Office properties are staying on the market longer than before, especially those with poor facilities and in less attractive locations. This is according to a study by the German Economic Institute (IW). According to the study, one in four listings remains on the market for 38 weeks. The office market is therefore in a phase of upheaval.
Compared to the previous year, rents have only risen by 5.9% nationwide - which is lower than the rate of inflation. As a result, real rents have fallen for the first time in many years. Properties in cities and their surrounding areas are finding it increasingly difficult, while Leipzig, Hanover and Duisburg are recording the highest rent increases. A weakening economy and home office trends are influencing rents.
IW real estate expert Michael Voigtländer notes the changing requirements for offices: "The office is primarily used as a meeting place. Accordingly, competition for innovative concepts is now raging." Older offices and those in less attractive locations are remaining empty for longer. Michael Voigtländer explains that such "shopkeepers" did not exist on this scale in the past. The study is based on data from Value AG. Around 439,000 office property advertisements were analyzed.
Source: iwkoeln.de
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