The Berlin office market ended 2013 with a take-up of 510,600 sq m (see Figure 1). This was almost 18% short of the result for the previous year of 621,700 sq m, but nearly 3% above the average result for the preceding 10 years.
The decline in take-up compared to 2012 is solely due to the far smaller volumes of spaces of 10,000 sq m plus. Here there was just one deal in 2013, whereas there were 13 deals in 2012. By contrast a higher take-up was recorded in the range of spaces of less than 500 sq m.
Over the course of the year the level of vacancies rose gradually by 3% to 1.452 million sq m. Nevertheless at 8.1% the vacancy rate in Berlin is below the average for the Top 5 markets (8.6%).
The weighted average rent of all new deals fell compared to 2012, by € 0.20 to € 12.30 per sq m per month. At the same time the median of the most expensive contracts for one year rose from € 22.25 to € 22.35 per sq m per month and points to polarisation of demand amongst price-conscious and prestige-conscious tenants.
Given the positive economic forecasts for Germany we expect that willingness to rent office space will rise again in 2014. We believe the sustainable achievable prime rent will stay constant at € 22.25 per sq m per month even if, as happened in the preceding years in individual cases, higher values may be achieved for especially attractive spaces.
Source : DTZ (Groupe UGL)