NUMBER OF LARGE-SCALE LETTINGS RISING BUT DEMAND REMAINS BELOW PRIOR YEAR'S LEVEL
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The Hamburg office market recorded take-up of 301,000 sqm in the first three quarters of 2024 missing the previous year’s result by a good 6 %. The long-term average also remains out of reach (-18%). After demand gained considerable momentum in Q2, companies were somewhat more cautious again in the third quarter. In a nationwide comparison, Hamburg's result to date places it in fourth position, just behind Frankfurt (307,000 sqm).
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Encouragingly, more large-scale lettings of over 10,000 sqm were recorded overall. This size segment is responsible for around 21% of take-up (+12 percentage points compared to the previous year). Noteworthy are the lettings to the City of Hamburg (Sprinkenhof ISZ) for almost 21,000 sqm on the western centre fringe and the tax authorities for just under 15,000 sqm in Hamburg city centre, as well as the owner-occupier building by Strabag Real Estate (18,000 sqm) in Borgfelde. Letting activity is also lively in the small and medium-sized segment up to 2,000 sqm. This segment accounts for around 58% of total take-up.
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The prime rent has remained stable at €36.00 per sqm since the end of September 2023. It continues to be achieved for high-quality office space in Hamburg city centre. The generally more volatile average rent is listed at € 20.60 per sqm after the first three quarters (-4% compared to the previous year).