Real Estate Solutions. Luxembourg 2017

Transcription

1 Real Estate Solutions Luxembourg 2017

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3 INOWAI A team 3 The leading ambition of the INOWAI team: proposing quality services that perfectly align with your expectations and needs. Thanks to our knowledge of the Luxembourg market, our skills and our commitment to the missions entrusted to us, INOWAI is a major player in corporate real estate in the Grand Duchy of Luxembourg. We are proud of this position, and each day, we work to maintain it. Targeting excellence requires an unceasing improvement of our skills in order to provide you with highend services. The professionalism, know-how and involvement of our employees will provide you with tailor-made solutions.

4 INOWAI The structure 1999 Creation of Property Partners Creation of the residential branch Office Agency Residential 2012 Opening of the subsidiary in France Retail & Industrial Agency Capital Markets Valuation Property Management 2014 Property Partners changes its name and becomes INOWAI HR, Finance & Governance Marketing 2018 A team of 50 professionals passionate about real estate

5 Office Agency Distribution of available surfaces per district Strassen 3.9% Cloche d Or 15.2% Other periphery 3.7% 5 5 collaborators An exclusive team dedicated to office markets Kirchberg 14.4% Belair / Merl 3.4% Belval 10.9% Howald 2.7% 25% of market shares (by number of deals) 274 properties in our portfolio 46 deals each year 90 mandates 1 Leader in Luxembourg 426,716 square meters available 1 deal each week 12% to sell 88% to rent ventilation of surfaces Contern 8.5% Capellen 2.2% Hamm 7.0% Airport 1.9% CBD 6.7% Munsbach 1.5% Leudelange 6.4% Limpertsberg 1.0% Station 5.5% Windhof 0.5% Bourmicht 4.1% Other cities 0.5% from 10 m² to 25,000 m² size of the buildings in gross floor area

6 Capital Markets Market shares In the past 10 years, INOWAI has completed close to 100 operations for a total amount of 4 Clients type Number of INVEST transactions ( ) 2,3 billion. Namely 9 yearly projects, for the amount of 215 million. 6 collaborators Private and family offices 12% INOWAI transactions 98 Total transactions 343 Over 15 years of experience on the market Institutional 64% Volume of INVEST transactions ( ) Type of investments handled by INOWAI Developers 24% Over 600 investor clients 60% EU 40% NON-EU TOP 4 historical transactions INOWAI transactions 2,345,000,000 Total transactions 11,063,000,000 Transactions per investment type (Volume 2017) Market shares Standing investments 62% Development 31% Refurbishment 5% Owner-occupied 2% Operational in all types of assets (Office, commercial, industrial, residential, lands) SQUARE 50,000 m2 350 million PRÉSIDENT 30,000 m2 215 million INOWAI 25% CBRE 19% JLL 17% Direct 17% Other 13% n/c 9% Pipeline INOWAI deals with a transaction volume in marketing costs that represents close to 1 billion. International clients: over 20 different nationalities VERTIGO 21,000 m2 145 million K2 21,000 m2 140 million Mandates INOWAI commercialises 8 exclusive and co-exclusive mandates, representing close to 110,000 m2 for an amount of over 620 million.

7 7 Market Report 2017 Office & Capital Markets Luxembourg

8 M A R K E T R E P O R T Quick read The office real estate market in 2017 was characterised by unparalleled impetus: 8 200,000 m2 treshold achieved for the 4th consecutive year The vacancy rate goes under 5% The number of transactions increased by 22%

9 OFFICES Key figures Take-up in square meters 209,273 Average surface in square meters 788 Vacancy rate 4.97% Median surface in square meters 291 Transactions 286 Total stock in square meters 3,927,155 Supply in square meters 75,310 Transactions > 1,000 m² 37 Three significant transactions in 2017 In 2017, two of the three most important transactions in terms of square meters were managed by INOWAI: Amazon and the European Investment Bank. Area Occupant m2 Station Post 18,000 Kirchberg Amazon 14,486 Kirchberg European Investment Bank 13,804

10 M A R K E T R E P O R T Distribution of office inventory Kirchberg, CBD, Station and the Cloche d Or district house 70% of the stock. The stock, generally, remains stable. Belval confirms its position as the first peripheral district. 10 WINDHOF 1% CAPELLEN 2% Arlon, Brussels (Belgium) LIMPERTSBERG 2% STRASSEN 2% BOURMICHT 2% BELAIR 2% CBD 21% CLOCHE D OR 11% Pétange Luxembourg LEUDELANGE 2% Dudelange BELVAL 5% Esch-sur-Alzette

11 Mersch, Ettelbruck 11 MUNSBACH 2% Wasserbillig, Trier (Germany) KIRCHBERG 27% FINDEL AIRPORT 4% KALCHESBRÜCK 1% HAMM 1% CONTERN 1% STATION 11% HOWALD 2% CITY (CENTRE) CITY (OTHERS) CITY (PERIPHERY) PERIPHERY Thionville, Metz, Nancy, Paris (France)

12 M A R K E T R E P O R T Take up The average suface area regressed in comparison with previous years, currently at 788 m2. This confirms the decreasing trend in take up Average surface area 788 m² ,000 1,001 1,500 1,501 2,000 2,001 2,500 2,501 3,000 3,001 or...

13 O F F I C E S Vacancy rate The vacancy rate has decreased to 5% for the first time since Take up ( 1,000) Vacancy rate (%)

14 M A R K E T R E P O R T Stock & vacancy rate A market is considered stable when the vacancy rate is set at 7 %. 14 Stock m2 Stock % Vacancy m2 Vacancy rate CITY 3,026, % 101, % CITY (PERIPHERY) 476, % 49, % PERIPHERY 424, % 44, % TOTAL 3,927, , %

15 OFFICES Stock evolution In 2018, stock will increase to 4,000,000 m2, depending on the supply plannings. 15 4,000 3,823 3,927 3,783 3,622 3,500 3,325 3,406 3,483 3,170 3,225 3,000 2,912 2,770 2,600 2,500 2,409 2,502 2,212 2,000 1,500 1,

16 M A R K E T R E P O R T Prime rents / m² / month (excl. VAT) CBD district continues to distance itself from other areas with a prime rent of 50. This trend will continue in LIMPERTSBERG STATION KIRCHBERG STRASSEN CLOCHE D OR BELAIR 26 CONTERN WINDHOF BELVAL HAMM MERL AIRPORT MUNSBACH CBD KALCHESBRÜCK BERTRANGE CAPELLEN BOURMICHT HOWALD LEUDELANGE

17 C A P I T A L M A R K E T S Key figures 17 Investment transactions 1,386.5 MILLION of which 1,130.7 million euros in standing investments Number of transactions 54 Prime yield City 4.5% 2016: 4.35% Prime yield Periphery 6.5% 2016: 7% Three significant transactions in 2017 Two of the three important transactions of 2017 were managed by INOWAI (Lighthouse 1, Infinity). Area Tenant m2 Cloche d Or Vertigo 24,300 Kirchberg Lighthouse 1 13,800 Kirchberg Infinity 13,300

18 M A R K E T R E P O R T Investment volume evolution 2017 represents the best year since We will exceed the threshold of 1 billion euros in 2018 (subject to exterior factors). Billion euros 3, ,761 2,500 2,000 1,500 1,352 1,387 1,261 1,198 1,085 1,

19 C A P I T A L M A R K E T S Prime yield evolution The periphery has decreased from 7 % to 6.5 %. Will we decrease to 4 % in the city in 2018? 19 % 7.25 City Periphery

20 Glossary 20 Availability Total floor space in properties marketed as available to let, whether physically vacant or ready for occupation immediate. Net initial yield Ratio between the net income (excluding taxes and charges) from a property and the acquisition cost (price of the building plus fees and transfer duties). New supply Total amount of floor space that has reached practical completion as known on the last day of the quarter regardless of whether the space is occupied or still available on the market. Pipeline Total amount of space to be built (with planning permission), under construction or major refurbishment with area changes. Prime rent Highest value recorded for an office unit of high quality in the best location during a determined period (after elimination of abnormal statistical values). Expressed in euros/m2/per month excluding taxes and charges. Stock Sum of completed office properties whether occupied or still available. Take-up Total office space let or pre-let to tenants as well as sold/presold. Vacancy rate Total amount of vacant space offered for letting divided by the total stock of space and expressed as a percentage. Capitalisation rate Ratio between potential income from a property and the property s purchase price.

21 Contacts 21 The experts at INOWAI analyse key figures of the real estate market for you. Want more information or a detailed study? Contact our experts: JULIEN PILLOT HEAD OF OFFICE AGENCY jpillot@inowai.com MARC BAERTZ PARTNER & HEAD OF VALUATION mbaertz@inowai.com

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23 Retail & Industrial Agency Our profession Advise the owners collaborators by number in rented in Luxembourg of transactions square meters 2 Typology of transactions Prospect for the retailers collaborators in France 43 retail transactions 5 retail renegotiations 4 industrial transactions 43 transactions + 5 renegotiations Executed in a commercial centre 71% Retail park 6% City centre 8% Periphery 15% 22,000 m² of commercialised surfaces Accompany retailers in their development and arbitration Assist the developers Explore new concepts and follow market trends

24 Residential Typology of sold properties 800 0% collaborators number of unpaid debts principal batches Location sales ratio Transactions ( ) 97% Transactions ( ) 2 rooms 39% 1 room 36% Studio 15% 3 rooms 8% 4 rooms 2% 60% renewal mandate rate 35 ± 120 rate of sales on number of number of managed existing properties apartmens buildings rental assets Out of the city 19% Luxembourg City 81% 170 deals achieved per year ± 350 number of properties in the portfolio 129,000,000 total amount of properties sold (excl. VAT) 2,251,000 total amount of charges received by property managers

25 Property Management Typology of the owners collaborators Luxembourg s leading team Private investors 31% Funds 69% Luxembourgish 23% Belgian 21% American 17% German 6% Others 2% 420,000 m² of managed surfaces (excl. grounds, car parks, archives) 41 owners 73 buildings Typology of managed assets 420,000 m2 Offices 79% Shops 9% Archives 6% Logisitics 6% from 500 m² to 50,000 m² managed gross area + 8,500 car parks 385 tenants 25,000,000 Total count of accrued common charges

26 Valuation 3 collaborators Luxembourg Germany France Belgium England Native countries of applicants 26 Number of evaluations % 114 Typology of evaluations 2016 Volume 1,620, % 2017 Volume 3,540,000 Office 42% Residential 20% Mixed 16% Industrial 11% Retail 11% Office 44% Industrial 19% Residential 16% Mixed 12% Retail 4% Other 5% Location of evaluations Office 54% Mixed 22% Residential 14% Industrial 6% Retail 4% Office 61% Residential 12% Mixed 11% Industrial 10% Retail 4% Other 2% City 65% Periphery 23% City-Periphery 12% City 69% Periphery 21% City-Periphery 10%

27 27 PUBLISHED BY: PRODUCED BY: Contact: Maison Moderne Maison Moderne is used under licence by MM Publishing and Media (Luxembourg) INOWAI Any reproduction or adaptation, either partial or total, is strictly prohibited without the express written authorisation of INOWAI. About INOWAI INOWAI offers a range of quality services, including: marketing and the search for commercial premises & offices, investment consulting, Property Management, Valuation, sustainable development and the preparation of real estate strategies. Contact: Address: rue de Merl L-2146 Luxembourg Phone: +352/ Fax: +352/

28 INOWAI S.A rue de Merl L-2146 Luxembourg Luxembourg T F info@inowai.com INOWAI Residential rue de Merl L-2146 Luxembourg Luxembourg T F residential@inowai.com INOWAI S.A.S. 26, avenue Foch F Metz France T +33 (0)