In the first quarter the commercial real estate market records already very brisk transaction activities. With € 885 million last year’s results were exceeded by 22%. “The attractiveness of Munich’s market combined with the extensively present liquidity are the drivers of the intense investment activity.” Tobias Seiler, Research Analyst at Colliers International Munich recapitulates. With a share of 51% of the total turnover, classic office properties were the most demanded assets, followed by commercial land (19%). Logistic and industrial properties account for 17% of the turnover. Due to the decreasing supply of commercial investments in central locations large transactions were also made in good district locations and suburban areas, as the investors extended their focus accordingly in order to find suitable products. Thus, for example, the headquarters of Tech-Data in Sendling and Imtech in Planegg, the latter currently under construction, were sold. In addition several logistic properties located in the northern suburbs changed hands. By now, this year’s largest transaction was carried out in Arnulfpark. The office building ensemble “metris” which is certified with LEED-Gold and comprises approximately 35,000 m² rental space, was sold to an institutional investor.
Open and special funds most active
Open real estate and special funds excel as the most active group of investors (€ 205 million), followed by private investors (€ 190 million) and corporates/owner occupiers (€ 152 million).
Regarding the groups of sellers, open real estate and special funds (€ 318 million) are also leading the field. Project developers come second (€ 214 million) and asset managers follow, by a large margin, having sold commercial real estate totaling € 75 million.
With a share of 14% in the total turnover, foreign investors still were cautious at the beginning of the year. However, an increase in the course of the year can be assumed as numerous international investors again confirmed their interest in the German and especially in the Munich real estate market and respective businesses have been initiated.
Above-average annual result expected
"Last but not least the positive mood during the real estate trade fair MIPIM in Cannes at the beginning of March suggests that Munich’s market may expect to obtain the third above-average year in a row”, Béla Tarcsay sums up the situation. “Some transactions are already shortly before conclusion and the sales processes for a number of properties, partly of large volume, will be initiated within the next weeks and months, so that one can speak of quite a pipeline”. Particularly meant are fully let existing buildings in central or good district locations which will become available on the market. Colliers International Munich expects a total transaction volume of approximately € 3 billion by the end of the year.