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Germany: Office Leasing H1 2020

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The COVID-19 pandemic has proven a decisive factor also on the German office leasing market, putting a damper on market activity. In H1 2020 1,247,200 sqm of office space was taken up in Germany’s 7 largest office hubs. Compared to the previous year’s record, this represents a decrease of 33%. Many leasing transactions continued even during the lockdown, however, some expansion plans were put on hold. In line with the subdued demand, vacancy rates were up slightly in all markets except Berlin. The vacancy rate in the Top 7 was up by 20 basis points to 3.1%. The small increase is due to the still high pre leasing rates. For 2020, 78% of the new office space is already pre let, until 2022 60% are pre let. 1,6 million sqm are scheduled for completion in 2020 and nearly 5 million sqm until 2022. Prime rents remained stable in the Top 7, average rents increased in Berlin, Munich and Stuttgart. The delayed effects of the economic crisis will continue to influence the office leasing market performance in H2 2020. However , due to the unprecedented level of government aid , the chances are good that the market outperforms the lows of the dot com bubble and the financial crisis . A year end result of 2.7 million sqm seems feasible for 2020.

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Germany: Office Leasing H1 2020

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Susanne Kiese

Head of Research | Germany

Duesseldorf

Susanne joined Colliers International Holding GmbH in February 2016 as Head of Research Germany. Before, she worked as a Senior Research Analyst for Hypothekenbank Frankfurt / Eurohypo, a specialist bank for real estate and public finance for almost 12 years. Susanne was also Research Analyst with Deutsche Gesellschaft für Offene Immobilienfonds (DEGI) GmbH, the property related investment company of Allianz Dresdner Property Group (now part of Aberdeen). 

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Marc Steinke

Senior Consultant | Research

Berlin

Marc joined Colliers International in 2018 as a Research Analyst. He was responsible for monitoring and analyzing the national investment and letting markets with a focus on office, retail,  hotel and B&C cities.

Since 2021 Marc works for the Berlin office of Colliers. He supports capital market transactions, pitches, buy-side advisory and letting deals in the german capital. He also writes market reports and works on client studies .

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