The 2024 office letting market was a disappointment, posting the lowest result seen since the “Covid year” of 2020. Take-up of space for the year was some 425,000 m² and thus about 7 % below the weak figure seen in the prior year. The public sector proved to be the most significant player, accounting for some 28 % (about 118,000 m²) of total take-up. More than 95,000 m² of take-up by the City of Hamburg was in office suites offering more than 5,000 m² of space. The public sector thus accounted for 69 % of the market in this size segment. “In 2024 the City government was able to sign contracts on several good locations and will remain an important occupant in the years to come. Private sector tenants are more cautious at present. The rather bleak economic outlook is affecting the mood of corporate players, thus curbing their willingness to make new rental decisions. Although clients are still seeking office space, firms tend to proceed with hesitation. The market will therefore remain challenging in 2025,” says Nils Larsen, head of Office-Letting Hamburg for Grossmann & Berger Immobilien, a member of German Property Partners (GPP).
For market data and top agreements, please have a look at the word document.
