Viewed nationwide, the office markets are slowly overcoming the effects of the COVID-19 pandemic. Especially service companies have been expanding lately, adding to the demand for attractive, modern premises. In parts, this is also owing to the business sector’s efforts in counteracting the current home office trend by offering employees a pleasant, communicative working environment in the office.
In Germany’s seven most important office markets – i.e. Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Munich and Stuttgart – office space take-up, including owner-occupiers, has increased by an average of almost 25% in 2021 compared to the previous year and is now at the same level as in 2013/2014.
In spite of increased take-up, the average vacancy rate in the “Big 7” real estate markets rose to 4.5% between 2020 and 2021. However, the current vacancy rate continues to be below the fluctuation rate, reflecting the shortage of office space in Germany's top office markets. Vacancies mainly occur in outdated spaces in decentralised locations.