(Essen, 27.01.2022) Mülheim an der Ruhr reached a record level of office take-up through lettings at the former Tengelmann site. Dortmund also ended 2021 with record take-up. The other major Ruhr cities likewise recorded strong office leasing.
For years, office vacancy in the Ruhr metropolitan region was very low by German standards—in some cities too low. Bochum and Dortmund, for example, were considered fully let, with vacancy below 3%. Vacancy rose in 2021, improving market choice and supply. Construction by major groups such as ALDI, RWE and Continentale led them to vacate space previously leased from third parties.
Following the merger of Innogy and E.ON, synergies helped optimise both companies’ office requirements and consolidate numerous dispersed leases. “More than 30,000 m² of former Innogy, now E.ON, satellite office space is being marketed, some of it already vacated. Its locations around the main station are very attractive. We are in intensive discussions with prospective tenants and have already concluded the first leases,”, says Tobias Altenbeck, member of Brockhoff’s management team.
While Bochum’s MARK 51°7 site made it a hidden champion for office lettings in recent years, Mülheim took that role in 2021. Since SORAVIA acquired the former Tengelmann site and appointed BROCKHOFF OFFICE to market it exclusively as PARKSTADT MÜLHEIM, nearly 25,000 m² of office space has been let there alone. “Leases for a further 11,000 m² are about to be concluded,”, reports Julia Winteroth, Managing Director at Brockhoff.
Dortmund ended 2021 with record take-up, already exceeding its full-year 2020 result in Q3/2021. Several expansions by local companies, including Adesso and Amprion, drove the result.
No pandemic-driven drop in space demand – offices become places to meet
The cautious start to 2021 in terms of space enquiries had become irrelevant by April. The size of requested premises has remained almost unchanged, although their design has evolved. “Many companies now regularly offer employees the option of working from home or using more flexible working models, which has led to some changes in floor plans. This trend began before the pandemic and has since intensified. Offices are being fitted with quiet areas, communication corners and large kitchens to encourage interaction among employees. The size of the space companies seek remains almost unchanged,”, explains office expert Altenbeck, who confirms that companies continue to plan for an occupancy ratio of 0.7-0.9.
„Unfortunately, there is little high-quality vacant space“, says Altenbeck, calling for more speculative construction. „A well-designed new building is often fully let before completion. Investors remain hesitant because high construction costs make projects viable only if they can command prime rents.“
Altenbeck has also observed that sustainability and buildings’ compliance with ESG criteria are increasingly relevant when companies lease office space.
Positive outlook for 2022 – companies seize opportunities created by vacancy
„Demand for office space in the Ruhr region will rise again in 2022,“ predicts Tobias Altenbeck. Although corporate groups currently have sufficient space in their own properties, they will grow and need more space because the economy remains strong despite the pandemic. Small and medium-sized companies are also taking advantage of newly available premises that meet modern requirements.
About Brockhoff
Brockhoff GmbH is Germany’s largest local commercial property agent and the Ruhr region’s real estate market leader. Founded in Essen by Eckhard Brockhoff in 1987, this owner-managed company has over 30 years of industry experience and extensive expertise in OFFICE, INVEST, RETAIL and LOGISTICS properties. Its portfolio includes nationwide sales of office and investment properties, office leasing focused on the Ruhr region, brokerage of retail properties in prime locations across German cities of all sizes, and leasing and sales of logistics properties.