Sustainable offices are no longer a niche product but are gradually becoming market standard in Germany, new data issued by international real estate advisor shows.
Sustainable offices are no longer a niche product but are gradually becoming market standard in Germany, new data issued by international real estate advisor shows.
Annual take-up in the top five markets (Berlin, Düsseldorf, Frankfurt, Hamburg and Munich) tripled from 50,000 m2 on average between 2005 and 2008 to 150,000 m2 in 2009/2010. Similarly, investment in the sector has grown more than fourfold in the past five years, according to adviser's latest green office bulletin.
Sustainable offices represented EUR 1.1 bn of transactional activity in Germany last year, up from just EUR 0.2 bn in 2007. Meanwhile, their share of the total office investment market has increased from 1% to about 14%.
The three cities featuring the largest green office stock in Germany are Frankfurt (460,000 m2), Munich (380,000 m2) and Hamburg (300,000 m2). Savills' research also shows that the most demand for sustainable offices has come from business consultancies and companies in the financial services sector. 'Investors are increasingly focusing their attention on certified buildings, not least due to the rise in occupier demand for such properties,' said Matthias Pink, head of research Savills Germany.
He added: 'Particularly in the core investment market green building certification is becoming a crucial factor and the majority of new developments in Germany's five major markets are already built with a view to gaining sustainability certification. It may well be that in a few years time green buildings will no longer be an issue because certification is taken for granted.'
