(Essen, 21 July 2022). In the first six months of this year, around 40,000 m² of office space was taken up in Essen, almost matching activity in the same period last year. Higher interest rates and construction costs have had no noticeable effect on office lettings. The higher vacancy rate, which emerged in 2021 due to construction by major companies such as ALDI and RWE, creates opportunities for prospective tenants seeking small and medium-sized spaces.
“The merger of e.on and innogy alone released more than 30,000 m² of scattered office space onto the market. This creates opportunities for tenants seeking smaller and medium-sized premises in Essen. Our business is doing very well,” says Tobias Altenbeck, member of Brockhoff’s management team.
Top rents for new-build or modernized existing properties in very good locations are €17.50/m². The average rent is around €11.70/m².
According to Altenbeck, the precarious global economic situation has so far had little effect on Essen’s office market, unlike the investment market. Instead, there has been a clear shift from “manage to core” to “manage to green.” “Many prospective tenants ask about the ESG credentials of properties and are interested in good public transport links at a potential new location.”
Coworking provider Work Inn expanded in Essen at RÜ-Karree (800 m²) and Lindenallee (704 m²). Both are existing properties in locations with excellent transport links, and their owners are continuously modernizing them. Lindenallee 29-41 received the Bernhard Remmers Prize for the heritage-sensitive restoration of its approximately 2,500 m² façade. Brockhoff OFFICE has been exclusively commissioned to market both properties.
The successful repositioning of Bismarckhaus is another example of how existing properties renovated to modern standards can offer sought-after space in Essen’s office market. Brockhoff OFFICE fully let the 1,750 m² office building in a short time. Alongside its excellent location within sight of Essen Central Station, it won tenants over with rooftop solar panels, air conditioning, and external window shading.
IT staffing provider “engaged & Company” is taking the entire 12th floor, with 634 m² of office space in RUHR Tower, through Brockhoff OFFICE. Built in 1961, the distinctive office tower was comprehensively refurbished for modern office use while respecting its listed status and is among Essen’s most sought-after office locations.
Brockhoff OFFICE completed numerous other leases across Essen. In the 1st half of 2022, leases most often covered 200 to 350 m². The brokerage expects stable office take-up in the 2nd half as well, with large deals contributing to demand. Talks on such deals are already in their final stages.
Higher interest rates and construction costs could affect office lettings after a delay if new builds or district developments are postponed. “Demand for office space in Essen remains high. If not only new construction but also modernization and revitalization work is put on hold for an extended period, we could face a shortage of attractive lettable space in the coming years,” Altenbeck cautions.
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Brockhoff OFFICE, part of Brockhoff GmbH, founded in Essen in 1987, handles office leasing. The company is the leading real estate firm in the Ruhr region and one of Germany’s leading independently owned real estate companies.