Hamburg

What trends characterize the use of space in my industry? How much office space will I need in three years? Are there better offices in Hammerbrook than St. Georg? Are office rents higher in the center of Hamburg than in HafenCity? These are just some of the questions that concern you as a renter of office space and that we answer every day together with our customers, always with a view to the optimum office for our customers and a transparent, audit-proof decision. The size of the office space you ask about is unimportant to us because we advise startup companies and large renters alike. We know the requirements of our target groups.

Making quality transparent for our clients

All advisors are faced with the task of convincing prospective clients of the quality of the services they provide, even before mandates are awarded. This is why we make the quality of our services transparent to our clients through our teams of highly-qualified and loyal employees, our detailed preparation of information about office space in the market, and our experience of letting space of all sizes.

Buy, rent or build yourself?

When looking for new office space, we do not focus solely on the letting mandate, but also weigh up the advantages and disadvantages of an acquisition or development of your existing premises. We work with you to analyse your best options, and develop possible purchase scenarios for existing properties or projects. Working together with our real estate investment and valuation teams, you have all the knowledge and expertise of Angermann Real Estate at your disposal.

The Hamburg office market at a glance

We undertake comprehensive research of the office market in order to be able to provide you with detailed information about your dream property. Our research team records all leases concluded in the city, and regularly compiles this and other information in our office market reports.

Once again, the dwindling supply of space stands in the way of a better letting result in the Hamburg office market. During the third quarter, the vacancy rate reduced to 395,000 sqm which, based on a total office stock of approx. 13.8 million sqm, corresponds to a vacancy rate of 2.9%. “Competition for the dwindling supply of available office space is becoming ever fiercer and the situation in the central office locations is particularly precarious. Office tenants need to be more flexible, quick to act and willing to make decisions", commented Dennis Riepenhausen.

Rise in take-up despite supply shortage

Take-up rates in the office sector remain high. By the end of the third quarter of 2019, office take-up had reached 445,000 sqm, a moderate increase of 3% year-on-year. However, it is also true that with a letting performance of 133,000 sqm, the third quarter was down on the first two quarters which saw office space take-up of 145,000 sqm and 167,000 sqm, respectively, secured. This is more surprising given that no lettings of greater than 10,000 sqm were concluded during the quarter. "Many companies are currently looking for new offices on the market and therefore the overall result for the year could be similar to that of 2018, in which just under 580,000 sqm was let. The 10-year average of 519,000 sqm would thereby be significantly exceeded", according to Dennis Riepenhausen, Director at Angermann Real Estate Advisory AG.

Office rents take a breather

The third quarter was calmer after a period of significant rent rises. The average rent rose only slightly compared to the previous quarter, from €17.10 to €17.20/sqm/month, while the prime rent remains stable at €29.00/sqm. Despite this ‘pit stop’, it is unlikely that the purses of Hamburg's office tenants will be spared in the future. "It can be assumed that both average and prime rents will continue to rise in the coming months. This is partly due to the significant rise in building costs for renovations and new buildings, which owners will pass on to their tenants", Riepenhausen explained.

City and HafenCity leading the location rankings

With take-up of approx. 63,100 sqm, the City recaptured pole position in the location rankings. The previous lead submarket, HafenCity, slipped to second place with 53,700 sqm of office take-up, with a considerable boost coming from the Xing letting of approx. 22,000 sqm at Strandkai 1. The subsequent places were assumed by the West of the Alster submarket with approx. 37,800 sqm and City South with 28,200 sqm.

City and the IT & Multimedia sector lead the rankings

With take-up of 100,900 sqm, the City recaptured pole position in the location rankings. The subsequent places were assumed by the West of the Alster submarket with approx. 64,400 sqm and City South with 44,800 sqm. The most active economic sector in the first half of the year was IT & Multimedia with 114,600 sqm. The second placed public sector, which has leased 51,100 sqm so far this year, was also extremely active. Although most leases (182) were concluded in the 250 - 700 sqm size category with a volume of around 82,900 sqm so far this year, this category currently accounts for just 19% of the total take-up result. At 59% (262,500 sqm), the >1,500 sqm size category accounted for the highest proportion of take-up (55 leases).