Increasing office employment vs. shortage of space

Opportunities for investors and developers at larger service locations

The markets for office space have almost been forgotten in the wake of the ongoing discussion surrounding residential rents and construction land prices. Yet in recent years the prices here have also seen a continual increase, and earlier vacancy rates have now been reduced by a considerable degree. In the meantime a shortage of space can be observed in many cities. For the future economic development of a region, however, the available office space and the associated number of office workplaces are an important factor. A shortage of space effectively limits the potential economic growth. For individual companies a tight office market generally means more time and effort being expended on sourcing, less alignment with needs, and higher rental costs.

The current market development offers a number of opportunities for developers and investors. Not every town and city is equally promising, however. The decisive factors are location-related parameters for demand and price development such as dynamism, stability and structural aspects. The following study examines the market development at 15 large office locations in Germany.