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

Portrait of a young woman carrying basket while shopping in the supermarket

High Street discounter 99p Stores enlists Property Firms to help Manage Growth

Unemployment statistics in the newspapers business section

Unemployment falls but Pay Squeeze continues to Restrict Spending

happy young couple with bags in shopping centre mall

Shopping Centre Investment set to kick start Development Boom

Services-Specialist-boosted-by-Property-Revival

Services Specialist boosted by Property Revival

italian ciabatta panini sandwich with chicken and tomato

Greggs adds Sandwiches and Seating to the Menu

Forklift loader with pallet of sacks in distribution warehouse

DTZ launches Industrial and Logistics Portfolio Sale

The Leadenhall-Building-tops-Open-House-London-attractions

The Leadenhall Building tops Open House London attractions

Phones-4u-collapse-prompts-Fears-and-Accusations

Phones 4u collapse prompts Fears and Accusations

Lidls-ambitious-Expansion-Plans-put-Further-Pressure-on-Big-Four

Lidl’s ambitious Expansion Plans put Further Pressure on Big Four

Confident-Small-Businesses-spearhead-Recovery

Confident Small Businesses spearhead Recovery

Triple-Asset-Hotel-and-Leisure-Portfilio-available-for-132-million

Triple Asset Hotel and Leisure Portfolio available for £132 million

Thousands-of-Jobs-at-risk-following-shock-Phones-4u-Administration

Thousands of Jobs at risk following shock Phones 4u Administration

Chancel-Repair-Bills-still-an-issue-for-Property-Owners-warns-Commercial-Agent

Chancel Repair Bills still an issue for Property Owners warns Commercial Agent

Interest-high-as-work-starts-on-Friargate-Scheme

Interest high as work starts on Friargate Scheme

Nairobi-Commercial-Real-Estate-Market-Heating-Up

Nairobi Commercial Real Estate Market Heating Up

Wanda-Commercial-Properties-prepares-to-go-Public-in-Hong-Kong

Wanda Commercial Properties prepares to go Public in Hong Kong