2022-07-22-莱坊-Q-Trend_Office_Market_Berlin_Q2_2022_2页_496kb

Berlin Office Market Quarterly Trend Q2 2022 Summary

Key Findings:

• Office space take-up in Q2 2022 was 211,600 sqm for the quarter, contributing to a half-year total of 360,200 sqm, which represents a 2.3% increase compared to the previous year but is down 9% from the 2021 H1 5-year average. This is considered a positive result amidst economic uncertainties.
• The two largest deals in Q2 accounted for 15% of the take-up. By size category, take-up distribution includes 15% for spaces larger than 10,000 sqm, with other segments detailed.
• Vacancy stands at 640,200 sqm, or 3.1% of the 20.8 million sqm stock, supporting prime rent at €43.00/sqm/month and average rent at €28.50/sqm/month. Despite a minor vacancy rate increase, a rise in rents is expected due to inflation and construction cost hikes.
• Construction activity is high but delayed, with costs up 19.1% between May 2021 and May 2022 (e.g., from material shortages and workforce shortages), likely leading to further rent increases.
• Overall demand remains strong, with take-up for 2022 expected to exceed 800,000 sqm, particularly in SME segments. There are no immediate signs of change in the market framework, despite geopolitical and economic challenges.

Additional Notes:

• Data shows resilience in the market despite global uncertainties.
• Report from Knight Frank Berlin GmbH, available at knightfrank.com/research.