International companies shape Munich's office rental market!

International companies shape Munich's office rental market!

Something exciting is happening again on the real estate market in Cologne. According to recent analyzes by JLL, international companies are a key driver of demand in the German office rental sector. This is underpinned, among other things, by the fact that since 2000, a full 29% of the take-up of space in the seven largest German cities has come from rentals by foreign companies. But what does it actually look like?

It is noteworthy that the annual share of international rentals has fallen since 2021. What is particularly striking is the fact that companies from the USA are ahead when it comes to renting office space, accounting for around 9% of the total take-up of space in the cities mentioned. In addition, companies from Great Britain, France and Switzerland also play an important role.

Office space and its use

Company-related service providers such as auditing firms and consultancies contribute over 25% of the office space turnover of international companies. Together with the industrial and IT sectors, which are heavily influenced by large technology companies, the share of these three sectors is a remarkable 57% of total sales.

Demand is currently greatest in the active city of Munich, especially for technology and industrial companies. Frankfurt am Main, on the other hand, sees itself as a center for international banks and financial service providers. And Berlin? This primarily attracts technology start-ups and established tech companies from abroad, which strengthens its position in the market.

The effects on Cologne

In Cologne, which is not explicitly highlighted in JLL's analysis, the influence of international companies is noticeable. Competition for office space is intensifying, potentially affecting local businesses as well. The challenges of the last few years have meant that the city has to go on the offensive in order not to fall behind other metropolises.

Although the figures indicate a decline in international rentals, one should not forget that Cologne scores with its lively start-up scene and a strong range of services. Developments on the office rental market should therefore be actively monitored and analyzed so as not to lose sight of your own opportunities.

At a time when companies are increasingly relying on flexible office space, Cologne could develop the right strategy to address this target group. And perhaps there will soon be new initiatives that will lead to international companies increasingly looking to Cologne.

Office space providers and real estate developers in the city are being asked to become proactive. Because the neighbors in Munich and Frankfurt certainly don't miss the opportunity.

There is still a lot to be done for Cologne's economy in order not to fall behind in the competition with the larger cities. The potential is there. Now it’s time to take the right steps!