STABILITY AFTER A BRILLIANT START TO THE YEAR
The commercial real estate investment volume in Frankfurt reached about €4.3 billion by the end of September. Although the very strong result from the previous year, which included the largest office transaction ever registered in the German market with the T1 in Project Four (€1.4 billion), is missed by almost 17%, it is still the third best result of the last 10 years. The long-term average was exceeded by around 7%, which is a remarkable achievement against the background of higher financing costs and an economic slowdown. After a brilliant start to the year in the first quarter with an investment volume of €2.5 billion, the market has remained firm. The second quarter figure of €880 million was followed by €905 million in the third quarter. Typically, single investments account for the majority of the investment volume. In the current year, their share so far has been slightly below average at around 75%. The alstria takeover by Brookfield in the first quarter is primarily responsible for the portfolio share of about 25%.