Market reports for the Hamburg office market 

The market environment for the Hamburg office market remains challenging. Against a backdrop of ongoing economic uncertainty, many companies are adopting a cautious approach, which is reflected in particular in significantly longer letting processes – a trend that is increasingly evident among smaller market players as well. Consequently, the start to the year was subdued.

Compared with the previous year, take-up fell by 23 % and reached a volume of around 95,000 m² in the first quarter. What is striking is the comparatively high proportion of owner-occupiers, who accounted for over 27 % of total take-up and thus helped to underpin the result to some extent.

At the same time, there are signs of a potential upturn later in the year: there are currently several concrete enquiries for space on the market that could lead to deals in the future. Demand for high-quality office space in central and well-connected locations remains strong. Furthermore, tenants are increasingly willing to pay more for modern, prime properties, meaning that higher rent levels are becoming more widely accepted.

Whilst demand is clearly concentrated on inner-city sub-markets, the supply of space available in the short term is rising significantly across the entire city. This is also reflected in the trend in the vacancy rate, which has risen from 5.6% last year to the current 7.1 %, reaching a new high.

The supply is expected to expand further in the coming months. In particular, larger spaces vacated by companies are likely to come onto the market as sublet properties, thereby creating additional competitive pressure.

Key figures at a glance

• Office space turnover: approx. 95,000 m²
• Vacancy rate: 7,1 %
• Prime rent: 37,00 €/m²
• Average rent: 21.90 €/m²

Source: Grossmann & Berger GmbH