Munich and Hamburg carry Germany’s office rental market | 8 April 2013
Quarter 1 2013 has been deemed a ‘comparatively slow start’ for the German office rental market, yet results in some cities have broken five-year old records, property-magazine.eu reports.
Figures released by commercial retail estate firm, Colliers International, revealed that lease take-ups across the country totaled just 499,600 square meters; marking a a year-on-year decrease of 11 per cent.
However, the decrease did not affect all of the office markets. While Berlin, Frankfurt and Stuttgart experienced modest drops, Dusseldorf remained pretty flat. It was in Hamburg and Munich where office space take-up increased dramatically, though, rising by 29 per cent and 19 per cent respectively. These figures are the highest records for the two cities since 2008.
Commenting on the results, Andreas Trumpp, head of research at Colliers, said: “This trend can be attributed to a significant year-on-year increase in large-scale letting of spaces over 5,000 meters squared.
“Another interesting aspect is that the two office markets combined make up more than half the total take-up recorded in the top six locations.”
Demand for office space remains high, according to colliers.de. With transaction volumes reaching €3.2 billion, office space accounted for 45 per cent of all German commercial investment property purchases in the quarter. What’s more, of the two million square meters of new office space which is due to hit the market by 2014, two-thirds has already been pre-let.
The figures emphasis the ongoing decrease in vacancy rates, which reached a ten-year low at the end of 2012. Q1 2013 saw a decrease of 654,300 square meters in available space compared with Q1 2012.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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