LOTS OF DEALS, BUT ONLY MODERATE TAKE-UP: SLOW START TO THE YEAR
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The Berlin office market has started the year 2025 with a moderate first quarterly result: A total of around 103,000 sqm has been taken up after the first three months, which leaves the current result below the previous year's figure and the long-term average.
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Considering that the number of contracts (-13%) has declined to a much lower extent than the take- up (-42%), there has been a complete absence of major lettings in the first quarter. To date, the largest contract is the Federal Environment Agency as an owner-occupier in the southern part of the city. Given that the next largest rental agreements are in the range between 2,000 and 5,000 sqm, in a top market like Berlin with regular deals above the 10,000 sqm mark, it is clear how fragmented the market has become at the beginning of the year. However, it is pleasing to note that take-up of contracts up to 5,000 sqm increased by as much as 37%.
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When looking at the distribution of take-up across the market area, Kreuzberg (17,100 sqm) and Mitte (14,000 sqm) stand out in particular, accounting for around 30% of the total volume due to numerous smaller and medium-sized leases. As a result, the city centre zones remain the sub-market with the highest take-up (63,800 sqm), while the top city is still under-represented with just under 10,000 sqm so far this year.
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Very high-priced lettings were registered again in the first quarter, with premium space in top properties and locations conforming to the ESG now commanding rents of up to €46 per sqm.