Office Market Profile

Hamburg | 1st quarter 2016

Published in April 2016

Slow start to the year in the letting market

There was a slow start to the year in Hamburgs office letting mar-

quarter, including the first of the Hamburg Heights towers (renova-

ket, with take-up of 98,000 sqm; 13% below the long-term average.

tion of the former SPIEGEL HQ) and the new Jungheinrich head-

The reasons for this are considered to be the scarcity of top quality

quarters in Wandsbek. Over 440,000 sqm of office space is current-

space, prolonged search processes and a lack of major deals.

ly under construction, with more than 200,000 sqm of this destined

Looking at 2016 as a whole, space take-up of 450,000 sqm is ex-

for completion this year; only 60,000 sqm of this is still available.

pected, more than 10% below the average.

The prime rent is unchanged at 25.00/sqm/month since the previous quarter, whilst the average rent is currently 14.60. Incentives

In the submarket statistics, the City Centre (29%) outstripped sec-

in prime locations (based on a 5-year contract) have reduced to 3%.

ond placed City South (core area) (12%). Due to the low supply of
premises in top locations, occupiers are clearly shifting their focus to

In contrast to the letting market, the investment market for commer-

secondary locations. In the sectoral statistics, corporate service

cial properties enjoyed a very good start to the year. The transaction

providers remain firmly in top place, followed by retail. The distribu-

volume of around 1bn was the best Q1 result since 2007. Office

tion of sectors is strikingly well balanced in the third to six places at

properties were the most traded asset class at 61%. In top loca-

around 8% each.

tions, prime yields are under pressure and have fallen to 3.75%, the
second lowest level in Germany. A transaction volume of 4.2bn is

The volume of vacancies has increased very marginally since the

expected for the year as a whole.

previous quarter to 875,000 sqm; however, the volume has reduced

by around 130,000 sqm year-on-year. This situation is not expected
to change significantly over the course of the year. The vacancy
rate is currently at its lowest level since mid 2002, with the lowest
rate registered in the City North submarket. Year-on-year, there has
been a notable reduction in vacancy in the three traditionally
strongest submarket, City Centre, Hafenrand and Altona-OttensenBahrenfeld. Three office properties were completed in the reporting

Office market data

Take-up (000s sqm)
Vacancy (000s sqm)
Vacancy rate (%)
Prime rent (/sqm/month)
Under constr. (000s sqm)
Capital value (/sqm)
Prime yield (%)

Q1 16
98,0
875
6,0
25,00
437,6
8.000
3,75

Change
q-o-q
-44 %
2%
0,1
0,0 %
3%
4%
-0,15

Change
y-o-y
-26 %
-13 %
-0,9
2,0 %
14 %
17 %
-0,55

12 month
outlook

JLL Office Market Profile Hamburg April 2016

Take-up
600

Prime yield
5,00

,000 sqm

4,80

500

4,60

400

4,40

300

4,20

200

4,00

100

3,80
3,60

0
2011

2012

2013

2014

2015

Q1 11

Q1 16

Q1 12

Q1 13

Take-up

Prime yield

5-year average: 496,000 sqm

5-year average: 4,56%

Vacancy and vacancy rate

1.250

|2

Q1 14

Q1 15

Q1 16

Under construction end of Q1 2016

%

,000 sqm

10
Other submarkets

1.000

750

500

250

Altona-OttensenBahrenfeld

City North

City South (core area)

0
2011

2012

2013

2014

2015

HafenCity

Q1 16
City Centre

Vacancy incl. sub-lettings (in 000s sqm)

Vacancy rate (in %)

Rents
35

50

100

150 ,000 sqm

Take-up by business sector Q1 2016

Business services

/sqm/month

Trade

30
25

Media, publishing

13%

20%

Construction, Real estate

20
5%

15

Manufacturing

5%

10

15%

5%

New media

8%

0
Q1 11

Q1 12

Q1 13

Achieved maximum rent

Weighted average rent

Q1 14

Q1 15
Prime rent

Q1 16

Insurance

8%

9%
9%

Transport, storage
Education, health, social
IT
Others, unknown

JLL Office Market Profile Hamburg April 2016

|3

Contact
Tobias Scharf
Team Leader Office Leasing
Hamburg
+49 (0) 40 350011 242
tobias.scharf@eu.jll.com

Sarah Cervinka
Team Leader Office Investment
Hamburg
+49 (0) 40 350011 215
sarah.cervinka@eu.jll.com

Timo Tschammler
Member Management Board Germany
Office & Industrial
Frankfurt
+49 (0) 69 2003 1110
timo.tschammler@eu.jll.com

jll.de For further information about JLL please visit our Company website
jll.de/research For further Research reports please visit our Research website

COPYRIGHT JONES LANG LASALLE IP, INC. 2016.

No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based
on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no
factual errors. We would like to be told of any such errors in order to correct them.

Helge Scheunemann
Head of Research Germany
Hamburg
+49 (0) 40 350011 225
helge.scheunemann@eu.jll.com