The Hamburg office market showed solid rental momentum overall at the end of the third quarter. With space take-up of 308,000 m², the result remains 15% below the long-term average of 362,000 m², but slightly exceeded the level of the same period last year (301,000 m²). Given that previous comparative figures were often achieved under significantly more favorable economic conditions, the current result can be considered positive overall.
The prime rent for high-quality office space in Hamburg city center has remained stable at €36.00/m² for 24 months now. The average rent, on the other hand, which experience shows is subject to greater fluctuations, rose significantly in the first three quarters and currently stands at €22.50/m² – an increase of 9% compared with the same period last year.
On the supply side, the vacancy volume has continued to rise and currently stands at 882,000 m². The vacancy rate is now 6.0%. Around 27% of the total vacancy rate is attributable to space with modern fittings and fixtures. Both conventional and modern vacancy rates have increased compared with the same period last year. Overall, however, there is a clear concentration of vacancies in secondary locations and peripheral areas, while central city center locations account for only 24% of the total vacancy rate.
New office space is increasingly only being developed if pre-letting is secured, as project developers are acting more cautiously following several high-profile insolvencies and tenants are more hesitant to enter into long-term commitments. This is leading to delays in project launches, even though demand is fundamentally there – which is also reflected in the high pre-letting rates. This shortage of modern new-build space is contributing to prime rents remaining stable despite below-average space take-up.
Looking at rent levels, a slight upward trend can be seen overall. After a prolonged period of stabilization, prime rents in particular are likely to rise again in the coming quarters.
- Prime rent is between 32.50 €/m² and 36.00 €/m²
- The average rent is between 20.50 €/m² and 22.50 €/m²
- Vacancy rate of 6.1 % (BNP Paribas)
