According to Savills latest research, take-up in the top six German office markets* totalled 0.59m sq m in the first quarter of 2024; an increase of 5.7% year on year. Prime rents fell moderately by 0.4% compared with the previous quarter while average rents declined by 2.6%. The vacancy rate rose by 20 basis points to 5.7% compared with the fourth quarter of 2023.

However, since the beginning of the year, the international real estate advisor is noticing more movement in the market again. More and more tenants are sounding out the market and their leasing options.

Jan-Niklas Rotberg, Head of Office Agency Germany for Savills, says: “Many occupiers extended their leases by three to five years since the beginning of the Covid-19 pandemic. Now, these extensions are expiring and tenants are beginning to seek alternative space.

“While uncertainties remain, it is a favourable time to seek new space since owners faced with increasing vacancies are making quite attractive offers. The focus of occupiers remains on high-quality space, with new builds and refurbished building on their target lists. Many tenants are also seeking to improve their location. This does not necessarily have to mean a relocation into the city centre but could also mean a relocation from a C location to a B location.”

* Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne and Munich

Further information:
Market in Minutes Top 6 German office markets