The Düsseldorf office leasing market posted 50,500 sqm in take-up within city limits in Q1 2021, down 49 % yoy as anticipated. While last year’s Q1 result was boosted by a largescale deal signed by the local tax office in the City Center East submarket, transactions for over 5,000 sqm were completely absent in Q1 2021. The amount of space available for immediate tenancy recorded a moderate yoy increase to 6.0 %, largely thanks to available sublets. Rents remained stable across all market segments. In light of the current market environment, we expect hesitation and lease extensions to dominate the second quarter as well. We can nevertheless look for annual 2021 take-up of at least 260,000 sqm.
The Düsseldorf commercial investment market recorded a transaction volume of €140m for real estate and land sites within city limits in Q1 2021, down 83 % from previous-year results. Although transaction volume once again exceeded the € 3 bn mark in 2020 due to an exceptional end-of-year rally, the deal pipeline at the start of the second year into the pandemic was limited as a result. Office assets claimed pole position with a 63 % share in transaction volume, followed by a small number of deals signed for retail assets and development sites. We expect transaction volume to continue to be affected by the ongoing restrictions until early summer. As such, market activity in 2021 will primarily revolve around the second half of the year.