Office asking rents in Germany’s main regional cities rose in 2014 faster than in the country’s seven largest cities, driven by tenant demand for affordable and prime space, research by Corpus Sireo reveals.
Office asking rents in Germany’s main regional cities rose in 2014 faster than in the country’s seven largest cities, driven by tenant demand for affordable and prime space, research by Corpus Sireo reveals.
Corpus Sireo is the largest real estate asset manager for third parties in Germany.
The research report, compiled with and research firm empirica, shows average monthly asking rents in Germany’s 14 key regional cities, such as Dresden, rose 3% last year to €8.10 per m2. That outpaced the 1.8% growth in average monthly asking rents to €16.00/m2 registered in the so-called 'Big Seven' office markets of Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart.
Franz Krewel, managing director of Corpus Sireo Asset Management Commercial, said: 'This report pinpoints why investors and many of our clients find these smaller and less glamorous key regional office markets in Germany so attractive. Properties in these cities generate higher yielding cashflows than assets in the Big 7 markets while offering prospects of less volatile and solid rental growth.'
Obtain the full report at www.corpussireo.com
German regional cities will be one of the themes in our review of Q1 investment activity which appears in the May edition of PropertyEU Magazine.
