Declining demand and no signs of an economic upturn have again seriously affected the German office market during the third quarter 2002.
This is the result of the latest German market report by Dr. LÃ¼bke GmbH. Only take-up in DÃ¼sseldorf and Berlin remained stable. The office market in Munich is really in turmoil. With a total take-up volume to date of 298,000 m2 this represents a drop of 60% compared to last year. Vacancy rate in Munich is now 3.8%, which will only increase over the next few months due to new deliveries. The objective of a take-up volume during 2002 of between 500,000 m2 and 600,000 m2 will certainly not be reached.
Vacancy rates will increase
Also in all other areas take-up volume is low. Only in Dusseldorf and Berlin there is a relative stable take-up volume, whereby demand has switched to small-scale office space. Although rental prices remain constant, strong demand was noticed for cheaper peripheral space, for instance in Frankfurt.
The record volumes of the past two years will certainly not be reached in all areas analized Dr. LÃ¼bke. For the fourth quarter they expect that supply and demand will be better balanced, as such causing stagnating grow in office space.
(source: Immobilien Manager)