IWIP-Index

Results 2023

Base year 2012 = 100, quality-adjusted rental development based on a hedonic regression model

Sources: Rental data from IndustrialPort and partner companies, evaluation by the German Economic Institute (IW); CPI = Consumer Price Index, data from the Federal Statistical Office

The Industrial Real Estate Index (IWIP) Methodology

In an era of advancing globalization and increasing integration of financial markets, companies are operating across multiple countries and real estate sub-markets more than ever. Their success increasingly depends on knowledge about the regional specifics of the sub-markets in which they invest. Furthermore, professional investors aim to identify opportunities and risks ahead of an investment. Such effects are best identified using an index. An index represents the full spectrum of the market without gaps, overlaps, and free from any subjective viewpoints.

Industrial Real Estate Index (IWIP)

The IWIP Index, developed by IndustrialPort in collaboration with the German Economic Institute (IW Köln), meets these requirements.

It is used nationwide by professional investors for analyzing investments, measuring rental value development, structuring portfolios, hedging, and creating real estate funds.

Through sub-indexes for storage, logistics, and production properties, further divisible into three equipment classes (simple, functional, modern) and spatially into nine different location suitability classes, the IWIP Index strategy allows clients to monitor the creation of portfolios and single assets in a coherent and consistent manner. This avoids benchmark mismatches and uncompensated risks.

Full Coverage of Rental Consideration in the German Industrial Real Estate Market

The IWIP Index Series – Benefits of the IWIP Index:

• Nationwide Coverage: Based on all approximately 11,000 municipalities, the IWIP Index offers a comprehensive representation of rental price development across Germany.
• Measurement and Attribution of Value Development: Leading index for mandates in Germany with regional, type of use, and equipment class-specific subsets. These are available for targeted investment mandates.
• Research: The research-based indexes and analyses by IndustrialPort help institutional investors build and manage more valuable portfolios.
• Product Development: IndustrialPort develops innovative indexes used by the investment industry.
• Consistent Framework: All IWIP sub-indexes offer a modular approach with a scientific methodology, allowing investors to identify hidden risks, gaps, or overlaps.
• Replicability: Minimum data volume requirements for the individual sub-indexes reflect the size of the investment opportunities and facilitate the replicability of the indexes.

Our Modular Approach — Modern Index Strategy

IndustrialPort’s indexing offers a modern, seamless, and fully integrated approach to measuring the entire rental development, without gaps or overlaps.

Modern: Designed to evaluate individual sub-markets. The IWIP Index and its sub-indexes are based on an innovative calculation method that balances the need for a stable index with flexible and individual evaluation capability.

Seamless: The IWIP Index covers the entire federal territory and all industrial real estate classes. All IndustrialPort sub-indexes are raised using the same calculation method, covering all spatial and building-specific sub-markets with non-overlapping size and age segmentation.

Integrated: Uniform methodology for every market segment. Unlike other providers that either represent a survey-based market sentiment or the complete rental price change, IndustrialPort strictly mathematically determines the value-driving differences of individual equipment features. Equipment-driven effects on rent change are considered separately from market-driven rent increases. IndustrialPort values the traceability of its index and publishes the results of each index survey in the form of expert reports. The investability and replicability of its index are of great relevance to IndustrialPort. Therefore, comparative tests with other real estate indexes are conducted.