STABLE MARKET DEVELOPMENT OVER THE COURSE OF YEAR
The Frankfurt office market presents itself as very stable in the current year 2023, despite the increasing headwinds due to the sluggish economic development. Take-up of 285,000 m² (259,000 m² in the gif market area) is noted for the first three quarters, of which 95,000 m² is attributable to the third quarter. As in the other major office markets, letting activity has recently been below average, which is mainly due to the lack of large deals >10,000 m². In Frankfurt, for example, only one letting of approx. 12,400 m² was concluded in this size category in the first three quarters. In economically challenging times, large users in particular, who generally need a longer time horizon to consider, have longer decision-making paths, which lead to a corresponding delay. The trend towards new workplace concepts as well as the battle for the most qualified workers are nevertheless drivers of demand, which is why there are currently a number of large-scale searches on the market that could have a positive impact on letting figures. So far, the 10-year average in Frankfurt has been missed by around 19% and the good result of the previous year by 21%.