A record year has put the market for office space in Berlin on excellent footing: many foreign companies established a presence in Germany's capital for the first time in 2010.
The leading cohort was industrial concerns. Administrative offices for industrial concerns account for about 14.8 percent of the total rental volume. It was in particular the number of large-scale rental agreements that showed a significant increase, and include offices rented by Bosch, Siemens, Total and Mercedes.
Rentals of smaller spaces are also working to stabilize the market in 2010.
Traditionally, small-scale rentals have played a very important role in the Berlin office rental market, with significant stabilizing effect. Leases on spaces under 1,000 m² account for about 38 percent of the total rental volume.
- Rental volume first half year 2011: 280,000 m²;
- Vacancy rate stable at 8.4 percent;
- Large supply of spaces available at short notice with modern fixtures and interiors;
- Growing supply of available space in good and excellent locations;
- Interesting new construction projects in popular, central locations;
- Affordable rents relative to other major cities;
- Four-fifths of all available office space in new or renovated buildings;
- Growing involvement of domestic and foreign investors in Berlin as a location for business and real-estate.
The eastward expansion of the EU in particular has put Berlin on the radar of companies and institutions with international operations and an innovative orientation. They recognize that Berlin is not only a center of political decision-making, but also an attractive location for business that offers a number of competitive advantages – in addition to the high quality of life that people enjoy here.
Berlin's strengths derive not only from the concentration of political processes in Germany’s capital. The city also owes its reputation to the rich panorama of cultural, scientific and tourist institutions of international standing. The moderate costs associated with living in Berlin and establishing a business presence here, especially viewed in light of the price-performance ratio and in international comparison, significantly enhance Berlin's attractiveness.
Berlin's strengths derive not only from the concentration of political processes in Germany’s capital. The city also owes its reputation to the rich panorama of cultural, scientific and tourist institutions of international standing. The moderate costs associated with living in Berlin and establishing a business presence here, especially viewed in light of the price-performance ratio and in international comparison, significantly enhance Berlin's attractiveness.
(Sources: Aengevelt Research, City Report Region Berlin 2010/20111; Cushman & Wakefield Inc., 2011)
