The German capital is booming: The Berlin office rental market once again achieved record results in 2016.
With roughly 19.0 million square meters of available space, Berlin boasts the second largest market for office space in Germany. In 2016, with a space turnover of more than 860,000 square meters, a new record result was achieved for the second year in a row. Among the groups most interested in office space in Berlin are companies in the fields of service industries, trade and ICT-technologies. In other words, thanks in part to its still highly attractive and affordable cost of living, Berlin's magnetic pull continues unabated.
Office market 2016
|Office space turnover||863,000 m² (6 % increase over previous year)|
|Top rental rate||28.50 €/m²|
|Average rental rate||16.30 €/m²|
|Vacancy rate||3.0 %|
|Total available space||18.9 million m²|
The strongest dynamic in Berlin is found in sub-markets in the eastern part of the city, i.e. in the boroughs of Mitte, Friedrichshain-Kreuzberg and Prenzlauer Berg, as well as in the area known as "City West" near Kurfürstendamm and Tauentzienstraße.
(Sources: Colliers International Berlin, Bürovermietung und Investment Berlin, 2016/2017)
The large start-up scene in the capital is influencing the development of the Berlin office market more and more due to its special requirements for flexible office concepts. With an average share of about 10% of total space turnover (not including major rental leases over 5,000 m2), Berlin’s start-ups are increasingly becoming a stable consumer of space in the office market. Contractual rentals for start-ups are not lower than for traditional businesses.
(Source: Jones Lang LaSalle, Berliner Start-Ups als Büronutzer, 2015)