The commercial property
Website

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

Pension-Fund-buys-Shabby-Chorlton-Precinct

Pension Fund buys “Shabby” Chorlton Shopping Precinct

Starbucks-to-establish-European-Headquarters-in-UK

Starbucks to establish European Headquarters in UK

Tesco-Annual-Profits-fall-by-six-per-cent

Tesco Annual Profits fall by Six Per Cent

Victorias-Secret-Fashion-Show-to-Hit-London-for-First-Time

Victoria’s Secret Fashion Show to Hit London for First Time

Westminster-Councillors-approve-plans-for-Selfridges-Overhaul

Westminster Councillors approve plans for Selfridges Overhaul

Fashion-Sales-boost-Retail-Performance-in-March

Fashion Sales boost Retail Performance in March

Property-Developer-settles-Leeds-Council-Debt-toavert-Bankruptcy

Property Developer settles Leeds Council Debt to avert Bankruptcy

Expansion-Plans-Revealed-for-Inverness-Shopping-Centre

Expansion Plans Revealed for Inverness Shopping Centre

Growth-in-UK-Commercial-Property-Values-continues-in-March

Growth in UK Commercial Property Values continues in March

Debenhams-Profits-fall-by-25-Per-Cent

Debenhams Profits fall by 25 Per Cent

Historic-Coronation-Street-Studio-to-become-Creative-Media-Hub

Historic Coronation Street Studio to become Creative Media Hub

New-Type-of-Lender-enters-the-Commercial-Property-Market

New Type of Lender enters the Commercial Property Market

Death-Threats-force-Lagan-to-pull-out-of-Aventas-Deal

“Death Threats” force Lagan to pull out of Aventas Deal

Consumers-buying-Discount-to-save-for-Luxury-Goods

Consumers buying Discount to save for Luxury Items

Sanpower-purchases-controlling-share-in-House-of-Fraser

Sanpower purchases Controlling Share in House of Fraser

Administrators-put-Spinningfields-Office-Blocks-on-the-Market

Administrators put Spinningfields Office Blocks on the Market