The six largest office markets in Germany recorded a strong first quarter in 2008, according to a new report published on Wednesday by Colliers PropertyPartners. Take-up in Berlin, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart rose by about 6.6% to 698,800 m2, compared to the previous quarter. Munich was the strongest performer with take-up of 231,100 m2, followed by Hamburg and Berlin with 120,000 m[sup]2[/sup] and 105,600 m[sup]2[/sup] respectively.
The six largest office markets in Germany recorded a strong first quarter in 2008, according to a new report published on Wednesday by Colliers PropertyPartners. Take-up in Berlin, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart rose by about 6.6% to 698,800 m2, compared to the previous quarter. Munich was the strongest performer with take-up of 231,100 m2, followed by Hamburg and Berlin with 120,000 m2 and 105,600 m2 respectively.
Colliers PropertyPartners said that Dusseldorf and Munich each recorded the highest rate of increase amounting to about 26% in comparison with the first quarter of 2007. Although Hamburg registered almost 16% less take-up than in the first quarter of 2007, the 120.000 m² of leased space was significantly above the long-standing average.
Obtainable office space, which can be occupied on short notice, fell significantly in some locations due to the strong take-up in the last 12 months. The vacancy rate declined markedly in Berlin (8.2% to 7.6%), Dusseldorf (9.2% to 8.8%), Frankfurt (15.6% to 14.9%) and Hamburg (7.8% to 7.0%). Only Munich and Stuttgart recorded an increase in vacancy levels albeit at moderate levels of 7.2% and 6.5% respectively.
Frankfurt is still the undisputed leader with regard to rent prices. Both premium and average rent prices at EUR 38.00/m²/month and EUR 17.70/m2/month respectively are considerably higher than those in other cities. Munich comes in as close second with premium rents totalling EUR 30/m2/month and average rents approximately EUR 14.45/m2/month.
Prospects for the rest of the year are all positive for the six cities in question. Following last year's strong performance, a similarly robust year is forecast in 2008, Colliers PropertyPartners said. In addition, most locations can expect at least stable, if not increasing premium and average rent prices.