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How is Coronavirus affecting the German office property market?

Activity in the office real estate market is currently slowing due to uncertainty caused by the coronavirus crisis. Many players are holding-off on their decisions. This assessment of the current situation in the office real estate market sets out developments on the supply side and provides insight into the present state of the market:

  • Sublet space – is it increasing as rapidly as in the dotcom crisis?
  • Rent incentives - do landlords have to outbid each other with incentives?
  • Development projects - will construction and planning be stopped? 

Corona Office Report 2020

The coronavirus crisis is already the third crisis this century, following the dotcom crisis of 2000 and the financial crisis of 2008. The past ten years have been characterized by a strong economic upswing, with office space availability declining and prices rising. The lockdown to counter the spread of coronavirus led to take-up collapsing and many employees working from home. For many companies this is an experiment opening the doors to a hybrid model of working. Even after coronavirus has receded, this flexibility in the location of the workplace will remain and become still more established. Nevertheless, the office will retain its central role as a place for working and communicating.

 

>> Download the report

 

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