The Frankfurt office market started 2014 with a marked boost in take-up compared to the first quarter of 2013. In total, take-up rose in a year-on-year comparison by nearly 44% to 87,700 sq m.
First and foremost the new let by Deutsche Bank, of around 32,000 sq m in the development project Main Zero contributed substantially to the result.
In the first quarter, 96,400 sq m of new office space came ready for occupation. In the same period almost as much office space – around 100,000 sq m – was withdrawn from stock as was taken off the market in total last year.
The vacancy rate rose slightly to 12.3%. In absolute terms there are around 1.482 million sq m available for occupation at short notice.
The achievable prime rent is €38 per sq m per month. In the past twelve months this figure rose by €1 or 3%. Given the demand for prime spaces we believe a further rise over the year is possible.
In the context of lively demand for spaces of below 1,000 sq m and some larger searches for spaces we expect take-up to total at least 450,000 sq m by the end of the year.
Source : DTZ (Groupe UGL)