Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing

Office market Frankfurt: leasing activity increased in final quarter

08/01/2021

International real estate consultancy firm Cushman & Wakefield reports take-up of 329,500 square metres for the Frankfurt office market in 2020. The COVID-19 pandemic has put the brakes on leasing activity. The slump in take-up in the second quarter of 2020 was not made up for in the rest of the year. The overall result is 40 per cent below the previous year's take-up. The shortfalls on the averages of the previous five and ten years were 42 percent and 35 percent respectively.

With take-up of 122,000 square metres, the fourth quarter was the strongest of 2020. 25 leases in the 1,000 square metres category had a positive impact take-up. The first three quarters of 2020 each saw an average of only 13 new leases of this size.

Pierre Nolte, Head of Office Letting Frankfurt at Cushman & Wakefield, commented: "The largest deal this year also made a significant contributions. Cushman and Wakefield was able to broker the letting of around 18,000 square metres of office space in the Eschborn submarket to Samsung Electronics. The conglomerate leased a high-rise office building and an adjacent low-rise building in the Eschborn Gate development project."

Office market Frankfurt

Banking district and Eschborn benefit from pre-lettings in development projects
Overall, the second highest take-up in the Frankfurt market was achieved in the Eschborn submarket. New leases totalled around 53,000 square metres, the highest take-up recorded in the submarket in the last ten years. This was largely made possible by the supply of space in development projects. With 32,200 square metres, the proportion of lettings in development projects is 61 per cent - in the last three years the average was only 14 per cent. The banking district submarket also benefited from development project lettings. The proportion here is 57 per cent. In total, 45,400 square metres of the 80,000 square metres that were let in the banking district comprised spaces that are currently under construction; almost 40,000 square metres of this in the new Frankfurt FOUR development alone.

Pierre Nolte: "Despite the uncertainties caused by the effects of COVID-19, we have seen some major deals in new buildings or high quality space this year. The trend for office occupiers is clearly to improve quality while reducing overall space. Demand for high-quality space is correspondingly high, but this is not only affecting the central locations, but also the peripheral office market locations such as Eschborn or Niederrad."

Achievable prime rent is stable, average rent continues to rise
The sustainably achievable top rent in the Frankfurt market remains unchanged at € 45.00 per square metre per month. The weighted average rent for all new leases concluded in the last twelve months is € 23.60 per square metre per month. Compared to the previous year, it has thus risen by € 2.35. This increase is primarily due to leases signed for the new FOUR project and the Omniturm and Marienturm properties in the banking district, which were completed at the end of 2019.

Vacancy and office stock continue to rise
Vacancy increased by 10 per cent compare to the previous year, to around 889,000 square metres. The vacancy rate in the market area is now 7.6 per cent, a level last seen at the end of 2017.

In total, completions added 226,400 square metres of office space, 40 per cent more than the ten-year average. Completion figures are also expected to be above average in 2021. If there are no construction delays, around 176,000 square metres of office space are to be completed. Of this, 66 per cent has already been pre-let.

Outlook
Pierre Nolte expects take-up in 2021 to be higher than in the past reporting year, but not to reach the level of 2019 (553,000 square metres) nor the ten-year average (490,000 square metres): "Even though we saw a significantly higher propensity to conclude leases in the second half of 2020 than at the beginning of the year, the pandemic-related economic effects and uncertainties will still have a dampening effect on take-up next year."

The vacancy rate is likely to rise further next year, as many of the existing spaces that become vacant, not least due to lettings in new development projects, will not be immediately re-lettable. The prime rent will nevertheless maintain its current level, as demand for attractive new space in good city centre locations remains high. As availability here is gradually being reduced, the proportion of high-priced deals will be lower in 2021 than in 2020. The weighted average rent should therefore decrease somewhat.

 

RECENT NEWS

Berlin Investment Market Q4 2022

In 2022 international active real estate consultancy firm Cushman & Wakefield registered commercial real estate transactions in Berlin with a total volume of EUR 8.54 billion. 

Verena Bauer • 13/01/2023

BER Büromarkt
Berlin Office Market Q4 2022

International real estate consultancy firm Cushman & Wakefield has registered take-up of 778,300 sq m in Berlin's office letting market in 2022. 

Verena Bauer • 12/01/2023

MUC Investmentmarkt
Munich Investment Market Q4 2022

According to international real estate consultancy firm Cushman & Wakefield, Munich’s commercial real estate market generated a transaction volume of around EUR 810 million in Q4 2022. 

Verena Bauer • 12/01/2023

MUC Büromarkt
Munich Office Market Q4 2022

International real estate consultancy firm Cushman & Wakefield recorded take-up of around 156,000 sq m in the Munich office market in the 4th quarter bringing the total for 2022 to around 767,000 sq m. 

Verena Bauer • 11/01/2023

HH Investmentmarkt
Hamburg Investment Market Q4 2022

In 2022, Hamburg's commercial real estate market achieved a transaction volume of around EUR 4.1 billion, reports international real estate consultancy firm Cushman & Wakefield. 

Verena Bauer • 11/01/2023

Hotel Investment
Hotel Investment Market Q4 2022

For 2022, international real estate consultancy firm Cushman & Wakefield recorded a total hotel transaction volume of EUR 1.9 billion in Germany. 

Verena Bauer • 11/01/2023

DUS Investmentmarkt
Düsseldorf Investment Market Q4 2022

The commercial real estate investment market in Düsseldorf and its extended logistics market area achieved a transaction volume of EUR 3.26 billion in 2022 as a whole. 

Verena Bauer • 11/01/2023

Healthcare Investment
Healthcare Investment Market Q4 2022

International real estate consultancy firm Cushman & Wakefield recorded a transaction volume of around EUR 2.3 billion in the German healthcare real estate market in 2022 (2021: EUR 3.7 billion). 

Verena Bauer • 11/01/2023

DUS Büromarkt
Frankfurt Office Market Q4 2022

2022 ended with weak take-up in the Frankfurt office market, reports international real estate consultancy firm Cushman & Wakefield. 

Verena Bauer • 10/01/2023

DUS Büromarkt
Düsseldorf Office Market Q4 2022

In 2022 as a whole, the Düsseldorf office letting market achieved a take-up of 284,100 sq m.

Verena Bauer • 10/01/2023

HH Büromarkt
Hamburg Office Market Q4 2022

International real estate consultancy firm Cushman & Wakefield has noted take-up in the Hamburg office letting market of around 562,000 sq m for 2022.

Verena Bauer • 10/01/2023

FFM Investmentmarkt
Frankfurt Investment Market Q4 2022

According to research by international real estate consultancy firm Cushman & Wakefield, the Frankfurt investment market’s transaction volume for commercial real estate and development projects amounted to approximately EUR 4.6 billion in 2022.

Verena Bauer • 10/01/2023

INSIGHTS

Germany Market View
Insights • Economy

Germany Real Estate Market View

A regular update on the commercial real estate market in Germany.
Ursula-Beate Neisser • 03/01/2023
Earth day
Insights • Sustainability / ESG

Earth Day: New from old

Is it better to convert or demolish? When is your property fit for the future, when does it have potential and when is even a conversion a hopeless prospect? 
Verena Bauer • 22/04/2022
Umfrage Wohnen Civey
Insights • Healthcare

Single in old age: Modern care facilities

When mobility decreases, living alone quickly tilts in the direction of loneliness, neediness and social isolation. In a survey, Civey found out what exactly people want in terms of an age-appropriate future?
Verena Bauer • 07/03/2022
Project 2028 bees ESG
Insights • Sustainability / ESG

Honey from your own roof

From bees to rooftop gardening and other ideas on how to make your office more environmentally friendly.  
Verena Bauer • 07/02/2022
Residential market Hamburg 2021
Insights • Residential

Hamburg Residential Market 2021

As a gateway to the world and a city on the water, Hamburg combines an urban lifestyle along with plenty of nature. In times of change, the northern metropolis on the banks of the Elbe is also reinventing itself, but never forgetting its roots as a traditional port and merchant city. 
Verena Bauer • 18/06/2021
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS