(Essen, 31.01.2024). In 2023, Essen recorded steady office take-up of around 112,500 m². Essen-based property adviser Brockhoff advised on an impressive 33% of all office lettings involving a broker. Overall, Brockhoff contributed to lettings of around 29,000 m² of office space.
Alongside the City of Essen, educational institutions and major corporations were among the largest tenants shaping take-up in 2023. Tobias Altenbeck, Managing Director at Brockhoff, explains: “In 2023, we saw a clear increase in willingness to lease among Essen’s corporations. Moves within the city are mainly driven by modern workplace concepts and sustainable building technology. Many corporations are also bringing employees back to the office. This has increased space requirements again, even though they have not quite returned to pre-pandemic levels.”
Re-letting space vacated by corporations, which often occupied it for decades, is also in full swing. Brockhoff is close to announcing a successful letting of several thousand square metres in a space recently vacated by a corporation.
Altenbeck also highlights the focus on existing buildings, given the continued lack of activity in new construction. Although construction activity increased slightly in 2023, companies generally occupy new buildings themselves. Speculative development in Essen is rare, and space is often let before completion. “High construction costs and interest rates continue to play a role. In particular, Essen’s rent levels are not attractive enough for investors and influence decisions about new construction,” the property expert explains. Rents above €20 per square metre would be needed, while achievable prime rents remain below that level.
The development of vacant space in Essen therefore continues to depend on property owners. Investment in their buildings could reduce the market’s vacancy reserve. “We specialise in advising owners and investors on the redesign of their properties. The quick success of subsequent marketing shows that, thanks to their often excellent locations, these buildings can once again become popular business locations,” concludes Tobias Altenbeck.
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Brockhoff GmbH is one of Germany’s leading commercial real estate brokerages and the market leader in the Ruhr region. The owner-managed company, based in Essen, was founded by Eckhard Brockhoff in 1987. With more than 35 years of experience in the property industry, it has extensive expertise in marketing properties across OFFICE, INVEST, RETAIL and LOGISTICS. Its services include the nationwide sale of office and investment properties, office lettings focused on the Ruhr region, brokerage of retail properties in prime 1A locations in small, medium-sized and major German cities, and the letting and sale of logistics properties. In 2021, ADOMO Beteiligungs GmbH acquired a 41% stake in the company.