MODERATE HALF-YEAR RESULT, LACK OF MAJOR CONTRACTS NOTICEABLE
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In the first half of 2024, market momentum on the Essen office market was generally subdued. With take-up of 33,000 sqm, the good half-year result from the previous year (70,000 sqm) was missed by almost 53% and the long-term average by around 43%. Encouragingly, the letting momentum picked up significantly in q2 after a very weak start to the year. In the second quarter 24,000 sqm of take-up was generated.
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With only one contract for more than 5,000 sqm, the larger contracts typical of Essen in recent years were almost non-existent in H1 2024, resulting in below-average take-up for large deals. In contrast, the market for medium-sized contracts of between 2,001 and 5,000 sqm was quite lively, and with a market share of just under 22% respectively a take-up volume of a good 7,000 sqm, the result in this segment was well above average. It is worth noting that all contracts above the 2,001 sqm mark were concluded in q2 and that momentum in the small segment between 501 and 1,000 sqm also accelerated in the spring.
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The prime rent has remained unchanged at €18/sqm per sqm since the third quarter of 2023. It is achieved in the city center for office space in good locations with modern fit-out quality. The traditionally more volatile average rent is currently registered at €12.10 per sqm. This corresponds to a slight decline of around 4% compared to the previous year.