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
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
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
Frankfurt am Main, August 29, 2023 – NAI apollo, a partner of the NAI apollo group, has secured Klaus Schumacher, one of the leading experts in Distressed Real Estate and Non-Performing Loans (NPL) in Germany, for its Corporate Finance division under the leadership of Ingo Rösinger. Together, they will establish a real estate-oriented special situation platform with a wide range of services in the NPL and Distressed Real Estate sector. Schumacher sees himself as a problem solver for banks, other financiers, and portfolio holders.
Total space take-up of 174,100 sqm in the first half of the year is below comparable mid- and long-term average figures
Group comprising banks, financial service providers and insurance companies still accounts for the highest take-up volume
Users focus on central locations and sustainable properties
Vacancy rate increases to 8.9 % while total vacancies exceed 1 million sqm
Rental prices keep on rising: average rent reaches €24.90 €/sqm; prime rent remains at €46.00/sqm
2023: take-up impacted by the challenging economic environment and changing needs for office space; larger lease signings expected in the second half of the year; sustainable space remains of growing importance
Q2 take-up of 84,900 sqm is higher on a sequential basis, but well below the long-term average
Space take-up in the first half of 2023 falls to ten-year low of 147,000 sqm
Low market activity in new project developments
Big deals see significant fall in take-up, but demand is highest for spaces larger than 10,000 sqm
Warehouse and logistics service providers are the most active users in the first half, followed by retailers
Sub-markets in south and east account for highest take-up shares
Outlook: difficult market environment, but demand for space continues to exceed supply; new projects are additionally hampered by high construction and financing costs; further rental increases are likely
Transaction volume reaches only €2bn in the first quarter of 2023 owing to subdued market activity and an absence of mega-deals
Trading in project developments weakens after previous record results
Asset Managers & Funds Managers are now the strongest buyers as well as the second most active sellers after Project Developers & Contractors
German investors remain dominant on the buy-side despite a decline of over 50 %
Outlook for 2023: Uncertain market environment and cautious attitude among investors makes it more difficult to provide forecasts; the price negotiation phase is still ongoing, and the expected transaction volume will be lower than in previous years as a result
Wait-and-see attitude among market participants and a decline in mega deals cause drop in transaction volume
Below average sales in fourth quarter of €2.9bn
Project developments maintain high market share and account for 42.6 % of transactions
“Open-Ended Funds / Special Funds”remain most active buyers
German investors continue to dominate the market despite a noticeable decline
Forecasting for 2023 remains difficult, especially because the gap between seller expectations and buyer budgets is still too wide; ESG compliance is of mounting importance; new buildings remain in demand, but are associated with high building and financing costs, whereby attention is shifting to properties with development potential
Space take-up of 381,600 sqm in 2022 is well below comparative medium- and long-term average results
Banks, financial service providers and insurers account for a quarter of take-up and play dominant role
Banking district accounts for highest share of market activity
Vacancy rate broadly stable at 7.5 %
Rents are on an upward trend: Prime rent stable at €46.00/sqm while average rent increases to €23.90/sqm
2023: Outlook is moderately optimistic owing to the recent improvement in economic forecasts; ecological sustainability is of growing importance; decreasing space requirements owing to hybrid working models
