Of­fice mar­kets in Ger­man cities con­tinue to grow

Financial Mirror (Cyprus) - - FRONT PAGE -

In its July 16 is­sue, the Im­mo­bilien Zeitung re­ported about the per­sis­tently high de­mand on the of­fice mar­kets of the lead­ing Ger­man cities. Ber­lin’s of­fice mar­ket, for in­stance, ended the first se­mes­ter of 2015 with a record turnover of 337,000 sqm, an in­crease by well over 20%, as the pa­per re­ported on the ba­sis of fig­ures from ma­jor es­tate agen­cies.

At the mo­ment, the ma­jor­ity of mar­ket an­a­lysts put the prime rent in Ber­lin at 23.00 eu­ros/sqm, which is 0.50 eu­ros/sqm more than was reg­is­tered dur­ing the pri­o­ryear pe­riod. Since 2014, the av­er­age rent rose by 4% to 13.23 eu­ros/sqm ac­cord­ing to Catella Prop­erty, and to 13.75 eu­ros/sqm ac­cord­ing to Col­liers.

The of­fice mar­ket in Düs­sel­dorf achieved the finest mid-year re­sult in five years due to sev­eral ma­jor lease sign­ings in H1 2015. Depend­ing on what es­tate agency you ask, the re­ported take-up ranged from 166,805 sqm (Catella) to 208,000 sqm (Aengevelt). Then again, the av­er­age rents re­port­edly dropped by 10% to 13.30 eu­ros/sqm dur­ing H1 2015, ac­cord­ing to Sav­ills. The drop is ex­plained by many ma­jor con­tract sign­ings in pe­riph­eral of­fice mar­kets, as Pana­jo­tis As­pi­o­tis of Sav­ills was quoted as say­ing.

Cal­cu­la­tions by CBRE sug­gest that there are 300,000 sqm of of­fice ac­com­mo­da­tion on the mar­ket in Mu­nich. How­ever, there are vir­tu­ally no voids in down­town ar­eas in­side the ring road (Mit­tlerer Ring), nor are there any ma­jor de­vel­op­ments in the near-term pipeline. The Mu­nich branch of Col­liers de­ter­mined that no more than 90,000 sqm will come on-stream in in­ner city lo­ca­tions be­tween now and 2017.

In Frank­furt am Main, 323 new leases signed dur­ing H1 2015 added up to a to­tal take-up of 180,000 sqm, which rep­re­sents the mean be­tween the to­tal quoted by sev­eral es­tate agen­cies. Roughly three out of four con­tracts were signed for units of less than 5,000 sqm, ac­cord­ing to BNP Paribas Real Es­tate (BNPPRE). The prime rent was any­where be­tween 35.50 eu­ros/sqm (JLL) and 39.00 eu­ros/sqm (CBRE). The rent av­er­age climbed by one euro/sqm, and now equals be­tween 18.50 eu­ros/sqm (Sav­ills) and 20.00 eu­ros/sqm (Col­liers).

The mid-year turnover in Ham­burg to­talled 1.95 bln eu­ros ac­cord­ing to stats re­leased by JLL, which would ex­ceed the five-year mean by 94% and the ten-year mean by 75%. Fig­ures quoted by G&B sug­gest that 45% of the turnover rep­re­sented pack­age deals. (Source: Ger­man Real Es­tate News, info@zitel­mann.com)

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