New office construction falls short of job market demand, study finds
As with new housing, construction of new office space is lagging behind demand, a study by investment manager Empira has found. The number of office workers in Germany has increased by over 20 % to nearly 11 million since 2008, while annual new construction has stagnated. On average, there are only 10 sqm of office space per worker, which is less than the required 15 sqm or more, the study states. Vacancy has been consistently declining since 2010 and is now at 4.1 %. The 15 markets examined range from 1.6 % vacancy in Bonn to 7.4 % in Frankfurt. Average rents, meanwhile, have increased substantially – with the most pronounced rise of +67 % to €19.34/sqm recorded in Berlin. Some secondary markets also leapt ahead, for instance Essen (+43 %), Leipzig (+40 %) and Nuremberg (+39 %).
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