TAKE-UP 13% ABOVE PRIOR YEAR'S LEVEL, 10-YEAR AVERAGE BARELY MISSED
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The upward trend in take-up seen in q1 continued at a slightly slower pace in q2, despite the lack of major deals. Take-up in the entire Frankfurt market area amounted to 215,000 sqm by mid-2024. The more narrowly defined gif area recorded take-up of 178,000 sqm. Compared to H1 2023, the entire Frankfurt office market recorded an increase of 13%. It also achieved a respectable result in a long-term comparison. The latest volume is only approx. 4% below the ten-year average. In a nationwide comparison, this result places Frankfurt in third position behind Munich (293,000 sqm) and Berlin (281,000 sqm).
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This positive result continues to be driven primarily by the segment of small and medium-sized transactions of up to 5,000 sqm, where demand was very brisk. A good 72% of take-up was recorded here. In the size category between 2,000 and 5,000 sqm in particular, demand was noticeably higher than in previous years. By contrast, in the traditionally important segment over 10,000 sqm, only three lettings were registered so far: the ECB’s deal for almost 37,000 sqm in the banking district, the Sparkasse's own-use purchase of just 10,000 sqm and the Cosnova cosmetics company in Sulzbach for almost 16,000 sqm.
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The high demand, particularly for premium space with modern and ESG-compliant fittings, is reflected in rising rents. In a year-on-year comparison, the prime rent increased by around 2% to €49 per sqm. The traditionally much more volatile average rent rose even more sharply to €25 per sqm, up 5.5% y-o-y.