The German capital is booming: Berlin's office space market achieves record results in 2014.
With roughly 18.5 million square meters of available space, Berlin boasts the second largest market for office space in Germany. In 2014, the city achieved a new record in office-space turnover amounting to roughly 700,000 square meters. Among the groups most interested in office space in Berlin are companies in the fields of IT, communication and consulting. In other words, thanks in part to its still highly attractive and affordable cost of living, Berlin's magnetic pull continues unabated.
Berlin's office space market offers:
- a wide selection of office space featuring state-of-the-art facilities and quick availability
- increasing supply reserves in highly desirable and first-rate office locations
- interesting new building projects in popular city locations
- affordable rental prices especially in comparison to other major cities
- four-fifths of all available office space is located in brand-new or refurbished buildings
- strong commitment by German and foreign investors to furthering Berlin's reputation as a great place for business and real-estate
Office market 2014
|Office space turnover||701,300 m² (21% increase over previous year)|
|Rental turnover||661,700 m²|
|Top rental rate||23.00 €/m²|
|Average rental rate||13.70 €/m²|
|Vacancy rate||5.0 %|
|Total available space||18.50 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, City Survey - Germany, 2014/2015 (Büromärkte im Überblick))
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)