TAKE-UP TOUCHING AT THE 400,000 SQM MARK, MODERN TAKE-UP WITH 80 % MARKET SHARE
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The office market in Frankfurt recorded moderate letting momentum overall in 2024, but without reaching the level of the ten-year average (-25%). Given that some of the results in the long-term analysis were achieved under much better economic conditions, however, the current results can be considered favorable overall. All in all, the Frankfurt office market roughly confirmed the previous year's result (+1% compared to 2023) with take-up of around 398,000 sqm (gif market area: 335,000 sqm).
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The increase in the number of large contracts signed in the second half of the year is a positive sign for the upcoming quarters: in total, five of the eight large-volume contracts over 5,000 sqm were signed in the last two quarters. Even if the recovery is progressing much more slowly than was expected at the beginning of 2024, this can be interpreted as an initial sign that companies are becoming more confident in a positive economic development in 2025 and that postponed letting decisions are being made promptly.
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In addition, the distribution of take-up reflects the increasing location sensitivity on the occupier side in favor of central or well-connected office locations in Frankfurt. Accordingly, the city centre and centre fringe zones account for 56% of the overall result. The role of modern office space is confirmed even more impressively by the data: Overall, those account for a considerable market share of around 80%.
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The high demand, especially for premium office spaces and ESG-compliant fit-out, is reflected in the stable high level of the prime rent (€49.00 per sqm). However, there have already been a few transactions above the €50 per sqm mark. The average rent stood at €23.60 per sqm at the end of the year.