Some 273,000 m[sup]2[/sup] office space was let in Frankfurt to the end of September 2009, according to NAI apollo. This is a decrease of 30% compared to the previous year.
Some 273,000 m2 office space was let in Frankfurt to the end of September 2009, according to NAI apollo. This is a decrease of 30% compared to the previous year.
The broker said that 23% of all office spaces rented in the first nine months of 2009 was in units smaller than 1,000 m2. The financial district saw the strongest demand among tenants. With the interim letting to the Commerzbank of 15,000 m2 in the property 'Pollux' there was only one major letting over 10,000 m2 in the third quarter. This contract conclusion in the current year after the transaction with the Deutsche Bahn (72,000 m2) in the first quarter is only the second letting of space over 10,000 m2.
'As already predicted for 2009, we assume that the total letting in the entire year 2009 will lie considerably under 400,000 m2', said Martin Angersbach, head of Office Letting, NAI apollo. 'Should it not be possible to conclude another important contract in 2009 only approx. 340,000 m2 office space will be let in Frankfurt by the end of the year." The demand for rentable areas has stabilised, whereas there are still uncertainties regarding the future economic development of events.'
'We have observed, that a lot of tenants were able to prolong the lease contracts in their present buildings with better conditions after exploring the market intensively as potential new tenant', Angersbach said. The prime rent (EUR 39/m2 for a prime property, otherwise EUR 34/m2) as well as the average rent (EUR 16/m2) lie considerably under the level of the previous year (EUR 42/m2 and EUR 21.50/m2). The downward trend however has slowed down and the rental prices remain almost unchanged compared to the first half of 2009.
