The Berlin office market is growing rapidly. The lively communities, quality of life, large talent pools and investment opportunities, have made the city one of the world’s hottest office markets.
The city is particularly popular with start-ups and entrepreneurs, Savills reported that 28.5% of the 130 start-ups registered every month in the country in 2018 were in Berlin. In addition, the number of large corporates relocating or opening additional offices in the city is increasing rapidly, with Sony and Amazon both opening offices earlier this year.
The rise of businesses opening offices in Berlin has resulted in record-low vacancy rates. CBRE reported that at the end of Q3 2019, vacancy volumes fell by 38% (YoY) to 274,600 sqm. Vacancy rates are now averaging 1.5% – reaching below 1% in five of 12 submarkets!
In Q3 alone, office take-up totalled 319,600 sqm, the strongest quarter on record for the city. Two lettings of note include:
The city has experienced a steep rise in rent due to the shortage of vacant space, but developers are responding quickly with around 1.5million sqm currently under construction.
Berlin has become one of Europe’s most dynamic cities. The office market is seeing a steady increase in rents, continued demand for space and the city maintains it’s ‘cool image’ and strong quality of life. The market activity shows strength moving forwards, predicting positive effects on average rents in addition to investment and property values.