New research from Savills shows that in the first quarter of 2024, office space take-up in Germany’s six major markets surged by 5.7% from last year to 590,000 square meters. Prime office rents have seen a slight decrease of 0.4% since the last quarter, while the average rent dropped by 2.6%. Office vacancies have gone up slightly by 0.2% to 5.7%, when compared to the end of 2023.
The market has seen an uptick in activity since the year’s start, with an increasing number of tenants exploring their leasing options.
Jan-Niklas Rotberg, the Head of Office Agency Germany at Savills, points out that as short-term lease extensions from the Covid-19 pandemic era are coming to an end, tenants are on the lookout for new spaces. He notes that although the market has its uncertainties, now is a good time for tenants to find deals since landlords, struggling with rising vacancies, are offering attractive terms.
Tenants are on the hunt for better quality spaces and are aiming to upgrade their locations without necessarily moving to the city center—potentially moving from lesser to more desirable areas.
These trends are seen in key markets such as Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, and Munich.
