Office market Hamburg

NO LARGE-SIZE LETTINGS IN THE FIRST QUARTER

• The Hamburg office market got off to a comparatively subdued start to the year. At the end of the first quarter, take-up totaled only 81,000 m², which was almost 21% below the previous year's result and 28% below the long-term average. 
• One of the main factors behind the below-average result is the continuing tense overall economic situation, which is causing large users in particular to adopt a more cautious stance regarding strategic letting decisions.
• A look at the distribution of take-up across the individual size categories shows that the low overall result is primarily due to the lack of deals above the      5,000 m² mark. While this segment usually accounts for around a quarter of take-up, it is currently only around 7%. There is only one contract behind this figure; the letting of 5,600 m² by a consultancy firm in the HafenCity submarket. Meanwhile, the letting momentum in the other size segments was largely stable.
• High-quality space in prime locations is and remains in demand, which is underlined by an increase in prime rents in a 12-month comparison. It currently quotes at €36.00/m² (+3% compared to the previous year). The generally more volatile average rent, on the other hand, remains stable, standing at €21.00/m².

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