MAJOR LETTINGS REMAIN SCARCE
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With take-up totaling 116,000 sqm, Düsseldorf recorded a better first half-year than in 2023 (95,000 sqm). However, the latest result is once again below the long-term average (175,000 sqm; -34%). As in other top locations, one of the main reasons for the relatively weak performance is the uncertain economic environment. In the current market phase, occupiers are tending to hold back with decisions on larger lettings.
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In the first half of the year, the market was unable to benefit from contracts for over 10,000 sqm. However, at least two larger lettings of over 5,000 sqm have already been registered: Bau- und Liegenschaftsbetrieb NRW rented 6,900 sqm of space in the Kennedydamm office submarket and Noerr Partnerschaftsgesellschaft signed a letting agreement for 6,000 sqm for a property in Düsseldorf’s prime location Königsallee.
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Compared to the larger lettings, market activity was slower in the mid-sized and especially the smaller segment. The broadly defined space category of up to 5,000 sqm accounted for around 89% (10-year average: 75%) of total take-up. At an above-average 49% (10-year average: 40%), almost half of the volume is attributable to smaller lettings in the segment of up to 1,000 sqm.
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Over the past three months, prime rents in Düsseldorf have stabilized at the current level of €42.00 per sqm. Compared to the previous year, however, there was an increase of almost 11%. It is achieved for high-quality office space in prime city center locations.