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Office Hamburg 2Q2015


Two City agreements involving over 50,000 m²

Press release
Hamburg | 02.07.2015
The early-year surge in the market for office space in Hamburg continued during the 2nd quarter of 2015. Growth of 12% compared with the same quarter of the prior year boosted total take-up for the 1st half of 2015 to 251,000 m². With owner-occupiers accounting for some 30% of the total, however, take-up of rental space was very similar to the prior year’s at around 180,000 m². The big transaction in the 1st quarter of 2015, when Hamburg-Mitte Borough Council bought a 32,000 m² property to use as offices, was later joined by another large deal brokered by Grossmann & Berger. The three district tax offices for Bergedorf, Oberalster and Wandsbek and the tax office for large enterprises in Nordkanal Strasse have taken some 20,000 m² of space in a new building project in City South. “The two agreements with the City of Hamburg alone add up to more than 50,000 m² and make a significant contribution to the good figures for this half year,” remarks managing director Andreas Rehberg.

Office Hamburg 2Q2015Office Hamburg 2Q2015
More agreements for large amounts of space involve owner-occupiers
In the 1st half of 2015, most of the agreements for more than 5,000 m² of space involved owner-occupiers. Such transactions included, in addition to the City of Hamburg’s purchase of part of the former Axel-Springer complex to provide 32,000 m² of offices for Hamburg-Mitte Borough Council (Caffamacherreihe 3, City), the construction start at Stresemannallee 101 (Eimsbüttel) of a new 8,000 m² head office building for NXP Semiconductors. The third biggest owner-occupier transaction was the first-quarter purchase of an office and logistics property in the west of Hamburg offering some 7,000 m² of office space plus warehousing and hall space. In the 1st half-year the share of take-up in the size category 5,000 m² or more was lower than in the same period of 2014, whereas the share of smaller units increased. Suites measuring 500 m² or less accounted for 23 % of take-up (57,000 m²) and the 501 to 1,000 m² size segment made up 20% (49,000 m²).

Around 33% of all agreements in Hamburg’s City districts
Returning to their traditional places in the ranking of sub-markets, the central districts of City, HafenCity and City South together accounted for 58% of take-up of space in the 1st half of the year and some 41% of all agreements signed. First-placed City was far ahead of the other sub-markets, with 33% of take-up (82,900 m²) and 33% of all agreements. This good result owed much to the owner-occupier transaction with Hamburg-Mitte Borough Council and two agreements for premises in the 2,001 to 5,000 m² size category. For example Jopp AG, a fitness studio operator, has taken some 2,600 m² in the “Alte Oberpostdirektion” (Gorch Fock Wall 1a) and the Dr. Binnewies engineering studio is renting about 2,200m² of office space in the “Schumacher-Kontor” (Dammtor Strasse 25). City South placed second with a share of 16% (38,900 m²) and HafenCity was third with 9% (23,600 m²).

Local government is the biggest client for space
Local government, with a share of some 29% of total take-up, including the two agreements with the City of Hamburg, advanced to the top slot among clients for office space in the 1st half of 2015. Consultancies and companies in the tourism and transport industries were also prominent players on the letting market, with shares of 17 % (41,900 m²) and 10 % (23,800 m²) respectively.

Premium rent slips slightly
“Despite the shortage of space, the premium rent has fallen by 50 cents year on year to €24.00/m²/month. The reason for this is that some expensive lets in the over €20.00/m²/month category seen in the prior reporting period are now no longer included in the statistics,” explains Rehberg. Year on year the average rent weighted by floor space rose by a modest 30 cents to €14.60/m²/month. In the past twelve months the largest share of take-up – 20 % – fell to properties renting for between €12.51 and €15.00/m²/month.

Vacancy rate falls below 6%
Due to the high level of take-up and the low volume of completions in the past year, vacancies have fallen year on year from around 900,000 m² to the current figure of about 730,000 m². At the end of the 2nd quarter the vacancy rate, including sublet space, was a mere 5.5% of the total stock of office space of 13.3m m². “This development reflects the current state of the market. It is not possible to satisfy demand for efficient office space with the rate of completions seen so far. This year and in the coming year, 2016, some 47 projects are expected to add 419,000 m² to the total stock of office space; however, contracts with new occupiers already exist for some 57% of this space. Many companies have already secured offices for themselves in projects that are still three years from completion. If we take each year separately, the pre-letting rate for 2015 is already over 70%. This shows that the market is very receptive to the projects now under construction and that interesting projects in Hamburg currently stand a good chance of success,” Rehberg adds.

Take-up of over 500,000 m² forecast for the year
“Against the backdrop of greater project development activity, the vacancy rate will continue to fall, but more slowly. Both premium and average rents will stabilize at their current levels. If clients currently seeking large amounts of space conclude agreements in 2015, the take-up of space is likely to be higher than 500,000 m² by the end of the year,” predicts Rehberg.

Our detailed market survey will be ready for download from our website shortly.

Permission is given to reproduce the chart (source: Grossmann & Berger).
Britt Finke
Press contact
Britt Finke
Bleichenbrücke 9
20354 Hamburg
  
Tel.:+49 (0)40 / 350 80 2 - 993
Fax:+49 (0)40 / 350 80 2 - 36
b.finke@grossmann-berger.de
 
 
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