After the first half of the year, take-up on the Cologne office market amounted to around 76,000 m². This result is well below the good previous year's figure (-34%) and the long-term average (-37%). The weak result reflects the overall gloomy economic environment, volatile geopolitical developments and structural changes on the demand side. At present, there is a noticeable reluctance to apply for applications of 500 m² or more, which is further slowing down market activity. This is the result of the analysis by BNP Paribas Real Estate.
"After a comparatively solid start to the year with 45,000 m² in the first quarter, the momentum weakened noticeably in the second quarter. At 31,000 m², there was significantly lower closing activity. The five largest lease agreements of the first half of the year were registered in the first quarter. In the second quarter, no lease agreement for 1,000 m² was concluded, which underlines the weak closing momentum for large-scale spaces. At the same time, the marketing processes have noticeably lengthened, as decision-making and closing processes take significantly more time," explains David Braun, Cologne branch manager of BNP Paribas Real Estate GmbH.
Over a twelve-month period, the average rent across all contracts has risen by around 8% to €20.90/m². The prime rent for high-quality office space in prime locations, on the other hand, was stable and currently stands at €33.50/m².
Market currently structured on a smaller scale
The low demand for larger space is clearly reflected in the size classes: around 50% of take-up is accounted for by space up to 500 m², twice as much as the long-term average (Ø10 years: 25%).
