SOLID RESULT AFTER A STRONG THIRD QUARTER
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The Cologne office market has developed very positively over the course of the year and gained noticeably momentum in the third quarter. At the end of the third quarter, take-up totaled 164,000 sqm. Almost 62% of this result (101,000 sqm) was registered in the period between July and the end of September alone. Compared to the previous year, there has been an increase of around 9% in the first three quarters of this year. However, the 10-year average has not yet been reached (-23%).
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The increase in the result compared to the previous year is attributable, to the high proportion of large-scale lettings over 5,000 sqm (41%).The City of Cologne's new owner-occupier building (26,500 sqm) in MesseCity and the owner-occupier contract for 20,100 sqm signed by the Landschaftsverband Rheinland LVR, which both located in the Deutz submarket, are of particular interest. In contrast, significantly fewer contracts were concluded in the mid-range segment between 2,000 and 5,000 sqm, resulting in a decline of a good 13 percentage points to a low 5%. In total, only around 8,500 sqm has been taken up in this segment.
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Cologne's prime rent has remained stable at €33.50 per sqm since the end of 2023 (+1.5% y-o-y). It is achieved in top city locations for well-equipped and high-quality office space.
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While remaining stable in the summer months, the average rent continued its growth trend. It now stands at €18.90 per sqm, which is a good 5% above the previous year's level.