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

Broken-off deals impact Frankfurt's CRE investment market


Commercial real estate transaction volume in the Frankfurt market amounted to around 165 million euros in Q1 2023. Compared to a year earlier, this corresponds to a decline of 93 percent. The 10-year average was also undershot by 85 percent. The last time there was an even lower Q1 result was thirteen years ago.

No large-volume transactions
At just under 80 million euros, 48 percent of the recorded transaction volume is accounted for by land, mixed-use properties and data centres. Approximately 45 percent (around 75 million euros) was generated by the sale of office properties. In this asset class, the transactions which took place were all in the small-volume range of up to 30 million euros. The focus was on properties in the Value-Add and Opportunistic risk classes, which were generated in peripheral locations of the market area.

Logistics and industrial properties achieved a transaction volume of approximately 10 million euros in the first quarter, contributing around 7 percent of the CRE total. No sales of retail properties or hotels took place in the first quarter. 


Investment market Frankfurt Q1 2023


Michael Fleck, Head of Capital Markets Frankfurt, explains: "Aborted or frozen transactions with a potential volume of more than 2 billion euros in the past twelve months underline the extent of the lack of available product and the continuing uncertainties in the financing sector. This is reflected in the Q1 result in Frankfurt’s commercial real estate investment market and can also be interpreted as an omen of a record low transaction volume in 2023 as a whole."

Yields continue to rise
The net initial yield for prime quality office properties in prime locations is 3.80 percent at the end of Q1 2023. Compared to the previous quarter, this represents an increase of 45 basis points. The net initial yield for prime office properties in non-central locations has also risen; to 5.50 percent, 50 basis points higher than in the previous quarter. 

First-class logistics properties are currently trading at a prime yield of 4.15 percent. This is an increase of 15 basis points compared to the end of December 2022. 4.10 percent was quoted for city-centre commercial properties, 35 basis points more than in Q4 2022.




Cushman & Wakefield Europe's Living Revolution
Europe's housing revolution

The European residential market is set for significant growth until 2040, according to the report ‘Unpacking Europe's Living Revolution’ by Cushman & Wakefield. 

Verena Bauer • 17/07/2024

Cushman & Wakefield Investment Outlook
Investment Outlook Sommer 2024

Activity on the German investment market remains subdued overall and continues to be overshadowed by high borrowing rates and a weakening economy. Against this backdrop, Simon Jeschioro has drawn up forecasts for the further development of the property investment markets.

Verena Bauer • 15/07/2024

Press Release Cushman & Wakefield
TIME Score Index from Cushman & Wakefield

Cushman & Wakefield has developed the TIME Score Index to simplify the presentation of key figures important for investment decisions. The index — Timing Investment Market Entry/Exit — identifies important changes in the commercial property environment.

Verena Bauer • 12/07/2024


Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
Cushman & Wakefield Asset Optimisation Guides

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024


verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main


Get in touch with one of our professionals.
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.
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