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

Office market Frankfurt: more activity in third quarter


International real estate consulting firm Cushman & Wakefield reports take-up of around 208,000 sqm for the Frankfurt office market from January to September 2020. This is a good 40 percent less than last year's equivalent figure as well as the average values of the last five and ten years. With 98,000 sqm of take-up, the third quarter was the strongest of the current year.

The number of leases for 1,000 sqm or more increased significantly in the third quarter. In the first half of the year, 20 new leases for a total of 56,000 sqm were concluded in this size category. In the third quarter alone, there were 16 leases for around 60,000 sqm.
The largest lease, not only in the third quarter, but also in the year to date, was DekaBank's lease for just under 16,000 sqm in Tower T1 of the Four development project in the banking district. The second-largest lease of the quarter; by the University of Applied Sciences for a good 10,000 sqm of space in a 12-storey building in the east of Frankfurt, was also the third-largest transaction of the year to date. 

Nevertheless, letting activity is still muted. Many office users are continuing to shy away from making decisions regarding new space and are therefore preferring to renew their existing leases - usually at improved conditions. The volume of these lease renewals, which are not counted in the office take-up figures, totalled almost 90,000 sqm over the past nine months of the current year.
Pierre Nolte, Head of Office Agency at Cushman & Wakefield in Frankfurt am Main, commented: "We expect that the willingness to close a lease in the fourth quarter will be higher than in the previous three quarters. Some larger leases could be signed before the end of the year. Demand in the smaller space segment has picked up. By the end of the year, this should result in floor space sales of over 300,000 sqm".

Office space inventory increases, vacancy rate rises slightly
Six properties totalling 51,000 sqm were completed in the third quarter. The completion volume for the year to the end of September thus totals almost 117,000 sqm and is 45 percent above the average for the last five years. Current construction activity, at around 556,000 sqm, is also well above the five-year average of 313,000 sqm. Almost 150,000 sqm of the space under construction is for completion by the end of 2020, of which more than 80 percent is already pre-let or owner-occupied. According to current data, the volume of space completed will then fall drastically to 95,000 sqm in 2021, before rising again to over 200,000 sqm in 2022. The area for completion in 2021 and 2022 is already 60 percent let.

Compared to the previous quarter, vacancy has increased by around 10,000 sqm to 864,000 sqm. With space that has been vacated not immediately taken-up by new tenants, and new buildings currently being completed still having some space available to let. The vacancy rate increased from 7.3 percent at the end of June to 7.4 percent at the end of September. 

It is not yet possible to predict conclusively how the increase in remote working from home in recent months will develop in the long term. There are still no clear indications as to whether the majority of office tenants will tend to require more or less office space in future. What is certain is that examining the possibilities for implementing differentiated and flexible workstation solutions will play an ever more important role in future leasing and expansion decisions.

Achievable prime rent remains high, average rent reaches record level
At the end of September the achievable prime rent remained unchanged at € 45.00 per sqm per month. Frankfurt thus remains the most expensive market for premium space in Germany. Demand for space in premium development projects in central locations remains high, prime rents continue to be demanded and in some cases rents well above the prime rent are paid.
The weighted average rent across all new leases signed in the last twelve months was € 23.15 per sqm per month at the end of the third quarter, rising by € 2.65 since this point last year. The increase is mainly due to large-area leases in new development projects in the banking district. Pierre Nolte commented: "The current transformation of the banking district into a more mixed and lively high-rise quarter between the city centre and the station district is very much in line with current requirements for attractive office locations. We expect that a large part of the demand in Frankfurt will continue to be concentrated here in the future".


Deal Cologne Schanzenhaus Domstadt
Cologne’s Schanzenhaus fully let

The Cologne team has let the last available space in the Schanzenhaus building in the cathedral city’s Carlswerk area, a new urban neighbourhood on an extensive former industrial site. 


main streets across the world 2023
Fifth Avenue is world’s most expensive main streets

The 33rd edition of our "Main Streets Across the World 2023" reports that New York’s Fifth Avenue remains the most expensive retail main street in the world.  


Patient having his hand massaged with a spiky massage ball
Sentiment in the care operator market

Rising energy costs are reducing the operating results of care real estate operators, in some cases significantly, according to the results of a survey conducted by C&W among 30 private, non-profit and public providers in the first half of 2023.



main streets across the world 2023

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.
Patient having his hand massaged with a spiky massage ball
Insights • Investment / Capital Markets

Care real estate operator survey 2023

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