Development on the Leipzig office market.
-Balance I.-III. Quarter of 2020.
· Notable: take-up of office space at the level of the decade average.
· No easing of the market: supply reserve remains at a low level.
· Resistant to crises: Prime rents continue to rise
Here you can download the graphic as a reader-friendly PDF file:
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Solid sales momentum in the first nine months.
• According to analyzes by Aengevelt Research, the Leipzig office market achieved an office space turnover (including owner-occupiers) of approx. 70,000 m². Although the result is 20% below the figure for the same period last year (Q1-Q3 / 2019: 88,000 m²), it reaches the level of the decade average (Ø Q1-Q3 / 2010-2019: 72,000 m² pa).
Overall, the Leipzig office market – in contrast to other office markets – is very robust even during the crisis.
• In the third quarter, office space take-up of 25,000 m² even exceeded the long-term average (Ø Q3 / 2010-2019: 22,700 m²), but remained well below the peak value of the same period of the previous year (Q3 / 2019: 42,000 m²).
• For 2020 as a whole, Aengevelt Research is forecasting office space take-up of around 100,000 m² for Leipzig. This would be a very good value at the level of the 10-year average (Ø 2010-2019: 104,000 m² pa), even if it is approx. 29% below the previous year’s result (2019: around 140,000 m²).
Hardly any increase in the supply reserve.
• In 2019, the supply reserve available at short notice (ready for occupancy within three months) decreased significantly by 42,000 m² from 230,000 m² to 188,000 m² of office space. The vacancy rate fell from 6.8% to 5.6%.
• In the first half of 2020, Aengevelt Research analyzes another, albeit only moderate, reduction in the supply reserve by 5,000 m² to approx. 183,000 m² at the end of June.
• In the third quarter, for the first time, there was a slight increase in the supply reserve by approx. 2,000 m² on 185,000 m².
• The vacancy rate is currently around an office stock of approx. 3.41 million m² in Leipzig at approx. 5.4%.
• By the end of 2020, Aengevelt Research predicts a further moderate increase in the supply reserve to around 190,000 m², analogous to the development in many major German cities.
Attractive completion of office space.
• In 2019 approx. 26,000 m² of office space completed. This figure was almost reached in the first half of 2020 with around 24,000 m² of new office space.
• For the year 2020 as a whole, there was an increasing volume of completions before the Corona crisis. 53,000 m². Since the relevant projects are already under construction, this forecast is largely valid, even if the crisis may lead to delays and thus lower completions.
Stable rental price level.
• The weighted prime rent rose within 12 months by almost 7% from approx. 15.00 € / m² increased to 16.00 € / m² at the end of September 2020.
• The median rent in city locations has meanwhile increased from € 10.90 / m² to around € 11.50 / m², but fell again to € 11.00 / m² in the last quarter.
• The demand for modern office space is still there. The vacancy rate will increase moderately until the end of the year due to temporarily deferred rental decisions. However, this increase will not lead to a permanent easing of the pressure on the office market, especially since the completion volume has not yet reached an appropriate level.
As a result, Aengevelt Research expects the prime rent to stabilize at the current level by the end of the year.
AENGEVELT REAL ESTATE • PERSONAL • PROFESSIONAL • PARTNERSHIP
Aengevelt Immobilien was founded in 1910 and is an independent, owner-managed family company in the fourth generation. With 130 experts, Aengevelt is one of the largest and most experienced real estate service providers in Germany and, together with its partner networks DIP and CORFAC INTERNATIONAL, offers its customers comprehensive support not only nationwide, but also worldwide. Results for the 2019 financial year: approx. 300,000 m² of brokered commercial rental space and accompanied investment transactions worth approx. EUR 950 million.
The company has its services checked annually by means of objective performance controls through independent, external customer satisfaction analyzes. Result of the most recent survey: 99% of the respondents would use Aengevelt “definitely” or “possibly” again as a service provider, 98% would recommend Aengevelt “definitely” or “possibly” to business friends or business partners.
This press release was published on the press distribution list openPR.
AENGEVELT IMMOBILIEN GMBH & CO. KG
Thomas glodek
Head of Public Relations
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www.aengevelt.com
AENGEVELT IMMOBILIEN GMBH & CO. KG, founded in 1910, is with approx. 130 employees in Düsseldorf (head office), Berlin, Frankfurt / M., Leipzig, Magdeburg and Dresden one of the largest and most experienced real estate service providers in Germany and, together with its partner networks DIP – Deutsche Immobilien-Partner and CORFAC International, offers its customers nationwide and international comprehensive, customized support in the office, retail, logistics, hotel and residential market segments.
The company accompanies and advises its customers on the basis of its extensive scientific real estate research along the entire value chain of their properties – from purchasing to project initiation / support, leasing, etc. to exit / sale.
Results for the 2019 financial year: approx. 300,000 m² of brokered commercial rental space and accompanied investment transactions worth approx. EUR 950 million.
Aengevelt keeps the fee volume with foreign investors and users constant at around 40% of the brokerage turnover.
Aengevelt also has its services regularly checked by an independent market research institute. The results of the most recent survey are again top marks in terms of customer satisfaction: 99% of those surveyed would use Aengevelt “in any case” or “possibly” again as a service provider, 98% would use Aengevelt “in any case” or “possibly” Recommend business friends or business partners.
These results are confirmed by current studies, for example by FOCUS-MONEY (edition of 02/26/2020), in which Aengevelt was once again awarded the “highest customer satisfaction” rating, as in the two previous years.
In order to guarantee its customers a completely interest-independent, market-oriented specialist advice, Aengevelt is and remains absolutely independent of banks, insurance and instructions and thus free of all-finance and corporate strategies and also maintains a comprehensive value management. In addition, Aengevelt has been DIN EN ISO9001: 2008 certified since 2008 and in 2010 was one of the first companies in the German real estate industry to receive the “Compliance Management” certificate from the “Initiative Corporate Governance der Deutschen Immobilienwirtschaft eV” (ICG).
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