With a transaction volume of approximately 220,000 square metres, the Hamburg office market in Hamburg showed a slightly better performance than in the previous year’s half term (215,000 sq m). “Very short-term interim rents, and three new developments significantly influenced the results,” says Oliver Horstmann, member of the management of Engel & Völkers Commercial Hamburg.
Largest deal: Telekom at City Nord
With Deutsche Telekom renting 32 178 square metres of office space at Kapstadtring, the company not only entered the largest single transaction of the first six months of 2014, but also pushed Germany’s oldest office erected in the 1960s after the U.S. model, in the Hamburg office locations ranking in second place with an occupancy volume of 19.6 per cent (full year 2013: 2.3 per cent ). Number one remained, as in previous rankings, City Nord with 23.0 per cent. When analysing the market by sector, the “Information and Communication” industry accounted for most of the transactions with a market share of 24.5 per cent in the first half of 2014 ( full-year 2013: 7.1 per cent).
Three new developments
Hamburg’s mid-term result were also strongly influenced by three new developments – Marquard & Bahls AG, Jungheinrich und der Gebr. Heinemann. The latter contributed some 3,000 square metres of office space to the result. At Kieler Straße, the Free and Hanseatic City of Hamburg signed several short-term rentals. Overall, rental business was very fragmented in the first half. Areas up to 1.000 square metres accounted for 86 per cent of transactions.
Attractive office space in almost all areas
UnlikeMunich, for example, Hamburg can offer attractive office space sized 3,000 to 7,000 square metres in almost all areas. The vacancy rate in the Free and Hanseatic city has decreased continuously since 2010, With a total office floor space of of 13.8 million square metres, it currently is at a low seven per cent. “Sales are expected to reach approximately 450,000 square metres at the end of 2014, and will thus be as stable as in the previous year” predicts Horstmann.
source and further details:
Engel & Völkers, www.engelvoelkers.com/de/hamburg