SUBDUED FIRST HALF YEAR, MOST LETTING BETWEEN 1,000-2,000 SQM
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In the first half of 2025, the Essen office market recorded a total take-up of 34,000 sqm, marking a modest 3% increase compared to the previous year. However, the still-muted letting activity is reflected in a significant 36% decline compared to the long-term average of 52,900 sqm. After a relatively strong first quarter with approximately 27,000 sqm of take-up, market momentum slowed noticeably in the second quarter, with only 7,000 sqm of leases signed.
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The take-up in the first quarter was largely driven by a major contracts from the City of Essen (13,000 sqm). The largest letting in the second quarter, measuring 2,200 sqm, also involved the City of Essen. A positive development is the market active in the mid-sized segment between 1,000 sqm and 2,000 sqm, which accounted for 21% of total take-up—well above the 10-year average of 14%. The high dynamic of small and mid-sized lettings remains a defining feature of the Essen office market.
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The excess demand for modern space has led to a significant increase in rents. The prime rent has risen by 6% year-over-year to €19.00/sqm, currently achieved for premium space in the Südviertel district. The more volatile average rent has jumped to €14.60/sqm, representing a 21% increase compared to the same period last year.