Market survey - 2019/Q1-4 Hamburg - German Property Partners
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Market survey Commercial | Office letting 2019/Q1-4 Hamburg Hamburg | Sylt | Berlin
Commercial | Office letting
Hamburg 2019/Q1–4
Key Facts Office letting
545,000 m² | -7.6% year-on-year change
29.50 €/m² | +7.3% year-on-year change
17.70 €/m² | +12.0% year-on-year change
2.9% | -0.6 pp year-on-year change
13.8m m² | +0.7% year-on-year change
pp = percentage point
Take-up of space Prime rent mth (net) Average rent mth (net) Vacancy rate Office stock
“In conjunction with the strong rise in land and construction The mid-sized categories, i.e. 1,001 m² to 2,000 m² and 2,001 m²
costs, the low level of vacant space led to a significant rise in to 5,000 m² accounted for 19 % (about 101,000 m²) and 20%
office rents in 2019. Hamburg will remain a landlord’s market (about 110,000 m²) respectively. 109 agreements were signed
in 2020.” in 2019 for premises in these two segments, 32 of them in the
Andreas Rehberg | Managing director 4th quarter alone. Here the biggest new agreement noted was
signed by service company TA Triumph-Adler for some 4,100 m²
Take-up of space in the “Area 5.0” (Deelbögenkamp 4, Eppendorf). The smaller
Less take-up due to shortage of premises size categories, i.e. 500 m² or less and 501 m² to 1,001 m² posted
shares of 16% (about 86,000 m²) and 17% (about 95,000 m²)
In 2019 the total amount of office space let in Hamburg was respectively. Noticeably fewer agreements were concluded in
545,000 m² and thus some 8% below the prior year’s figure. As 2019 than in 2018. The number of contracts concluded fell from
in the past, the reason for declining take-up was the shortage of 690 to 590. By contrast the number of owner-occupier transac-
space to rent. Owner-occupiers accounted for 13% of take-up, tions remained stable at 16.
slightly below their 14% share a year before. Towards the end
of the year the pace of business slowed appreciably. In the last
quarter, for example, only 110,000 m² of office space was bro- Take-up of space
kered. 2016–2020 | in 000s m² | incl. owner-occupiers
Only one new agreement for more than 5,000 m² of space
10-year average (2010–2020):
was registered in the 4th quarter, when energy provider Licht- ca. 531,000 m²
Blick rented 8,200 m² off-plan in the “ConneXion Office” devel-
opment (Klostertor, City). Overall, the 5,000 m² plus category Forecast
comprised 28% of take-up in 2019 (153,000 m²). Compared with
2018 this was a very similar proportion, although the number of
agreements fell from 15 to 12. The biggest agreements of the
year were the start of construction on OTTO GOeast, an own-
er-occupier development at Werner-Otto-Strasse 1-7 (about
40,000 m², Hamburg East) followed by contracts signed by
New Work/Xing for some 21,600 m² in the “Unilever House”
550 640 590 545 530
(Strandkai 1, HafenCity) and Vattenfall Europe for 17,500 m² in
the EDGE ElbSide (Amerigo-Vespucci-Platz). 2016 2017 2018 2019 2020
Source: Grossmann & Berger GmbH
www.grossmann-berger.de | Page 2
Commercial | Office letting
Hamburg 2019/Q1–4
Selected top contracts
2019/Q1–4
1. OTTO Group | Werner-Otto-Straße 1-7 | ca. 40,000 m²
2. New Work/Xing | Strandkai 1 | ca. 21,600 m²
3. Vattenfall Europe | Amerigo-Vespucci-Platz | ca. 17,500 m²
4. Universität Hamburg | Schlüterstraße 51-59 | ca. 15,200 m²
5. GIGA | Schlüterstraße 51-59 | ca. 10,000 m²
6. Signal Iduna | Kapstadtring 5 | ca. 10,000 m²
7. LichtBlick | Klostertor | ca. 8,200 m²
8. Intelligent Apps | Neumühlen 19 | ca. 6,900 m²
9. FFG FINANZCHECK | Admiralitätstraße 60 | ca. 6,200 m²
OTTO Group
10. Unilever | Neue Burg 1 | ca. 6,200 m² “OTTO GOeast” Werner-Otto-Straße 1-7 | HH-Ost | ca. 40,000 m²
About half of the total space taken up in 2019 was located in the
Take-up of space central sub-markets City, HafenCity and City South. City main-
2019/Q1–4 | in 000s m² | by size and no. of lettings tained its traditional position as front-runner in 2019 - this sub-
market posted 24% of total take-up (about 132,700 m²). Four
Take-up of space
of the twelve firms requiring large office suites - LichtBlick, Uni-
No. of lettings
lever, FFG Finanzcheck and Wünsche Group - chose premises in
Hamburg’s city centre. Four new agreements for between 2,001
and 5,000 m² of space were posted in the 4th quarter, bringing
the year’s total in this size category to ten. Shortly before the
end of the year, for example, the HR services provider KRON-
GAARD took some 2,100 m² in “Convent Parc” (Fuhlentwiete
8-10). Trailing City by quite a long way, HafenCity was second in
the ranking of sub-markets with a share of around 14%. Take-up
figures in HafenCity owed a great deal to the 73,600 m² of
330 139 72 37 12 take-up generated by NewWork/Xing and Vattenfall Europe as
16% 17% 19% 20% 28% well as the construction starts for owner-occupiers BGW and
86 95 101 110 153 VBG in the Elbbrücken (Elbe Bridges) quarter. With a share of
up to up to up to up to over around 11% (60,700 m²) City South ranked third in the table of
500 1,000 2,000 5,000 5,000 take-up by sub-market. The biggest new let in City South was
Source: Grossmann & Berger GmbH in the “Economic Quarter” (Heidenkampsweg 96-98), where
Germany’s federal government Autobahn GmbH took some
4,300 m². During the last quarter two new agreements in the
size category starting at 2,000 m² were signed, one by Abbott
Take-up of space Laboratories, a pharmaceutical company, (Sachsenkamp 5)
2019/Q1–4 | by industry and one by inlingua, a language school, (Amsinckstrasse 28).
Retail/gastronomy accounted for 17% and thus the biggest
share of take-up (about 91,100 m²). This was largely attrib-
17% Trade/ utable to the construction start for OTTO Group and the two
Other sectors
23% restaurants
large 1st-quarter agreements signed by Unilever and Wünsche
Group. Among the larger new rentals in the 4th quarter were
those signed by Carlsberg Deutschland in the “Marzipan
IT/telecom- Factory” (Griegstrasse 75, Altona) and the online retailer About
Public 15%
administration 5% munications You in “Domkaskaden” (Domstrasse 18, City), both in the size
Tourism/ category 2,000 m² or more. After retail/gastronomy the next
transport
6%
most active segments of the economy were information/
10% Services to telecommunications (15% share, ca. 82,000 m²) and consul-
Education
7% business
7%
tancy (10% share, ca. 55,200 n²). Among IT firms Xing signed
10% Manufacturing
Construction/ industry the largest rental agreement. KPMG took a larger suite of of-
property fices than other consultancies, renting some 3,500 m² in the
“Springer Quartier” (Kaiser-Wilhlem-Strasse 16).
Source: Grossmann & Berger GmbH
www.grossmann-berger.de | Page 3
Commercial | Office letting
Hamburg 2019/Q1–4
Rents
Less room to manoeuvre on terms
The shortage of available real estate in conjunction with the
strong rise in land and construction costs led to a significant
increase in Hamburg office rents in 2019. Year on year the av-
erage rent rose by 12.0%, climbing from €15.80/m²/month
to a new record high of €17.70/m²/month. By the end of the
year the premium rent (prices paid in the most expensive 3%
of newly let space in the past twelve months) had also risen,
increasing by 7.3% to a new high of € 29.50/m²/month. In view
Prime and average rent of the shortage of available premises companies, both large
2015–2019/Q4 | in €/m²/mth (net) and small, are finding they have less room to manoeuvre when
29.50 negotiating terms for their new offices. Meanwhile, even when
larger suites of 1,000 and 2,000 square metres are required,
27.50
three or four firms will find themselves competing for the same
26.00 26.00
25.00 space. As a result, incentive packages have been cut consid-
Prime rent erably and landlords often succeed in obtaining the asking rent.
17.70
Average rent 15.80
Available and vacant space
15.50 15.20
14.50 Pre-lets for 2020 reach 94 per cent
By the end of the year, some 400,400 m² of office space was
available to rent at short notice.* Within the space of one year,
2015 2016 2017 2018 2019/Q4
vacancies dropped by 16% or some 77,000 m². During this
Source: Grossmann & Berger GmbH period the vacancy rate slipped by 6 percentage points to 2.9%.
However, compared with the prior quarter this rate held steady.
Over 50% of offices available at short notice are to be found
Vacant space | Vacancy rate in the City, Bahrenfeld and City South sub-markets. There has
2015–2019/Q4 | in 000s m² been little change in the type of properties standing vacant
compared with 2018. The proportion of category A premises
(new build or comprehensively refurbished building with top
5.2% 5.1% fit-out) rose slightly from 22% to 25%, while the share of ex-
isting properties was correspondingly lower. Although some
4.3%
304,000 m² of new office property will be completed in 2020
3.5%
2.9%
and 2021 this will not ease the tight market because 73% of the
volume has been pre-let. The biggest completion scheduled in
2020 is the new Olympus head office building, now under con-
struction at Wendenstrasse 14-18, City South (48,500 m²). Of-
fering 45,000 m² of office space, the biggest completion in 2021
698 684 580 477 400
will be the Beiersdorf headquarters, which will form part of the
2015 2016 2017 2018 2019/Q4 “Beiersdorf Campus” (Troplowitzstrasse, Eimsbüttel). With
Source: Grossmann & Berger GmbH 14 developments set to provide 94,000 m² of space, the City
sub-market is the focus of new construction work. In view of a
pre-let rate of 77% only about 21,000 m² of offices will come
Completions | Pre-let rate onto the open market in 2020/2021.
2017–2021 | in 000s m²
30 developments were completed in 2019, adding 168,000 m²
to the total of office space. At the end of the year, the pre-let
rate was 74% (about 125,000 m²). The biggest completion of
2019 was the new head office for Euler Hermes, a credit in-
59%
surance firm, in Bahrenfeld (Bahrenfelder Kirchenweg 26) of-
fering some 23,000 m² of office space.
94%
* The definition of vacant at short notice has been altered. Vacancies now include
all office space that is available to new tenants within six months. Because trade
260 135 168 119 185 firms have full order books, it is generally no longer possible to have the premises
fitted out within three months.
2017 2018 2019 2020 2021
Source: Grossmann & Berger GmbH
www.grossmann-berger.de | Page 4
Commercial | Office letting
Hamburg 2019/Q1–4
Overview of office sub-markets Hamburg
2019/Q1–4
Airport
City North
ter
Als
Hamburg East
Hamburg West
Eppendorf
Barmbek
Alster East Wandsbek
A7 Alster West
Eimsbüttel
Bahrenfeld
Außen-
alster A 24
St. Georg
St. Pauli
City Binnen-
Altona alster
A1
City South
Port Rim Harburg
Elbe No
rde A 253
A7 rel
b
HafenCity
e
Rents paid
Take-up of space Average rent Completions
Vacant space Vacancy rate longer-term
Sub-market in m² incl, in €/m²/mth 2020/2021
in m² in % in €/m²/mth
owner-occupiers (net) in m²
(net)
1 City 132,700 73,000 2.5 12.50 – 32.00 22.70 94,000
2 HafenCity 73,600 22,000 4.0 18.00 – 29.00 21.60 1,000
3 Port Rim 11,200 6,900 3.2 14.80 – 23.60 21.90 0
4 Alster West 37,000 2,500 0.5 15.00 – 23.00 17.80 0
5 Alster East 10,200 6,300 2.0 10.90 – 21.50 15.80 0
6 St, Georg 10,300 4,500 1.0 11.00 – 18.00 15.00 5,000
7 City South 60,700 63,500 3.9 8.00 – 16.50* 14.00 49,000
8 St, Pauli 8,500 3,800 0.8 11.00 – 25.00 18.00 0
9 Altona 27,400 23,300 3.2 13.30 – 20.00 16.30 21,000
10 Bahrenfeld 15,400 70,200 14.8 8.50 – 16.80 12.20 6,000
11 Eimsbüttel 7,700 12,400 5.7 10.00 – 19.80 13.90 53,000
12 Eppendorf 15,200 5,300 1.7 13.50 – 16.50 15.00 34,000
13 Airport 9,500 22,900 2.7 7.50 – 15.00 11.80 0
14 City North 15,800 5,500 1.0 10.30 – 14.50 12.80 0
15 Barmbek 13,600 9,400 1.6 8.00 – 17.90 12.40 1,000
16 Wandsbek 15,800 17,500 2.9 7.00 – 16.70 12.40 1,000
17 Harburg 19,200 13,600 1.4 6.50 – 15.00 11.60 23,000
18 Hamburg East 59,400 27,500 2.8 6.00 – 15.70 8.80 17,000
19 Hamburg West 1,800 10,300 2.4 10.00 – 17.00 13.20 0
Total 545,000 400,400 2.9 6.00 – 32.00 17.70 305,000
* Value adjusted
www.grossmann-berger.de | Page 5Commercial | Office letting
Hamburg 2019/Q1–4
Outlook
Despite foreign trade risks, business managers take optimistic view of new year
The Labour Agency reports that the year-on-year unem- Take-up of space
ployment rate inched up in December 2019 from 5.9% to 6.0%. Total take-up for the year of 545,000 m² was higher than
The number of jobless in Hamburg remained stable at some Grossmann & Berger had anticipated at the start of 2019. As
64,000 people. the volume of available space continues to shrink, take-up of
office space in 2020 is expected to be in the region of the 10-
In December 2019 the ifo employment barometer revealed that year average of 530,000 m².
German firms are slightly more cautious about adding to their
payrolls. However, although the rate has slowed somewhat, Rents
jobs are still being created. Logistics and IT firms are important Year on year, average rents rose by 12.0% to €17.20/m²/month,
job motors. The barometer fell from 99.5 points in November thus reaching a new all-time high. By the end of the year the
to 98.9 points in December. Overall, Germany’s business man- premium rate had risen by 7.3% to €29.50/m²/month and
agers are optimistic about the coming year. At the end of 2019 likewise marked a new high. In view of competition for scarce
the ifo index of business confidence rose from 95.1 points in No- space, office rents are set to rise even higher in the future.
vember to 96.3 points in December. In the services sector the
index rose to the highest value seen in six months and managers Available space
are taking a cautiously optimistic view of the months ahead. Although some 119,000 m² of new office property will be com-
pleted in 2020 this will not ease the tight market because a
During the course of 2019 the risks to foreign trade receded massive 94% of the volume has been pre-let. However, during
a little, so that the economy has stabilized. Figures from the the year some larger office suites in existing buildings will
World Economy Institute (HWWI) indicate that economic become vacant and available at short notice. The vacancy rate
growth was 0.6% in 2019. Growth of 1,4% is forecast for 2020, will therefore stabilize at its current low level.
followed by 1.5% in 2021. However, the Institute warns that
foreign trade risks and the associated danger of recession have
not disappeared.
“JOHANN KONTOR“ Klosterwall | ca. 15,500 m² | Available from 2023/Q4
Grossmann & Berger‘s Promise.
www.grossmann-berger.de | Page 6Commercial | Office letting
Hamburg 2019/Q1–4
Skilled consultancy
Services und contacts
From left to right: Sonja Ebert | Anna Martens | Stephan Eckert
What can we do for you? Anna Martens | Diplom-Ingenieur Master of Urban Planning
An analysis of the property markets is an important part of the Phone: +49 (0)40 / 350 80 2 - 615
wide-ranging consultancy services offered by Grossmann & Mail: a.martens@grossmann-berger.de
Berger. We would be pleased to be of assistance in your deci-
sion-making process and can draft an offer that is tailored to Stephan Eckert | Urban and Regional Development M. Sc.
your specific requirements. Phone: +49 (0)40 / 350 80 2 - 231
Mail: s.eckert@grossmann-berger.de
Glossar
Definitions, office market
Take-up of space: Take-up of space is the total of all space newly let plus that sold Photo credits:
Cover: “LES 1“, Ludwig-Erhard-Strasse 1 © LES 1 GmbH, Page 2: “Frachtraum“, Neuer Wall 34
to or built by an owner-occupier during the period under review. The operative date © Chantal Weber, Page 3: “Campus Bramfeld”, Werner-Ottostrasse 1-7 © Otto (GmbH & Co.
for inclusion in the statistics is the date on which the lease or purchase agreement KG), Page 6: “Johann Kontor”, Klosterwall © KPW Architekten / bloomimages. .
was signed. Lease renewals are not counted as take-up. Areas are stated on the We draw your attention to the fact that all statements made here are non-binding. Most of
basis of the guide for calculating the rental area in commercial leases (MF/G). the information is based on third-party reports. The sole intention of this market survey is to
provide general infomation for our clients.
Prime rent: The prime rent is that paid for the most expensive 3% of the market
for new lets (not counting owner-occupiers) during the 12 months just ended and Grossmann & Berger GmbH | Bleichenbrücke 9 (Bleichenhof) | D - 20354 Hamburg
Phone: +49 (0)40 / 350 80 2 - 0 | Fax: +49 (0)40 / 350 80 2 - 36
is stated as the median of such rents. info@grossmann-berger.de | www.grossmann-berger.de
Average rent: The average rent paid is calculated by taking the individual rents
Managing directors: Andreas Rehberg, Holger Michaelis, Lars Seidel, Axel Steinbrinker
agreed in all leases signed over the past 12 months, weighting them by the amount Chairman of the supervisory board: Frank Brockmann
of space rented and computing the mean value. Figures refer to nominal net rents Registered office Hamburg • Registered at Hamburg no. B 25866
ex services.
Vacancies: Vacancies include all office space that is available to new tenants
within six months. Sub-let space is counted as vacancy.
www.grossmann-berger.de | Page 7You can also read
