The office letting market in Berlin has proven to be more stable than other leading German markets, according to NAI Apollo. So far this year the Berlin branch of the independent real estate consulting group has brokered 9,000 m[sup]2[/sup] of office space letting. About 50% of all mediated rental contracts involved spaces in excess of 1,000 m2, while 20% were between 500 and 1,000 m[sup]2[/sup].
The office letting market in Berlin has proven to be more stable than other leading German markets, according to NAI Apollo. So far this year the Berlin branch of the independent real estate consulting group has brokered 9,000 m2 of office space letting. About 50% of all mediated rental contracts involved spaces in excess of 1,000 m2, while 20% were between 500 and 1,000 m2.
The highest demand was visible in top locations, such as Potsdamer Platz and city locations in the East and West. Locations in the city outskirts also experienced strong demand in 2009. The interested parties were mainly from the public domain, sector organisations and IT companies. About 80% of these deals occurred in Berlin-Mitte, the property adviser said.
Marcus Lehmann, branch manager of NAI Apollo Berlin: 'We assume that the high demand will continue and that the rental prices will mostly remain stable. The heated discussion regarding the development of Berlin from a manufacturing location into a service sector has proven to be a great advantage for the capital city,' says Lehmann. 'In times of crises it is a distinction not to have a risk concentration such as Frankfurt with its financial centre,' says Lehmann. 'As a result Berlin didn't have to juggle with either sub-letting spaces or suffer high reductions of the rental rate.'
