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Office Space

Germany office markets

" The above-average performance of Germany’s office markets continued in 2016. This resulted in the highest take-up since 2007, rising rents and diminishing availability. In central locations in particular, demand is significantly greater than the supply. Consequently, many occupiers are shifting to the next best locations or further out into the periphery, causing an increasing supply shortage and rising rents in these submarkets. While it remains to be seen how new office concepts will impact occupation of office space, demand is not expected to decline for the time being. Growth in new-build office space remains below average. As a result, there will be no meaningful improvement in the supply shortage over the coming years. Occupiers should, therefore, take a proactive approach by extending existing leases prematurely or becoming owner-occupiers. "

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