The Hamburg market for office space rental achieved a take-up of 227,000 m² in the first half of 2023. The demand for contemporary offices remains high – high-quality space is scarcely available on the market and is highly competitive, particularly in the very sought-after prime locations. Very few new properties are being built because, among other things, building permits are being delayed considerably. “Approval times for changes in use of currently nine to even fifteen months have a significant impact on the decisions made by owners and users,” reports Gordon Beracz, head of office space leasing at Robert C. Spies in Hamburg. Even well-funded actors are increasingly withdrawing.
The lead time until the areas are ready for occupancy is becoming longer and longer, because necessary conversion measures take significantly longer due to a lack of skilled workers or expansion cost budgets are limited on the owner side. “The momentum of the occupancy rate is decreasing due to the significantly reduced budget for expansion costs. Owners are pushing more and more lettings without extensions, thereby lengthening the decision-making process,” observes Gordon Beracz. It is also noticeable that mobile working and working from home have slowed down development in some areas of the company.
”’Average rent has increased significantly”’ The average rent has risen again and is currently at the level of 2022. In the last three months it has increased by EUR 4.00/m² or by 23 percent and is currently at EUR 21.50/m². The prime rent has climbed by EUR 0.90/m² and is now EUR 28.70/m². The background to the rise in rents is the increasing weighting of sub-markets such as City and Hafencity in the second quarter. While around 18 percent of deals were registered in the city center in the first quarter, this office location accounted for around 24 percent in the second quarter. The highest office rents continue to be paid in the city centre. But more deals were also registered in Hafencity than at the beginning of the year.
”’Outlook: take-up of up to 490,000 m² expected for the year as a whole”’ The total take-up of space in 2023 is expected to be just below the 5-year average and will be between 450,000 and 490,000 m². The vacancy rate, which is currently 4.2 percent, will increase slightly. “The “market in the market” that has already emerged in recent months as a result of the rising subletting rate will continue to gain in importance in the current year,” predicts the office property specialist Beracz and continues: “Above all, however, the portfolio must face the new market requirements.”
2023-06-28 19:21:09
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