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

Above average number of lettings in Frankfurt office market

Verena Bauer • 08/04/2022

107,100 sq m of take-up was achieved in the Frankfurt office letting market in Q1 2022, reports international real estate consultancy firm Cushman & Wakefield. This represents a year-on-year increase of around 34 per cent. The ten-year average was exceeded by 8 per cent and the five-year average by 7 per cent.

Owner-occupiers increase letting take-up
Owner-occupiers accounted for a significant proportion of take-up (36 per cent) and were also responsible for the two largest transactions in Q1. With the start of construction of its new campus in Eschborn, GIZ was responsible for the only deal above the 10,000 sq m mark, with around 28,000 sq m of office space. Sparda-Bank, also an owner-occupier was responsible for the second-largest deal. The bank will occupy around 9,100 sq m of space in its high-rise project in  Europaviertel on completion in 2025. Pure letting take-up also rose by around 11 per cent compared to Q1 2021, to around 69,000 sq m. The largest letting in the first three months was to Deutsche Bank, with around 6,100 sq m in the IBC in City-West.

Pierre Nolte, Head of Office Letting Frankfurt at Cushman & Wakefield, explains:

"A large number of companies have now committed to a workplace strategy for the post-pandemic era. They are now considering whether to implement the new concepts in their current office space or in a new location. The increasing economic uncertainty associated with the war in Ukraine has so far not led to a reduction in activity on the user side. This is because, as a rule, a reduction in space is being sought anyway. Accordingly, we are registering more new searches for space in all size classes with a clear focus on improved location and building quality."

Vacancy level stable below the 1 million sq m mark
The vacancy rate was almost unchanged compared to the previous quarter, falling slightly by 10 basis points to 8.0 per cent. Over the course of 12 months, the increase amounted to 20 basis points. In total, around 944,000 sq m was available for immediate occupancy at the end of the first quarter. Slight increases in vacancy are expected by the end of the year in view of the expected completions of speculative construction projects.

Particularly in the CBD, the availability of space has fallen significantly again after interim increases as a result of the pandemic. Here the vacancy rate is currently at 4.2 per cent and thus significantly below the level of the market as a whole. Especially in the absolute premium segment, demand exceeds supply. As many users in this segment prefer properties with a better building quality when moving, the pressure to modernise older existing buildings is increasing. Pierre Nolte: "Despite rising vacancy rates, the lack of availability of prime space in prime locations will lead to competition on the user side in the coming years."

Office market Frankfurt Q1 2022

New construction projects with low occupancy rates
In 2022, around 141,000 sq m of office space is expected to come into the market. This means that construction activity this year is significantly lower than in the previous two years, due in particular to delays in some projects, which will lead to an increased completion volume in 2023 (230,700 sq m expected) and 2024 (239,100 sq m expected). At 53 per cent, the occupancy rate in 2022 is comparatively low, so that the completions of the speculative - and not yet let – the "FLOW" and "The Move" projects  in Gateway Gardens are likely to result in significant increases in vacancy in the Airport submarket.  

Average rent declines slightly
The weighted average rent for all new lettings in the last twelve months is currently quoted at EUR 23.00/sq m per month. This corresponds to a slight decline of EUR 0.20/sq m or 0.9 per cent compared to the previous quarter. Compared with a year previously, the average rent has risen by EUR 0.40/sq m. The prime rent in the first quarter was unchanged from the previous quarter at EUR 46.50/sq m per month. Cushman & Wakefield expects slight increases in both prime and average rents by the end of the year - due to higher prices for raw materials, which affect the development of office space, and the focus of many occupiers on rather high-priced new buildings.

 

MEDIA CONTACT

verena bauer
Verena Bauer

Head of Business Development Services, Germany • 60311 Frankfurt am Main

RECENT NEWS

Law Firms 2024
Law Firms 2024

The latest study ‘Law Firms - Trends and Leasing  Behaviour 2024’ by Cushman & Wakefield shows that the sector continues to favour central, prestigious locations.

Verena Bauer • 05/12/2024

Top Investment Deals
Top Investment Deals 2024

According to a recent analysis by Cushman & Wakefield, 40 transactions of 100 million euros or more were recorded on the German real estate investment market in the first three quarters of 2024, with a total volume of € 10.8 billion.

Verena Bauer • 21/11/2024

Main Streets across the world
Main Streets Across the World

For the first time, a European shopping street has topped the global ranking of the most expensive retail locations: Milan's Via Montenapoleone overtakes New York's Upper 5th Avenue and secures first place with an annual prime rent of € 20,000 per square metre. 

Verena Bauer • 20/11/2024

INSIGHTS

Modern dining room. Text: Regulation in the German Housing Market
Insights

Regulation in the German Housing Market

What Investors Need to Know: Legal Framework and Current Market Trends in Leasing. A Report developed by Cushman & Wakefield and Hogan Lovells.
Jan-Bastian Knod • 26/09/2024
Facade of apartmentblocks - with text overlay Micro Apartments
Residential • Investment / Capital Markets

Micro Apartments 2024

The report ‘Micro apartments 2024: An asset class comes of age’  builds on its predecessor from 2021 and analyses the current trends, drivers and opportunities in the German market for micro-apartments. 
Jan-Bastian Knod • 22/08/2024
Inclusive Cities Barometer
Insights • Sustainability / ESG

Inclusive Cities Barometer

Our Inclusive Cities Barometer shows the inclusivity of 44 cities in the EMEA region - including Berlin, Hamburg, Frankfurt, Munich and Cologne.

16/07/2024

LOOKING FOR SOMETHING SPECIFIC?

Looking for more historic or specific data? Get in touch and we can assist with any additional information you need.
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