TAKE-UP WELL BELOW PREVIOUS YEAR'S LEVEL
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Although the market momentum in Essen has increased from quarter to quarter over the course of 2024, the result achieved by the end of September is disappointing. At around 62,000 m², office space take-up in Essen is significantly below the comparable result for the previous year (-30%) and is also around 26% below the long-term average.
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This is primarily due to the fact that only two major deals of 5,000 m² or more have been registered to date. Telus International is taking almost 11,000 m² in the Südviertel and the City of Essen will use around 7,000 m² of office space for the municipal vehicle registration office. In smaller markets in particular, the lack of these agreements very quickly results in noticeably lower take-up. More than two thirds of take-up is currently based on smaller and medium-sized lettings of up to 5,000 m².
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The strongest submarket in terms of take-up is currently the Südviertel, which accounts for around 23,000 m² or a good 37% of the volume to date. The secondary locations also make a notable contribution of a good 18,000 m² (29% share).
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There is little movement in the rent development. The prime rent for space with modern fit-out quality in the city center moved sideways in q3 and currently stands at €18.00/m². The more volatile average rent has fallen slightly over the course of the year and currently stands at €12.60/m² (-1.6% compared to Q3 2023).