DIP analyzes declining take-up on the German office market.

Overview table with the most important indicators of the DIP office markets.

-Half-year balance sheet 2020 from DIP – Deutsche Immobilien-Partner.

The continuous and comparative analysis of 13 German office markets (Berlin, Dresden, Düsseldorf, Essen, Frankfurt a. M., Hamburg, Karlsruhe, Cologne, Leipzig, Magdeburg, Munich, Nuremberg, Stuttgart) by DIP – Deutsche Immobilien-Partner enables cross-sectional comparisons between the markets in North and South or West and East Germany and between cities of different market sizes.

The analyzes by DIP – Deutsche Immobilien-Partner show that, as expected, the Corona crisis caused a significant slump in take-up on the German office markets:

• In the first half of 2020, the total take-up of office space (including owner-occupiers) was approx. 1.45 million m² almost a third (31%) below the previous year’s result (H1 2019: 2.10 million m²) and 18% below the long-term average (Ø H1 2010-2019: 1.76 million m²).

• However, due to dynamic market activity in the DIP markets in the second half of 2019, vacant office space has continued to fall within the last twelve months, albeit only moderately by approx. 160,000 m². At the end of June 2020 it will rise to approx. 3.72 million m² (end of June 2019: around 3.87 million m²). The vacancy rate fell from 3.6% at the end of June 2019 to 3.4% today.

• The average prime rent in the analyzed German office markets increased by EUR 1.50 or almost 5% to approx. EUR 33.10 / m² increased (H1 2019: EUR 31.60 / m²).

Here you can download the overview table as a reader-friendly PDF file:

DIP office markets: Significantly lower take-up of office space

In the 13 German DIP office markets recorded (Berlin, Dresden, Düsseldorf, Essen, Frankfurt / M., Hamburg, Karlsruhe, Cologne, Leipzig, Magdeburg, Munich, Nuremberg and Stuttgart), approx. 1.45 million m², an approx. 31% lower take-up of office space (including owner-occupiers) than in the previous year (H1 2019: around 2.10 million m²).

The individual markets developed largely homogeneously:

• DIP analyzes the sometimes significantly lower take-up of office space in the cities of Karlsruhe (-3%), Dresden (-10%), Munich (-19%), Berlin (-20%), Düsseldorf (-24%), Essen (-44 %), Frankfurt (-57%), Hamburg (-45%), Cologne (-42%), Leipzig (-2%) and Stuttgart (-44%).

• In Magdeburg, the take-up of space remained constant, only Nuremberg (+ 43%) showed increasing office space take-up.

Also in the “Big Seven” declining office space turnover

• The “Big Seven” (Berlin, Düsseldorf, Frankfurt / M., Hamburg, Cologne, Munich, Stuttgart) accounted for a total of 1.26 million m² (-33%) of office space or 87% of the total Take-up of office space in the 13 DIP stores (H1 2019: 1.87 million m² or 89%).

• As in the previous year, Munich is the office market with the highest turnover in Germany with half-yearly turnover of approx. 330,000 m² (-19%) and is ahead of the Berlin office rental market (309,000 m²; -20%).

• As the third strongest location, Düsseldorf also experienced with approx. 183,000 m² marked drop in sales compared to the previous year (approx. 241,000 m², -24%), just like other cities in the Big Seven.

• DIP analyzes the biggest absolute losses in turnover within the year within the Big Seven in Frankfurt (-150,000 m²) and Hamburg (-133,000 m²).

Office space turnover in the medium-sized DIP office centers decreased

• In the medium-sized DIP office centers, the development of space take-up was also negative overall: compared to the previous year, space take-up in the cities of Dresden, Essen, Karlsruhe, Leipzig, Magdeburg and Nuremberg fell by 13% to approx. 195,000 m² (1st half of 2019: approx. 225,000 m²). Regardless of the decline in sales, the share of the total sales recorded by DIP rose to approx. 13% (2019: 11%).

• The dynamics of the development were very different in the individual cities. For example, take-up in Magdeburg remained consistently high at 10,000 m², in Leipzig it fell by only 2% and in Nuremberg, despite the Corona crisis, even increased by 43% to 43,000 m². On the other hand, Dresden, Karlsruhe and Essen show marked losses in sales, which, however, were still more moderate than in the Big Seven.

Falling vacant office space

• Even if the supply reserves increased in some DIP locations, such as Berlin, Frankfurt and Düsseldorf, in the first six months of 2020, the total amount of office space available at short notice in the 13 analyzed German markets increased by approx. 160,000 m² of approx. 3.87 million m² in mid-2019 reduced to around 3.72 million m² in mid-2020.

• Analogously, the average vacancy rate of the 13 DIP office markets fell within a year from 3.6% to currently 3.4%.

Prime rents and average city rents are clearly up

• Regardless of the declining take-up of space, the average weighted prime rent in the 13 analyzed German DIP office markets rose by almost 5% to approx. EUR 33.10 / m² increased at the end of June 2020 (end of June 2019: approx. EUR 31.60 / m²). The main factors here are the increased prime rents in Berlin (EUR 39.00 / m², + 8%), Leipzig (EUR 15.50 / m², + 7%), Hamburg (EUR 32.00 / m², + 12%) and Cologne (EUR 26.00 / m², + 8%) should be mentioned.
Frankfurt am Main remains the nationwide leader in rental prices, with prime rents rising to EUR 46.00 / m² (+ 8%) within a year.

• The average rent level for office space in city locations, analyzed in the DIP markets, rose less markedly by approx. 4% or EUR 0.90 of approx. EUR 21.40 / m² in mid-2019 to approx. EUR 22.30 / m² in mid-2020.

This press release was published on the press distribution list openPR.

Thomas glodek
Head of Public Relations
Kennedydamm 55 / Ross-Strasse
D-40476 Düsseldorf
Tel.: 02 11/83 91-307
Fax: 02 11/83 91-261
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DIP – German Real Estate Partner

DIP was founded in 1988 as an industry innovation and has been continuously expanded as the most important association of legally independent real estate service providers.

DIP partners are: AENGEVELT IMMOBILIEN GmbH & Co. KG, Aigner Immobilien GmbH, Arnold Hertz Immobilien GmbH & Co. KG, HUST Immobilien GmbH & Co. KG, Immobilien Sollmann + Zagel GmbH, Immobilienvermittlung BW GmbH and Möllerherm Immobilien Inh. A. Möllerherm e. K.

In addition, the DIP scope of services has been expediently expanded to include “preferred partners”. These are: Allianz Handwerker Services GmbH, EBZ Business School GmbH, FRIS (Amsterdam / Netherlands), GÖRG Partnerschaft von Rechtsanwälten mbB, Logar & Partner Immobilientreuhand GmbH (Vienna / Austria) and TÜV Rheinland Industrie Service GmbH.

With the tried and tested expansion to the competence network with well-known “classic” real estate service providers as DIP partners and specialists from various service organizations as “preferred partners”, DIP offers its national and international customers a “complete service for everything to do with real estate from a single source”.

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