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NAI apollo: Take-up activity remains weak on the Frankfurt office lettings market in Q2 2024

  • Space take-up reaches 181,500 sqm in first half of 2024 and is slightly above the previous year’s weak figure
  • Take-up boosted by ECB letting in the Gallileo skyscraper and office purchase by Frankfurter Sparkasse for its own use
  • Banks, financial service providers and insurance companies dominate the market
  • Banking district, Eschborn and city centre see highest take-up levels
  • Vacancy rate stands at 9.4 %
  • Projects, new buildings and refurbishments account for over 40 % of total take-up
  • Prime rent is stable at €47.50/sqm; average rent falls to €60/sqm
  • Outlook for the second half of 2024: take-up performance to remain below average accompanied by an increase in vacancies

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NAI apollo: Logistics market in Rhine-Main region picks up slightly in Q1 2024

  • Take-up reaches 89,100 sqm in Q1 2024
  • Growth in new-building segment owing to a large lease signing
  • Large spaces account for highest share of take-up
  • Greatest demand came from industrial and manufacturing companies, while take-up by retailers was much lower
  • Outlook: difficult economic environment hampers market activity; space shortages remain the biggest problem; new developments remain scarce owing to high costs and a lack of suitable sites; sustained growth in rents can be expected

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NAI apollo: Residential portfolio transaction market falls to a new low at the start of 2024

  • Quarterly result of around €790m represents the lowest level since 2010
  • Project developments account for a market share of more than 59 %
  • Increasing trade in smaller portfolios particularly in the value-add segment; significant falls in segments above €50m
  • Public Sector increases purchase volume and is now second-largest investor group after Asset Managers & Funds Managers
  • German investors dominate on buy side despite around 66 % decline in sales
  • Outlook for 2024: General conditions remain challenging; refinancing and securing liquidity increase pressure to sell; end of the price negotiation phase and stabilisation of interest rates encourage market activity; investment incentives in the rental market with rising excess demand and dynamic rental price growth especially in growth regions

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NAI apollo: Large ECB lease characterises Frankfurt office letting figures for Q1 2024

  • Space take-up increases about 12 % year-on-year to 93,100 sqm in Q1 2024 and is also 11% higher in a medium-term comparison
  • Lease signed by the ECB in the Gallileo accounts for 40 % of take-up
  • Banks, financial service providers and insurance companies dominate the marke
  • Banking district, airport and Eschborn sub-markets generate highest take-up figure
  • Vacancy rate rises to 9.5 %
  • Projects, new buildings and refurbishments account for over 50 % of overall take-u
  • Project volume continues to fall
  • Sharp rise in average rent to € 25/sqm; prime rent remains stable at € 47.50/sqm
  • Challenging outlook for 2024: fewer signings and higher vacancies are expected

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NAI apollo: Activity on the logistics space market in Rhine-Main picks up in the second half of 2023

  • Space take-up reaches 172,800 sqm in the fourth quarter of 2023
  • Annual take-up of 484,700 sqm is 40 % above the previous year, but remains below the long-term average
  • Take-up increases in segment for large spaces, of which sub-lettings account for 30 %
  • New building segment sees further decline in market activity
  • Warehousing and logistics service providers placed ahead of companies from industry and manufacturing
  • Outlook: shortage of available space continues to limit market activity; increase in new developments, especially from a speculative standpoint, is unlikely owing to higher costs and a lack of suitable sites; prime rent expected to exceed €8

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NAI apollo: Market for residential portfolio transactions ends 2023 with lowest sales result since 2011

  • Transaction volume amounts to €6.2bn for 2023 as a whole
  • Fourth quarter in line with previous three months at €1.4bn
  • Lack of large transactions has biggest negative impact on the overall result
  • Trading in project developments falls to a 22 % market share
  • Manage-to-green strategies and ESG conformity of growing importance
  • Asset Managers and Funds Managers are most active buyers, while Listed Property Companies dominate on the sell-side
  • Outlook for 2024: transaction activity expected to remain subdued in the coming months in light of the continuing difficult economic conditions; increased pressure to sell as a result of refinancing and to safeguard liquidity; signs of market recovery later in the year owing to a growing demand-supply imbalance on rental markets as well as dynamic rental trends and price stabilisation

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NAI apollo: Frankfurt office lettings market performed below average in 2023 despite an improvement in Q4

  • Annual take-up in 2023 reaches 357,800 sqm and is a quarter below the medium- and long-term averages
  • Group comprising banks, financial service providers and insurance companies consolidate pole position
  • Highest take-up volumes achieved in Bankenlage (banking district) and Eschborn
  • Vacancy rate stands at 9.0 %
  • A third of total take-up is generated by projects, new buildings and refurbishment projects
  • Difficulties faced by developers result in a drop in the project volume
  • Average rent is €24.30/sqm; prime rent makes noticeable gain to €47.50/sqm
  • Slight optimism for 2024; clients continue to seek large spaces; moderate market recovery predicted for the second half of 2024

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NAI apollo: Logistics market in Rhine-Main registers highest space take-up in Q3 2023 since autumn 2021

  • Third-quarter take-up of 164,800 sqm is best result since Q3 2021
  • The 311,800 sqm registered in the year to date is well below long-term average
  • Large-scale segments show market revival, but remain below average in a long-term comparison
  • Market activity in new-build segment remains at a low level
  • Storage and logistics service providers represent most active group, followed by companies from industry and the manufacturing sector
  • Focus on southern sub-markets with market share of 65 %
  • Outlook: overall economic environment will constrain occupier demand, although the limited supply of available space remains the key problem; significant increase in construction activity is not expected; total annual take-up of over 400,000 sqm is possible

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NAI apollo: Transaction market for residential portfolios registers weakest nine-month result since 2011

  • Transaction volume of €4.7 billion in the year to date
  • Investment revenue of €1.4 billion in third quarter is slightly above the previous quarter
  • Number of transactions halved compared to the previous year; trading in project developments continues to decrease
  • Asset and Funds Managers remain the most active buyers, while Listed Property Companies account for highest sales volume
  • Outlook for 2023/2024: Price expectations of market participants are slowly converging, yet transaction activity remains subdued owing to ongoing macroeconomic uncertainties and high construction and financing costs

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NAI apollo: Another weak quarter for the Frankfurt office lettings market

  • Space take-up of 87,000 sqm broadly in line with previous quarterly results
  • Take-up in 2023 to date amounts to 261,100 sqm and is well below the medium and long-term averages
  • Banks, financial service providers and insurance firms as well as industrial production and manufacturing sector represent most active industries
  • Banking district and Messe/Europaviertel are most popular sub-markets
  • Vacancy rate rises to 9.0 %
  • Average rent at €24.80/sqm; prime rent at €46.00/sqm; positive rental development likely in foreseeable future
  • 2023: Economic slowdown acts as a noticeable deterrent for office users, although there are requests for large spaces on the market, including from the public sector; total annual take-up could reach around 350,000 sqm

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