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

Manchester-Office-Tower-given-Green-Light-despite-Conservation-Concerns

Manchester Office Tower given Green Light despite Conservation Concerns

Demand-spurs-release-of-latest-Pacific-Quays-Development-Land

Demand spurs release of latest Pacific Quay Development Land

Tamworth-Centurion-Park-Expansion-Approved

Tamworth Centurion Park Expansion Approved

asian businesswoman sitting and thinking in office, looking tired.

Stress and the City: The Priory to open Fenchurch Street Clinic

Amazon-agrees-temporary-Warrington-Lease-as-search-for-Northern-Hub-continues

Amazon agrees temporary Warrington Lease as search for Northern Hub continues

Man holding wooden gavel in the hand

London Alleyway sells for over £250,000 at Auction

boats moored in Torquay marina in Devon

South West heading for Record Year as Capital flows back into the Regions

Heathrow-claims-growing-Public-Support-for-Third-Runway

Heathrow claims growing Public Support for Third Runway

Building crane and building under construction against blue sky

Leeds Enterprise Zone attracts burst of Development Activity

Happy young couple with bags in shopping mall

Redevelopment Plans revealed for Burgess Hill Shopping Centre

Former-Stock-Aitkin-Waterman-Studio-is-a-Hit-with-Law-Firm

Former Stock Aitkin Waterman Studio is a Hit with Law Firm

British-Land-and-Next-agree-Four-Separate-Deals

British Land and Next agree four Separate Deals

Zombie Rising. A hand rising from the ground!

Zombie Protection Upgrade Recommended

Pickles-dismisses-Tesco-Tax-Proposals

Pickles dismisses “Tesco Tax” Proposals

Doctor Discussing Records With Senior Female Patient

Assura tightens hold on Healthcare Sector

Lloyds-Bank-confirms-150-Branch-Closures

Lloyds Bank confirms 150 Branch Closures