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

Many small lettings and numerous completions in Düsseldorf’s office market

Verena Bauer • 07/07/2021

Number of lettings rises significantly, no large-scale deals
The office letting market in Düsseldorf achieved a take-up of around 104,200 square metres in the first half of 2021. Compared to the previous year's result, this is a decline of 36 %. Compared to the 5-year average, take-up is also down, by 49%. Nevertheless, office take-up has now shown slight growth for three quarters in a row. In the second quarter, take-up was 14% higher than in the first quarter of 2021. However, even in the second quarter, Düsseldorf’s office letting market lacked large deals above 5,000 square metres, which is the decisive factor behind the persistently low take-up volume. The largest deal of the year so far remains the leasing of almost 4,400 square metres by Mitsubishi Chemicals in the Linksrheinisch submarket in the first quarter. The actual number of leases signed, 232 in total, was 52% higher than in the same period last year.

Large users analyse demand closely
"The effects of the pandemic continue to determine the leasing decisions of large users in particular and are causing restraint in the majority of cases," explains Luisa Rotthaus, Branch Manager and Head of Office Agency in Düsseldorf at Cushman & Wakefield. "Large corporates are currently analysing future space requirements very closely, especially with regard to the future proportion of remote working and the choice of office concept. Due to the decline in new infections and the relaxation of restrictions, companies with space requirements of up to 500 square metres are clearly more willing to rent, and the number of deals in this segment is almost back to the pre-pandemic level. In view of the limited number of active major searches and longer review processes, we expect a take-up result of below 300,000 square metres by the end of the year."

Vacancy rate continues to rise only slightly
The office vacancy rate at the end of the second quarter is just under 7.1% and has increased only slightly compared to the same time last year (6.8%). Overall, the total amount of available office space for immediate occupancy has risen by just under 5% to around 652,400 square metres in the last twelve months.

High pre-letting rate in development projects
In the first half of 2021, the completed office space totals around 89,600 square metres. No higher H1 completion volume has been recorded since 2014. If construction progresses according to plan, another 72,000 square metres of office space will be ready for occupancy by the end of the year, of which a good 84% has already been allocated to users. Of the developments currently under construction with completion by 2024, the majority are in the Airport City and North submarkets. In total, the office completion pipeline in Düsseldorf amounts to around 242,700 square metres, of which a good 76% has already been let.

Office Düsseldorf

Average rent increases slightly in the second quarter
The achievable prime office rent at the end of the second quarter is 28.50 euros per square metre and month, achieved in the Central Business District (CBD) submarket. Despite the COVID-19 pandemic, the Düsseldorf office market has now been able to maintain its current high prime rent level for three consecutive quarters.

The weighted average rent for the past 12 months is currently 15.64 euros per square metre per month. Compared to the same point last year, the decline is slightly more than one euro, or around 6 %. Nevertheless, a slight increase was recorded in the second quarter for the first time since the beginning of the year.

No change in prime rent level is expected to the end of the year, as neither a significant increase in the vacancy rate is to be feared, nor is a significant or above-average letting performance expected in H2.

 
     

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Marketing & Communications Germany, Cluster Lead • 60313 Frankfurt am Main

RECENT NEWS

Andreas Siebert
Andreas Siebert

Andreas Siebert is the new Head of Retail Investment Germany at international real estate consultancy firm Cushman & Wakefield (C&W). 

Verena Bauer • 05/09/2022

Michael Fleck Leiter FFM Capital Market Team
Michael Fleck takes over Frankfurt investment team

International real estate consultancy firm Cushman & Wakefield has appointed Michael Fleck to lead its Frankfurt Capital Markets team. 

Verena Bauer • 23/08/2022

Office transaction in Hof FFM
Office transaction in Hof

Cushman & Wakefield has brokered the sale of an office property with 7,400 square metres of total lettable space in Hof. 

Verena Bauer • 22/08/2022

INSIGHTS

Germany Market View
Insights • Economy

Germany Real Estate Market View

A regular update on the commercial real estate market in Germany.
Helge Zahrnt • 23/09/2022
B-cities on the rise
Insights • Office

B-Cities on the rise

Innovative, solid talent pool and low rents – are the B-cities displacing the Top-7?
Verena Bauer • 22/09/2022

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
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.
MORE OPTIONS
AGREE AND CLOSE
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
SAVE SETTINGS