Where is the most inexpensive office in Stuttgart? Can I secure even larger office space in top locations in the City and City-Fringe submarkets? Where will new office space be built? These are just some of questions being asked by Stuttgart’s office tenants, and we know the answers. The sustained shortage of space in recent years necessitates an intensive search for the right office space. It helps if a competent local advisor can support you in your quest. In addition to the formal offers of space in Stuttgart, he knows of office space and properties not on the market, such as space available to sub-lease. He is aware of when leases are due to expire in a desired location and can contact the owner in good time to be able to offer the space to his client at the earliest opportunity. Sometimes it is more advisable for existing leases to be extended on reasonable terms than to lease one of the more than 600 available office units in the market, even where we don’t consider this to be the most profitable option.
Although medium-sized companies in Stuttgart are very satisfied with the office space on offer, they are also highly cost-sensitive. It is therefore our responsibility to negotiate sensitively between landlords and tenants to achieve an optimal result. Although rents in the city have risen in recent years, there has always been a higher proportion of office users seeking basic quality space at average prices and our team takes this into account when advising office tenants in the city.
Office letting is a local business. This is why we are not only familiar with the office properties in Baden-Württemberg’s capital, but also record them in detail in order to be able to provide office tenants with the most comprehensive information possible about their dream property. We also research the market to identify the lettings that have taken place, the rents and terms agreed, and the properties involved. The results are available to read in our quarterly office market report. This provides a city map of rental prices in Stuttgart, making the market more transparent for you as a tenant. Current office rents are presented on a district-by-district basis.
We are also able to follow up leasing enquiries for regions outside Stuttgart by working with our offices in Berlin, Frankfurt, Hamburg and Hannover, and by cooperating with real estate brokers across Germany. Flexibility, trust in the Angermann brand and quick decision-making enable small to medium sized (SME) companies in Germany to network when required.
The days when real estate brokers just traded office space are long gone. Today we are all-round advisors acting on behalf of office tenants. Conscious of the responsibility we hold, we ensure transparency in decision-making and endeavour to reduce to the bare minimum the costs to our clients of leasing office space. Whether a particular office space is right for you doesn’t just depend on the location, fit-out specification and rent. We make it our business to analyse your long-term requirements for future office space. We demonstrate that the rent, often seen as the most important factor behind a decision, may be less meaningful if it is not known how many workspaces can be accommodated in the space, what fit-out standard is included in the asking price or if there are expensive fit-out works yet to be carried out.
We value staff loyalty, provide and promote continuing professional development amongst our advisors, training our staff to real estate qualification level at most of our offices every year. Our company’s professionally-qualified staff maintain the quality of the services promised to our clients. The career paths at Angermann are as diverse as our staff: from office leasing to investment, from trainees to department leaders, from team leaders to board members – this is important for us as an employer in the SME segment.
Manager Office Agency Stuttgart
Bolzstraße 3, 70173 Stuttgart
+49 (0)711 22 45 15-30
Bolzstraße 3, 70173 Stuttgart
+49 (0)711 22 45 15-53
Bolzstr. 3, 70173 Stuttgart
+49 (0)711 2245 15-54
Bolzstraße 3, 70173 Stuttgart
+49 (0)711 22 45 15-50
Stuttgart's office market continues to face the challenge of a significant mismatch between the unwavering high demand and the clearly insufficient supply of vacant office space. Nonetheless, 142,000 sqm of new office space was leased in the first half of the year, 16% more than in the same period last year. What makes the result more remarkable is that, unlike previous years, it was achieved without a high proportion of owner-occupiers. Take-up of up to 250,000 sqm should be achievable for the year as a whole.
The vacancy rate reduced from approx. 175,000 sqm to just 168,000 sqm between the fourth quarter of 2018 and mid-year point of 2019. Based on a total office stock of 8 million sqm, this corresponds to a vacancy rate of 2.1%. New construction projects are not expected to bring any relief to the tension in the office market in the short to medium-term, as most are reserved for owner-occupiers or are almost fully pre-let before completion.
The prime rent fell again as forecast. Compared to the previous quarter it decreased from €23.50 to €23.00/sqm. Due to the lack of high-priced office space on offer, lettings at above €20.00/sqm will remain a rarity in the coming months and a stagnation or further decline in the prime rent is therefore likely. The reverse can be said for the average rent due to the more aggressive pricing position adopted by owners, with the average rent increasing from €13.80 to €14.00/sqm compared to the third quarter. The strong negotiating position of landlords meant that incentives such as rent-free periods and tenant improvement contributions were the exception in 2018.
The scarcity of space is having an increasing impact on office rents, with a rise in the average rent of 14%, from €14.00 to €16.00/sqm/month, compared to the fourth quarter of 2018. In the case of the prime rent, the increase is slightly lower, but still significant at just under 9% (€25.00/sqm/month). The strong negotiating position of landlords means that fewer incentives such as rent-free periods and tenant improvement contributions are now being offered. In the first six months of 2019, manufacturing was the most active sector in the letting market, followed by the IT and telecommunications industry.
Download Office Market Report Data Stuttgart:
Angermann Real Estate Advisory AG
Tel.: +49 711 22 45 15-50
Ein Unternehmensbereich der Angermann-Gruppe