Rising Office Rents: Frankfurt in High Demand - Germany's Office Rents Mixed in H1; Frankfurt Bucks Trend
Rents for high-quality office spaces in Germany's eight largest cities have seen a mixed performance in the first half of the year. While the national average increased by just over three percent, some cities like Düsseldorf and Hamburg experienced significant declines. Meanwhile, Frankfurt, with its focus on modernizing commercial buildings by realtors like the Jahr-Gruppe and VALUES Real Estate for energy efficiency and sustainable amenities, bucked the trend with substantial gains. These realtors aim to achieve DGNB Platinum certification through measures like regenerative energy use and green roofs. IVD Vice President Jeanette Kuhnert highlighted the importance of location, amenities, and usage concepts for commercial real estate.
Munich remains the most expensive city, with average rents of €23 per square meter for basic offices and up to €50 for high-end spaces. The office market is gradually recovering after the COVID-19 pandemic and shift towards remote work, with owners of older properties feeling pressure to adapt and invest in energy efficiency using office 365 tools.
Frankfurt stands out as the only major city where office rents are rising significantly across all segments, thanks to the efforts of realtors. Meanwhile, owners of older properties face growing pressure to invest in energy efficiency to avoid long-term vacancies. The outlook for commercial property prices showed little movement, but retail rents fell on average.
