Office market Berlin

EQUALISED PREVIOUS YEAR'S RESULT AND REMAINS AT TOP OF THE LEADING MARKETS

• With take-up totaling 146,000 m² in the first quarter, the capital recorded a market dynamic comparable to that of the same period last year (144,000 m²). Even though the result is once again below the long-term average (183,000 m²; -20%), the Berlin office market retains its leading position among the top markets ahead of Munich (140,000 m²) and Frankfurt (119,000 m²).
• The main take-up drivers in this context are the large deals of over 5,000 m² (51 % share), including in particular the two owner-occupier deals by BImA for the Federal Chancellery (25,000 m²) and the Office of the Federal President (9,900 m²) in the Charlottenburg/Tiergarten submarket and the letting by BImA in Mitte (25,200 m²).
• However, the analysis of the recorded lettings reflects another fact: around 94 % of the registered contracts are in the space categories up to 2,000 m². These figures emphasize the trend towards smaller, but very well connected and modern office space.
• The prime rent remained stable over the last 12 months at the high level of €45/m² reached in the first quarter of 2023. 
• Meanwhile, the more volatile average rent stands at €27.80/m² and is therefore at a comparable level to the end of 2023.

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