Rental Rates Rocket as Demand for Offices in Germany Escalates

Posted on 5 August, 2012 by Rachel Mellor

Demand for office space in six key cities in Germany has rocketed, forcing the vacancy rates down and rental prices up, according to research by Savills.

The six cities in question; Berlin, Cologne, Dϋsseldorf, Frankfurt, Hamburg and Munich have seen a rise in rentals, with some recording five and six per cent increases. This is mainly due to the demand for office space in the cities, which has pushed the average vacancy rate down by 1.1 per cent to 9.3 per cent. The highest vacancy fall was in Frankfurt with 14.7 per cent, whilst Berlin’s vacancy rate fell to 5.8 per cent – which is still quite a substantial fall. So is this a sign that Germany’s office market is picking up?

Matthias Pink, Head of Research at Savills in Germany thinks so. He said: “With only a few office completions scheduled for the second half of the year we expect to see a further slight drop in vacancy rates as quality stock is taken up keeping rental levels, and particularly prime rents, stable across the country.”

So far, in the first half of 2012 take-up in the six cities mentioned has totalled around 1.38 million sq. m. of office space, which is down when compared to the same time last year. But Savills expects office take-up to be approximately 2.8 million sq. m. by the end of the year – which would match a ten year average. Not bad considering 2011 had “uncharacteristically high take-up levels in H1.”

Robert Kellershohn, Office Agency Managing Director at Savills in Germany said: “Overall German office markets are in good shape with take-up figures in line with the average of preceding years, vacancies on the decrease and rents stable at a high level.”

Are you a German resident? Does your business rent office space in any of the six cities mentioned? Share your stories with us below.




Leave a Reply


Recent Posts

Dean Clough industrial textile mill in Yorkshire

Historic Mill Conversion takes Dean Clough Regeneration into New Phase

rolls of architectural house plans & tape measure

First International Measurement Standard for Office Buildings Published

Clarence Docks development in Leeds Yorkshire England

Allied London targets Creatives for Leeds Dock “Super-Building”

A vector illustration of Holiday shopping sale scene

Black Friday Bargain Hunters are Treating Themselves

Cute young couple holding shopping bags on a sunny day in the city

JD Sports offloads Bank Fashion Brand

Yellow fork lifter work in big warehouse

Goodman unveils Derby Warehouse Plans

London city rooftop view with urban architectures.

UK Commercial Property is the best performing Asset of the Year says Lloyds

Poundland-plans-expansion-as-Sales-Surge

Poundland plans expansion as Sales Surge

The City of London skyline in a clear summer day

London Delegation targets further Far East Investment

Red Arrows Synchro Pair

Historic BAE Site snapped up by New Partnership

Business-Rates-U-Turn-Welcomed

Business Rates U-Turn Welcomed

Happy customers paying at the hotel with a credit card

Village Urban Resorts portfolio acquired by KSL Capital Partners

Grand-Central-leases-all-Restaurant-Units-10-Months-ahead-of-Opening

Grand Central leases all Restaurant Units 10 Months ahead of Opening

Argos-to-open-first-London-Underground-Store

Argos to open first London Underground Store

Crown-Estate-unveils-Silverlink-expansion

Crown Estate unveils Silverlink expansion

Land-Securities-confirms-127000-sq-ft-of-Retail-Lettings

Land Securities confirms 127,000 sq ft of Retail Lettings