Office Hamburg 3Q2020

The gentle upswing seen at the end of the previous quarter continued during the 3rd quarter of the year. Between July and September, however, only 85,000 m² of office space was newly let in Hamburg, compared with 125,000 m² the year before. The market is thus still a long way from its usual vigour. Figures from GPP-member Grossmann & Berger indicate that 250,000 m² of space was let or taken by an owner-occupier in the first three quarters. Year on year this translates into 43 % less space let, a third-quarter figure lower than any recorded in Hamburg in the past 15 years, including 2012, when the third-quarter result was 95,000 m².

We notice more activity on the market with people interested in renting new premises, but this has not yet resulted in greater take-up of office space. Many firms are now reviewing how the current situation may alter their space requirements,” comments managing director Andreas Rehberg.
 

Details office letting market Hamburg:

• At the end of the 3rd quarter several agreements for large premises in central locations could not be included in figures to calculate the average rent. It was not possible to offset this volume due to reticence about renting office space during the coronavirus pandemic. As a result, the average rent fell appreciably, dropping 30 cents below the 2nd-quarter figure. Compared with the same quarter last year, however, it rose from €17.20 to €17.30/m²/month. Year on year the premium rent increased by 7.0 % to settle at €30.50/m²/month.

• Contrary to expectations, there was no significant rise in the amount of office space available at short notice. By the end of the quarter the vacancy rate was a steady 3.3 %. Neither has there been a vast increase in the amount of office space available for sub-letting, the current 30,000 m² contrasting with 22,500 m² in 2019. However, Grossmann & Berger expects to see more sub-let office space on the market by the end of the year.

• Property service provider Grossmann & Berger expects the year 2020 to close with total take-up of 350,000 m², the lowest result since 2003. Compared with the ten-year average of 530,600 m² (2010-2019) the year 2020 is likely to return some 30 % less.

Office market | Hamburg | 2020	Q 1-3
Space take-up [m²]	250,000
against prior yr [%]	-43
Premium rent [€/m²/month net of services]	30.50
against prior yr [%]	+7.0
Average rent [€/m²/month net of services]	17.30
against prior yr [%]	+0.6
Stock of office space [millions m²]	13.9
Vacant space [m²]	463,500
against prior yr [%]	+16.4
Vacancy rate incl. sub-let space [%]	3.3
Completions 2020+2021 [m²]	261,000
Pre-let ratio [%]	80

Selected top agreements | offices in Hamburg | 1st to 3rd quarters of 2020

Tenant/owner-occupier (oo)	Property/project	Street no.	Sub-market	Rental area [ca. m²]
Hamburg Verkehrsanlagen (HHVA) (oo)		Am Neumarkt 40	Wandsbek	6,800
SUND Holding (oo)	“Victoria Park”	Stapelfelder Strasse	Hamburg North-East	6,400
Hansainvest Hanseatische Investment	“Oval Office”	Überseering 10	City North	6,000
Wärtsilä SAM Electronics		Behringstrasse 120	Altona	5,900
MSH Medical School Hamburg	“HafenCity Gate”	Am Sandtorkai 74-77	HafenCity	5,800

Transactions occurring in the quarter covered by this report are highlighted
 
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