Offices in Berlin are retaining their appeal to businesses of various sizes and organisations from the public sector, according to a recent report on the German capital’s commercial property markets.
Despite significant and well-documented turmoil within the euro area, the German economy has continued to grow and demand for office space to rent in Berlin has continued to increase in recent quarters. In fact, figures from the advisory firm Cushman & Wakefield show that the first half of 2012 saw a record amount of office space around the city being newly occupied.
The total of 3.5 million sq ft of newly occupied office space was around a 172,000 sq ft more than the same period in 2011 but that number was in itself higher than any equivalent previously recorded.
“The capital’s attraction stretches way beyond the city’s boundaries even in 2012,” said Lisa Ebert from C&W’s Berlin office.
“Over the past few months, we haven’t only been registering newly founded companies from Berlin, there have also been many companies moving here from around Germany and abroad.”
A point emphasised by Ms Ebert and her colleagues was that much of the office space being newly rented around the capital was taken by small businesses and start-ups. Indeed, their confidence in the prospects for Berlin as a business location is reckoned to be unwavering. Vacancy rates within Berlin offices fell in the second quarter of 2012 for the fifth three-month period in succession, the C&W report also noted.
Meanwhile, elsewhere in Germany and back in June, C&W announced that it had secured 135,000 sq ft of office space for an unnamed multimedia company at the Altezza office building in Munich. The landlord of the site is the German branch of the UK telecoms giant BT, whose company headquarters are elsewhere in the same city.