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

surveyor with measuring instrument inside building-site

West Midlands Surveyors report Sharp Rise in Commercial Construction

Video camera viewfinder - recording in TV studio - Talking To The Camera

Show goes on as Granada HQ becomes Entertainment Hotel

Shopping time, closeup of teenage girl legs with shopping bags at shopping mall

Community Shopping Centre Specialist Ellandi acquires Bootle Strand

Scottish-Property-Tax-shake-up-could-slow-Construction-and-deter-Investment-experts warn

Scottish Property Tax shake-up could slow Construction and deter Investment experts warn

Canary-Wharf-Group-and-Societe-Generale-agree-1-Bank-Street-Deal

Canary Wharf Group and Societe Generale agree 1 Bank Street Deal

Image of young couple with cart in supermarket

Waitrose Boss claims Supermarket Estates are “20 Years out of Date”

Dark spooky forest with silhouette of a man walking

The Ghosts of Children

Debenhams-plans-Estate-Expansion-despite-Profit-Plunge

Debenhams plans Estate Expansion despite Profit Plunge

two modern high speed train with motion blur

HS2 bosses cite Sheffield Gateway’s impact on Rateable Values

Photograph taken in Felixstowe, Suffolk, England May 2011

Uncertain Future for Hotel with First World War History

Business-Rates-Bounty-could-fund-Northern-Powerhouse-Proposal

Business Rates Bounty could fund ‘Northern Powerhouse’ Proposal

3D plan drawing

Landmark Development planned for Former Yorkshire Post Site

Foggy night castle with a horseman riding

Staffordshire’s Creepy Castles

Painting on wall 3d render. Nice bright clear illustration.

Home Retail Group announces Homebase Closures

Silverstone-to-manage-North-East-Car-Dealership-Expansion

Silverstone to manage North East Car Dealership Expansion

Compass on the map of Republic of Ireland

Lloyds names Shortlisted Bidders for £1.5bn Irish Portfolio