Market reviving a little amidst overall uncertainty
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|
|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|