WEAK START TO THE YEAR - TAKE-UP BELOW AVERAGE
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The Leipzig office market has made a weak start to the new year. After the first three months, a take-up of 16,000 sqm was reported. This is 11% below the result for the same quarter of the previous year and, at 30%, well below the ten-year average (23,000 sqm).
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The relatively low cyclical dependency observed in previous quarters compared to the other top locations and the associated increased resilience cannot be observed in the Leipzig office market now. The market, which is typically characterized by many smaller rental agreements, has so far been less lively, particularly in this segment in the first quarter.
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In the distribution of rental agreements by size category, it is noticeable that only the segment of medium-sized space between 2,000 sqm and 5,000 sqm has an above-average market share of 36% (Ø 10 years: 22%) and a take-up of a good 5,700 sqm. The two largest lettings by public administration and Euro Schulen are responsible for this. In absolute terms, however, take-up in the other size categories is also below average.
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The prime rent notes unchanged from the previous year at €21.00 per sqm. The steady upward trend in average rents has continued and rose slightly by 1% to €13.10 per sqm compared to the previous quarter.
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