(Essen, 21 April 2020). Just over 34,000 m² of office space was let in Essen in Q1 2020. Despite the first effects of the coronavirus crisis from mid-March, this record figure is almost twice as high as in the same period in 2019. BROCKHOFF OFFICE advised on the second-largest brokered lease, covering approximately 2,040 m².
The standout feature of Q1 this year was not only the high take-up of just over 34,000 m², but also the unusually high owner-occupier share of more than 50%. The leases by TÜV Nord for approximately 10,000 m² and the opta data Group for approximately 7,310 m² together account for more than half of total take-up. Apart from these owner-occupier deals, transactions ranged from approximately 100 m² to 3,000 m². Only 4 leases exceeded 1,000 m².
Peripheral locations also remained in focus in 2020, with 4 of the 5 largest non-owner-occupier deals taking place outside the usual prime 1A locations. Approximately 3,000 m² of office space was leased at Bamler Service Park. BROCKHOFF OFFICE brokered approximately 2,040 m² at Schnabelstr. 1 for a subsidiary of a publicly listed group. Another top-5 deal, the lease of approximately 945 m² at Büropark Ruhrallee, was also in an outlying area and brokered by BROCKHOFF OFFICE.
The vacancy rate in Essen continues to trend towards 3%, which statistically amounts to full occupancy. “The Essen office market will remain stable despite coronavirus. Even with a slight drop in demand, the low vacancy rate would make the impact barely noticeable. Competition for vacant space may ease somewhat at most,” explains Tobias Altenbeck, member of the management team and Head of OFFICE at Brockhoff & Partner.
The volume of space enquiries reaching the Essen agency remains almost unchanged. “We advise our business partners flexibly and can respond well to enquiries. Many transactions were postponed in March because of the coronavirus crisis, but we remain in close contact with companies and believe that most requirements have been delayed, not cancelled,” Altenbeck says, looking ahead to the 2nd half of the year. The OFFICE expert expects fewer deals in the remainder of the first half than in Q1.
The type of demand has not changed. Mixed layouts remain the most popular, combining open-plan areas for better communication with individual offices for privacy and separate meeting rooms.
Further Q1 2020 deals in Essen advised by BROCKHOFF OFFICE:
Travel agency Dr. Tigges GmbH leased approximately 537 m² at Huyssenallee 9 from 1 April 2020.
Folkwang Chamber Orchestra Essen moved into 132 m² of office space at Huyssenallee 74. Independent analysis company Bulwiengesa also moved into the fully revitalised residential and commercial building, leasing 128 m² through BROCKHOFF OFFICE.
These and other office lettings, some of which cannot be disclosed for confidentiality reasons, contributed to total office take-up of just over 34,000 m².