Despite the increasingly scarce supply, record take-up for 2017 ahead.
Despite the increasingly scarce supply, office take-up has risen significantly year on year once again. At the end of the first three quarters, take-up was above the strong corresponding figures for 2016 in all markets with the exception of Cologne.
Deals across the six largest German office markets between January and September totalled almost 2.8 million sq m, representing an increase of 9.4%.
Vacancy rates in the German office markets are falling lower and lower, with around 4.4 million sq m (5.3%) currently vacant across the top six markets. This represents a decline of around 600,000 sq m or 70 basis points over the last 12 months.
The fact that take-up has risen further despite increasingly scarce supply is partly explained by an increase in the proportion of prelets. These have accounted for some 8% of take-up in 2017 to date, which is significantly higher than in previous years.
Source : Savills