German
Market Review
OFFICE MARKET OVERVIEW
Savills World Research reported that the top six office
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approximately 3.3 million sqm in 2015, representing an
increase of almost 22.0% compared to the previous year.
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sqm. The year-end total was also the highest since 2007.
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volumes increasing by 15.0%. Figures were boosted by a
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from smaller occupiers.
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Office rental rates continue to show a positive trend
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particularly for new leases and renewals, are often
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lease terms. Tenant concessions (such as initial rent-
free periods, tenant improvement incentives etc.) of an
equivalent of 6 to 12 months’ rent on average are typically
offered by landlords in order to secure new leases and
renewals.
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among the top locations, ranging from impressive results
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Berlin
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940,800 sqm, an over 20.0% increase year on year. This
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from the information, communication and technology
sector, with many enterprises signing several large-scale
leases and showing considerable interest in the small-
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Munich
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750,500 sqm, a 27.0% increase year on year. The 1,000 sqm
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last year, which was a third more than in the previous
year. There were also numerous corporate expansions of
companies, particularly from companies in the software
and IT sector, resulting in a net increase in leased space.
Hamburg
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sqm, a 3.0% increase year on year. Driven by a broad mix
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at the previous year’s high levels. The public sector was
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Düsseldorf
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a 75.0% increase year on year. It also recorded the most
impressive quarterly results, with tenants snapping up
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attributed to three large-scale leases signed by Deutsche
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total of 70,000 sqm.
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two large occupiers with extraordinary new-build potential,
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Frankfurt am Main
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which represented a 6.0% increase year on year. Despite
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were signed for more than 10,000 sqm in the year except
for a 32,000 sqm owner-occupier deal involving Deutsche
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a 30.0% increase year on year. Four of the six largest
lettings last year were attributed to the public sector,
which accounted for a total of more than 40,000 sqm – a
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Stuttgart
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the end of the third quarter of 2015 by 3.0% year on year
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companies from the manufacturing industry. Robert Bosch
and Daimler were particularly active in several deals as
both tenants and owner-occupiers.
31
IREIT Global
ANNUAL REPORT 2015
