PRECISION LANDING AT THE START OF 2024: Q1 TAKE-UP AT PREVIOUS YEAR'S LEVEL
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The Düsseldorf office market can report a precision opening to 2024. As in the previous year, take-up in the first quarter totaled 64,000 m². The strong market momentum from the second half of 2023 could not be sustained into the new year, which is why the 10-year average of 88,000 m² was missed by around 27%.
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It is primarily the lack of large-scale contracts that had a dampening effect on the result. Not unusually for the start of the year, there has so far been no contract above the 10,000 m² mark. In contrast, the low level of contract activity in the 5,001 to 10,000 m² size segment is much more significant, whereby only the letting by Noerr Partnerschaftsgesellschaft (6,000 m²) in the Le Coeur project on Königsallee has been recorded.
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The above-average take-up in the smaller and medium size categories between 201 and 5,000 m² is encouraging and provides a stable foundation for the Düsseldorf office market. Noteworthy in this context is the above-average result in the segment between 2,001 and 5,000 m², which contributed around 21% to take-up in Q1.
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The continued high demand for prime space, which has repeatedly resulted in large-scale premium deals in recent months, has led to a further increase in prime rents, as supply in this quality segment remains very limited. The prime rent is currently quoted at €42.00/m² (+10.5% year-on-year) and the average rent has also risen further to €21.00/m² (+3% year-on-year).