Office market robust according to pbb index
The office market is flourishing despite the weakened economy, according to the 1st-quarter pbbIX, Deutsche Pfandbriefbank’s office market index. The office property market index fell only slightly to 0.79 points, a slight drop from last quarter’s 0.80, continuing to indicate an expansive market. The average vacancy rate of 3.1% in Germany’s Big 7 markets is the lowest in 19 years and the cause for rising rents for new leases. However, the individual office markets experienced some changes. Düsseldorf remains on top, despite a significant decline in the office market economy from 1.32 to 1.16 points. The index rose slightly for Berlin and Stuttgart, but fell slightly for each of the other five office locations. pbb, which compiles the index together with data from VDP, offers a cautious outlook for the rest of the year, with a call for caution due to the economic slowdown; moreover, the margin for rising capital values is likely to be largely exhausted due to very low initial yields.
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