Prime office space in Berlin now nearly €36/sqm
Berlin’s office rents, even in the final quarter of 2018, were only heading in one direction. According to analyses by Savills, both prime and average rents rose by 2.9% and 5.8% respectively in the last three months alone, with increases of 12.6 % and 15.2 %, respectively, recorded over 2018 as a whole. Currently, Berlin’s prime rents pay €35.80/sqm, with average rents at €22.00/sqm. The vacancy rate has fallen by a further 50 basis points since the end of 2017, and is now at only 1.5%. Savills does not expect the situation to ease until 2021. 70% of the 425,100 sqm of office space currently under construction or in planning stages has been pre-let. For 2020, that figure is 43% with a predicted pipeline of 797,100 sqm. Around 909,000 sqm of office space were realized last year, about 10 % below the record value from 2017.
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