MARKET ON THE UPSWING: WITH STRONG INTERIM RESULTS HEADING INTO THE FINAL QUARTER
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Despite challenging conditions continuing, the Cologne office market has shown positive development this year. By the end of the third quarter, take-up stood at around 177,000 sqm, of which a good third (62,000 sqm) was accounted by the months of July to September. Compared to the previous year, the current result has thus increased by around 8%. Thereby Cologne is one of the few top office markets that recorded an increase in take-up compared to the same period last year. However, the 10-year average remains unmatched (-14%).
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One reason for this positive outcome is the significant volume of smaller contracts, ranging from 500 to 1,000 sqm, and medium-sized lettings, spanning from 2,000 to 5,000 sqm. These categories each accounted for approximately 20% of the total take-up. Of particular note is Atradius Credit Insurance’s letting of 7,700 sqm in the Cologne-Deutz submarket.
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By contrast, large-scale transactions involving properties of 10,000 sqm or more decreased year-on-year, resulting in a fall in share to around 16%. The most significant contracts in this category were the two lettings signed by the Cologne Job Centre, each covering approximately 16,000 sqm of office space.
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Since the end of 2023, the prime rent in Cologne has remained unchanged at €33.50/sqm and is primarily paid in central locations for modern, high-quality office space. The average rent increased to €19.40/sqm in the first three quarters, marking a 3% rise compared to the previous year.