Area turnover on office markets Q1-2/2024: Reservation shapes the first half of the year

Area turnover on office markets Q1-2/2024: Reservation shapes the first half of the year

The sales turnover to the top 7 office rental markets in the first half of 2024 was around 1.2 million square meters, which corresponds to an increase of 11% compared to the previous year. Due to the unclear economic perspectives, companies are still reluctant to rent office space. As a result, many rental processes are in length and only occasionally large degrees are made.

The area sales at the locations of the top 7 cities show different developments. There was an increase of around 54% in Stuttgart, while Cologne and Hamburg recorded a decline of around 20% and 11%. Berlin reached the highest area turnover with around 291,000 square meters, followed by Munich with around 287,500 square meters.

Due to the cautious rental activities, the vacancy on all top 7 office rental markets increased by 20% compared to the previous year. The vacancy rate increased by 1 percentage point to 6.6%.

The self -user rate rose from 4.3% in the same period in the same period last year, with Berlin with 18% the highest quota. This is mainly due to the expansion of the Federal Chancellery in the first quarter.

The average and lace rents remained largely stable at most top 7 locations and only slightly increased or decreased. In Düsseldorf, however, the top rent rose by 11%. The highest average rent was reached at € 30.50/m²/month in Berlin, the highest peak rent with € 51.20/m²/month in Munich.

Several large rental contracts are expected for the second half of the year. Nevertheless, one expects a behavioral annual result for the top 7 office markets in 2024. A noticeable increase in rental is expected at the earliest if the economic situation improves.

table with information about the top 7 office markets:

Source: German Property Partners/OTS