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

Transactions in the upper double-digit million euro range scarce in Frankfurt

Verena Bauer • 10/01/2023

According to research by international real estate consultancy firm Cushman & Wakefield, the Frankfurt investment market’s transaction volume for commercial real estate and development projects amounted to approximately EUR 4.6 billion in 2022. Compared to the previous year, this corresponds to a decline of 22 percent and fell short of the 10-year average by 24 percent. After an already weak 3rd quarter, the trend continued in the final three months of 2022. The usual year-end surge failed to materialize, resulting in an investment volume of only EUR 590 million in Q4.

Office segment still dominates

The majority of commercial real estate investment flowed into office properties in 2022. This asset class contributed about 75 percent and thus about EUR 3.4 billion of transaction volume. Of this, EUR 330 million was invested in the final quarter of 2022. The largest office transaction of the fourth quarter did not take place in the city centre, but in Sossenheim on the outskirts of the city. The acquired property is to be converted into a data centre.

The office sector was followed by logistics and industrial property with an annual transaction volume of approximately EUR 450 million whereby the largest deal was the sale of two logistics properties in Frankfurt's Cargo-City-Süd by DWS to Garbe Industrial for EUR 126 million.

The sale of land, mixed-use properties and data centres accounted for a total of around EUR 575 million and the hotel transaction volume was EUR 145 million. No retail property transactions took place during the year.

Michael Fleck, Head of Capital Markets Frankfurt at Cushman & Wakefield, explains: "In Q4, office transactions in the upper double-digit million euro range in particular remained scarce. Large transactions are not expected in H1 2023 either. Only if the tense financing environment recovers in the further course of the year can large-volume transactions in the CBD be expected again."

Yields on the rise

The net initial yield for prime office properties in prime locations was 3.35 percent at the end of 2022. Compared to the previous quarter, this represents an increase of 25 basis points. In non-central locations, the net initial yield for prime office properties remains stable at 5.00 percent.

First-class logistics properties are currently trading at a prime yield of 4.00 percent. This value represents an increase of 40 basis points compared to the end of September 2022. City-centre mixed-use commercial properties were quoted at 3.75 percent, 15 basis points higher than in the third quarter of 2022. C&W expects further yield increases in the course of 2023 due to the ECB's planned interest rate hikes.

MEDIA CONTACT

verena bauer
Verena Bauer

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

RECENT NEWS

Cushman & Wakefield European Luxury Retail Report
Continuing attractiveness of well-established luxury retail locations in Europe

The continuing attractiveness of well-established luxury retail locations in Europe led to 107 new openings on 20 key luxury streets in 16 cities in 12 countries in 2023, according to the first “European Luxury Retail Report” by Cushman & Wakefield.

Verena Bauer • 08/05/2024

Michael Fleck Branch Manager Frankfurt
Michael Fleck appointed as new Head of Cushman & Wakefield’s Frankfurt branch

Michael Fleck is the new Head of Cushman & Wakefield’s Frankfurt branch. In addition to his new role, Michael Fleck will continue to lead C&W’s Frankfurt Capital Markets team.

Verena Bauer • 30/04/2024

Living Investor Survey
European Residential Investment

Investment in the EMEA residential sector has the potential to reach €70-85 billion per year over the next five years, according to one of the findings of the EMEA Living Sector Survey by Cushman & Wakefield.

Verena Bauer • 25/04/2024

INSIGHTS

Office Fit Out Cost Guide - Web card
Insights • Workplace

Germany Office Fit Out Cost Guide

Utilize our Office Fit Out Cost Guide 2024 to effectively plan and budget your office evolution in Germany. Start transforming your workspace in cities like Berlin, Frankfurt, and Munich today!
20/03/2024
Cushman & Wakefield Asset Optimisation Guides
Insights

Complete Asset Optimisation Guide

Our asset optimisation whitepapers serve as your comprehensive guide through the multifaceted real estate landscape.
Verena Bauer • 05/03/2024
City Logistics
Insights

European City Logistics Reports

Cities – and city logistics – continue to evolve in the post-pandemic environment. And with them, city logistics real estate strategies are also evolving.
Verena Bauer • 07/02/2024

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