Office leases: Second-best year after 2017

07/01/2019

Despite high demand for space, office leases in the German top markets fell short of last year’s record total. Nevertheless, the top 7 still recorded a very good result with take-up of nearly 4 million sqm (-6 %), as JLL and Colliers International report. According to JLL, the 10 % increase in net absorption shows just how high demand for space was. BNPPRE calculated a 7 % minus in take-up to 4.02 million sqm and calls it the second-best result ever achieved. Savills comes up with 3.7 million sqm (-3 %) for the top 6 markets. Most brokerages agree that take-up fell short of last year in all top markets except for Düsseldorf; the strongest market was Munich, followed by Berlin and Frankfurt. The two largest deals, according to German Property Partners, were two owner-occupant transactions: Robert Bosch in Stuttgart (50,000 sqm) and Beiersdorf in Hamburg (45,000 sqm). The decline in take-up is widely expected to continue in 2019, with rent prices rising further.


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