Office real estate on the rise

Analysis of 27 cities in Germany showed that the steady growth in the number of office workers increases the demand for office real estate. More and more office space is required both in the cities of the "big seven" and in the cities of the average value category B and C.

According to forecasts, the growth of office workers will continue in the next 3-5 years with an increase of 3.7-5.6 percent in cities of average value, and in cities of category A (Berlin, Hamburg, Frankfurt am Main, Cologne, Dusseldorf, Stuttgart and Munich) – by 4.5-5.9 percent. The demand for office space rental will increase proportionately.

Medium-sized cities have recorded steady growth in population and in the number of employees. And since cities have a restriction on building permits for new space, existing office space is less and less empty. In percentage terms, in 2016 this indicator increased in category B cities from 4.8 to 7.8 percent.

In the cities of the "big seven" the figure was lower and amounted to 3.4 – 4 percent.

Augsburg, Bielefeld, Bonn, Braunschweig, Bremen, Dresden, Heidelberg, Karlsruhe, Leipzig, Ludwigshafen am Rhein, Mainz, Mannheim, Münster, Osnabrück, Regensburg and Ulm are Germany’s fastest growing cities and record demand growth for office space – up to 23 percent.

Cities in category B and C – Regensburg, Ludwigshafen, Karlsruhe, Leipzig and Braunschweig – show the highest figures in demand statistics. The demand for office space is especially high in Leipzig. In recent years, the city has developed rapidly and is already in need of an increase of 31,000 m2 per year.

Dresden has a space deficit of 28,000 m2. Ludwigshafen is projected to see the highest growth rate of office workers in the coming years at 5 percent, which will inevitably lead to an increase in space requirements.

Progressive development is taking place in the field of information and communications, the scientific and technical industry and the field of liberal professions. What led to the change of the former leaders in demand for office space – the finance and insurance industries.

There are other factors influencing the need to increase office space. Large concerns are also developing vigorously and increasing the number of employees. For example, BASF, the world leader in the chemical industry and a major employer, is also increasing the number of jobs and needs new premises.

Growing employment and decreasing number of vacant premises.

In Regensburg, the unemployment rate fell to 4.1 percent and an increase in science and technology workers was recorded. For example, the number of academics has grown by 50 percent over the past 10 years.

The German Medical Center Heidelberg needs a 5.2 percent increase in the number of employees and plans to increase office space by 60,000 m2. The science city of Ulm is increasing the number of universities and faculties and will therefore need to increase its space. The increase in rental demand recorded a very high growth rate here of 11.5 percent, amounting to 14.50 €/m2.

Traditionally, Braunschweig was called the city of microelectronics and biotechnology because of the enterprises and scientific centers located here.

The number of vacant spaces decreased by 2.6 percent and the rental price reached 11.80 €/m2. Since 2012, this figure has increased by 18 percent. Despite this, the city remains in the zone of affordable rent.

The cities of Kiel, Rostock and Freiburg are also projected to develop and grow steadily in the coming years. An increase in the number of office workers by 4.5-4.7 percent is expected here. In recent years, there has not been enough new rental space in the city of Kiel. The rent reached 14.50 €/m2 and equaled the rent of the city of Hannover. Although recently this figure was moderate and amounted to 3.6 percent.

For example, in the city of Rostock, during this time, rent has reached an increase of 23 percent (this figure has been recorded since 2012).

Office real estate on the rise

Analysis of 27 cities in Germany showed that the steady growth https://hata.com.gh/land-and-plots-for-rent in the number of office workers increases the demand for office real estate. More and more office space is required both in the cities of the "big seven" and in the cities of the average value category B and C.

According to forecasts, the growth of office workers will continue in the next 3-5 years with an increase of 3.7-5.6 percent in cities of average value, and in cities of category A (Berlin, Hamburg, Frankfurt am Main, Cologne, Dusseldorf, Stuttgart and Munich) – by 4.5-5.9 percent. The demand for office space rental will increase proportionately.

Medium-sized cities have recorded steady growth in population and in the number of employees. And since cities have a restriction on building permits for new space, existing office space is less and less empty. In percentage terms, in 2016 this indicator increased in category B cities from 4.8 to 7.8 percent.

In the cities of the "big seven" the figure was lower and amounted to 3.4 – 4 percent.

Augsburg, Bielefeld https://hata.com.gh/land-and-plots-for-rent, Bonn, Braunschweig, Bremen, Dresden, Heidelberg, Karlsruhe, Leipzig, Ludwigshafen am Rhein, Mainz, Mannheim, Münster, Osnabrück, Regensburg and Ulm are Germany’s fastest growing cities and record demand growth for office space – up to 23 percent.

Cities in category B and C – Regensburg, Ludwigshafen, Karlsruhe, Leipzig and Braunschweig – show the highest figures in demand statistics. The demand for office space is especially high in Leipzig. In recent years, the city has developed rapidly and already needs to increase its area by 31,000 m2 per year.

Dresden has a space deficit of 28,000 m2. Ludwigshafen is projected to see a maximum growth rate of 5 percent in office workers in the coming years, which will inevitably lead to an increase in space requirements.

Progressive development is taking place in the field of information and communications, the scientific and technical industry and the field of liberal professions. What led to the change of the former leaders in demand for office space – the finance and insurance industries.

There are other factors influencing the need to increase office space. Large concerns are also developing vigorously and increasing the number of employees. For example, the global chemical industry leader and major employer BASF is also adding jobs and in need of new premises.

Growing employment and decreasing number of vacant premises.

In Regensburg, the unemployment rate fell to 4.1 percent and an increase in science and technology workers was recorded. For example, the number of academics has grown by 50 percent over the past 10 years.

The German Medical Center Heidelberg needs a 5.2 percent increase in the number of employees and plans to increase office space by 60,000 m2. The science city of Ulm is increasing the number of universities and faculties and will therefore need to increase its space. The increase in rental demand recorded a very high growth rate here of 11.5 percent, amounting to 14.50 €/m2.

Traditionally, Braunschweig was called the city of microelectronics and biotechnology because of the enterprises and scientific centers located here.

The number of vacant spaces decreased by 2.6 percent and the rental price reached 11.80 €/m2. Since 2012, this figure has increased by 18 percent. Despite this, the city remains in the zone of affordable rent.

The cities of Kiel, Rostock and Freiburg are also projected to develop and grow steadily in the coming years. An increase in the number of office workers by 4.5-4.7 percent is expected here. In recent years, there has not been enough new rental space in the city of Kiel. The rent reached 14.50 €/m2 and equaled the rent of the city of Hannover.

Although recently this figure was moderate and amounted to 3.6 percent. For example, in the city of Rostock, during this time, rent has reached an increase of 23 percent (this figure has been recorded since 2012).