Within the commercial sector, office accounts for almost half of the investment activity. In recent years, Germany’s largest city Berlin has continued attracting companies and talent and growing at an overwhelming speed. The city’s sprawl has also influenced the office market, taking approximately 365 square meters in take up in the first half of 2021. Berlin’s runner-ups are the rest of Germany’s big 7 – Munich, Frankfurt am Main, Dusseldorf, Hamburg, Stuttgart, and Cologne, with a total of 1.3 million square meters in office take up. A common effect of this high demand for prime office is the decrease of the property rents to property cost ratio, also referred to as yield hardening.
Another commonly known fact is that Germany’s economy is strongly reliable on manufacturing and export. This is easily noticeable in the distribution of light industrial and logistic take up – approximately 26 percent is in the manufacturing asset class, while 36.8 percent is in wholesale and retail. The distribution of industrial, storage, and logistics space in the biggest German cities provides an even more interesting perspective to the German economy and regional specificities. While Hamburg, which has one of the biggest harbors in Europe, has the dominant share of take up with logistics service providers and transport facilities, Munich and Stuttgart have an overwhelming share of industrial, production and craft businesses take up.