 6.828 312,000 220,000
2003 149,000 €17.50 €14.50 379,000 5.30 6.973 145,000 80,000
2004 152,000 €17.00 €14.50 415,000 5.70 7.102 129,000 93,500
2005 145,000 €17.00 €13.50 402,000 5.60 7.170 68,500 51,400
2006 140,000 €17.50 €13.50 467,400 6.50 7.222* 52,500 20,500
2007 169,000 €17.50 €14.50 466,000 6.40 7.253 32,600 23,400
2008 180,000 €18.00 €14.50 460,000 6.20 7.367 117,000 116,000
2009 171,000 €18.00 €13.60 453,000 6.12 7.401 40,000 22,000
2010 194,000 €17.50 €14.30 480,000 6.46 7.425 42,400 22,400
* Data from a survey by BulwienGesa AG + Baasner, Möller & Langwald GmbH Source: Research BANKHAUS ELLWANGER & GEIGER KG ©, figures as of 31 December 2010

3. Stuttgart 21 ( Site Section a 1)
Office + retail + residential
for details see page 9
LO O K 2 1
Phönixba u
Türlen-/Heilbronnerstrasse
Office + retail + residential Königstrasse 5
To be completed at unknown date Office
Po s tq uar tier completed in 2008
Lautenschlagerstrasse 17
Office + retail
To be completed in 2011
C i t y G at e
Kriegsbergstrasse 11
Office + retail
To be completed at unknown date
Mo tel o N e
Lautenschlagerstrasse 14 Bü l ow ca rré
Hotel Lautenschlagerstrasse 20
To be completed in 2011 Office + retail
To be completed in 2012
Qu a d r at
Büchsenstrasse 26a
Office + retail
completed in 2011
W indoW ‘s
Theodor-Heuss-Strasse 7
Office + retail P o st o ‘s
completed in 2009 Alte Poststrasse
Office + retail
gallio n haus completed in 20
Theodor-Heuss-Strasse 8 The o 10
h os p i ta l h o f Office + retail Theodor-Heuss-Strasse 10
Büchsenstrasse completed in 2011 Office + retail
Office To be completed in 2011
To be completed in 2013
Ca sa Nova
Paulinenstrasse 41
Office
To be completed in 2011
Source: Manfred Storck

4. D a V in ci
Office + retail
To be completed at unknown date
3–5
009
E 65
Eberhardstrasse 65
Office + retail
To be completed in 2013
Qu a r t i e r S
Office + retail + residential
To be completed in 2013
Paulin e
Paulinenstrasse
Office
To be completed at unknown date
Ca l e ido
Tübinger Strasse
Office + retail
To be completed at unknown date

5. 4
5
CONTENTS
Foreword 6
Stuttgart – well prepared for the future 8
Stuttgart 21 is on its way 9
Rental take-up exceeds all expectations 10
Take-up by sectors 12
Take-up by size of premises 13
Rent prices show a small decline 14
Slight increase in vacant office space 16
Upturn in the office market throughout Germany 18
Central Stuttgart: Big potential for new growth 20
Northern Stuttgart: New concepts needed 21
Eastern Stuttgart: In a waiting position 22
Southern Stuttgart: Positive development continues 23
Overview of the Stuttgart office market 25
Forecast: Upsurge in Stuttgart’s office market 27
Your contacts 28
EllwaNGER & GEIGER Real Estate 29

6. FOREwORd
Stuttgart – looking to the future.
Stuttgart is a city of innovations and ideas: a city in motion.
In terms of investment, productivity, services, recreation and urban development, Stuttgart is one
of the most active and attractive cities in Europe.
The global economic crisis has been largely overcome. The companies in Stuttgart now have
well-filled order books, their products are in high demand throughout the world and more jobs are
available. Stuttgart today has some 17,000 enterprises in a wide range of sectors. Together they
employ almost 350,000 people and generate gross value added of approximately 31 billion euros.
In the last three years, in spite of the economic crisis, employment has increased by about 1 percent.
This is an encouraging state of affairs, and it is the result of a municipal economic policy that has
pursued clear goals over many years and proved to be reliable. The city must continue on this path
to be fit for the future. we recently completed a study of the goals that Stuttgart should focus on in
the coming years. Taking the city’s existing business strength into account, we identified three are-
as that need promotion: sustainable mobility, education and tourism. Through strong growth in
these promising areas, up to 18,600 new jobs could be created by 2020.
we would like to thank EllwaNGER & GEIGER Privatbankiers for their many years of excellent co-
operation and for their continuation of the public-private partnership that has made it possible to
produce a new edition of this publication.
This issue of the Stuttgart Office Market provides you with detailed information on trends in this
part of the property market. we invite you to participate actively in its development.
dr. wolfgang Schuster Ines aufrecht
Mayor of Stuttgart director of Business development, Stuttgart

7. 6
7
thiS city offerS excellent opportunitieS. let uS take advantage of them.
In 2010, Germany’s seven most important property markets had a total turnover volume of
approximately 2.74 million square metres, thus exceeding the previous year’s volume by more than
19 percent. what about Stuttgart? last year new space amounting to 194,000 square metres was
let in the city. This is a good figure, and the high demand for space especially in the city centre is a
sign that the growth will continue. It nevertheless pays to take a closer look, because an analysis
often reveals important differences. For one thing, not all office locations in the city are developing
at the same rate. For another, prospective tenants now pay greater attention to differences between
new and old premises. Beyond doubt, that is because of the complex demands on building services
such as IT. Moreover, tenants are less and less willing to rent premises that fail to meet modern
standards in energy efficiency and facilities. what does this mean for landlords and investors?
In the coming years it will become more and more important for them to keep office premises in
an up-to-date condition. Tenants will be less inclined to tolerate delays in renovation, and they
will demand rent reductions when renovation is neglected. with the prospects for growth now so
favourable, it is time to develop new, attractive locations and new office buildings. This will be a
challenge to the city and, of course, to private investors.
we hope that you find this publication interesting. If you have any questions concerning the office
market and rentals, we will be glad to help you.
Yours sincerely,
Mario Caroli Björn Holzwarth

8. STUTTGaRT – wEll PREPaREd FOR THE FUTURE
Stuttgart continues to be a location with a sound economic base and strong growth potential.
Baden-württemberg’s capital weathered the economic crisis of the past two years very well.
and for the years ahead, the atlas of future Business Sectors in 2010, published by the Swiss
think tank prognos, rates the city’s prospects as excellent.
Wide range of business sectors HigH educational level
One major reason for Stuttgart’s strong growth potential another factor in the region’s economic success is its
is its good mix of industries. Of central importance are highly qualified workforce. No other major German city
the automotive and automotive supply industries, which has such a high concentration of university graduates as
are now enjoying especially strong growth owing to the Stuttgart, with 21.9 percent. with four large universities
rising demand for electric vehicles and vehicles based on and continuously rising numbers of students, Stuttgart
other new technologies. In addition, there are numerous can expect to remain in this position.
companies specializing in engineering, environmental
technology, communications technology, publishing, loW unemployment rate
media and finance. Efforts are also under way to form at the end of 2010, Stuttgart’s unemployment rate was
new business clusters in the Stuttgart economic region. 5.8 percent, well below the national average of 7.2 per-
Early signs of such activity can be seen in the programme cent. This was lower than at any time in the last 18 years.
of study in medical technology that was established in Moreover, given the predicted economic growth of 2.5
winter 2010/2011 at the University of Stuttgart in percent for 2011, the employment situation can be
cooperation with the University of Tübingen, and in the expected to remain satisfactory. One reassuring fact is
renewable energies programme that will start in the that rising domestic consumption will lead to continued
coming winter semester. Innovative technologies and economic growth even if exports stagnate.
work processes will also be developed at the Fraunhofer
Centre for Virtual Engineering, which is currently under
construction.
per capita purchaSing power in 2010:
citieS with 500,000 or more reSidentS
Munich 25,713
Düsseldorf 22,668
Frankfurt 21,627
Stuttgart 21,219
Cologne 20,648
Hamburg 20,158
Berlin 16,880
all figures in euros
0 5,000 10,000 15,000 20,000 25,000
data source: GfK GeoMarketing, June 2010

9. 8
9
sse ra
Türlenst
Site section 5 Site section 6 Site section 7
Still available retail + residential residential + office
to be completed in 2014
wolfram
asse
nner Str
Heilbro
Site section 4
st
rasse
Still available Site section 8
retail + residential
library 21 to be completed in 2014
to be completed in 2011
Sparkassen akademie
to be completed in 2013
Europe-Plaza Site section 9
retail + residential
to be completed in 2014
Site section 13
Pariser Höfe
rt
tuttga
to be completed in 2012
Site section 12
Still available Site section 15
HBF S
Still available
Present railway lines, in future Site section a2
residential
STUTTGaRT 21 IS ON ITS waY
construction work for the project Stuttgart 21 has now begun. the northern wing of the railway station
was torn down in autumn 2010, and other preparations were carried out in the area of the former bus
station at the south side of the building.
Following a change in planning for site section a1, the Site sections 6, 8 and 9 on wolframstrasse again created
Goldene acht project originally proposed by lBBw was excitement in 2010. a joint building permit application
replaced by the Sparkassen akademie, a training institu- submitted just before the deadline by ECE, STRaBaG and
tion run by the German Sparkasse banks. The new plan Bayerische Hausbau put an end to the discussion on better
comprises a training centre, some 160 apartments for integration of the complex into the urban development
overnight accommodation, and office space for about plan. The innovative concept, made up of attractively
330 employees. Each year some 26,000 Sparkasse em- spaced small units, includes 43,000 square metres for
ployees will receive instruction here, completing a total of retailers, 4,500 square metres for restaurants, a 4-star
60,000 days of training. This will bring added life to the hotel with 160 rooms, and some 400 apartments. On the
district. The library of the 21st Century, an important corner of Heilbronner Strasse and wolframstrasse the
attraction that is expected to draw a million visitors each planning calls for a high-rise building with 30 to 50 luxury
year, has now grown to full size. Opening is set for the apartments plus office space in the first three stories of
fourth quarter of 2011. Construction for Europe Plaza, an the semi-basement.
office project covering 16,300 square metres, can begin
now that advance rental agreements are in place. Pariser developments in the past year demonstrate that site section
Höfe, a project that includes some 250 apartments and a1 continues to offer interesting possibilities, both for
an office wing with approximately 8,000 square metres, is project developers and for users. In no other major city
under construction. Completion is expected by the second are there such large, contiguous premises available for
quarter of 2012. office and other use as at present in the heart of Stuttgart.

10. RENTal TaKE-UP ExCEEdS all ExPECTaTIONS
in 2010, the figures for rental volume in the Stuttgart office market were surprising and encouraging.
Some 194,000 square metres were newly rented, reflecting the sharp rise in demand for office space
brought about by the economic upturn. this is almost the figure achieved in 2000, which was just under
200,000 square metres.
Rental take-up thus increased by about 14 percent over ministry for approximately 19,000 square metres on
the previous year’s level of approximately 171,000 square willy-Brandt-Strasse. In the city centre the largest
metres. during the period under consideration 301 leases contract in 2010 was for a total of 5,400 square metres,
were concluded, 45 more than in the previous year. concluded by an IT service provider.
continued strong demand in tHe central upturn in city fringe locations
business district and city centre Thanks to rental transactions by large-scale users, the
In 2010, the locations with the strongest demand and the fringe areas were able to post considerable gains. In
highest number of leases were again in Stuttgart’s central Stuttgart-Zuffenhausen, for example, the rental volume
business district, that is, the area in the city ring between received a strong boost from a contract for some 22,000
the main station, Theodor-Heuss-Strasse, Hauptstätter square metres. Significant increases in demand were also
Strasse and Paulinenbrücke, plus the city centre. although recorded in Vaihingen/Möhringen, Fasanenhof and
more space was let in 2009, about 22,600 square metres, leinfelden-Echterdingen.
this was largely the result of a contract by the interior

11. 10
11
rental take-up of office Space in Stuttgart 1995–2010 in Sq. m
250,000
200,000
150,000
100,000
50,000
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010
rental take-up in greater Stuttgart in Sq. m
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
central business district 35,350 25,350 19,000 4,600 55,100 33,300 43,000 61,500 44,400 38,200 32,800
city centre 36,600 25,710 45,000 28,400 21,700 43,200 31,300 46,600 41,700 83,800 66,600
vaihingen/möhringen 67,400 50,550 6,300 14,450 30,800 10,400 32,600 13,700 18,500 20,200 26,200
fasanenhof 4,900 2,700 11,000 72,500 4,000 3,700 3,500 2,300 10,600 2,700 5,300
feuerbach/Zuffenhausen 40,400 16,700 6,000 8,400 20,600 9,800 2,000 6,800 12,300 3,300 28,500
degerloch 3,830 5,700 2,700 3,000 6,000 3,400 4,500 7,200 9,200 4,900 2,100
Weilimdorf 4,900 13,150 16,000 750 3,000 6,600 6,000 5,100 12,800 5,900 11,400
bad cannstatt/Wangen 2,000 5,000 18,000 14,000 7,700 24,600 13,500 15,400 12,500 8,100 8,300
leinfelden-echterdingen 10,230 14,040 3,000 2,900 3,100 10,000 3,600 10,400 18,000 3,900 12,800
total 205,610 158,900 127,000 149,000 152,000 145,000 140,000 169,000 180,000 171,000 194,000
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

12. TaKE-UP BY SECTORS
In 2010, the category with the highest demand was again In the case of financial service providers, the demand for
the other office users, which included doctors, architects, space rose over the 2009 level by about 2,000 square
engineers, and trading and industrial companies. The metres, to 16,300 square metres. The percentage of total
rental volume, approximately 93,200 square metres, rental turnover remained about the same.
again showed an increase over the previous year. This was
mainly the result of a large rental transaction for some In the area of media/communication the financial crisis
22,000 square metres on the xcel BusinessCampus in made itself felt through company budget cuts, leading to
Stuttgart-Zuffenhausen. a decline in demand. In 2010, the volume was only about
7,900 square metres, compared to some 10,500 square
The IT and telecommunications industry likewise showed metres the previous year.
a significant increase in demand. In 2009, the rental
volume was only 11,000 square metres, whereas in 2010 The public sector also showed a decline in new leases.
it came to about 34,900 square metres, corresponding to whereas an usually high take-up was achieved in 2009
roughly 18 percent of the total. owing to the rental of some 19,000 square metres by the
interior ministry on willy-Brandt-Strasse, the newly rented
In the consultants category the previous year’s result of space in 2010 came to about 15,800 square metres, a
approximately 25,900 square metres increased by almost significant drop.
100 percent. leases were concluded for this sector
especially in the central business district and city centre.
take-up By SectorS in %
2003 2004 2005 2006 2007 2008 2009 2010
media/communication 5.02 4 8 6.64 6.27 5.56 6.14 4.07
financial service providers 8.04 34 12 9.93 10.36 15.78 8.36 8.41
consultants 7.03 5 10 20.29 18.4 13.39 7.72 13.35
public sector 4.02 9 21 3.21 17.75 7.22 30.41 8.14
others 73.21 38 41 48.07 37.28 36.94 40.94 48.04
it/telecommunications 2.68 10 8 11.86 9.94 21.11 6.43 17.99
total 100 100 100 100 100 100 100 100
Source: Research Bankhaus EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

13. 12
13
TaKE-UP BY SIZE OF PREMISES
in keeping with the characteristic pattern on the Stuttgart office market, demand was
strongest for premises up to 500 square metres. in this segment there were 222 leases,
40 more than in the previous year.
In the central business district and city centre 137 office There were 4 leases, for a total of 39,930 square metres,
premises in this category were let. The southern fringe for premises larger than 5,000 square metres. This
areas also showed strong demand. about 27 percent of corresponds to about 21 percent of the total rental take-
the total rental take-up was in this category. up. The lease concluded by Bosch for premises in Stuttgart-
Zuffenhausen accounted for 22,000 square metres of this
Premises between 501 and 1,000 square metres accounted total. Premises totalling 5,000 square metres were let to a
for 46 leases, corresponding to 17 percent of the total private educational institution in Stuttgart-Feuerbach.
turnover. For areas between 1,001 and 2,000 square metres another 5,430 square metres were taken by an IT service
there were 14 leases in 2010, 1 more than in the previous provider in the city centre, plus approximately 7,100 square
year. Most of the demand was in Stuttgart’s city centre. metres by an office supply company in Stuttgart-Vaihingen.
In the segment from 2,001 to 5,000 square metres 15
premises were let, 5 more than in 2009.
compariSon of new contractS By Size
60,000
55,000
50,000 Total space 2010:
194,000 sq. m
45,000
Total space 2009:
40,000 171,000 sq. m
35,000
30,000
25,000
20,000
15,000
10,000
0
< 500 sq. m 501 – 1,000 1,001 – 2,000 2,001 – 5,000 > 5,000 sq. m
2010
2009
compariSon of new contractS By numBer
200 222
Total number 2010:
182 301
Total number 2009:
100 256
46 47 14 13 15 10
4 4
0
< 500 sq. m 501 – 1,000 1,001 – 2,000 2,001 – 5,000 > 5,000 sq. m
Source for both charts: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

14. RENT PRICES SHOw a SMall dEClINE
the average rent in Stuttgart’s market for office premises as of 31 december 2010 was 11.00 euros
per square metre, slightly below the previous year’s level. in relation to product quality, rent prices
remained stable.
a total of 120 leases were signed in the price segment up there were some leases at high prices, there were a
to 10.00 euros per square metre, 32 of which were at number of others for older office properties with simple
prices of 8.00 euros or less. In the range between 10.01 fittings and equipment.
and 13.00 euros per square metre there were 133 leases.
19 were at prices between 13.01 and 15.00 euros per loW price level in tHe outlying districts to
square metre. a further 19 leases were in the range tHe nortH and east
between 15.00 and 17.00 euros per square metre, and In the outlying districts to the north (Feuerbach/
5 exceeded 17.00 euros per square metre. Zuffenhausen and weilimdorf) and east (Bad Cannstatt/
Hedelfingen/wangen), most of the available office space
differing price trends in tHe central busi- is in existing premises with simple fittings. The average rent
ness district and city centre level is correspondingly low. Moreover, there is a fairly low
In the central business district there was a slight decline demand for office space in these districts. Instead of pure
in peak rents, from 18.00 to 17.50 euros per square metre. office locations one generally finds a mixture consisting of
In contrast, the average rent in the central business district skilled trades, car repair shops, petrol stations, beverage
rose, from 13.60 euros to 14.30 euros per square metre. retailers and similar businesses.
One reason was that numerous leases were agreed for
premises in new buildings, although here the prices were looking at these areas in more detail, however, one sees
usually below the peak rate. In addition, premises were that there were large transactions at prices below 8.00 euros
sublet at subsidized prices in buildings that were almost per square metre almost everywhere. In some cases these
new. In the city centre the peak rent remained constant were interim transactions in older premises or premises in
at 14.90 euros per square metre. The average rent fell by which most investments were made by the tenants.
0.30 euros to 11.40 euros per square metre. whereas

15. 14
15
peak and average central BuSineSS diStrict rentS 1995–2010 in €/Sq. m
20.00
19.00
18.00
17.00
16.00
Peak rents
15.00
14.00
13.00
12.00 Average rents
11.00
10.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010
peak and average rentS 2010 in €/Sq. m
20.00
Peak rents
17.50 average rents
15.00
12.50
10.00
7.50
5.00
2.50
0
Central business district City centre Outlying districts to the north Outlying districts to the east Outlying districts to the south
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

16. SlIGHT INCREaSE IN VaCaNT OFFICE SPaCE
as expected, the supply of vacant office space increased by 27,000 square metres over the previous year,
amounting to approximately 480,000 square metres as of 31 december 2010. with the total office space
at about 7.42 million square metres, this corresponds to a vacancy rate of 6.4 percent.
One reason for the increase in 2010 is the fact that some In weilimdorf the vacancy rate fell by 12,900 square metres
33,900 square metres of space were added in the form of in 2010 to 42,300 square metres. However, little further
newly built premises, plus about 8,500 square metres of improvement can be expected because demand in recent
premises that underwent core renovation. another is that years has been relatively low and the supply is much too
space became available in a number of major existing large in relation to the size of the location. In leinfelden-
buildings that had previously been sublet. Echterdingen the vacancy rate increased owing to the
relocation of an IT service provider to a new office
The increase was especially significant in Stuttgart’s central building, which freed the space in its former headquarters.
business district. whereas approximately 51,400 square Beyond this, the vacancy rate in the outlying areas
metres were vacant in 2009, the supply amounted to remained constant.
some 71,600 square metres as of 31 december 2010.
when the Postquartier is completed in 2011, another whereas only 42,400 square metres were completed in
13,500 square metres of office space will be added. In the 2010, the completion volume in 2011 will amount to
city centre there was an increase in free premises as well, about 71,500 square metres of office space. This includes
amounting to about 10,000 square metres. some 25,600 square metres of office space undergoing
core renovation.
vacant office Space aS of 31 decemBer 2010
Stuttgart central business district Bad Can
116,900 sq. m 19,700 s
15% 24 % 9% 4%
Stuttgart city centre weilimdorf
73,100 sq. m 42,300 sq. m

17. 16
17
completion volume in Sq. m
350,000
300,000
250,000 Building completion
Pre-letting
200,000
150,000
100,000
50,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010
nnstatt, wangen etc. degerloch Fasanenhof Möhringen
sq. m 11,700 sq. m 28,200 sq. m 30,100 sq. m
16 % 2% 6% 6% 12 % 6% 100%
leinfelden-Echterdingen Feuerbach, Zuffenhausen Vaihingen
75,100 sq. m 27,200 sq. m 55,700 sq. m
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

18. UPTURN IN THE OFFICE MaRKET THROUGHOUT GERMaNY
in 2008 and 2009, the rental take-up in all german cities was affected by the economic crisis. in 2010,
however, a distinctly positive trend emerged, and in some areas expectations were exceeded.
The marked increases in rental turnover reflected improved decline, but the peak rent here remains stable at 17.50
economic figures for many businesses and the accom- euros per square metre.
panying rise in demand for office space.
In spite of the rise in rental turnover throughout the
In the Big Seven (Berlin, düsseldorf, Frankfurt, Hamburg, country, the supply of office space at the end of 2010
Cologne, Munich, Stuttgart) the total rental turnover increased. That was because many older buildings no
amounted to some 2.74 million square metres, an increase longer found users, which contributed to a significant
of roughly 19 percent over the previous year. Stuttgart gain in vacant office space. another factor affecting
likewise posted a turnover gain of about 14 percent. vacancy was the addition of newly built premises. In
Most of the demand came in the second half of the year. Munich, for example, a number of projects launched in
2007 and 2008 reached completion and were put on the
The peak rents varied widely from city to city. whereas market. Now that the economic forecast is favourable,
Berlin, düsseldorf and Frankfurt showed slight gains, the demand for office space, in particular modern premises,
Munich experienced a drop of 1.00 euro, down to 28.00 can be expected to rise. Thus there will be a decline in
euros per square metre. Stuttgart also registered a slight vacancies in the years ahead.

19. 18
19
compariSon of vacancy rateS in germany in %
20
2006
15 2007
2008
2009
2010
10
5
0
Frankfurt düsseldorf Cologne Munich Berlin Hamburg Stuttgart
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010
turnover of Space of the “Big Seven” in Sq. m
900,000
800,000
700,000
600,000 Munich
500,000 Frankfurt
Hamburg
400,000 Berlin
Düsseldorf
300,000
200,000 Cologne
Stuttgart
100,000
0
2003 2004 2005 2006 2007 2008 2009 2010
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010
Stuttgart compared to other german citieS
average rent in the central
rental volume in sq. m peak rent in € vacancy rate in %
business district in €
2010 2009 2010 2009 2010 2009 2010 2009
berlin 425,000 420,000 20.50 20.20 14.00 15.00 8.9 8.4
düsseldorf 370,000 232,000 23.50 22.50 16.50 16.50 11.5 10.3
frankfurt a. m. 500,000 360,000 35.60 35.00 22.00 22.00 15.1 14.3
Hamburg 440,000 387,000 23.00 24.00 13.50 13.50 9.8 7.5
cologne 220,000 200,000 20.00 21.00 11.25 12.50 8.9 8.3
munich 590,000 530,000 29.00 13.00 14.20 13.90 8.2 8.1
stuttgart 194,000 171,000 17.50 18.00 14.30 13.60 6.5 6.5
Source: Research BaNKHaUS EllwaNGER & GEIGER KG ©, figures as of 31 december 2010

20. CENTRal STUTTGaRT: BIG POTENTIal FOR NEw GROwTH
in 2010, the rental volume in the central business district, that is, the area within the city ring and the
surrounding parts of the city centre amounted to some 99,400 square metres. this represents a
decline of 22,600 square metres, or roughly 23 percent, from the previous year.
33 percent of this rented space, or about 32,800 square whereas about 58 percent of the premises in the central
metres, was in the central business district. This figure is business district were let for less than 14.00 euros per
similar to that for 2005, when turnover was comparatively square metre in 2009, the figure was only 37 percent in
low. Thus the forecasts made in past years of a steady 2010, an encouraging development. In the price segment
decline in rental figures owing to a lack of new buildings between 14.01 and 16.00 euros per square metre, the
have been confirmed. Recently, however, a number of proportional share rose from 29 percent in 2009 to 48 per-
new projects have been launched to fill the need for cent in 2010. In 2010, 14 percent of all leases were signed
large, contiguous premises. In addition, since 2010 about for 16.01 euros per square metre and above, roughly the
15,000 square metres of sub-let space in almost-new same as the previous year’s figure of 12 percent.
premises have been on the market. In contrast, the
surrounding parts of the city centre showed the second In the city centre 92 percent of the premises were let for
highest rental take-up of the last ten years: 66,600 square less than 14.00 euros per square metre, as compared to
metres. This demonstrates that many businesses think it 83 percent the previous year. The segment up to 500
is important to have a central location. square metres accounted for 28 percent of leases, an
increase of 10 percent. 53 percent of leases were in the
67 percent of all new leases in central Stuttgart were for segment up to 1,000 square metres. This was an increase
premises in the city centre. In the central business district of 20 percent over 2009.
about 12 percent more leases were signed than in the
previous year, even though the rental volume here was about 15 percent of the premises, corresponding to some
lower. 5,100 square metres, were let at prices above 16.01 euros
per square metre. This is a decline of approximately 38
percent. In 2011, an increase can be expected in this seg-
ment.

21. 20
21
NORTHERN STUTTGaRT: NEw CONCEPTS NEEdEd
feuerbacH/ZuffenHausen Weilimdorf
a transaction for about 22,000 square metres on the xcel weilimdorf also showed surprisingly good results, thanks
BusinessCampus in Zuffenhausen reflects the new confi- to a large rental transaction concluded by an IT/tele-
dence in the automotive engineering and component communications company for about 5,400 square metres
supply industries, which have always been strong here. and another for approximately 2,200 square metres. The
In past years the economic recession led to a significant total rental volume was 66.7 percent of the total turnover,
decline in rental figures in this sector. Thanks in large part which came to about 11,400 square metres.
to the new transaction, the rental take-up is now at a ten-
year high. This is especially gratifying, because the location has been
experiencing a decline in transactions in recent years. The
In addition, a private educational institution has concluded average rental take-up in the past decade was only about
an important lease agreement for 5,000 square metres in 7,800 square metres per year.
the OaSIS II project in Feuerbach. Together, the two
transactions account for about 95 percent of the total The planned relocation of the auditors Ernst & Young to
rental volume. the Stuttgart airport in 2015 will worsen the situation,
however, increasing the vacant office space by 45,000
The other transactions were mostly in the segment up to square metres. as a result, it will be necessary for govern-
500 square metres and at prices of 9.00 euros per square ment authorities and owners to address the problem of
metre and below. Only 18 percent of the leases were the area’s overall structure.
signed at a price between 12.00 and 13.00 euros per
square metre. a total of 10 leases were signed, 6 of which were for
premises below 500 square metres. For 8 leases the price
was less than 9.00 euros per square metre, and for 2 it
was between 9.00 and 10.00 euros per square metre.

22. EaSTERN STUTTGaRT: IN a waITING POSITION
bad cannstatt/Wangen/Hedelfingen In the segment of 500 square metres and less, 9 leases
In the past two years, following the successful marketing were signed for a total of about 2,060 square metres,
of new buildings such as the Cannstatter Carré and the corresponding to about 25 percent of the total rental
Otto Hirsch Center and of large, favourably priced take-up. 38 percent of the premises were in the segment
premises like the Kodak areal in Hedelfingen, eastern between 501 and 1,000 square metres, and 37 percent
Stuttgart has seen a significant decline in rental take-up. were between 1,001 and 2,000 square metres.
In 2010, a volume of only about 8,300 square metres was
achieved. 60 percent of the premises in eastern Stuttgart were let
for less than 8.00 euros per square metre, and roughly
work on the 22-hectare Neckarpark project, a new urban 32 percent were let at prices between 8.00 and 10.00 euros
district comprising apartments, offices and mixed use on per square metre. about 8 percent of the premises were
the site of the former goods station, has been halted. The in the price segment above 10.00 euros per square metre.
city of Stuttgart is now reviewing the financing. Besides This is a clear sign that most of these premises were in
this, no other projects are being planned. New premises older existing buildings.
therefore cannot be expected in eastern Stuttgart in the
near future.

23. 22
23
SOUTHERN STUTTGaRT: POSITIVE dEVElOPMENT CONTINUES
degerlocH leinfelden-ecHterdingen
with its direct access to central Stuttgart and to the B27 In leinfelden-Echterdingen, following a severe decline in
highway, the a8 motorway and the airport, degerloch is 2009, leases were signed in 2010 for a total of 12,800
undoubtedly one of the most attractive locations in the square metres of office space. This was an encouraging
region. In spite of this, the rental figures here have development. There were 31 signings, an increase of 230
declined for two years running. In 2010, the total volume percent. The location generated particular interest among
was 2,100 square metres. IT and telecommunications companies.
The majority of the new leases were in the segment up to Roughly 41 percent of the rented premises were in the
500 square metres, and 2 were for premises between segment up to 500 square metres. The segment between
501 and 1,000 square metres. The transactions were 501 and 1,000 square metres accounted for 27 percent of
equally divided between the Tränke area and the area the leases. In addition, there was one contract for 4,000
surrounding albplatz. square metres, signed by a consulting company.
35 percent of the premises were let for prices below 12.00 63 percent of the premises were let for less than 9.00 euros
euros per square metre, 65 percent were in the segment per square metre. 25 percent were in the segment between
between 12.00 and 13.00 euros per square metre. 9.01 and 10.00 euros per square metre. For approximately
11 percent of the premises the price was between 11.00
The only new building project currently being marketed and 12.00 euros per square metre.
in degerloch is wilhelmshöhe. Completion is planned for
the first quarter of 2011. Tenants have already been found
for 65 percent of the new premises. Further projects are
not expected.

24. fasanenHof 35 percent of the rented premises were in the segment
In early december 2010, Fasanenhof was connected to below 500 square metres or between 501 and 1,000 square
the urban railway, allowing Stuttgart’s main railway station metres. 19 percent were between 1,001 and 4,000 square
to be reached in 26 minutes. This considerably added to metres. There was 1 lease with an IT service provider
the location’s attractiveness. a significant revival of the between 4,001 and 5,000 square metres and another with
market was detectable already during that year. Turnover a user in the same sector for more than 5,001 square metres.
of space rose from 2,300 square metres in 2009 to 5,300
square metres in 2010. For 68 percent of the rented premises the price was
between 10.00 and 12.00 euros per square metre, and
30 percent of the rented premises was in the segment up for 25 percent the price was between 12.00 and 13.00
to 500 square metres. In the segment between 1,001 and euros per square metre.
2,000 square metres and between 2,001 and 3,000 square
metres there was 1 lease for an energy company and 1 for The STEP 8.2 office project, like its predecessor STEP 8.1,
an insurance company. 90 percent of all leases were in the was fully let before construction was finished. Completion
range from 9.00 to 10.00 euros per square metre. is scheduled for the first quarter of 2011. These projects
have been so successful that planning has already begun
For alphaHaus Stuttgart, the former headquarters of for STEP 8.3.
debitel aG, a renovation concept has now been decided on.
These premises, which cover about 12,000 square metres, The former IBM complex has been significantly improved
will thus soon be available for a new user. The Business through a renewal of the grounds and the ensemble itself.
Park is likewise being refurbished to meet modern office It is now called Carré 5. The attractive buildings, located
requirements. The entire ensemble is to be redeveloped on some 40,000 square metres of campus-like terrain, are
by architects and engineers. ready to be let. an IT service provider has already signed
a contract for some 4,900 square metres.
vaiHingen/möHringen and step
The Vaihingen/Möhringen area, and especially STEP, a number of other projects are also under way in Vaihingen/
which celebrated its tenth anniversary in 2010, continues Möhringen. Planning rights have already been secured,
to be one of the most sought-after office locations in and construction can begin as soon as sufficient advance
southern Stuttgart. The total rental volume in 2010 was rental agreements are in place.
26,200 square metres, about 30 percent more than in
2009. STEP accounted for 61 percent of the newly rented
space.

25. 24
25
Turnover of office space in 2010
< 10,000 sq. m
10,000 – 20,000 sq.m
20,000 – 30,000 sq.m
30,000 – 40,000 sq.m
> 40,000 sq. m
Industrial/office locations
OVERVIEw OF THE STUTTGaRT OFFICE MaRKET
a 81
towards Heilbronn
a 81
towards singen
Northen
Stuttgart
Central Eastern
Stuttgart Stuttgart
Western Stuttgart
Southern Stuttgart
a 8 towards
Karlsruhe
motorway
intersection
stuttgart
a 81
a 8 towards
munich

27. 26
27
UPSURGE IN STUTTGaRT’S OFFICE MaRKET
in 2010, 301 leases were concluded in Stuttgart’s office market, 45 more than in the previous year.
the total rented space, 194,000 square metres, was the highest in the last ten years.
This positive trend can be expected to continue in 2011, increasing demand for modern premises
as there are signs that demand will stay high. we are Moreover, users who are willing to pay high prices for
therefore anticipating an office space turnover of approxi- premises are putting increasingly higher demands on the
mately 200,000 square metres. quality of buildings and locations. a modern energy
standard like a lEEd or dGNB certification, for example,
peaK rents on tHe rise is becoming more and more important in leasing deci-
In the past year no uniform trend could be discerned in sions, as are the efficient use of space and a prestigious
Stuttgart’s price structure and in the size of premises. atmosphere. Correspondingly, older existing buildings
that have been renovated in a superficial manner, like be-
In the light of the figures for other major cities, Stuttgart’s ing given a new colour scheme, are very hard to position
peak rent of 17.50 euros per square metre is favourable. on the market. as always, high service charges and ineffi-
It is still possible here to find office space of like-new cient use of space make continuous rent reductions nec-
quality at good terms. However, rising property prices and essary in order to maintain a building’s competitiveness.
a short supply of vacant space are making it increasingly
difficult for project developers to implement new con- In conclusion, it can be said with confidence that rising
struction projects at low cost. Thus the peak rent can be requirements will create a continued strong demand on
expected to rise in the medium term. Stuttgart’s market for office space of high quality.

28. YOUR CONTaCTS
ellwanger & geiger privatbankiers is the ideal partner for marketing your office properties. our
many years of experience and unique range of services enable us to move the market and proactively
identify trends. for us, having a sixth sense isn’t a supernatural ability but simply part of the service we
offer you. our team in Stuttgart is looking forward to your call or visit.
contact us: phone +49 (0) 711 21 48 297 or fax +49 (0) 711 21 48 290.
on the internet: www.privatbank.de · www.bueroflaeche-stuttgart.de
Ulrich Nestel Sebastian degen Helga Schöner
Head of Office letting and Consultant Office letting Market Research and Office letting
Retail Projects, Stuttgart Phone +49 (0) 711 2148 166 Phone +49 (0) 711 2148 269
Phone +49 (0) 711 2148 291 Sebastian.degen@privatbank.de Helga.Schoener@privatbank.de
Ulrich.Nestel@privatbank.de
DISCLAIMER:
although this study has been prepared
with all due care, EllwaNGER & GEIGER
Privatbankiers accepts no liability for the
correctness of the assessments presented.
we are sure that you will understand this.
illustrations:
Manfred Storck: Pages 2, 3
Matthias Hägele alice disam
Consultant Office letting assistant Office letting
Phone +49 (0) 711 2148 292 Phone +49 (0) 711 2148 297
Matthias.Haegele@privatbank.de alice.disam@privatbank.de

29. 28
29
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