Office Market Overview - Big 7 | 1st quarter 2020 Published in April 2020 - JLL
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Office Market Overview Big 7 | 1st quarter 2020 Published in April 2020
The lockdown begins to leave its mark
on the office lettings market
Germany is on high alert, not only in terms of people’s rometer fell by 4.6 to 93.4 points in March, the biggest drop
health but also with regard to the economy. An unprece- since this key economic indicator came into being. Econom-
dented lockdown has forced the domestic economy to ic institutes are now largely anticipating a significant de-
grind to a halt, and the outcome is still uncertain. In Ger- cline in economic output to varying degrees, at least in the
man, the word ‘luv’ refers to the windward side of a ship. next two quarters. Hurriedly launched government rescue
The degree to which the economy is knocked off course by programmes are designed to alleviate more acute setbacks.
the current pandemic will determine whether its recovery In particular, the multi-billion-euro “economic stabilisation
takes an “L”, “U” or “V” form. We will only find out which for- fund” is intended to strengthen companies by providing
mation we are heading for in the next weeks or months, capital and guarantees. If necessary, the state should be
when the full extent of the recession becomes known and able to invest in companies, as was the case during the fi-
government rescue packages are in place. Right now, acute nancial crisis more than ten years ago. There are also emer-
crisis management, or the capacity of companies to act, is gency loans for businesses and a support package for the
paramount. self-employed and small businesses. In addition, the short-
time working model that was used quite successfully in the
It is therefore not surprised to see that companies from al- financial crisis has been implemented again.
most all sectors (trade, services and construction) have
stopped recruiting new staff or have put recruitment plans At the beginning of March, we were still talking about falling
on hold. It is no coincidence that the Ifo employment ba- unemployment and a high number of vacancies, while
Completions and Vacancy Rate Big 7
v
-366,000 sqm
Vacancy
compared to last year
Office Market Overview | 1st quarter 2020 2
Demand for office space falls significantly
compared to the previous year
This cannot fail to have consequences for the commercial of-
fice lettings markets. Here too, the second half of March clear-
ly illustrates how the office market has changed after the
spread of the coronavirus. It would be pure speculation and
therefore pointless to say how this might look in future. Look-
ing at the cold figures for the first quarter of 2020, it can at
short-term work was practically non-existent. Since then, least be said that the lettings markets would have declined
there has been a complete turnaround. The last two weeks even without the coronavirus, since first signs of a somewhat
in March marked a historic turning point. More than 470,000 subdued market were already evident at the end of last year.
companies submitted applications for short-time work by
27 March alone and gone up to 725,000 by mid of April. This Total take-up for the Big 7 (Berlin, Cologne, Düsseldorf, Frank-
increase could of course be quickly slowed down or re- furt, Hamburg, Munich, Stuttgart) amounted to 701,000 sqm
versed if the economic lockdown is eased, but since infec- in the first quarter of 2020, corresponding to a 30% decline on
tion rates are still rising rapidly then the economy is likely to a 12-month basis. This represents the weakest three-month
remain in emergency operation mode at least during April. period in terms of take-up since Q3 2014. The figure is also
For comparison: during the financial crisis, short-time work- 15% below the 10-year average for first quarters.
er applications peaked in July 2009 at just over 61,000. The
difference in the figures illustrates the dramatic macroeco- None of the seven property strongholds emerged un-
nomic recession we are currently dealing with. scathed from the general downturn, which is unusual given
Prime Rental Index and Take-up Big 7
+4.6 %
Prime Rent Q1 2020
compared to last year
Office Market Overview | 1st quarter 2020 3
that the trend has generally been upwards in the past Vacancies stabilise at a low level
10 years. Munich was again the market leader with take-up After dropping significantly from quarter to quarter in recent
of 184,000 sqm and a moderate reduction of 6%. Cologne years, vacancies now seem to have reached a low point: at
and Stuttgart experienced the sharpest declines of 60% and the end of the first quarter of 2020, a total of 2.85 million
61% respectively. Even Berlin, which has become accus- sqm was available to companies seeking office space in the
tomed to success, registered a drop of around a quarter to Big 7. This represents a reduction of more than 11% com-
172,000 sqm. pared to the previous year. The vacancy rate averaged
across all strongholds remains at 3%. Until now, before the
What will happen next? spread of COVID-19, the volume of new office space was the
only factor that was expected to influence vacancy levels
More than 50% of companies surveyed for the new JLL- this year. A drop-off in demand was not part of the plan.
Thermometer that was developed at the end of March fear This is now likely to change. It can be assumed that vacancy
that the health crisis will have a major and lasting impact rates will increase in the coming months owing to the di-
on their core business. The possible effects for office mar- minishing rate of demand. The topic of sub-letting could
kets could be that space requirements are mostly reduced. also be back on the agenda for office users.
The coronavirus crisis is already having an impact on cur-
rent deliberations about new lease contracts or lease exten- Completions volume set to fall
sions. More than half of the companies surveyed confirmed In the first quarter of 2020, office space completions amount-
that decisions were being postponed. Put in positive terms, ed to a total of almost 220,000 sqm. This still represents only
a postponement does not mean that a relocation or rental a very moderate new-building volume. The high proportion
plan will fall through. As the crisis progresses, space optimi- of pre-let space only serves to highlight the need for modern
sation measures are likely to become increasingly impor- and well-equipped space. Or to put it another way: only 6%
tant, also in view of the fact that home working could be- of the 220,000 sqm was still available at the time of comple-
come a permanent option for more and more employees. tion. This demonstrates that the rental market is still on the
This could influence adjustments of existing space, for ex- move and that new contracts are also being signed. It re-
ample through sublease contracts, as well as price renegoti- mains to be seen to what extent the positive trend of pre-let-
ations of current tenancy agreements. In the current eco- ting in office developments will continue. Last but not least, it
nomic situation it should be constantly emphasised that it also depends on whether planned office developments or
is deemed appropriate for both sides – owners and users — those under construction are postponed or even put on hold.
to come up with sensible and sustainable solutions. A ban on personal contact, confinement measures and re-
strictions on office work are already having a massive impact
on construction processes. For the next three quarters, a total
of around 1.55 million sqm is still in the pipeline in all seven
strongholds, and is already under construction. The majority
of this space is already pre-let, although most contracts were
signed well before March 2020. Only around 386,000 sqm or a
quarter of the total volume is still available to companies
seeking new office space. The pipeline is currently still full for
Office Market Overview | 1st quarter 2020 4
the next few years. However, we assume that not all new during the boom phase up to the financial crisis at the end of
construction projects will be realised. In the event of an 2008, the average vacancy rate in the Big 7 dropped to 8.6%.
overall decrease in demand, pre-letting rates will also fall, This time, however, the shortage of space is much more ex-
and this can also cause projects to be halted if financing is treme and thus props up rental prices.
based on such quotas being reached.
After the financial crisis, the rental price index declined over
Prime rents remain stable in the Big 7 seven quarters before the recovery started. The total decrease
At the end of the first quarter, there was sufficient evidence was only 5% at that time, with the most pronounced declines
that prime rents in all seven strongholds could be left at the occurring in 2008-2010 in Berlin (-10%, from €22 to €20) and in
same level as in the last quarter of 2019. The JLL prime rental Frankfurt (-9%, €37 to €33). The next few weeks will bring more
index remained at 218.1 points on a quarterly basis, which precise information about the willingness of office tenants to
still represents the highest level since 1992, although year-on- sign deals, concessions made by landlords in terms of deferrals
year growth was 4.6%. Assuming that the cycle has reached and the granting of incentives with corresponding consequenc-
its peak, it is worth comparing it to the last cycle peak and the es for actual rents. Many predominantly smaller companies
subsequent global financial crisis. The current index value is have already started renegotiating with their landlords. We cur-
as much as 32% above the previous high point in the fourth rently do not see any such activities at large corporates. Reloca-
quarter of 2008. It could be assumed that there is high poten- tion issues and the importance of office space are part of a
tial for this to fall. However, it should not be forgotten that long-term strategy that is not quickly abandoned.
Office Space Take-up incl. Owner Occupier (sqm)
2019 Q1 2019 Q1 2020 %
Berlin 1 998,500 230,800 172,000 -25.5
Düsseldorf 2
549,900 112,100 108,100 -3.6
Frankfurt/M 3 579,500 104,200 67,600 -35.1
Hamburg 4 530,000 178,500 98,000 -45.1
Cologne 5 291,300 95,400 38,500 -59.6
Munich Region 6
760,000 196,100 184,000 -6.2
Stuttgart 7 319,000 85,500 33,100 -61.3
Total 4,028,200 1,002,600 701,300 -30.1
Office Market Overview | 1st quarter 2020 5
Vacancy incl. Space for subletting
Q4 2019 Q1 2019 Q1 2020 %
m² Quote (%) m² Quote (%) m² Quote (%)
Berlin 1
376,500 1.8 387,900 1.9 387,500 1.9 -0.1
Düsseldorf 2 526,700 5.8 598,200 6.5 537,800 5.9 -10.1
Frankfurt/M 3 637,300 5.5 743,300 6.4 679,500 5.8 -8.6
Hamburg 4 452,400 3.0 529,600 3.5 372,900 2.5 -29.6
Cologne 5 168,000 2.2 230,000 3.0 167,600 2.2 -27.1
Munich Region 6 478,500 2.3 537,800 2.6 498,600 2.4 -7.3
Stuttgart 7
206,700 2.3 189,000 2.2 205,800 2.3 8.9
Prime Office Rents (€/sqm/month)
Q4 2019 Q1 2019 Q1 2020 %
Berlin 1
37.00 34.00 37.00 8.8
Düsseldorf 2
28.50 28.00 28.50 1.8
Frankfurt/M 3 41.50 40.00 41.50 3.8
Hamburg 4
29.00 28.00 29.00 3.6
Cologne 5 26.00 24.00 26.00 8.3
Munich Region 6 41.00 39.50 41.00 3.8
Stuttgart 7 24.50 24.00 24.50 2.1
Completions (in sqm)
2019 Q1 2019 Q1 2020 %
Berlin 1 237,300 74,700 91,900 23.0
Düsseldorf 2 115,400 1,600 1,300 -18.8
Frankfurt/M 3 130,300 0 21,000 n/a
Hamburg 4 117,100 16,500 24,200 46.7
Cologne 5 95,600 2,000 16,600 730.0
Munich Region 6 335,600 4,200 59,000 1,304.8
Stuttgart 7 92,700 61,300 5,500 -91.0
Office Space Stock (in Mill. sqm)
Q4 2019 Q1 2019 Q1 2020 %
Berlin 1
20.42 20.28 20.49 1.0
Düsseldorf 2
9.15 9.16 9.15 -0.2
Frankfurt/M 3 11.65 11.58 11.63 0.5
Hamburg 4
15.02 14.97 15.01 0.3
Cologne 5 7.79 7.71 7.79 1.0
Munich Region 6
20.63 20.37 20.69 1.5
Stuttgart 7 8.81 8.78 8.81 0.4
1
City Area; 2 City Area incl. Ratingen, Neuss, Erkrath and Hilden; 3 City Area incl. Eschborn and Kaiserlei; 4 City Area; 5 City Area; 6 City Area incl. surrounding areas;
7
City Area incl. Leinfelden-Echterdingen
Office Market Overview | 1st quarter 2020 6Berlin
Development of Main Indicators
Weak start to the year in the federal capital
The Berlin office letting market began the year with a take-up
volume of 172,000 sqm. This is a reduction of around 38%
compared to the previous quarter and 20% lower than the
five-year average of respective comparative quarters. One of
the reasons for this weak result was the strong year-end re-
sult in 2019 with few deals pending completion in 2020. Once
again, the main drivers of space take-up in the first quarter of
this year were high volume lettings. While the three largest
transactions accounted for 20% of total take-up in the first
quarter of the previous year, they were responsible for 29% alone, the supply of space in this submarket increased by
in the first three months of the current year. Most of the quar- around 45,000 sqm. In view of the current high level of con-
terly result was attributed to deals concluded in the > 10,000 struction activity there, it can be assumed that this trend will
sqm size category. On a local level, it is apparent that the continue in the future. At the beginning of the year, the va-
new and centrally-located “Areal Hauptbahnhof-Europacity” cancy rate in the federal capital was 1.9%. The prime rent
submarket is attracting an increasing number of tenants. was unchanged at €37.00/sqm/month compared to the pre-
This can be attributed to the growing attractiveness of the lo- vious quarter, whereas the weighted average rent increased
cation and the progressing project developments. Last year by 2.6% to €26.36/sqm/month.
Berlin: Office Space Market Areas with Rental Bands (€/sqm/month)
Berlin: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Waidmannslust Märkisches
Heiligensee Französisch Gesundbrunnen
Viertel Rosenthal Klarahoeh
Wedding
Konradshöhe Buchholz
Blankenburg A 10
Tiergarten Wittenau Wilhelmsruh Wartenberg Prenzlauer
A 114
Area Main Station-Europacity Berg
Niederschönhausen Malchow(Hohensch
Stadtrandsiedlung Malchow € 28.00-35.50
Konradsh Falkenberg
Malchow
Moabit
Charlottenburg
Reinickendorf Reinickendorf Heinersdorf Mitte
Hakenfelde Neu-
Northern Suburb Pankow Hochenschönhausen € 21.00-34.00
Charlottenburg 1A Schöneberg Tegel
€ 11.00-18.00 Pankow
Mitte
€ 23.00-37.00
A111
Weißensee Hansaviertel
Marzahn
Berlin-Tegel
Falkensee Alt- Mitte 1A
Falkenhagener
Wilmersdorf
Feld Hohenschönhausen € 26.00-36.00
Gesundbrunnen Lichtenberg
Haselhorst Wedding Prenzlauer Hellersdorf
Charlottenburg- Tiergarten Kreuzberg
Nord Berg
Siemensstadt Area Potsdamer-Leipziger Platz
Moabit
Prenzlauer Fennpfuhl Schöneberg
€ 25.00-37.00
Spandau Mitte
Staaken Spandau Berg-Friedrichshain Marzahn-Hellersdorf
Lichtenberg
Mitte € 17.50-28.00
Eastern Suburb
Western Suburb Hansaviertel
Friedrichshain € 10.00-27.50
€ 11.50-17.50 Westend Charlottenburg-Tiergarten
Wilhelmstadt Biesdorf
€ 17.00-28.00 Tiergarten Berlin Mediaspree Friedrichsfelde Mahlsdorf
Charlottenburg-Wilmersdorf Charlottenburg Kaulsdorf
Friedrichshain-Kreuzberg € 26.00-35.00 Rummelsburg
Wilmersdorf-Schöneberg
Halensee Kreuzberg
Groß € 16.00-29.50 Kreuzberg-Tempelhof Alt-Treptow
GlienickeGroßziethen
Bohnsdorf Wilmersdorf € 15.00-30.50 Karlshorst
Schönefeld Grunewald
Gatow Plänterwald
Schöneberg
Gatow Kienberg Schmargendorf Neukölln
A113 A 100
Waßmannsdorf A 115 Friedenau
Berlin-Schönefeld
A 103 Tempelhof-Schöneberg Oberschöneweide
Waltersdorf
Tempelhof
Selchow Berlin-Schönefeld Friedrichshagen
Kladow Treptow-Köpenick
Kiekebusch Dahlem Niederschöneweide
Glasow Rotberg Steglitz
Baumschulenweg
Nikolassee Karlshof
Steglitz-Zehlendorf Southern Suburb Britz Köpenick
Kladow Tollkrug
€ 10.00-26.50 Neukölln Adlershof
Zehlendorf
Area Airport Berlin-Brandenburg Mariendorf A 113 Adlershof
Johannisthal
Buckow
€ 8.50-18.50 Lichterfelde € 10.00-18.50
Lankwitz
Wannsee
Dahlewitz Rudow
A10 A13
Gropiusstadt Altglienicke Grünau
Marienfelde Buckow
Office Market Overview | 1st quarter 2020 BerlinDüsseldorf
Development of Main Indicators
Strong start to the year
Düsseldorf’s office letting market recorded take-up of
around 108,000 sqm in the first quarter of 2020, slightly less
space (4%) than in the same quarter of the previous year
but above the five- and ten-year averages for first quarters;
almost 93,000 sqm of this figure was taken up in the Düs-
seldorf urban area. The number of leases concluded fell
sharply year-on-year (25%), with most deals affected in the
< 500 sqm size category. Four deals were registered in the
> 5,000 sqm size category, two of which were concluded by which is constructing around 7,600 sqm in Airport City. The
the public sector which was thereby responsible for around vacancy rate remained below 6% in the first quarter and
a third of the total take-up. Although these deals also put it the figure is just 4.7% in the Düsseldorf urban area. Most
at the top of the ranking of industrial sectors, this sector’s vacant space can be found in the peripheral Neuss and Rat-
average long-term share of take-up was just 7%. Manufac- ingen submarkets. The prime rent remained stable in the
turing companies (19%) and business-related service pro- first three months of the year at €28.50/sqm/month and
viders (12%) followed in second and third place, albeit at was achieved in the CBD, whereas the weighted average
some distance behind. One of the four top deals was con- rent increased slightly by around 1% to €17.42/sqm/month
cluded by an owner-occupier, LEG Management GmbH, in the same period.
Düsseldorf: Office Space Market Areas with Rental Bands (€/sqm/month)
Düsseldorf: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Lank-Lat um Langst kierst
Pempelfort
Fischeln Kalkum Kalkum
Rohdenhaus
Kaiserswerth A 52 Ratingen
Ilverich Altstadt
ein
Oberkassel
Rh
Struemp Airport Ratingen
€ 11.00-17.50 € 8.00-15.50 CBD Düsseldorf
A 44 Lichtenbroich
Lohausen
Carlstadt € 17.00-28.50 Niederschwarzbach
Stadtmitte
Düsseldorf
A 44 A3 Rhein
City
€ 9.00-26.00
Unterrath Government District
Rath Hafen € 11.50-21.00
Knittkuhl
Stockum North Unterbilk
Met zkausen
€ 8.00-17.00 Friedrichstadt
KennedydammDerendorf City-South Oberbilk
Seestern € 14.50-23.50 Mörsenbroich Ludenberg
Hubbelrath € 8.00-11.00
€ 9.50-14.50 Ludenberg
Lörick Golzheim Bilk
A 57 Meerbusch
Met tmann
Niederkassel
Grafenberg Schöller-
A 52 Linksrheinisch Düsseltal
Dornap
Heerdt € 7.00-20.00 Pempelfort Grafenberg-East
Oberkassel
€ 9.00-14.50
Altstadt Flingern Nord Gerresheim
Düsseldorf
Kaarst Stadtmitte
Carlstadt
Harbour
Hafen Flingern Süd
€ 14.50-25.00
Unterbilk
Friedrichstadt Lierenfeld City-East
€ 9.50-12.50 Gruiten
Hamm Bilk Vennhausen
Oberbilk Erkrath/
Neuss Erkrath
Hilden
Unterbach
Neuss Eller
Unterf eldhaus
€ 7.00-9.50 South Unterbach
Flehe € 8.00-11.50
Volmerswerth A 46
Wersten
Rhein
Haan
Hassels
A 46 Hilden
Holthausen Reisholz A 59 Solingen
Grefrath
Himmelgeist A3
Holzheim Himmelgeist Itter Benrath Kalstert
Office Market Overview | 1st quarter 2020 DüsseldorfFrankfurt
Development of Main Indicators
Low space take-up in the first quarter
Take-up in the first quarter of 2020 was just 67,600 sqm,
the fourth worst quarterly take-up result for more than
20 years. This was mainly due to the low deal overhang
from the previous year, as the fourth quarter of 2019 was
the third strongest quarter in the last ten years, and to the
effects of the current coronavirus crisis. In contrast, the
number of deals was comparatively high, since mainly
medium and large-sized searches for space were post-
poned. The vacancy rate rose slightly to 5.8% due to infrastructure; these investments will also have an impact
numerous vacancies resulting from contracts signed in on space concepts in the medium and long-term. If the
2018 and 2019. Across the submarkets, prime and average catch-up effects come in the second half of the year, over-
rents remained unchanged. In the current economic all performance in 2020 could remain strong, provided
climate, owners and (existing) tenants are engaged in that there is enough time for deals to be concluded and
intensive exchanges and solutions are being sought in that property owners do not put together too attractive
the form of incentives, subletting or flexible contractual lease extension packages.
arrangements. In the short term, many companies will
focus on creating or improving their remote working
Frankfurt: Office Space Market Areas with Rental Bands (€/sqm/month)
Frankfurt: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Kalbach
Oberhoechstadt/Ts. Harheim
Kronberg Oberursel Bonames
Königst ein Kalbach Harheim
A 661
Schneidhain
Mittelbuchen
Ts.
Frankfurter Bad Vilbel
Steinbach Niederursel Berg Berkersheim
Mertonviertel-Riedberg
€ 10.00-15.00 Wachenbuchen
Altenhain Heddernheim Eschersheim B3 Bergen-
Preungesheim Enkheim
Schwalbach
Eschborn A5 Eckenheim
Other City Locations (North)
Maintal
€ 9.00-17.50 Praunheim Ginnheim
Dornbusch A 661;B 3 Seckbach
Bad Soden Bischofsheim A 66
Eschborn
Seckbach
North
Hausen
Kelkheim € 11.50-16.50
A 66
Bornheim Doernigheim
Westend- Hanau
A 648 Rödelheim
Rödelheim
Frankfurt Nord Riederwald
Sossenheim € 9.00-13.50 am Main Nordend-
West Nordend-Ost East Fechenheim
Bockenheim Westend-Süd € 10.00-18.50 Mühlheim
Innenstadt
Ostend
Unterliederbach Bahnhofsviertel
Altstadt
West Gallusviertel
Kaiserlei
Nied in € 8.00-16.00
€ 9.50-28.00 Gutleutviertel Ma Sachsenhausen-Nord
Höchst
Zeilsheim
Zeilsheim Griesheim Oberrad
Oberrad Of fenbach
A 66 Other City Locations (South) am Main Westend-
Laemmerspiel Nordend-
Hofheim Sachsenhausen Nord West
€ 11.50-17.00 City
Kriftel Niederrad Bockenheim € 13.00-30.00
Westend
B 40 Sindlingen Schwanheim
Lyoner Quartier € 16.00-33.00 Nordend-Ost
Sachsenhausen-
€ 10.00-17.00 City-West
Hattersheim
Süd
êA648
€ 13.00-18.50 Innenstadt
Obertshausen
Westend- Banking District
A3 Süd
€ 19.00-41.50 Altstadt
in
Ma
Okriftel Kelsterbach Airport Central Station Area
Gravenbruch
€ 16.00-25.00 Gallusviertel € 12.00-24.00
Heusenst amm
Neu-Isenburg Bahnhofsviertel
Flughafen
Rembruecken
Sachsenhausen-
Rodgau
Eddersheim
A 661
Gutleutviertel Westhafen Nord
Frankfurt € 18.00-25.50
A3 am Main Sachsenhausen-
Raunheim Zeppelinheim Main
Dreieich Niederrad Süd
Office Market Overview | 1st quarter 2020 FrankfurtHamburg
Development of Main Indicators
Absence of major deals on the letting market
Around 98,000 sqm of space was let or secured by owner-
occupiers in the Hamburg office letting market in the first
quarter, 30% and 20% below the five- and ten-year averag-
es, respectively. A higher take-up result was not possible due
to the absence of major contracts: the two largest contracts
were each concluded for units with less than 6,000 sqm.
The City Centre and Port Fringe submarkets recorded the
highest take-up, accounting for over 40% of the total re- however, more subleased space is expected to come onto
sult. In terms of industrial sectors, business-related service the market in the near future as a result of the current coro-
providers (19,000 sqm) assumed first place in the rankings navirus crisis. Coupled with a weakening in demand, this
as usual, followed by three sectors (construction and real will lead to a narrowing of the gap between supply and
estate, education, health and social services, and manu- demand in tenants’ favour. Just 15% of the around 190,000
facturing), all of which accounted for around 10,000 sqm of sqm of office space to be completed in 2020 is still available
take-up. Flexible office space providers rented around to the market and even less space will be completed next
7,000 sqm in three locations, including IWG at Jungfern- year, but an increase in the supply pipeline is expected in
stieg for the Signature brand. The vacancy rate fell to 2.5% 2022. The prime and average rents remained stable at
in the first quarter, reflecting the current supply shortage; €29.00/sqm/month and €17.74/sqm/month, respectively.
Hamburg: Office Space Market Areas with Rental Bands (€/sqm/month)
Hamburg: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Hummelsbüttel Sasel Volksdorf
Wellingsbüttel
A 23
Puet jen Schnelsen Hamburg
Fuhlsbüttel
Niendorf
Ohlsdorf
Airport /
Halstenbek Groß Borstel
€ 9.00-13.50
Bramfeld Farmsen-Berne
Eidelstedt Groß Borstel Alsterdorf Steilshoop
Hamburg North-East Rahlstedt
Schenef eld City Nord € 9.00-12.50
€ 9.50-15.00
Barmbek /
Lurup Lokstedt
Winterhude / Bramfeld
Uhlenhorst Winterhude € 10.00-15.50
Eppendorf
Iserbrook Stellingen € 10.00-14.50 Barmbek-Nord
Hamburg-West
€ 9.00-12.50
Tonndorf
Hoheluft-Ost Hamburg Dulsberg
Eppendorf / Wandsbek
Hoheluft-West Harvestehude /
Eimsbüttel Barmbek-Süd Wandsbek
Rotherbaum
Harvestehude
Osdorf Bahrenfeld € 10.00-14.50 € 9.00-14.50
Eimsbüttel € 12.50-22.00 Jenfeld
Uhlenhorst
Barsbüttel
Eilbek Marienthal
Rotherbaum
A 24
Groß Flottbek Altona-Nord East of Alster /
Sternschanze Hohenfelde
Altona-Ottensen-Bahrenfeld St. Georg
St. Pauli € 12.50-21.50
€ 12.00-17.50 City Centre St. Georg
€ 12.00-22.50
Nienstedten St. Pauli € 14.50-29.00 Borgfelde
City Süd (Outer Zone)
Hamm
Othmarschen Ottensen Neustadt Horn
Altona- Hamburg- City Süd € 9.00-12.50
A7 Altstadt Billbrook /
Altstadt (Core Area)
Harbour fringe Billwerder / A1
Elbe
€ 9.50-16.00
Hammerbrook Billstedt
€ 13.50-22.50 Billstedt
HafenCity € 6.00-12.50
Norder Elb
HafenCity
Sü
Finkenwerder e
Steinwerder
Harburg - south ofWaltershof
der
the river Elbe Rothenburgsort
€ 16.00-26.00 Bergedorf
Elb
€ 9.00-14.50 Billbrook
e
Kleiner
Grasbrook
€ 9.00-15.00
Veddel
Office Market Overview | 1st quarter 2020 HamburgCologne
Development of Main Indicators
Market characterised by a lack of available space
The Cologne office letting market got off to a very slow
start to the year, recording take-up of a mere 38,500 sqm
in the first three months of 2020, 60% lower than in the
first quarter of last year. The number of deals concluded
fell by 31% and both the volume of take-up and number
of deals only managed to reach half of the five-year
average. This below-average result was not due to weak
demand from companies, but rather to the lack of available
and especially modern and high-specification office average deal size was 500 sqm. Following a significant
space. With a current vacancy rate of just 2.2%, many increase in 2019, the prime rent remained stable at
searches for space cannot be satisfied. Just 11% of the €26.00/sqm/month in the first quarter of 2020, while the
available space is of a top quality fit-out specification. weighted average rent was almost unchanged year-on-year
No high-volume deals were registered in the first quarter: at €15.54/sqm/month.
so far this year, the largest lease was concluded by a
company from the health sector which signed a contract
for 4,500 sqm in the Ehrenfeld/Braunsfeld submarket. Just
eight deals in the four-digit range were concluded; the
Cologne: Office Space Market Areas with Rental Bands (€/sqm/month)
Cologne: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Auweiler Heimersdorf Hardt
Lindweiler A3
Pulheim Pesch A1 Flittard
Esch/Auweiler
LongerichOssendorf/ Dünnwald
Nippes
€ 6.50-14.00
Köln Stammheim Bergisch
A 57 Weidenpesch Höhenhaus Gladbach
Bocklemünd/Mengenich
Ossendorf Niehl
Mauenheim
Widdersdorf Bilderstöckchen
Dellbrück
Widdersdorf
Mülheim Other Locations
Brauweiler Vogelsang Nippes Holweide
Bickendorf Riehl
Neuehrenfeld
Buchheim
Bensberg
Ehrenfeld/
Lövenich
Braunsfeld Neustadt-Nord
Ehrenfeld Buchforst
Müngersdorf
€ 6.50-15.50
A4
Braunsfeld Deutz/ Höhenberg
Weiden Altstadt-Nord Merheim Brück
City Centre Messe Kalk Kalk/
Deutz
Peripherie West € 8.00-20.00 Mülheim A 3;A 4
€ 9.50-26.00 Neubrück
Buschbell
€ 7.00-12.50 € 7.00-16.00
Altstadt-Süd Vingst
Lindenthal Humboldt-
Rhinebank-West L 124
Junkersdorf Gremberg Ostheim
Lindenthal/ € 13.00-26.00 Rath/Heumar
Marsdorf
A4 Sülz Neustadt-Süd
€ 8.00-15.00 Rath
Sülz Poll
Frechen Forsbach
Raderberg
Bayenthal
A1 Klettenberg Zollstock Gremberghoven
Bayenthal/
A 559
Marienburg Westhoven
€ 9.00-16.00 Marienburg
Raderthal Rhein Ensen Eil A3
Gleuel Finkenberg A 59 Porz/ Rösrath
Gremberghoven
€ 8.50-13.50
Hürth
Rodenkirchen L 84
Berrenrath Porz
Rondorf Weiß Grengel
Urbach
Konraderhoehe Rodenkirchen
A 555 Hahnwald € 7.00-11.00
Zündorf
Sürth Elsdorf
Meschenich ImmendorfImmendorf Wahnheide Köln/Bonn
Godorf
Office Market Overview | 1st quarter 2020 CologneMunich
Development of Main Indicators
Supply shortage continues to dominate the office market
Take-up of around 184,000 sqm was recorded as a result
of lettings or deals by owner-occupiers in the Munich
office letting market in the first quarter, approx. 27%
more than in the previous quarter and 6% less than in
the corresponding period last year. With a total volume
of around 50,000 sqm, the three largest lettings accounted
for 27% of the total take-up to date. Although the highest
number of transactions (approx. 20%) were concluded in
the City Centre, the East submarket recorded the highest expected by the end of the year, with just 40,000 sqm
volume of take-up of around 63,000 sqm. (14%) of this still available to the market.
The vacancy rate in the first quarter of 2020 was 2.4%, The continuing low and further decline in the supply of
0.1 percentage points above the level of the previous space and sustained high demand in the market has caused
quarter and was mainly due to an increase in the volume rents to rise over many years. In the first quarter of 2020, the
of space available for subletting. Around 59,000 sqm of prime rent was unchanged at €41.00/sqm/month and the
office space was completed between January and March average rent rose to €21.50/sqm/month. In the Munich ur-
2020 and a further 349,400 sqm of completions are ban area, the average rent is currently €23.72/sqm/month.
Munich: Office Space Market Areas with Rental Bands (€/sqm/month)
Munich: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Rothschwaige
A 99 A9
Karlsfeld Ismaning
Oberschleißheim
Neu-Esting A8
Feldmoching-Hasenbergl
Olching
North
Gröbenz ell
€ 14.00-21.00
A 99
Olympiapark Schwabing-Freimann
Allach-Untermenzing Milbertshofen-Am
€ 14.00-22.00 Hart
A 99
Moosach Kirchheim
b. M ünchen
Eichenau
Poing
Puchheim
West North-Schwabing Arabellapark Grub
€ 15.50-23.50 € 16.50-26.00 € 17.50-23.50 Heimstetten
Aubing-Lochhausen-Langwied Schwabing-West
Pasing-Obermenzing
Bogenhausen
Neuhausen-Nymphenburg City Centre
€ 22.50-41.00
Maxvorstadt
A 94 Parsdorf
Riem
München Bogenhausen Moosfeld/
Altstadt-Lehel
Laim
Westend Schwanthalerhöhe € 20.00-30.00 Riem
Au-Haidhausen € 10.00-17.00 Ot tendichl
€ 16.50-25.00 Ludwigsvorstadt-Isarvorstadt
Trudering-Riem
Germering Berg am Laim
A 96
Gräfelf ing East
Sendling-Westpark € 15.50-30.00
Sendling
Hadern Haar
Planegg Martinsried South
Obergiesing Vaterstetten
€ 12.00-21.00 A8
Untergiesing-Harlaching Ramersdorf-Perlach
A 95
Thalkirchen-Obersendling-Forstenried-Fürstenried-Solln Neuperlach
Stockdorf € 12.00-17.50
Neubiberg A 99
A 995
Gauting
Ot tobrunn
Unterbrunn Unterhaching
Grünwald
Office Market Overview | 1st quarter 2020 MunichStuttgart
Development of Main Indicators
Below-average start to the year
At the beginning of the year, the Stuttgart office letting
market saw its volume of take-up fall by 61% to 33,100 sqm
compared to the corresponding period last year. This result
is around 57% below the five-year average of first quarters,
but the number of deals is similar to that recorded in the
same period last year. This is because many large users have
already secured space with long lease terms and is also due
to the low supply of available larger premises. As a result, the
< 500 sqm size category was the most popular, accounting around 41% of the take-up result. On the supply side, all of
for around 70% of transactions. The largest transaction was the approx. 5,500 sqm of the office space completed in the
concluded by the flexible office space provider REGUS with first quarter was already occupied and therefore no new
almost 2,800 sqm in the peripheral Leinfelden-Echterdingen office space was released onto the market. Despite a slight
submarket. With a share of around 34%, the City submarket drop in the volume of vacancies, the vacancy rate remains at
recorded the highest volume of take-up and accounted for 2.3% and the prime rent is unchanged at €24.50/sqm/month.
around half of all deals. Vaihingen-Möhringen followed with
around 23%. The most active demand group by far was
business-related service providers who were responsible for
Stuttgart: Office Space Market Areas with Rental Bands (€/sqm/month)
Stuttgart: Office Space Market Areas with Rental Bands (€/sqm/month) JLL Research 2020/Q1
Neuwirtshaus Stammheim Neustadt
Rems-Murr- Kreis Korb
Hirschlanden
Kornt al- Münchingen Zuffenhausen Mühlhausen
€ 10.00-16.50
Ditz ingen Zuffenhausen Waiblingen Kleinheppach
Münster
Weilimdorf Beinstein
Hoefingen
Gebersheim
Weilimdorf Bad Cannstatt Fellbach
Rutesheim
€ 11.00-16.50 Feuerbach Stuttgart € 11.00-19.00 Weinstadt
Remshalden
Kernen
im Remst al
Bad Cannstatt
A8 A 81 Gerlingen Stuttgart-North
Leonberg Feuerbach € 15.00-20.00
€ 13.50-19.50 Stuttgart-Nord Stetten
Untertürkheim Schnait
im Remst al
Botnang City Stuttgart-Ost Unter-Obertürkheim/ Struempfelbach
Stuttgart-West
Stuttgart-West € 15.50-24.50 Wangen-Hedelfingen Obertürkheim
€ 10.50-16.50
€ 15.00-20.00 Mitte
Stuttgart-East Wangen
Warmbronn € 10.50-18.00
Stuttgart-South
Stuttgart-Süd € 10.50-17.00 Hedelfingen
Magstadt
Degerloch
Sillenbuch
Vaihingen
Degerloch
A 8;A 81 € 10.50-20.00 Esslingen
Vaihingen-Möhringen am Neckar
Hoffeld
A 831
€ 13.50-20.00
Ostf ildern
Möhringen
Birkach
Kemnat
A8
Fasanenhof
Sindelfingen € 11.50-18.00 Plieningen Plochingen
€ 9.00-11.00
Plieningen
A 81 Leinfelden-Echterdingen A8
Dagersheim Denkendorf
€ 11.00-19.00
Böblingen
Wernau
Stuttgart Neuhausen (Neckar)
Leinfelden-E chterdingen
auf den Wendlingen
Bernhausen Fildern am Neckar
Office Market Overview | 1st quarter 2020 StuttgartContacts
Contact Berlin
Stephan Leimbach Helge Scheunemann Gerald Dietzold
Head of Office Leasing Germany, Head of Research Germany Senior Team Leader Office Leasing
Member of the JLL Strategy Board +49 (0) 40 350011 225 +49 (0) 30 203980 144
Germany helge.scheunemann@eu.jll.com gerald.dietzold@eu.jll.com
+49 (0) 69 2003 1245
stephan.leimbach@eu.jll.com
Contact Düsseldorf Contact Frankfurt Contact Hamburg
Martin Becker Markus Kullmann André Hoffmann
Senior Team Leader Office Leasing Regional Manager Frankfurt Senior Team Leader Office Leasing
+49 (0) 211 13006 600 +49 (0) 69 2003 1062 +49 (0) 40 350011 352
martin.becker@eu.jll.com markus.kullmann@eu.jll.com andre.hoffmann@eu.jll.com
Contact Cologne Contact Munich Contact Stuttgart
Andreas Reul Fritz Maier-Hartmann Sebastian Treier
Team Leader Office Leasing Senior Team Leader Office Leasing Team Leader Office Leasing
+49 (0) 221 2775 45 +49 (0) 89 290088 139 +49 (0) 711 900370 36
andreas.reul@eu.jll.com fritz.maier-hartmann@eu.jll.com sebastian.treier@eu.jll.com
jll.de Information regarding JLL and our services
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