The German capital is booming: the commercial leasing market in Berlin set another record in 2017.
Berlin has the second largest market in Germany, offering some 19.5 million m² (210 million square feet) in office space. The revenue earned from over 900,000 m² (9.7 million square feet) in 2017 was another record result. The strongest tenant groups come from the retail sector including e-commerce, public administration, and IT/communication technologies. Berlin's attractiveness for companies remains unbroken due to the large pool of qualified, young, and international employees, who in turn appreciate cultural diversity and what is still a relatively attractive cost of living.
Office market 2017
|Office space turnover||937,000 m² (9 % increase over previous year)|
|Top rental rate||31.30 €/m²|
|Average rental rate||19.15 €/m²|
|Vacancy rate||2.0 %|
|Total available space||19.5 million m²|
The most dynamic market segments are the city's south side, known as "Cityrand Süd," extending across the districts of northern Neukölln, Kreuzberg, Tempelhof, to Schöneberg, and "Mediaspree," lining both sides of the River Spree in Friedrichshain-Kreuzberg.
(Source: Colliers International Berlin, Bürovermietung und Investment Berlin, 2017/2018)
The large number of new, professionally managed co-working spaces in the capital is having a growing influence on the development of the Berlin office market. Four large leases (over 5,000 m2/54,000 sq. ft.) were signed in 2017 by the largest provider WeWork.
(Source: Engel & Völkers Commercial, Büroflächen Marktreport 2017/2018 · Berlin)