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

Recession concerns not yet affecting Berlin’s office letting market

Verena Bauer • 10/10/2022

International real estate consultancy firm Cushman & Wakefield recorded take-up of 583,900 sq m in the Berlin office letting market over the first three quarters. This is roughly the same level as in the same period last year.

Conspicuously strong IT, green energy and biotechnology take-up

At 228,400 sq m, the third quarter was, as usual in Berlin, stronger in terms of take-up than the first two. In contrast to the first half of the year, there were also four lettings of 10,000 sq m or more in Q3, the largest of which was the pre-letting of 22,500 sq m in the QH Track development project to Cariad SE, a software subsidiary of Volkswagen. 

Companies from the ICT sector / online platforms dominated take-up with 62,000 sq m in the third quarter and 125,400 sq m in the year to date. As is usually the case in Berlin, this puts them in first place in the sector ranking. 

Industrial companies exhibited conspicuously strong growth in take-up, absorbing 128 percent more space in the third quarter and 195 percent more in Q1 - Q3 than in the same period last year, at 32,200 sq m and 75,100 sq m, respectively. The (green) energy, biotechnology / pharmaceuticals and transport sectors made notable contributions to the strong growth.

Prime rent rises faster than average rent

The achievable prime rent also rose in the 3rd quarter to EUR 43.00 /sq m per month. This is EUR 4.00 more than twelve months ago and EUR 1.00 more than in Q2 2022. The area-weighted average rent also reached a new high of EUR 28.40/sq m per month, having increased by EUR 1.90 over 12 months and by 35 cents in the last quarter. C&W expects further moderate growth in prime rents into next year. This will be driven by development projects and high-quality existing buildings in prime locations, for which demand remains high.


Office market Berlin Q3 2022


Interest in energy-efficient property development projects increases

At 397,600 sq m, completions of new-build and core refurbishment projects reached a record volume by the end of September, exceeding the 5-year average by 73 percent. 98,300 sq m or 25 percent of the space was still without an occupant on completion. Of the 297,800 sq m scheduled to be ready for occupancy in Q4, 73 percent is pre-let or earmarked for owner-occupiers. 

„Demand from office users for space in development projects will remain high“, stated Donn Lutz, Head of Office Agency Berlin at Cushman & Wakefield. „The importance of energy-efficient buildings is currently growing strongly. Prospective tenants are increasingly asking about cost-saving energy standards and sustainable heating systems and energy sources such as heat pumps, geothermal energy and photovoltaic arrays. We assume that such concerns will become still more salient next year with the arrival of running cost statements.“
In total, development projects totalling around 1.7 million sq m are under construction, of which 54 percent is let or for owner-occupation. Due to rising financing and construction costs as well as the growing supply of space, C&W expects property developers to act more cautiously and the number of speculative construction starts to decline in the coming year. 
Vacancy rate grows only slightly in Q3
At the end of Q3 2022, the vacancy rate, including sublet space on offer, was 4.4 percent, which is the highest level since the end of 2015. This means that 892,000 sq m is currently available for immediate occupancy in German capital. This corresponds to an increase of 155,500 sq m or 21 percent compared to the same point last year. However, the vacancy rate increased by only 22,500 sq m or 3 percent in Q3 compared to the previous quarter; a much slower pace than in H1. This stabilization was due to the increased level of take-up in the 3rd quarter with fewer completions than in the 1st half of 2022. Further growth in vacancy is however to be expected as the project development pipeline is still extensive.
Total result for the year expected to be below last year’s level
For the 4th quarter of 2022, C&W expects take-up of around 250,000 sq m based on currently ongoing major searches for space. This would leave the overall result at 835,000 sq m which is less than the previous year (2021: 902,500 sq m), but significantly higher than in the core-pandemic year of 2020 (741,900 sq m). 
The looming recession could create headwinds in the office letting market if, in addition to higher risk aversion and increasing cost sensitivity among companies, there are also negative effects on the labour market. However, this would have a delayed effect with a stronger impact in the coming year.


verena bauer
Verena Bauer

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


Business park econova in Essen
The letting of 11,500 square metres in Essen’s “econova” business park to Sulzer Chemtech

The Logistics & Industrial Services team advised Swiss process technology specialist Sulzer Chemtech on a long-term lease for 11,500 sq m of industrial and logistics space at Zur Peninsula 6 in Essen’s  “econova” business park.

Verena Bauer • 25/10/2023

Rhine Tower Duesseldorf
Solid quarterly take-up provides a slight improvement in Düsseldorf’s office letting market

In the first three quarters of 2023, a total of 183,400 sq m of take-up was recorded in Düsseldorf's office letting market, reports international real estate consultancy firm Cushman & Wakefield.

Verena Bauer • 10/10/2023

Luxury hotel lobby
Hotel Transaction Activity Remains Low and Yields Continue to Rise

In the first three quarters of 2023, international real estate consultancy firm Cushman & Wakefield recorded a total transaction volume of EUR 540 million in the hotel segment, of which EUR 150 million was generated in the 3rd quarter.

Verena Bauer • 10/10/2023


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



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.
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