Skip to main content Skip to footer

Germany: Office Leasing Q1-3 2020

Download Report
The impact of the Covid-19 pandemic remains quite tangible on the German office leasing market. Although take-up in Germany's top 7 cities exceeded 1.8 million sqm in the first nine months of the year, it remained roughly 37% below previousyear results and almost 25% below the 10-year average. While large-scale leases were few and far between, the small and medium-sized segment proved generally stable. Despite the fact that the market continues to experience hesitation demandside combined with plans to consolidate space, the weighted vacancy rate in Germany's top 7 office locations only experienced a moderate increase of 20 bps to 3.3%. That puts the vacancy rate well below the 5%-mark, which indicates a challenging situation for tenants. The upward prime rent trend has ceased, with prime rents remaining basically stable compared to Q2. Average rents, on the other hand, are beginning to see a downward trend. As weaker demand combined with growing supply will have an impact on rent prices, we can look for rents to remain fairly stable in the coming quarters. A number of new-build completions are still scheduled for 2020. Roughly 80% of the space at these new-builds was pre-leased as of the end of September.

City Survey_Sitecore_Q

Germany: Office Leasing Q1-3 2020

Download Report
Related Experts

Susanne Kiese

Head of Market Intelligence & Foresight | Düsseldorf

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). 

View expert