GPP Commercial Property Market Germany´s top7 cities 2017/Q1-4

LOCAL EXPERTISE – ACROSS GERMANY 

NVESTMENT/OFFICE LETTING 

COMMERCIAL PROPERTY MARKET 

GERMANY’S TOP 7 CITIES 

2017/Q1-4 

WWW.GERMANPROPERTYPARTNERS.DE

LOKALE LOCAL EXPERTISE KOMPETENZ – ACROSS – DEUTSCHLANDWEIT 

GERMANY 

MARKTBERICHT MARKET SURVEY INVESTMENT/BÜROVERMIETUNG INVESTMENT/OFFICE LETTING 2017/Q1-4 

ABOUT US 

GERMAN PROPERTY PARTNERS 

Each of us being a leading commercial real estate company 

in its respective region, we have joined together to form a 

Germany-wide real estate network. We are five strong 

partners. 

In Northern Germany, Grossmann & Berger offers its real 

estate services out of its locations in Hamburg and Berlin, 

while ELLWANGER & GEIGER Real Estate covers Southern 

Germany from its bases in Stuttgart and Munich. ANTEON 

Immobilien is the firm to contact about property matters 

in and around Düsseldorf, while GREIF & CONTZEN Immobilien 

are your eyes and ears in the metropolitan area of 

Cologne and Bonn. blackolive guarantees full market coverage 

in the Frankfurt region. 

Partner 

Grossmann & Berger 

A real estate consultant with experience 

stretching back for over 80 

years, Grossmann & Berger is one of 

the leading service providers for the 

sale and letting of commercial and residential 

real estate in Northern Germany, 

and is an affiliate in the HASPA-group of 

companies. 

blackolive 

blackolive is an owner-managed real 

estate consultancy firm that focuses on 

office letting and investment. The managing 

directors both have more than 26 

years of experience and stand for an indepth 

understanding of the market. 

ANTEON 

ANTEON is an owner-managed real 

estate consultancy firm that specializes 

in brokering lets and investments 

in commercial, logistics and residential 

properties. In addition, as one 

of the market leaders, ANTEON offers 

property marketing, project support 

and research services. 

ELLWANGER & GEIGER 

ELLWANGER & GEIGER Real Estate 

offers a full range of services in connection 

with commercial property 

assets. With the resources of the parent 

company’s private banking business, 

this service provider has over 100 years 

of experience. 

We have founded German Property Partners with the aim 

of providing our special services in all of Germany’s major 

real estate centres. That way, whatever your commercial 

real estate requirements, wherever you are in Germany, 

you can obtain your advice from a single provider, and that 

is us. Via our network and thanks to our respective market 

positions, we can offer you outstanding local knowledge 

and preferential market access throughout Germany. 

The many years of service our employees have put in 

with us, and the affiliation of Grossmann & Berger and 

ELLWANGER & GEIGER Real Estate with reputable regional 

banks, make German Property Partners a reliable partner 

for long-term collaboration in the fields of commercial real 

estate and finance. 

GREIF & CONTZEN 

This owner-managed service company 

has been providing consultancy, evaluation, 

brokering and management services 

for commercial and residential 

properties in the metropolitan region of 

Cologne | Bonn for over 40 years, and is 

experienced in the entire value chain of 

real estate transactions. 



Dear Readers, 

Property business professionals will long remember the 

year 2017. This is because office markets in Germany’s 

top 7 locations posted their best result in over ten years 

to close the year on an all-time high. The investment 

markets in the top 7 cities likewise returned results that 

outstripped figures seen in recent years, so that the final 

total was second only to that posted in 2007. 

This market survey provides a review of the year 2017 as 

it played out on Germany’s top 7 markets. In addition to 

drawing comparisons between the top 7 markets, we offer 

a detailed look at the investment and office letting markets 

in Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt/Main, 

Stuttgart and Munich. 

TOP 7............................................................................... 4 

HAMBURG....................................................................... 8 

BERLIN.......................................................................... 10 

DÜSSELDORF................................................................ 12 

COLOGNE....................................................................... 14 

FRANKFURT.................................................................. 16 

STUTTGART................................................................... 18 

MUNICH......................................................................... 20 

The process of preparing and interpreting the data was 

made possible thanks to a partnership between four of the 

leading service providers specialized in commercial properties 

based in north, central and south Germany - the 

nationwide network German Property Partners (GPP). Our 

knowledge of local markets is as broad as it is deep, giving 

us access to data on the entire market, the top 7 locations 

and the sub-markets within each one. 

The present survey offers you a general view of the market. 

We would be happy to hold personal talks with you and 

answer your specific questions about property matters. 

Guido Nabben 

Spokesman for German Property Partners 

3 



MARKET SURVEY INVESTMENT/OFFICE LETTING 2017/Q1-4 

TOP 7 

FACTS & FIGURES 2017/Q1-4 

KEY FIGURES 2017/Q1-4 

Investment: strongest buyer groups by location Office letting: strongest industries by location 

(share of take-up of space) 

Hamburg 36 % Open-end/specialized funds 

Berlin 27 % Pension schemes 

Düsseldorf 31 % 

Asset managers 

(share of transaction volume) 

Hamburg 16 % IT & telecommunication 

Berlin 23 % Public administration 

Düsseldorf 12 % Industry and Trade 

HAMBURG 

640,000 m² (+16 %) 

26.00 €/m² (0 %) 

15.20 €/m² (-2 %) 

4.3 % (-0.8 %-Pkt.) 

€ 3.60bn (-20 %) 

2.90 % (-0.4 %-Pkt.) 

BERLIN 

900,000 m² (+10 %) 

30.00 €/m² (+9 %) 

19.50 €/m² (+21 %) 

2.2 % (-1.5 pp) 

€ 7.3bn (+45 %) 

3.00 % (-0.3 pp) 

Cologne 

30 % 

Other Funds 

Cologne 

19 % 

Public administration, associations 

Frankfurt 

29 % 

Open-end/specialized funds 

Frankfurt 

24 % 

Financial services 

DÜSSELDORF 

Stuttgart 24 % Open-end/specialized funds 

Munich 51 % 

Open-end/specialized funds 

Stuttgart 

Munich 

40 % Industry 

20 % 

Industry 

358,700 m² (+8 %) 

27.00 €/m² (+2 %) 

15.35 €/m² (+7 %) 

8.4 % (-1.5 pp) 

€ 2.96bn (+13 %) 

3.40 % (-0.4 pp) 

Key figures top 7 

Hamburg Berlin Düsseldorf Cologne Frankfurt Stuttgart Munich Top 7 

Take- up of space 

[m²] 

640,000 900,000 358,700 310,000 729,100 270,000 877,600 4,085,400 

Year-on-year change [%] +16 +10 +8 -30 +30 -38 +15 +5 

Average rent 

[net €/m²/mth] 

15.20 19.50 15.35 13.70 20.30 13.70 16.90 - 

Year-on-year change [%] -2 +21 +7 -3 +13 +6 +9 - 

Premium rent 

[net €/m²/mth] 

26.00 30.00 27.00 21.50 39.75 24.30 35.00 - 

Year-on-year change [%] 0 +9 +2 0 +3 +6 -1 - 

Vacant space 

[m²] 

580,200 430,000 630,000 280,000 1,005,700 167,000 580,000 3,672,900 

Year-on-year change [%] -15 -39 -16 -22 -19 -24 -31 -24 

Vacancy rate 

[%] 

4.3 2.2 8.4 3.6 8.7 2.1 2.5 4.1 

Year-on-year change 

[percentage points (pp)] 

-0.8 -1.5 -1.5 -1.0 -1.8 -0.7 -1.1 -1.3 

Transaction volume 

[m €] 

3,600 7,300 2,960 2,300 6,716 1,200 5,872 29,948 

Year-on-year change [%] -20 +45 +13 +28 +3 -34 -9 +4 

Share of asset class 

Office [%] 

68 71 81 45 91 78 59 72 

Prime yield 

Office [%] 

2.90 3.00 3.40 3.70 3.30 3.50 3.00 3.26 

Year-on-year change [pp] -0.40 -0.30 -0.40 -0.10 -0.60 0 -0.10 -0.27 

Prime yield 

Commercial premises [%] 

2.90 2.90 3.50 3.20 3.40 3.10 2.45 3.06 

Year-on-year change [pp] -0.40 -0.20 -0.10 -0.40 -0.10 0 -0.15 -0.19 

Prime yield 

Logistics [%] 

4.60 4.90 4.75 4.70 4.80 4.50 4.60 4.69 

Year-on-year change [pp] -0.30 -0.20 -0.25 -0.30 -0.30 -0.60 -0.40 -0.34 

COLOGNE 

310,000 m² (-30 %) 

21.50 €/m² (0 %) 

13.70 €/m² (-3 %) 

3.6 % (-1.0 pp) 

€ 2.30bn (+28 %) 

3.70 % (-0.1 pp) 

STUTTGART 

270,000 m² (-38 %) 

24.30 €/m² (+6 %) 

13.70 €/m² (+6 %) 

2,1 % (-0,7 pp) 

€ 1.2bn (-34 %) 

3.50 % (0% pp) 

KEY FIGURES OFFICE LETTING/INVESTMENT: 

Take-up of space (year-on-year change) 

Premium rent (year-on-year change) 

Average rent (year-on-year change) 

FRANKFURT 

729,100 m² (+30 %) 

39.75 €/m² (+3 %) 

20.30 €/m² (+13 %) 

8.7 % (-1.8 pp) 

€ 6.72bn (+3 %) 

3.30 % (-0.6 pp) 

MUNICH 

877,600 m² (+15 %) 

35.00 €/m² (-1 %) 

16.90 €/m² (+9 %) 

2.5 % (-1.1 pp) 

€ 5.9bn (-9 %) 

3.00 % (-0.1 pp) 

Vacancy rate (year-on-year change) 

Transaction volume (year-on-year ch.) 

Prime yield office (year-on-year ch.) 

4 5 




TOP-7 

INVESTMENT 

OFFICE LETTING 

At the close of 2017 the volume of investment transactions 

in commercial properties (excluding buy-to-let residential) 

located in Germany’s top 7 cities had reached a 

total of €29.9bn. Compared with the prior year’s €28.8bn, 

this represented an increase of 4 %. Not only did the top 

7 cities surpass the prior year’s volume of transactions, 

but the result was also the second highest since 2007. 

TRANSACTION VOLUME 

At the end of 2017 Berlin posted the biggest increase in 

the volume of transactions, which rose by 45 % to €7.3bn. 

Five transactions, each priced at over €200m, were partly 

behind this result, the capital city’s second highest ever. 

The “Sony Center” on Potsdamer Platz was one such sale; 

a consortium headed by Oxford Properties paid €1.1bn for 

this complex alone. In 2017 it was the biggest single commercial 

investment transaction in any of the top 7 cities. 

Cologne also set a new record with year-on-year growth 

of 28 %. The transaction volume of €2.3bn was some 

20 % higher than the previous record set in 2015. A new 

record was also set in Düsseldorf, where the sales of commercial 

properties reached a total of €3.0bn by the end 

of the year. The result in Frankfurt rose year on year by 

a moderate 3 % to €6.7bn. Despite a 9 % drop compared 

with 2016, sales in Munich totalled €5.9bn. With a transactions 

result of €3.6bn, Hamburg slipped 20 % short of 

the record €4.5bn posted in the prior year. Stuttgart generated 

a transaction volume of €1.2bn and thus attracted 

much less investment activity than in prior years. 

INVESTORS AND VENDORS 

International investors continued to take a great interest 

in commercial properties located in Germany’s top 7 cities 

and, having increased their activities somewhat, these 

players accounted for nearly half of the total volume 

traded. Berlin remained the hot spot for international 

capital, where foreign investors accounted for 73 % of 

total trades. Year on year portfolio sales in the top 7 cities 

accounted for the same proportion of transactions by 

value, at 23 % of the total. 

YIELDS 

In view of the mismatch between supply and demand, 

the prime net yield continued its downward slide across 

all asset classes and top 7 cities. The lowest prime net 

yield was the 2.45 % noted for commercial buildings in 

Munich, followed by 2.90 % for commercial buildings in 

Hamburg and Berlin. Yields on offices ranged from 2.90 % 

in Hamburg to 3.70 % in Cologne. The most expensive city 

for logistics properties was Stuttgart, where the yield was 

4.50 %. 

OUTLOOK 

In 2018 commercial properties in Germany’s top 7 cities 

are set to remain a good investment. However, this presupposes 

a stable, predictable environment on the capital 

markets and on the political stage. In view of the remarkably 

high demand and the glut of cash for investment 

it is unlikely that there will be any great atmospheric 

changes this year on the property investment markets 

in the top 7 cities. Due to the shortage of real estate, the 

transaction volume is not expected to be as high in 2018. 

Transaction volume top 7 Transaction volume by asset classes top 7 

(in €bn) 

5-year average (2013-2017): 

ca. €25.4bn 

17.3 21.8 29.3 28.8 29.9 26.0 

2013 2014 2015 2016 2017 2018 

Logistics | 2 % 

Commercial premises | 3 % 

Undeveloped land 

Retail 

Hotel 

8 % 

8 % 

6 % 

Other | 1 % 

72 % 

Office 

At the close of the year 2017 a new record take-up of 

4.1m m² was announced for Germany’s top 7 office 

letting markets. This result was the best in over ten 

years and for the first time in history the four-million 

mark was passed. 

TAKE-UP OF SPACE 

By the end of 2017, office-letting in Frankfurt had reached 

an all-time high of 729,100 m², which was 30 % above 

the figure for 2016 and on a par with the property market’s 

high-water mark in 2000. In Hamburg the take-up of 

space rose by 16 % in 2017, reaching a new record level 

of 640,000 m². Year on year 15 % more office space was 

taken up in Munich, leading to a total of 878,000 m². The 

office market in Berlin surged forward to the best result 

of the 7 cities and total take-up of 900,000 m², (+10 %) to 

place ahead of Munich. The year-end total for Düsseldorf 

was 358,700 m² of office space taken up. This translated 

into an 8 % higher result than in 2016. In Cologne, however, 

the take-up of office space fell by 30 % to 310,000 m², 

largely due to outlier transactions in the record year of 

2016. In Stuttgart the take-up of office space declined by 

38 % year on year to 270,000 m². 

In 2017 the operators of co-working space or business 

centres were very active in the pursuit of new premises 

to rent. In almost all the top 7 cities these enterprises 

posted rising shares of total take-up. The industry’s total 

of 214,000 m² represented some 5 % of the total take-up 

of space or nearly three times the amount rented in 2016. 

RENTS 

As a result of tight supply and a shortage of vacant space, 

almost all the top 7 cities reported rising office rents in 

2017. The biggest leap was seen in Berlin, where the average 

rent rose by 21 % to €19.50/m²/month and the 

premium rent rose by 9 %, thus reaching €30.00/m²/ 

month for the first time. Two other factors, apart from the 

mismatch between supply and demand, are driving up 

office rents: owners and landlords are passing on to their 

tenants both the ever higher prices for building land as 

well as the rising construction costs. 

AVAILABLE AND VACANT SPACE 

With the total stock of office space including sub-let 

space standing at 90.7m m², the reserve of available 

space in the top 7 cities has contracted further to total 

a mere 3.7m m² at the end of the 4th quarter. This translates 

into 4.1 % of the total stock of office space. The 

most dramatic decline in office space available at short 

notice was seen in Berlin, where supply contracted by 

39 %. Munich (-31 %) and Stuttgart (-24 %) also struggled 

with appreciably reduced amounts of vacant space. The 

other top 7 cities saw vacancies drop by between 22 % Cologne) 

and 15 % (Hamburg). Some 260 office new builds 

are scheduled for completion this year and next, offering 

a total rental space of around 2.5m m². A majority of this 

space has, however, been pre-let or is being constructed 

for an owner-occupier. 

OUTLOOK 

In view of the economic stability, the market for office lettings 

in Germany will continue to boom in 2018. However, it 

is to be expected that total take-up of space will be lower 

than in 2017 because the shortage of available property 

will become more acute. In view of burgeoning demand 

and the low rates of completion scheduled for this year, 

speculative new builds would possibly serve to steady 

office rents but would not ease the situation in the short 

to medium term. 

Clients in Cologne, Düsseldorf and Frankfurt are still 

looking for large suites of offices, which may result in 

agreements in 2018. Considering that supply is becoming 

ever shorter, it is unlikely that this year’s take-up totals in 

the top 7 office-letting locations will match the record results 

of 2017. Nevertheless, the office-letting business is 

set to have a very good year because the overall stability 

of the economy and a resilient labour market will continue 

to fuel demand for office space. 

Take-up of space top 7 

(in 000s m 2 , incl. owner-occupiers) 


ca. 3.5 million m 2 

2.9 2.9 3.5 3.9 4.1 3.5 

2013 2014 2015 2016 2017 2018 

6 7 




INVESTMENT 

HAMBURG 

Year on year the volume of investments in commercial 

properties in Hamburg fell by a fifth below the record 

result of 2016 (€4.5bn) to close the year 2017 at €3.6bn. 

The number of properties traded also fell; a decline from 

174 to 125 translates into a dip of 28 %. 

INVESTMENT PROPERTIES 

The 4th quarter of 2017 was the year’s strongest, with a total 

of €1.3bn. This was primarily due to the portfolio transaction in 

which Signa Holding bought a total of five properties from RFR 

Holding. Two of the properties in the portfolio are in Hamburg’s 

City district and the selling prices were each in the treble-digit 

millions bracket. The transaction involved the two office and 

commercial buildings named “Arkadenhof” (Neuer Wall/Jungfernstieg) 

and “Kaufmannshaus” (Bleichenbrücke 10/Grosse 

Bleichen). Other transactions with price tags in the three-figure 

millions were already announced in earlier quarters: Wenaasgruppen 

paid Azur Property Investments about €200m for the 

“Radisson Blu Dammtor” (hotel, Marseiller Strasse 2, Alster 

West); Patrizia paid Orion Capital Managers around €175m for 

the “HafenCity Gate” (office , Am Sandtorkai 74-77, HafenCity) 

and the “Kaisergalerie” (office and commercial building, 

Grosse Bleichen 23-27, City) was sold for some €170m by 

Quantum Immobilien and the alstria office REIT to the Swiss 

investor in foreign real estate Anlagestiftung für Immobilienanlagen 

im Ausland. In 2017 the most desirable class of asset 

was, as in the prior year, office properties, which accounted for 

68 % (€2.4bn) of the total traded volume. 


In 2017 open-end/specialist funds were the most active 

buyers of Hamburg properties and responsible for 36 % 

of the total traded volume (some €1.3bn). Asset/property 

portfolio managers were the biggest single group of 

sellers, with a share of 27 % (€968m). 

OUTLOOK 

In view of the unwillingness of owners to sell their commercial 

properties in Hamburg, 2018 is unlikely to set 

any new records. Nevertheless, several large trades are 

in the pipeline, such as the “Hanse-Viertel”, the “Wandelhalle” 

concourse in the main station or the new Olympus 

headquarters. For this reason 2018 is expected to return a 

transaction total higher than the ten-year average volume 

of €2.8bn. 

Transaction volume Hamburg 

(in €bn) 


ca. €3.7nb 


HAMBURG 

The take-up of office space in Hamburg set a new record. 

In the year 2017 some 640,000 m² of office space was 

let and thus 16 % more than in the year before. This appreciable 

increase is a reflection of the dynamic state of 

Hamburg’s office-letting market. 


In 2017 clients seeking office suites offering 5,000 m² or 

more generated 26 % of total take-up, almost the same 

proportion as in 2016. Overall, 13 contracts for large 

premises were signed. The three biggest contracts of 

the year included two rental agreements for new builds, 

when Olympus Deutschland signed for 34,500 m² (Wendenstrasse 

14-18, City South) and Gruner + Jahr signed 

for 34,000 m² (Am Hannoverschen Bahnhof, HafenCity); 

the University of Hamburg took 19,700 m² in an existing 

building (Überseering 35, City North). Some 55 % of the 

space taken up and 52 % of the agreements signed in 2017 

related to premises in the central sub-markets City, City 

South and HafenCity. As before, Hamburg City district was 

top of the league. 

RENTS 

At the close of the year the premium rent was unchanged 

at €26.00/m²/month. The average rent softened slightly 

and fell from €15.50 in 2016 to €15.20/m²/month. In the 

various sub-markets considerable variations in rentals 

were observed, generally depending on the quality of 

the space on offer. Year on year the average rents in the 

central sub-markets of City and City South stayed the 

same. In HafenCity they rose by 16 % due to numerous lets 

in new builds. 


ca. 539,000 m 2 


As had been expected, the amount of space standing 

empty was further reduced. By the end of 2017 the vacancy 

rate had sunk to the new record low of 4.3 %. A mere 

580,000 m² of space was available to new tenants within a 

period of three months. 32 developments are likely to add 

some 160,000 m² of space in 2018, followed in 2019 by a 

further 167,000 m² in 24 developments. 

OUTLOOK 

The positive economic and job market forecasts indicate 

that demand for office space will increase. Nevertheless, 

the growing shortage of suitable offices makes a new 

take-up record unlikely. In all likelihood the take-up of 

space will dip back below the 600,000 m² mark in 2018. 

TOP 3 SUB-MARKETS (take-up of space / average rent) 

CITY / 153,000 m² / €19.50/m²/month 

CITY SOUTH/ 115,300 m² / €12.40/m²/month 

HAFENCITY / 85,100 m² / €19.60/m²/month 

TOP 3 CONTRACTS 

Take-up of space Hamburg Rents Hamburg 

(in 000s m 2 , incl. owner-occupiers) (net in €/m 2 /mth) 

1. OLYMPUS DEUTSCHLAND GMBH 

Wendenstrasse 14-16 / ca. 34,500 m² 

2. GRUNER + JAHR GMBH 

Am Hannoverschen Bahnhof / ca. 34,000 m² 

3. UNIVERSITY OF HAMBURG 

Überseering 35 / ca. 19,700 m² 

24.00 24.00 

24.50 

25.00 

premium rent 

26.00 

26.00 

average rent 

Prime yields on all classes of asset continued their downward 

slide. At the end of the 4th quarter the prime yield on office 

and commercial buildings fell below the three-per-cent 

threshold for the first time, to 2.9 %. The premium yield on 

logistics properties fell to 4.6 %. 

2.8 3.7 4.0 4.5 3.6 3.0 

2013 2014 2015 2016 2017 2018 

440 525 540 550 640 550 

2013 2014 2015 2016 2017 2018 

14.00 14.00 

2012 

2013 

14.50 14.50 

15.50 15.20 

2014 2015 2016 2017 

8 9 





BERLIN 

INVESTMENT 

BERLIN 

The volume of investment transactions in commercial 

properties rose by 45 % year on year to a total for 2017 

of €7.3bn. This was the second highest total ever seen, 

topped only by the €7.8bn posted in 2015. 


In 2017 more than 130 sales of commercial properties 

were reported in Berlin. The three biggest sales were the 

“Sony Center”, sold in the 3rd quarter by the National pensions 

Service for around €1.1bn to a consortium led by 

Oxford Properties (offices, Potsdamer Platz, Potsdamer/ 

Leipziger Platz sub-market), and the two Axel-Springer 

buildings. One was the new build “Axel-Springer Mediencampus” 

sold in the 3rd quarter by Axel Springer for 

around €425m to the Norwegian Government Pension 

Fund Global (offices, Axel-Springer Strasse, Mitte 1a submarket) 

and the “Axel-Springer-Passage” (offices, Zimmerstrasse, 

Mitte 1a sub-market) that changed hands for 

€330m in the 3rd quarter and is now owned by Blackstone. 


Due to the sale of the “Sony Center” to a pension fund, 

buyers belonging to this sector accounted for the lion’s 

share of the traded volume, equivalent to 27 %. The selling 

side of the market was dominated by project developers/ 

builders who accounted for 18 %, and pension funds which 

comprised 17% - likewise a result of the “Sony Center” 

transaction. The proportion of international investors rose 

slightly from 64 % to 73 %. 

OUTLOOK 

The volume of transactions forecast for 2018 is around 

€5.0bn, because no-one expects to see the same level of 

big-ticket trades as 2017. 

Transaction volume Berlin 

Year on year take-up of space in Berlin offices rose by 

10 % thanks to a high number of agreements to rent large 

amounts of space and construction starts for owner-occupiers; 

the total of 900,000 m² set another new record. 

The three biggest rental or owner-occupier transactions 

alone accounted for take-up of 129,000 m². 


By the end of the year 32 agreements involving more 

than 5,000 m² had been recorded, and eleven for more 

than 10,000 m² of space, including the purchase of 

the former Vattenfall headquarters (about 47,000 m², 

Puschkinallee 52, Periphery South) which the new 

owner, the Federal real estate corporation Bundesanstalt 

für Immobilienaufgaben, will use itself, and the two 

large premises let to Zalando (about 45,000 m² at Tamara-Danz-Strasse 

7, Friedrichshain, and about 42,000 m² 

at Koppenstrasse 8, Friedrichshain). The most popular 

sub-market was Friedrichshain with a share of some 

14.9 %, followed by Periphery South (about 12.4 %) and 

Kreuzberg (about 11.9 %). For the first time ever, the top 3 

sub-markets included neither Mitte nor Mitte 1a, thus underlining 

the shift in take-up locations. Public administration/federations/social 

facilities accounted for 23 % of 

the total take-up of space, dislodging the information and 

communications sector from the top slot it held in the year 

before. 

RENTS 

Within the space of a year the average rent rose by 21 % 

to the new record level of € 19.50/m²/month. The premium 

rent was 9 % higher and its new level of € 30.00/m²/month 

was last seen in 2000. 

Take-up of space Berlin 


Empty space stood at a record low of 2.2 % or 430,000 m², 

which was 39 % below the level noted in the prior year. 

Berlin therefore has almost no space left to rent, which 

makes life difficult for companies that wish to move 

premises or expand their offices. Many firms that need 

larger amounts of space are turning to new build developments. 

This trend is leading to a further rise in new space 

being built, but the effects will not be very noticeable until 

2019. In 2018 some 294,000 m² of office space will be 

completed, in 2019 the scheduled volume is 417,000 m². 

OUTLOOK 

In the medium to long term more space on the market will 

ease the situation for tenants and keep rents reasonable. 

In 2018 take-up is expected to total some 750,000 m² because 

so little space is available on the market. 


FRIEDRICHSHAIN / 134,100 m² / €25.50/m²/month 

PERIPHERY SOUTH / 111,600 m² / €13.20/m²/month 

KREUZBERG / 107,100 m² / €20.20/m²/month 


1. FEDERAL INSTITUTE FOR REAL ESTATE MANAGEMENT 

Puschkinallee 52 / ca. 47,000 m² 

2. ZALANDO 

Tamara-Danz-Strasse 7 / ca. 45,000 m² 

3. ZALANDO 

Koppenstrasse 8 / ca. 42,000 m² 

Rents Berlin 

As in previous years office properties were the dominant 

asset class on the market, accounting for a share of 71 % 

(about €5.2bn); hotels followed with 11 % of the market 

(€780m) and retail with about 8 % (€584m). The proportion 

of portfolio sales rose slightly from 29 % to 32 %. 

The prime net yield on office properties fell year on year by 

0.3 percentage points to an all-time low of a mere 3.0 %. 

In the case of commercial buildings a decline of 0.2 percentage 

points brought the yield down to 2.9 %. 

(in €bn) 


ca. €4.8bn 



ca. 736,200 m 2 

22.00 22.00 

22.50 

24.00 

14.90 

premium rent 

30.00 

27.50 

average rent 

19.50 

16.10 

3.4 4.0 7.8 5.0 7.3 5.0 

521 630 810 820 900 750 

13.20 

12.30 

13.20 

2013 2014 2015 2016 2017 2018 

2013 2014 2015 2016 2017 2018 

2012 

2013 

2014 2015 2016 2017 

10 11 




INVESTMENT 

DÜSSELDORF 

A new record result was posted for Düsseldorf in 2017. 

The year closed with sales of commercial real estate 

valued at some €3.0bn. The volume of transactions 

surpassed the previous two best marks, beating last 

year’s figure by 13 % and the previous record of 2015 

by 8 %. The biggest transaction of the year involved the 

Vodafone Campus, which AGC Equity Partners sold in 

the 4th quarter to Mirae Asset Global Investments for 

some €280m. Over the course of the year the prime net 

yields in Düsseldorf softened further, slipping to 3.40 % 

on office properties and 3.50 % on commercial buildings. 


Office properties were the most popular investments in 

Düsseldorf, where they accounted for a share of 81 % and 

a total of some €2.4bn. Building land followed with 5 % 

(about €154m), retail properties with 5 % (about €136m) 

and mixed use properties accounted for 4 % (about 

€133m). Hotels comprised 3 % of the market (about €77m). 

OUTLOOK 

It is to be assumed that investor demand for properties 

in Düsseldorf will remain high, even if the low yields are 

unlikely to encourage record levels of trading. Some new 

developments will come onto the market in 2018, offering 

potential buyers the opportunity to sign forward deals or 

make commitments. Portfolio adjustments provide other 

investment alternatives; in 2017 transactions of this kind 

comprised an appreciable slice of total turnover. As in previous 

years, the two options just named will probably drive 

investment turnover in 2018 to similarly high levels. 

Transaction volume Düsseldorf 


DÜSSELDORF 

In 2017 the office market in Düsseldorf continued its 

upward trajectory. Over the past twelve months lettings 

rose to a total of 358,700 m². The result is some 8 % 

higher than in 2016, when about 330,800 m² of space was 

let to new tenants. 


Once again, the most popular sub-market was City, where 

82,200 m² of space was taken up. The left bank district 

Linksrheinisch/Seestern was a close second with about 

78,800 m². Third-placed Kennedydamm/Derendorf submarket 

totalled around 43,900 m². 

Industrial and trading firms were the biggest single group 

of clients for Düsseldorf office space in 2017, renting 

about 44,700 m². Two agreements for large amounts of 

space in new developments brought the total for banks 

and financial services to about 39,700 m². 

RENTS 

Compared with the prior year the average rent rose by 

95 cents to €15.35/m²/month. The premium rent, which 

had appeared settled at a high level, actually increased 

slightly. From €26.50/m²/month at the end of 2016 it has 

crept up to €27.00/m²/month. 


Year on year the amount of space standing empty fell by 

about 120,000 m² to some 630,000 m². This translates into 

a vacancy rate of 8.4 % based on a slightly reduced total 

stock of office space of around 7.5m m². 

New building developments in 2017 totalled 105,000 m², 

but most of the space has already been let. The new offices 

are spread over 11 development projects. Eight new 

build projects are in the pipeline for 2018 (74,000 m²) and 

the same number is due in 2019 (127,000 m²); here too 

future tenants have reserved a large proportion of the 

space. 

OUTLOOK 

Düsseldorf continues to be a very popular city for office 

users. Good economic growth will be reflected in the 

take-up of space in 2018. Some clients are still in the 

market for more than 10,000 m² of office premises, so that 

the total letting result for 2018 could well be similar to that 

returned in 2017. 


CITY / 82,200 m² / €15.10/m²/month 

SEESTERN/LEFT BANK OF THE RHINE/ 78,800 m² / €14.20/m²/month 

KENNEDYDAMM/DERENDORF / 43,900 m² / €17.90/m²/month 


Take-up of space Düsseldorf Rents Düsseldorf 

1. HSBC TRANSACTION SERVICES GMBH 

Hansaallee 1-3 / ca. 20,100 m² 

2. BANKHAUS LAMPE 

Schwannstrasse 10 / ca. 13,000 m² 

3. BERUFSGENOSSENSCHAFT HOLZ UND METALL 

Arcadiapark / ca. 11,200 m² 


Opportunity and equity funds were the biggest vendors 

of the year as they took advantage of the fact that investors 

were willing to pay high prices to sell properties 

for €806m, which translated into 27 % of the transaction 

volume. Asset managers were the most active group of 

buyers. They spent about €911m on properties. That is 

equivalent to 31 % of the market. Last year foreign investors 

remained very much in evidence in Düsseldorf. By 

the end of the year their share of total trades had reached 

€1.4bn (49 %). 

(in €bn) 


ca. €2.4bn 

1.8 1.9 2.7 2.6 3.0 2.5 



ca. 338,900 m 2 

347 238 420 331 359 400 

26.00 

14.10 

27.50 

14.90 

26.00 26.00 

13.80 

15.25 

premium rent 

26.50 

27.00 

average rent 

15.35 

14.40 

2013 2014 2015 2016 2017 2018 

2013 2014 2015 2016 2017 2018 

2012 

2013 

2014 2015 2016 2017 

12 13 





COLOGNE 

In 2017 total turnover of space was some 310,000 m². 

Compared with the record set in 2016 this total is some 

30 % lower but is nevertheless the third-highest result of 

the past ten years. 

amount taken up in a year. The vacancy rate has slumped 

to 3.6 %. Around 95,000 m² of new office space was completed 

in 2017, the figure for 2018 is likely to be some 

80,000 m². 

INVESTMENT 

COLOGNE 


The two biggest agreements of the year were the 

18,800 m² rental by the Federal Office for Family and 

Social Affairs (BAFZA) at Von-Gablenz-Strasse 2-6 and 

the construction start of new headquarters for the owner-occupier 

STRABAG AG. This building will offer some 

17,100 m² (Siegburger Strasse 241). Both properties are 

located in Cologne-Deutz, and this district accordingly 

gained a 19 % share of the total market in 2017 to lead 

the ranking of sub-markets. Federations, associations 

and public facilities were behind about 19 % of the total 

take-up of space. 

OUTLOOK 

The strong economic upturn is pushing demand for office 

space. A large number of clients are seeking space in 

Cologne ranging from thousands to tens of thousands 

of square metres and contracts could be signed in 2018 

- provided suitable premises in existing buildings or projected 

new-builds can be found. Overall, a total take-up 

of 300,000 m² once again seems to be attainable in 2018. 

A transaction volume totalling €2.3bn makes 2017 a new 

record year for investments in commercial properties in 

Cologne. The result surpassed that of 2015, the previous 

high-water mark, by more than 20 %. 


Six trades had price tags in the three-figure millions. The 

city centre “Gerling Quarter” (Christophstrasse, Hildeboldplatz) 

was sold to Quantum and Proximus for some 

€200m. Tristan Capital and the developer Concepta 

Projektentwicklung paid an estimated €150m for the 

“DuMont Carré” (Breite Strasse), an inner-city shopping 

centre with a sales area of about 20,000 m². Gerchgroup 

bought a large development site in Cologne-Mühlheim 

(Deutz-Mühlheimer-Strasse); here too the price paid is 

thought to be €150m. 

“specialist funds” because, e.g., they are subject to foreign 

regulations. Family offices and private investors were the 

biggest sellers on the market. They accounted for about 

16 % of the total volume of transactions. 

No reduction in demand for investment properties in 2018 

is foreseeable. The critical parameter remains the amount 

of property on the market. The growing trend towards 

cashing in trading profits and re-structuring portfolios 

could lead to more properties on offer. In addition, development 

sites offer potential trades, so that a transaction 

volume in the region of €2.0bn is within the range of possibility 

in 2018. 

RENTS 

The average weighted rent came to €13.70/m²/month. This 

is some 3 % lower than the figure in 2016, largely because 

fewer agreements for large amounts of expensive space 

were signed. Compared with 2015, however, there has 

been a rise of 10 %. In the premium segment, several contracts 

were signed for rentals above the current premium 

rent of €21.50/m²/month, the highest being a rent of 

€26.50/m²/month. 


In 2017 there was a further decline in the amount of space 

available in Cologne city centre. In several popular central 

sub-markets, such as the Rings, MediaPark and Deutz 

district, there was less empty space than the average 


DEUTZ / 57,000 m² / €15.50/m²/month 

CBD NORTH / 27,000 m² / €15.00/m²/month 

MÜLHEIM / 23,000 m² / €10.50/m²/month 


1. FEDERAL OFFICE FOR FAMILY AND SOCIAL AFFAIRS (BAFZA) 

Von-Gablenz-Strasse 2-6 / ca. 18,800 m² 

2. STRABAG AG (OWNER-OCCUPIER) 

Siegburger Strasse 241 / ca. 17,100 m² 

3. DESIGN OFFICES 

Untersachsenhausen 17-27 / ca. 9,000 m² 

Year on year offices accounted for a smaller proportion of 

total trades, closing at some 45 %. More retail properties 

were traded, increasing their share of the market to 20 %. 

Building complexes and property portfolios comprised 

roughly half of total turnover and were instrumental in 

producing the record result. 

In 2017 the prime net yields on offices and logistics 

properties contracted slightly to 3.70 % and 4.70 % respectively. 

The price of commercial buildings rose more 

steeply. Prime yields thus sank from 3.60 to 3.20 %. 

Transaction volume Cologne 

(in €bn) 


ca. €1.6bn 

Take-up of space Cologne Rents Cologne 



ca. 316,000 m 2 

21.00 21.25 21.25 21.25 21.50 

premium rent 

21.50 

average rent 


Foreign buyers furnished about 30 % of the capital. Accounting 

for 30 % of the volume traded, the biggest single 

group of buyers were “Other funds”. These are funds 

that cannot be counted in the usual categories, such as 

0.8 1.3 1.9 1.8 2.3 2.0 

2013 2014 2015 2016 2017 2018 

280 260 290 440 310 300 

2013 2014 2015 2016 2017 2018 

10.80 

2012 

14.10 

13.70 

12.70 12.70 12.40 

2013 2014 2015 2016 2017 

14 15 




INVESTMENT 

FRANKFURT 

The volume of investment transactions in Frankfurt was 

€6.7bn in 2017, just 1 % higher than in 2016. 40 % of this 

total was traded in the 4th quarter. 


The biggest sale of the year was the “Tower 185” (Friedrich-Ebert-Anlage 

35-37) which Deka purchased for 

three open-ended funds, paying CA Immo, WPI Fund 

SCS-Fis, Fagas Asset GmbH and a pensions company 

some €775m. Another 4th-quarter sale was the “Japan 

Center” (Taunustor 2) for which GEG German Estate Group 

paid Commerz Real AG €280m. Finch Properties and a US 

fund sold the “MAC” (Unterschweinsstiege 2-14) by the 

airport for about €245m to CapitaLand and Lum Chang 

Holdings from Singapore. As usual, the most popular 

assets were office properties, which accounted for 91 % 

of the total investment trade. A disproportionately large 

number of plots of land changed hands - but the over 20 

transactions made up only 2 % of the total volume. Portfolio 

purchases comprised 12 % of the total in 2017, compared 

with 26 % the year before. This was largely due 

to the big single transactions just described. Twice the 

number of value-add properties were sold compared with 

2016, - a result of the growing shortage of core properties. 

With core properties still in great demand, however, the 

prime net yield on office properties slid down to 3.3 %. 

share of 33 %. International investors took a 45 % share of 

the total market, slightly less than the year before. This is 

mainly attributable to the fact that two of the three most 

expensive transactions featured buyers from Germany. 

OUTLOOK 

2018 will continue to see unabated high demand but it will 

be increasingly difficult to find suitable investments. Even 

if buyers tend to hold their properties for shorter periods, 

investors are still resorting to B and C locations, higher-risk 

properties (core+, value-add) and other classes 

of asset (mixed use buildings). International investors will 

continue to play an important part in 2018. 

Transaction volume Frankfurt 

(in €bn) 


ca. €5.5bn 


FRANKFURT 

In Frankfurt around 729,100 m² of office space was let, 

30 % more than in 2016. The result is comparable to 

volumes seen in the early 2000s. 


Railway operator Deutsche Bahn AG was the biggest 

player on the Frankfurt office market in 2017, just as it 

had been in 2016. As of 2020 the firm will be occupying 

some 52,600 m² in “The Brick” (Europa-Allee 70-76) and 

the neighbouring “Office Tower”, two building developments 

in the Europaviertel district (City Periphery). The 

next biggest transaction of the year was an agreement 

by the central bank Deutsche Bundesbank to take some 

44,400 m² in the “FBC” (Mainzer Landstrasse 46, Financial 

District). Demand was greatest in the Central Business 

District (CBD), where 42 % of the total was registered. Because 

Deutsche Bahn AG selected property in the City 

periphery district, this sub-market accounted for 17 %. 

Financial services comprised the biggest group of new 

tenants, taking a good quarter of the total space. Transport 

and construction & property firms shared second place. 

Deutsche Bahn AG was by far the biggest of the transport 

companies; the good result returned by property services 

is partly a result of a vast increase in demand by the providers 

of co-working space, who secured over 40,000 m² 

of space compared with 7,500 m² the year before. 

RENTS 

Several rental agreements for large amounts of space in 

top-quality properties in the CBD pushed the average rent 

up by 13 % to € 20.30/m²/month. The premium rent rose by 

3 % to € 39.75/m²/month. 


ca. 498,820 m 2 


The vacancy rate at the end of 2017 was 8.7 % and thus 

1.8 percentage points below the prior year’s figure. Less 

space stood empty in almost all the sub-markets. The 

biggest reduction was in the Banking District, where 

only half as much space stood empty as 12 months ago. 

Frankfurt North was the only sub-market to register an increase 

in empty space (+11 %). Following the low level of 

completions in 2017, when 81,100 m² came onto the market, 

the figure for 2018 will be around 138,200 m²; however, 73 

% of this space has already been pre-let. As of 2019 considerably 

more building projects will be completed. 

OUTLOOK 

Demand will remain high in 2018. Considering that some 

clients are still searching for large premises, the annual 

total take-up of space could be just under 600,000 m². 


FINANCIAL DISTRICT / 193,100 m² / € 31.00/m²/month 

CITY PERIPHERY / 127,300 m² / € 18.00/m²/month 

WESTEND / 60,400 m² / € 21.00/m²/month 


Take-up of space Frankfurt Rents Frankfurt 


1. DEUTSCHE BAHN AG 

“The Brick”/”Office-Tower”, Europa-Allee / ca. 52,600 m² 

2. DEUTSCHE BUNDESBANK 

“FBC”, Mainzer Landstrasse 46 / ca. 44,400 m² 

3. HELABA LANDESBANK HESSEN-THÜRINGEN 

“Mainblick³”, Kaiserleistrasse 26 / ca. 26,500 m² 

35.00 

38.00 38.00 

39.50 

premium rent 

38.50 

39.75 


The biggest group of buyers consisted of open property 

mutual funds and open-ended special property funds, 

which together accounted for 30 % of the total volume. 

However, project developers were involved in the largest 

number of transactions (46). The first-named types of 

funds were the most active sellers in the market with a 

3.4 5.0 5.7 6.5 6.7 6.5 

2013 2014 2015 2016 2017 2018 

448 368 389 561 729 575 

2013 2014 2015 2016 2017 2018 

17.50 

2012 

18.50 

2013 

average rent 

19.50 

20.30 

18.00 18.00 

2014 2015 2016 2017 

16 17 




INVESTMENT 

STUTTGART 

Some €1.2bn were invested in commercial real estate 

in Stuttgart in 2017. The total fell far short of the prior 

year’s - contracting by €600m or 34 %. 


The following transactions accounted for some €320m 

in total. The “Mercedes-Benz-Bank” (Siemensstrasse 7) 

was bought by the Baden-Würtemmberg Stiftung gGmbH, 

a foundation, and the “City Plaza” (Rotebühlplatz) was 

sold again. The building at Mittlerer Pfad 13-15 in Stuttgart-Weilimdorf, 

also changed hands. Altogether, 65 

transactions were completed in the past twelve months, 

about 50 % of them priced in the two or three-figure millions. 

Once again, the focus of investment activity - partly 

as a result of the three large sales noted in the foregoing 

- lay on office properties, which accounted for around 

78 % of the total volume of transactions. Other sectors 

such as building sites, retail and hotel properties did not 

play a significant role this year. Portfolio trades accounted 

for some 10 % (by value) of properties sold. The prime net 

yield on office assets was 3.50 %, as it was in the prior 

year. Research showed a prime net yield on commercial 

buildings of 3.10 % and 4.50 % on logistics properties. 


Amounting to 24 % of the total, open-end/specialist funds 

were the predominant buyers. Private investors/family offices 

followed with a share of 13 % and insurance companies 

with 11 %. Public administration and opportunity 

funds each accounted for a share of some 10 %. 

opportunity funds with some 13 % each. Foreign investors 

made up some 50 % of the total. 

OUTLOOK 

It is expected that several outstanding transactions will 

be completed in the 1st half of 2018, so that the final tally 

for the year should be comparable with the total in 2017. 

Transaction volume Stuttgart 

(in €bn) 


ca. €1.3bn 


STUTTGART 

2017 closed with take-up of office space in Stuttgart at 

about 270,000 m². The result was thus some 38 % lower 

than the prior year’s. 


In what remained the biggest single transaction of 2017, 

Daimler AG decided in the 1st quarter to have a new 

building erected in Leinfelden-Echterdingen that will 

provide over 50,000 m² of space. The two biggest rental 

agreements were signed in the 3rd quarter. Daimler AG 

took about 11,500 m² in the industrial estate Stuttgart Vaihingen. 

And the law firm CMS Hasche Siegle took a lease 

for some 11,300 m² in a new build under development on 

Rotebühlplatz, Stuttgart City district. Strongly influenced 

by the Daimler AG development, Leinfelden-Echterdingen 

was the strongest sub-market with 61,300 m² of take-up. 

Around 52,000 m² of office space was let in the Vaihingen/ 

Möhringen sub-market. Stuttgart City followed with 

51,600 m² of space newly taken up. Once again industrial 

firms formed the biggest group of new office occupants 

in 2017. 

RENTS 

The premium rent rose by 6 % year on year to €24.30/m²/ 

month. The average rent for the entire city area including 

Leinfelden-Echterdingen was about €13.70/m²/month, 

likewise a year on year increase of some 6 %. 


ca. 305,600 m 2 


By the end of 2017 the vacancy rate had reached 2.1 %, 

the lowest level for 16 years. The total space available at 

short notice stood at a mere 167,000 m². Meanwhile the 

shortage of space has spread beyond the City and central 

area. Peripheral locations likewise have little to offer. 

OUTLOOK 

In the next two years no significant increase in the meagre 

amount of space available in the City and central areas 

is expected. Those who need large amounts of space will 

increasingly look to the periphery, as the less central locations 

offer far more opportunities for new developments. 

This will lead to further price rises in such locations. 

Take-up of space in 2018 will probably be between 

230,000 m² and 250,000 m². 


LEINENFELDEN-ECHTERDINGEN / 61,300 m² / €12.20/m²/month 

VAIHINGEN/MÖHRINGEN / 52,000 m² / €12.30/m²/month 

CITY / 51,600 m² / €18.50/m²/month 


1. DAIMLER AG (OWNER-OCCUPIER) 

Meisenweg / ca. 50,000 m² 

2. DAIMLER AG 

Industriestrasse / ca. 11,500 m² 

3. CMS HASCHE SIEGLE 

Rotebühlplatz / ca. 11,300 m² 

Take-up of space Stuttgart Rents Stuttgart 


20.00 20.00 

21.50 

22.80 

premium rent 

23.00 

24.30 

average rent 

Sales were very evenly distributed. Private sellers/family 

offices comprised about 14 % of the total traded, followed 

by corporates, project developers/builders and 

0.9 1.0 1.7 1.8 1.2 1.5 

2013 2014 2015 2016 2017 2018 

258 278 290 432 270 250 

2013 2014 2015 2016 2017 2018 

12.40 

2012 

12.00 

2013 

13.70 

12.50 12.50 

12.90 

2014 2015 2016 2017 

18 19 





MUNICH 

Totalling a take-up of 878,000 m², the office market in 

Munich returned an above-average result. The year on 

year increase was about 15 %. Owner-occupiers accounted 

for some 108,000 m² of the total. Lettings alone 

made up 770,600 m², which is still an exceptionally good 

result. 


The stock of empty space has once again shrunk dramatically, 

so that by the end of the year it had fallen to 

580,000 m², equivalent to a vacancy rate of 2.5 % for the 

city area and the environs. In some central locations there 

is next to no empty space at all. 

INVESTMENT 

MUNICH 

In 2017 the transaction volume on the market for investments 

in commercial properties totalled about €5.9bn in 

Munich. This translates into a 9 % decline compared with 

the excellent result of 2016. 13 transactions with price 

tags of more than €100m together accounted for 47 % of 

total turnover. 


Apart from the period April to June, quarterly returns were 

relatively equal. The 4th quarter lacked the agility of previous 

years, and some of the larger transactions have been 

postponed until 2018. Some of the year’s biggest transactions 

were the 1st-quarter sale of the “Kap-West” development 

project (Friedenheimer Brücke) for which Allianz 

paid some €225m and the sale of the retail store “Karstadt 

am Hauptbahnhof”, for which Signa Holding paid RFR appreciably 

more than €300m. Once again, consistently high 

demand was registered for all types of asset in 2017 and 

competition was correspondingly keen. As in the past, offices 

were the most popular class of asset, accounting for 

59 % of the market in 2017. Portfolio sales comprised less 

than 10 % of the total in 2017. The prime net yield on office 

properties was further squeezed over the course of the 

year and closed at 3.00 %. 


The Munich investment market was strongly characterized 

by national investors, whose share of the total 

traded was about 65 %. Correspondingly, around 35% of 

the capital came from overseas. International investors 

figured mainly in trades priced at more than €100m. International 

investors were involved in about 50 % of these 

big transactions. Once more, funds, above all open-end/ 

specialist funds and pension funds, figured largely on the 

buying side of the equation. They were, however, not as 

predominant as in past years. The same pattern was seen 

on the selling side of the market. 

OUTLOOK 

No trend is discernible that would point to a weakening 

market in 2018. The first few months of the year are already 

expected to produce a large volume of transactions, 

because some big-ticket trades that were near completion 

were postponed to the new year. Overall, the Bavarian 

capital of Munich is expected to return a volume of 

between €5.0bn and €6.0bn on the market for commercial 

property investments. 

Transaction volume Munich 

(in €bn) 


ca. €5.4bn 

4.2 5.0 5.5 6.5 5.9 5.5 

2013 2014 2015 2016 2017 2018 


As in the prior year, the biggest transaction of 2017 was 

one signed by BMW AG, this time as owner-occupier of 

an extension to the research and innovation centre. In 

several sections, a total of 157,000 m² of office space is 

to be built over the coming years in what is one of Europe’s 

biggest development projects. The 1st building section 

has been included in the statistics (74,000 m²) and is 

scheduled for completion in 2019. Other large agreements 

included a lease signed by Deutsche Pfandbriefbank for 

about 14,000 m² in the “Business Campus Garching” and 

the decision by Publicis Pixelpark GmbH to take some 

13,000 m² in the “Atlas” development project on Rosenheimer 

Strasse. Eight lets were recorded for more than 

10,000 m² of space each, with the result that in 2017 this 

size sector registered the largest share of take-up. As far 

as the separate sub-markets are concerned, Periperhy 

North easily led the field with a 21.5 % share of the market. 

RENTS 

As the supply of space contracts, the average rent has risen 

appreciably year on year. Average rents increased by 9 % to 

€16.90/m²/month. The premium rent, by contrast, softened 

slightly to €35.00/m²/month. This was partly due to a shortage 

of expensive properties and partly to two agreements for 

large amounts of space at rents just below the premium rate. 



ca. 717,760 m 2 

608 584 755 764 878 700 

2013 2014 2015 2016 2017 2018 

OUTLOOK 

Property in Munich will soon be fully let. This is due to the 

great, unabated demand for office space and the persistently 

low number of new builds in the pipeline. A noticeable 

easing of the tense situation is not to be expected 

before 2020. 


PERIPHERY NORTH / 189,000 m² / €16.40/m²/month 

DOWNTOWN WEST / 110,000 m² / €18.70/m²/month 

DOWNTOWN / 105,000 m² / €28.20/m²/month 


Take-up of space Munich Rents Munich 

1. DEUTSCHE PFANDBRIEFBANK AG 

Parkring 28-32 / ca. 14,000 m² 

2. PUBLICIS PIXELPARK GMBH 

Rosenheimer Strasse 143a-d / ca. 13,000 m² 

3. GEWOFAG GMBH 

Gustav-Heinemann-Ring 109-115 / ca. 13,000 m² 

32.00 

32.50 

34.45 

32.50 

35.25 

14.90 15.10 14.60 15.00 15.50 

2012 

2013 

premium rent 

35.00 

average rent 

16.90 

2014 2015 2016 2017 

20 21 



GERMANY 


GLOSSARY 


Across Germany 

Services 


Take-up of space is the total of all space let plus that sold to, or finished 

by or for an owner-occupier during the period under review. The 

operative date for inclusion in the statistic is the date on which the 

lease or purchase agreement was signed. Lease renewals are not 

counted as take-up. Areas are stated on the basis of the guide for calculating 

the rental area in commercial leases (MF/G). 

PREMIUM RENT 

The premium rent relates to the top 3 % of the market for new lets 

(not counting owner-occupiers) during the 12 months just ended and 

is stated as the average of such rents. 

AVERAGE RENT 

The average rent is calculated by taking the individual rents agreed 

in all leases signed over the past 12 months, weighting them by the 

amount of space rented and computing the mean value. Figures refer 

to nominal net rents ex services. 

VACANCIES 

Vacancies include all office space that is available to new tenants 

within three months. Sub-let space is counted as vacancy. 

SERVICES 


Naturally enough, when doing real estate business in 

Germany, you would like to work with a partner who can 

provide you with expert professional support in all issues 

relating to commercial property. 

Our spectrum of services covers both real estate investments 

and commercial letting. We are conversant with 

all risk classes and types of property. For investors we 

offer a Germany-wide service extending to the purchase 

and sale of office, hotel, warehousing, logistics and retail 

real estate, as well as apartment buildings, either as individual 

properties or in portfolios. We are also ready to 

support you with preparation for development projects. 

TRANSACTION VOLUME 

The transaction volume is the sum of the purchase prices of all commercial 

property sold in Germany’s top 7 markets during the period 

under review. The date of signing determines when a transaction is 

included in the statistics. Buy to let investments in residential properties 

are not included in the transaction volume. 

ASSET CLASS 

A property is allocated to an asset class according to the predominant 

way in which space is used (at least 75%) when the contract is signed. 

INDIVIDUAL PROPERTIES AND PORTFOLIO TRANSACTIONS 

An individual property transaction means the purchase of a building 

used for commercial purposes or of a piece of land for development. 

Portfolio transactions involve the purchase of at least two separate 

properties in different locations. 

PRIME YIELDS 

The prime yield is the initial return attainable on a property that 

has been let on normal market terms (tenants with good credit 

ratings), has top quality structure and fit-out and stands in one 

of the very best locations. It is stated as the net initial yield in per 

cent, i.e. the ratio between the annual rental income less nonapportionable 

ancillary costs and the gross purchase price (net purchase 

price plus land acquisition tax, notary’s fees and agency commission.) 

Due to the banking background of two of our partners, we 

are familiar with the workings of the financial industry. We 

are also well placed to assist you in your search for office, 

retail, industrial, warehousing and logistics premises, as 

well as special uses, in the process bringing to bear our indepth 

local knowledge and outstanding regional contacts. 

In addition, we offer you corporate real estate management, 

as well as research tailored to your specific 

project. Further services in the fields of finance, fund 

management, asset management and administration 

mean that you can obtain everything needed from us 

to secure the effective long-term advancement of your 

project. 

» Hamburg 

» Berlin 

» Düsseldorf 

» Cologne | Bonn 

» Frankfurt 

» Stuttgart 

» Munich 

We draw your attention to the fact that all statements made here are non-binding. Most of the information is based on third-party reports. The sole intention of this 

market survey is to provide general information for our clients. 

Grossmann & Berger GmbH • Immobiliendienstleister • Bleichenbrücke 9 (Bleichenhof) • D-20354 Hamburg 

Phone: +49 (0)40 / 350 80 2 - 0 • Fax: +49 (0)40 / 350 80 2 - 36 • info@grossmann-berger.de • www.grossmann-berger.de 

Managing directors: Holger Michaelis, Andreas Rehberg, Lars Seidel, Axel Steinbrinker 

Chairman of the Supervisory Board: Frank Brockmann • Entered in the commercial register: Hamburg B 25866 

Supervisory authority: Borough Council Hamburg-Mitte, Department of Consumer Protection, Commerce and the Environment, Klosterwall 2, 20095 Hamburg 

VAT identification number pursuant to Section 27a German Turnover Tax law: DE 118 556 939 

ANTEON Immobilien GmbH & Co. KG • Ernst-Schneider-Platz 1 • D-40212 Düsseldorf 

Phone: +49 (0)211 / 58 58 89 - 0 • Fax: +49 (0)211 / 58 58 89 - 88 • immobilien@anteon.de 

Managing partners: Guido Nabben, Heiko Piekarski, Jens Reich, Dirk Schäfer, Marius Varro 

Trading licence: a licence pursuant to Section 34 c of the German Industrial Code/GewO was granted with no restrictions by the Municipal Government of the State 

Capital Düsseldorf, Department 32, Tel.: +49 (0)211 / 89 - 23 223. • ANTEON Immobilien GmbH & Co. KG • Registered office in Düsseldorf, entered in the Commercial 

Register of Düsseldorf under HRA 19934 • General Partner ANTEON Verwaltungsgesellschaft mbH, registered office in Düsseldorf, entered in the Commercial 

Register of Düsseldorf under HRB 58418 


Greif & Contzen Immobilien GmbH • Pferdmengesstrasse 42 • D-50968 Köln 

Phone: +49 (0)221 / 93 77 93 - 0 • Fax: +49 (0)221 / 93 77 93 - 77 • gpp@greif-contzen.de 

Managing directors: Mr Theodor J. Greif, Rainer Krauß 

Amtsgericht (lower court) Registered in: Cologne, Company Register no. 11414 

Supervisory authority: City of Cologne, Ordnungsamt, P.O. Box 103564, 50475 Köln 


» Real estate investments 

» Commercial letting 

» Corporate real estate management (CREM) 

» Research 

» Banking and financing services 

» Equity financing of development projects 

» Fund and asset management 

» Real estate management 

» Real estate valuation 

» Agriculture and forestry real estate 

blackolive advisors GmbH • Reuterweg 18 • D-60323 Frankfurt 

Phone: +49 (0)69 / 907 44 87 - 0 • Fax +49 (0)69 / 907 44 87 - 10 • gpp@blackolive.de • www.blackolive.de 

Managing directors: Oliver Schön, Rainer Hamacher 

Trading licence: a licence pursuant to Section 34 c issued by the Ordnungsamt Frankfurt 

Competent supervisory authority: Gewerbe- und Ordnungsamt Frankfurt, Kleyerstrasse 86, 60326 Frankfurt am Main 

Commercial register and no. of entry: Registered in Frankfurt (Amtsgericht), HRB 93813 


ELLWANGER & GEIGER Real Estate GmbH • Börsenplatz 1 • D-70174 Stuttgart 

Phone: +49 (0)711 / 2148-300 • Fax +49 (0)711 / 2148-290 • gewerbeimmobilien@ellwanger-geiger.de • www.ellwanger-geiger.de 

Managing directors: Mario Caroli, Björn Holzwarth 

Competent supervisory authority: Amt für öffentliche Ordnung, Gewerbe- und Gaststättenbehörde, Eberhardstraße 37, 70173 Stuttgart 

Commercial register and no. of entry: Registered in Stuttgart (Amtsgericht) HRB 733293 

Responsible under Section 55 par. 2 of the Interstate Broadcasting Agreement (RStV): Björn Holzwarth, managing director 


22 23 



GERMANY 

Contact 

Grossmann & Berger GmbH 

Locations: Hamburg, Berlin 

Bleichenbrücke 9 (Bleichenhof) 

D-20354 Hamburg 

Phone: +49 (0)40 / 350 80 2 - 0 

Fax: +49 (0)40 / 350 80 2 - 36 

Mail: gpp@grossmann-berger.de 

blackolive advisors GmbH 

Location: Frankfurt 

Reuterweg 18 

D-60323 Frankfurt 

Phone: +49 (0)69 / 907 44 87 - 0 

Fax: +49 (0)69 / 907 44 87 - 10 

Mail: gpp@blackolive.de 

ANTEON Immobilien GmbH & Co. KG 

Location: Düsseldorf 

Ernst-Schneider-Platz 1 

D-40212 Düsseldorf 

Phone: +49 (0)211 / 58 58 89 - 0 

Fax: +49 (0)211 / 58 58 89 - 88 

Mail: gpp@anteon.de 

ELLWANGER & GEIGER Real Estate GmbH 

Locations: Stuttgart, Munich 

Börsenplatz 1 

D-70174 Stuttgart 

Phone: +49 (0)711 / 21 48 - 300 

Phone: +49 (0)89 / 17 95 94 - 10 

Mail: gpp@ellwanger-geiger.de 

GREIF & CONTZEN Immobilien GmbH 

Location: Cologne | Bonn 

Pferdmengesstrasse 42 

D-50968 Köln 

Phone: +49 (0)221 / 93 77 93 - 0 

Fax: +49 (0)221 / 93 77 93 - 77 

Mail: gpp@greif-contzen.de 

Photo credits: Cover, page 24: FOUR/Frankfurt am Main, Groß & Partner; page 3: ANTEON Immobilien GmbH; page 2,8,11,15,17: Fotolia; page 13,19,21,23: Shutterstock

GPP Commercial Property Market Germany´s top7 cities 2017/Q1-4

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