2022-10-25-莱坊-European_Office_Dashboard_-_Berlin_Q3_2022_2页_360kb

Berlin Office Market Summary - Q3 2022

Core Content Overview

This report provides a summary of the Berlin office market dynamics for the third quarter of 2022, highlighting key metrics such as take-up, vacancy rates, and prime rents, alongside macroeconomic indicators that influence the market.

Key Market Figures

Main Points

1. Take-up Activity

• Q3 2022: Take-up in the Berlin office market remained strong at 233,500 sqm, representing a 10.3% increase from Q2 2022 and a 25.5% rise compared to Q3 2021.
• Year-to-Date (Jan–Sep 2022): Total take-up reached 593,700 sqm, 10.3% higher than the same period in 2021.
• Full-Year Forecast: The report expects a total take-up of 850,000 sqm for 2022, indicating continued demand for office space.

2. Supply and Pre-letting

• Supply (Jan–Sep 2022): Approximately 334,000 sqm of office space came to the market.
• Expected Supply (Q4 2022): An additional 322,000 sqm is expected, with a 63% pre-letting rate.
• Construction Activity: A total of 1.5 million sqm of office space is currently under construction, reflecting ongoing development activity.

3. Rental Trends

• Prime Rent: Continued to rise, with prime rent at €516 per sqm.
• Rent Growth: The year-on-year change in prime rent was +2.4%, suggesting that demand for high-quality office space is still strong.

4. Workplace Mobility

• Mobility Trends: Workplace mobility in Berlin showed a 7-day rolling average that decreased during the summer months but began to recover in late Q3 2022.
• Baseline Comparison: The mobility levels were not yet back to pre-pandemic levels, and concerns over Covid-19 cases and potential restrictions could lead to lower mobility in the coming months.

5. Economic Indicators

• Service Sector Employment Expectations: Employment expectations in the German service sector continued to decline, influenced by recession concerns.
• Unemployment Rate: The unemployment rate in Germany rose to 5.5% in September 2022 from 5.3% in June, due to Ukrainian refugee influx. A further increase is expected, though from a very low base.
• Services PMI: The Services Purchasing Managers' Index (PMI) for Germany declined for the third consecutive month in September, signaling a continued contraction in service sector activity. This was attributed to sharply falling demand and rising inflationary pressures.

Conclusion

The Berlin office market demonstrated resilience in Q3 2022, with strong take-up and rising rents. However, the economic outlook remains uncertain, with declining service sector expectations and rising unemployment. These factors may affect future demand and occupancy levels, especially in light of ongoing mobility concerns and potential restrictions due to Covid-19. The market is expected to continue evolving in response to these macroeconomic shifts.

Contact Information

Local Research Contact

Jutta Susanne Rehfeld
Director, Research
Email: jutta.rehfeld@knightfrank.com
Phone: +49 30 232574-385

Local Office Occupier Contact

Ben Read
International Occupier Services & Landlord Services
Email: ben.read@knightfrank.com
Phone: +49 30 232574 370

London Contact

Colin Fitzgerald
Head of Occupier Strategy & Solutions EMEA
Email: colin.fitzgerald@knightfrank.com
Phone: +44 20 7861 1203

Knight Frank Research Reports: Available at knightfrank.com/research
Disclaimer: This report is for general information only and should not be relied upon for any decision-making. All information is for personal use and not for commercial third-party purposes.