combine Transaction
Hamburg, Munich, Berlin (ots)
- Consultancy firms and authorities secure space turnover and high rents in Berlin
- Office markets in Hamburg and Munich expect a strong second half of the year after a weak Q1
- Trend towards central (CBD), well connected, modern office space
Interest rate hikes, an energy price shock and a shortage of skilled workers have had a negative impact on the office markets in recent months. The metropolises of Munich, Hamburg and Berlin have responded to the challenges in a similar way. All three markets had to accept significant reductions in the Q1 rental sales compared to the same quarter of the previous year. However, with a good 140,000 m² of space taken up, Berlin still delivered relatively robust figures and put it ahead of Munich. “The capital’s office market continues to benefit from rentals by the public sector, as these are much less dependent on the economy, as well as rentals by international companies from the consulting and IT sectors,” explains Konstantin von Barcsay-Amant, Managing Director of combine Transaction Munich and Berlin.
At the start of the year, the Munich office market recorded a significant decline in take-up. This was primarily due to the lack of large deals (from 5,000 square meters), which ensured that up to 35 percent less space was taken up in the first quarter of 2023 than in the previous year. The small and medium-sized segment (up to 2,000 square meters) currently dominates the Munich rental market and accounts for up to two-thirds of the deals in the first three months.
Konstantin von Barcsay-Amant notes: “This rather wait-and-see attitude is also due to the latest interest rate and economic developments, which are severely slowing down the rental and investment markets, with the latter being hit much harder. However, we expect significantly more for the second half of the year Clarity in terms of interest rate developments, so that the market is likely to recover again in the future. In addition, many companies are currently analyzing the post-pandemic requirements for space quantities and qualities, new findings will lead to space consolidation and leases on the one hand, but also to new rental decisions.”
Stefan Marburg, Managing Director of combine Transaction Hamburg and Berlin, adds: “Similar developments could also be observed in Hamburg, where the start of the year also got off to a slow start. Many projects that were planned before Corona were slowed down by the pandemic and are currently backing up. Above all in the segment between 2,000 and 10,000 square meters, we therefore expect great momentum for the second half of the year to remain interesting in the increasingly competitive market for skilled workers.”
What all locations have in common is the trend towards modern, well-connected office locations that meet the changed post-pandemic requirements for hybrid working. Employees are willing to show an increased presence in the office again. Furthermore, the office market is also increasingly characterized by sustainability, the topic of ESG is omnipresent and not only new buildings, but also existing properties are increasingly coming into focus when choosing an office.
Press contact:
Ummen Communications GmbH
Dr. Tilman Pradt
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Original content from: combine Transaction, transmitted by news aktuell
