Hamburg’s diversified economy eases the return to normal business
One indication that Hamburg’s office market has stabilized is that the number of agreements for premises offering more than 5,000 m² of space rose from eight to eleven year on year. Seven agreements were noted in the size category upwards of 10,000 m².
The biggest new rental agreement was signed in the 4th quarter by Maersk, a shipping company; it has decided to take 13,200 m² of office space in the “Johann Kontor” in order to bring together in one location the employees working in Hamburg for Maersk and its subsidiaries. No other large-volume agreements were concluded between October and December. The biggest owner-occupier transaction in 2021 was the 3rd-quarter construction start to add 14,800 m² of space to the headquarters of the health insurance company Techniker Krankenkasse on Bramfelder Chaussee.
Owner occupiers accounted for a mere 6 % of the market, a figure unchanged year on year.
Compared with the preceding quarter, the vacancy rate at the end of the 4th quarter of 2021 remained stable at 3.8 %. At the end of 2020, the figure was 3.5 %. Year on year the amount of office space available within six months rose by 10.6 % to 537,600 m². “Over the course of the year the amount of empty office space is likely to increase, leading to a rise in the vacancy rate, although it should remain in the low single-figure range. Companies are still looking to reduce their space requirements, but not by as much as thought a few months ago. Instead, they are investing in the quality of their premises, which includes generously-dimensioned community areas and breakout spaces,” says Rehberg. “Despite the increase we expect rents to grow steadily in the City and sought-after locations. If more offices stand empty, however, rents for space in peripheral locations could be squeezed.”
Compared with the preceding quarter, the volume of sublet space was unchanged at 48,450 m² but 40 % higher than the figure at the end of 2020.
A similar situation was observed for office rents: At the close of 2021 the average rent reached a high of €18.10/m²/month, the same as it was in the preceding quarter. Compared with the end of 2020, however, this average has climbed by 3.4 %. Unchanged against the preceding quarter, the premium rent rose by 3.3 % over twelve months.
|Office market | Hamburg | 2021||Q1 -4|
|Space take-up [m²]||490,000|
|against prior yr [%]||+44.1|
|Premium rent [€/m²/month net of services]||31.50|
|against prior yr [%]||+3.3|
|Average rent [€/m²/month net of services]||18.10|
|against prior yr [%]||+3.4|
|Stock of office space [millions m²]||14.0|
|Vacant space incl. sub-let space [m²]||537,600|
|against prior yr [%]||+10.6|
|Vacancy rate incl. sub-let space [%]||3.8|
|Completions 2022+2023 [m²]||556,000|
|Pre-let ratio [%]||57|
|Berenberg Bank||“Ipanema”||Überseering 30||City North||19,200|
|Hamburg State Prosecutor||“Michaelis Quartier”||Ludwig-Erhard-Strasse 11-17||City||17,600|
Techniker Krankenkasse (health ins.) owner-occupier
|Building extension||Bramfelder Chaussee 160-164||Hamburg East||14,800|
|Maersk Deutschland Group||“Johann Kontor”||Maersk Deutschland Group||City||13,200|