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Office market

Development in the Ruhr Metropolis

17.0 m m²

CRS office floor space 2019

113,000 m²

CRS volume of new construction according to data collected up to 2nd quarter of 2020

16.50 euro/m²

CRS achievable peak rent (estimate/higher rents possible*) 2020

Source: bulwiengesa AG

 

Supply situation

The volume of office space in the Ruhr Metropolis at the end of 2019 totalled approximately 17.0 m m² CRS. With this, the region remains the second-largest office market in Germany, after Berlin.

The volume of new construction totalled approx. 113,000 m² CRS, failing to reach the high volumes of the previous years.

The highest volumes were registered in Dortmund, with around 48,100 m² CRS. In 2020, according to the specific project pipeline for the Ruhr Metropolis a completion volume of some 133,000 m² CRS is anticipated.

Vacancy levels in the Ruhr Metropolis fell again clearly compared to the previous year, standing at just above 600,000 m² CRS in 2019, corresponding to a vacancy rate of 3.6 %. Vacancy remained concentrated on older properties with limited marketability. Newly-built properties and properties with a contemporary finish were generally very well received on the market.

Against the background of the forecast, moderate completion figures for 2019, the supply situation is set to tighten further in a number of sub-markets of the Ruhr Metropolis.

"Vacancy falls again significantly."

 

bulwiengesa AG

Demand situation

Office space turnover in the Ruhr Metropolis stood at around 500,000 m² in 2018 and around 463,500 m² CRS in 2019, placing it above the 10-year average. In this, the short supply in a number of sub-markets of the Ruhr Metropolis prevented a better turnover result.


A rise in office employment figures is anticipated in the Ruhr Metropolis in the short to medium term even in the corona recession, indicating continued demand for office space in the future.

Rent trend

The achievable peak rent in the Ruhr Metropolis displayed stable development in 2019, standing at 15.50 euro/m² CRS. In individual cases, properties with above-average equipment levels in highly coveted locations achieve rents above 15.50 euro/m² CRS*.

The first quarter of 2020 was characterised by positive development.

A rent increase to a peak of 16.50 euro/m² CRS is anticipated for 2020, despite the recessive tendencies. Decisive here is the ongoing scarcity of supply coupled with moderate construction activity, maintaining pressure on rents.
(*Note: Calculation of peak rent is according to the definition of the Gesellschaft für Immobilienwirtschaftliche Forschung e.V.. Real estate is also let above the peak rent average in the markets.)