Office Hamburg 3Q2015

Demand for space remains at same high level despite slight decline in take-up

Press release | Hamburg

At the end of the 3rd quarter of 2015 take-up of office space in Hamburg had reached a total of some 355,000 m². Year on year, therefore, take-up fell by around 7%. Some 104,000 m² of office space was let or taken by owner-occupiers in the 3rd quarter, about 20,000 m² less than in the first two quarters. Turnover of space was calculated without regard to the unusual situation caused by the pressure to accommodate refugees and the consequent take-up of commercial space. “The rate at which commercial space is absorbed in order to house refugees is likely to rise between now and the end of the year. More than 15,000 m² of office space in Hamburg has already been rented for this purpose,” says managing director Andreas Rehberg of the current market position.

Office Hamburg 3Q2015Office Hamburg 3Q2015
No agreements signed for more than 5,000 m² in the third quarter
In the first three quarters of the year six transactions involved more than 5,000 m² of space; four of these were closed by owner-occupiers. The biggest trade remained the purchase of a section of the former Axel-Springer complex, which the City of Hamburg bought in the 1st quarter to provide the Borough Council of Hamburg-Mitte (Caffamacherreihe 3, City) with 32,000 m² of offices. The City of Hamburg likewise accounted for the largest rental contract of the year, with a second-quarter agreement to take some 19,400 m² for the regional tax offices of Bergedorf, Oberalster and Wandsbek and the tax office for large enterprises (Nordkanal Strasse 22+24, City South). Grossmann & Berger was involved in both transactions in a consulting role. Year on year, however, while the number of agreements for large amounts of space fell from eleven to six, the share of turnover posted by leases for 500 m² or less rose to about 64%. Around 86,000 m² of space let fell into this size category.

Central locations account for around half of all agreements
Returning to their traditional places in the ranking of sub-markets, the central districts of City, HafenCity and City South together accounted for 56% of take-up of space at the end of the 3rd quarter and some 52% of all agreements signed. First-placed City was far ahead of the other sub-markets, with 33% of take-up (116,000 m²) and 36% of all agreements. This good result was partly due to the owner-occupier transaction with Hamburg-Mitte Borough Council and four agreements for premises in the 2,001 to 5,000 m² size category. For example Thjnk, an advertising agency, rented 4,900 m² in the “BOA VISTA” project (Vorsetzen 32-39) and the private bank Donner & Reuschel chose some 2,300 m² in the “Europa Passage” mall (Ballindamm, City). City South placed second with a share of about 15% (54,000 m²) and HafenCity was third with around 8% (27,700 m²).

Local government plays leading role
Due to the City’s large transactions to obtain space for Hamburg-Mitte Borough Council and the four tax offices, local government/public offices accounted for around 24% of total take-up, thus forming the biggest single group of new occupiers by the end of the 3rd quarter. Consulting firms were also very active on the market, accounting for around 17% (60,000 m²) of lets.

Premium rent slips a little, average rent stable
Year on year the premium office rent slipped back by 50 cents to €24.00/m²/month. Weighted by amount of space taken, the average rent stayed as it was in the prior year at €14.50/m²/month. In the past three quarters the largest share of take-up of space, some 20%, fell to properties renting for between €12.51 and €15.00/m²/month.

Vacancy rate less than 6%
Year on year the amount of space standing empty fell from around 839,800 m² to its current figure of about 740,300 m². At the end of the 3rd quarter the vacancy rate, including sublet space, was a mere 5.6% of the total stock of office space of 13.3m m². “Of the 20 biggest agreements concluded on the market for offices in Hamburg, seven related to project developments, three are under construction for owner-occupiers. The considerable demand for efficient office space offering new-build standards cannot be satisfied with the rate of completions seen so far. This year and in the coming year, 2016, some 48 projects are expected to add 388,000 m² to the total stock of office space; however, contracts with new occupiers already exist for some 64% of this space. Many firms are already reserving their office space in new projects. High-quality new-build projects now have good chances on the rental market,” adds Rehberg.

Projected take-up for the year is 500,000 m², slightly lower than 2014
“Projected take-up for the year 2015 will in all probability be slightly lower than the year before. Our view is, however, that the market for office space in Hamburg is still in a phase of very dynamic growth. Many companies are planning strategic overhauls, which often involve moving to different premises. However, these are complex processes, so that they often take quite a long time to mature,” says Rehberg, describing the market’s present state.

The complete office market Hamburg survey will soon be available for download on our website.

Permission is given to reproduce the chart (source: Grossmann & Berger).

Press contact

Visitenkarte Xing
Britt Finke

Bleichenbrücke 9
20354 Hamburg

040-350 802 993
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