Office market Germany

STABLE TAKE-UP DESPITE DIFFICULT ENVIRONMENT; LARGE CONTRACTS MADE THE DIFFERENCE

• Despite the ongoing macro-economic situation, the German office markets recorded take-up of 609,000 m² in Q1 2024, almost matching the previous year's level. However, as expected, take-up in the eight major markets of Berlin, Cologne, Düsseldorf, Essen, Frankfurt, Hamburg, Leipzig and Munich remained significantly below the 10-year average (-22%). The pace of contract signings varied greatly in the individual cities at the beginning of the year.
• With a take-up of 146,000 m², Berlin once again ranks at the top of the German office locations. The capital thus recorded a market dynamic comparable to that of the same period last year, although the result was again below the 10-year average (-20%). The main drivers of take-up were major contracts above 5,000 m² (51 % share). At 140,000 m², take-up in Munich was also almost a fifth below the long-term average (-21%). In Frankfurt two large-scale lettings provided a positive momentum, including the approximately 37,000 m² signed by the European Central Bank (ECB). They were the main factor behind the increase in take-up volume to 119,000 m² (+28% compared to the previous year).
• The importance of large lettings above the 10,000 m² mark or their absence in the current market environment is particularly evident in the example of Hamburg. The city of Hamburg ranks in fourth place by a considerable distance with a take-up of only 81,000 m².

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