Chart of the Month December: Office market better than expected
In the coming years, high volumes of newly completed offices will again come onto the market. Vacancy rates are rising, but not to a critical extent. Landlords and tenants can once again negotiate at eye level.
Despite several crises, the office market has proven to be surprisingly robust. Only the investment market has become quieter - the price expectations of sellers and buyers often do not come together, the finding phase continues.
A look at the demand side shows that the number of office employees in the A and B cities has not declined, on the contrary. In the A-cities it will continue to rise over the next four years, only in the B-cities will growth flatten out. However, in the still smaller cities, demographic change will partly cause a decline in the medium term. On the supply side, completions will continue to rise until 2024, but new construction will decline in the medium term. Vacancy rates will continue to rise in the coming years, albeit from a very low level in the A and B cities. We are thus returning to an area of a fluctuation reserve - tenants and landlords can once again negotiate at eye level.
Offices will continue to be needed, albeit with slightly different concepts. It is no longer possible to imagine life without the topic of ESG, which is already determining the investment market (and successively also the rental market) and thus also has a considerable impact on new construction.
Contact: Alexander Fieback, Team Leader Office and Logistics Real Estate at bulwiengesa and Branch Manager Berlin, email@example.com
You might also be interested in
For our magazine, we have summarized relevant topics, often based on our studies, analyses and projects, and prepared them in a reader-friendly way. This guarantees a quick overview of the latest news from the real estate industry.
Chart of the Month April: Stationary Retail Sales versus E-commerceFrom ophthalmic optics to houseplants: We collect consumption data for numerous product groups, e.g. for impact and risk analyses as well as location searches. The share of e-commerce will continue to grow in the future, although it will vary greatly depending on the product group.
Chart of the Month March: Increased rents and operating costs burden office tenantsThe increase in rents and operating costs affects all real estate segments. For example, the operating costs for offices in A-cities alone have increased by 63 % since 2021. This is the result of the first joint study "Overall Rental Analysis - Office Market Germany" with BAUAKADEMIE.
Chart of the Month February: Mixed Mood in the Hotel MarketOvernight stays recovered in 2022, with demand in German resorts again high. Nevertheless, the mood in the German hotel real estate market is mixed. Many households are saving, possibly also on holidays. At least tourism is finally returning to the cities
Here you will find studies and analyses, some of which we have prepared on behalf of customers or on our own initiative based on our data and market expertise. You can download and read many of them free of charge here.