Vermietungsbilanz 2018
22 January 2019

Union Investment achieves strong letting results in 2018

• New lettings and renewals totalled 854,000 sq m
• More than half of lettings in Germany
• Renewals accounted for approximately 77 per cent

In 2018, Union Investment let or relet a total of 854,00 sq m of commercial real estate space. These results are comparable to last year’s level, when 867,000 sq m of space was let. At 56 per cent, the majority of the lettings related to properties in Germany. Other European locations accounted for 33 per cent, while non-European properties made up 11 per cent of total lettings in 2018. The new lettings and renewals provide the funds with aggregated annual net rent of approximately EUR 201 million.

Volker Noack
“The various regions in our portfolio made differing demands on our asset management units in 2018. Our specialist teams coped extremely well with these challenges and enabled Union Investment’s real estate funds to secure an overall occupancy at 96.6 per cent on lucrative, market-appropriate terms. The strength of the global real estate markets is clearly reflected in our portfolio."

Volker Noack, member of the management board at Union Investment Real Estate GmbH

Renewals dominate in Germany

In Germany, there was a clear focus on renewals with the aim of securing the long-term loyalty of existing tenants on high rents. Out of total lettings of 475,000 sq m, around 73,000 sq m were renewals – a 15 per cent share. The largest new letting was approximately 9,200 sq m of space at Riem Arcaden in Munich to hotel operator Motel One, which moved in following completion of work to extend the property. In addition, 5,300 sq m were let in the DAS ES! shopping centre in Esslingen and 3,200 sq m in a logistics centre in Norderstedt near Hamburg, while 2,200 sq m were let in Hannover to DIY and gardening store operator Bauhaus. Due to the existing high occupancy rate, new lettings mostly involved smaller spaces. The German office portfolio posted record occupancy of 98 per cent.

  • Motel One München Messe
    The new Motel One Munich trade-fair
  • DAS ES! in Esslingen
    DAS ES! in Esslingen
  • Logistikzentrum in Norderstedt
    Logistics Centre in Norderstedt (Hamburg region)

Higher new lettings rates in Europe and America

The proportion of new lettings was significantly higher in the other European markets, at 30 per cent, while non-European markets saw new lettings reach 40 per cent in 2018. In addition to eliminating various occupancy gaps, the new lettings generally provided the opportunity for rent increases in order to further boost the real estate funds’ income.

Results for the European markets outside Germany

In European countries outside Germany, Union Investment let or relet 286,000 sq m, the largest proportion of which was in the Polish market, accounting for 63,000 sq m. Alongside successful lettings of office space, this was chiefly due to the large shopping centres held in Poland by Union Investment. The high level of letting activity in the Benelux countries is also notable, with new lettings and renewals of 55,000 sq m. France follows in third place with lettings of 32,000 sq m, just ahead of Austria on 30,000 sq m. In Austria, the new lettings rate was particularly high, at approximately 50 per cent, with 7,000 sq m being newly let in the Euro Plaza 4 office property alone.

  • Manufaktura Shopping Center
    Manufaktura shopping centre in Lodz (Poland)
  • Der Büroturm FIRST in Rotterdam
    FIRST office tower in Rotterdam
  • Bois-Colombes
    Office property in Bois-Colombes (Paris Region)
  • Euro Plaza 4 in Vienna
    Euro Plaza 4 in Vienna

Letting performance in oversea markets

In the non-European markets, the USA dominated once again due to the size of the portfolio, with new lettings and renewals of 56,000 sq m, followed by Mexico with lettings totalling 28,000 sq m. In the USA, some 34,000 sq m of lettings were recorded in just three properties, namely 140 Broadway in New York, 111 South Wacker, Chicago and Ten 10th Street, Atlanta. Around half of this total related to new lettings. In the Asia-Pacific region, new lettings and renewals of approximately 5,000 sq m in Vision Crest Commercial in Singapore and approximately 3,000 sq m in office property Glass City Harumi were the largest lettings in 2018.

  • USA
    140 Broadway (New York), 111 South Wacker (Chicago) and Ten 10th Street (Atlanta)
  • Paseo de la Reforma 265
    Office tower Paseo de la Reforma 265 in Mexico City
  • Vision Crest Commercial Singapur
    Vision Crest Commercial in Singapur
  • Glass City Harumi Tokio
    Glass City Harumi in Tokyo

Media contact

For Union Investment Real Estate GmbH

Simon Sahm

Communications Manager

+ 49 40 34919 4054