2023-02-03-莱坊-European_Office_Dashboard_-_Berlin_Q4_2022_2页_482kb

Power BI Dashboard: Occupier Market Headlines - Q4 2022

Key Figures:

• Take Up: 164,600 sqm in Q4 2022, representing a 29.5% decrease from Q3 and a 46.4% year-on-year drop. Annual 2022 take up was 758,300 sqm, a 10% decline from 2021 levels.
• Vacancy Rate: At 3.3%
• Prime Rent: €522 per sqm per annum
• Construction: 628,000 sqm completed in 2022; 725,000 sqm expected in 2023 (60% pre-let); Berlin market has 1.5m sqm under construction.

Analytical Summary

• Q4 2022 leasing activity showed significant weakening, with the lowest recorded take-up since the quarter started, primarily driven by a lack of large-scale transactions.
• Market liquidity remains constrained due to an uncertain economic environment, potentially leading tenants to extend current leases and defer larger decisions.
• Despite the year-on-year decline, 2022 annual take-up remains close to the 2020 levels and indicates market resilience. However, a 10% reduction from 2021 suggests ongoing pressure.
• Prime rent was recorded at €522 psqm per annum, continuing its upward trajectory. This trend is attributed to strong demand for sustainable, ESG-compliant, and high-quality furnished office space.
• 2023 is anticipated to see a moderate increase in take-up (+29,700 sqm) compared to the latest 10-year average due to fewer vacancies and improved conditions.
• Germany experienced a post-pandemic bounce-back in new business registrations in 2021, with slight leveling in 2022. Unemployment remains relatively stable.
• The German service sector PMI showed improvement in Q4 2022, moving from contraction to expansion, signaling easing downturn and better sentiment.