Office market Bonn, third quarter of 2022

(Bonn, October 4, 2022)  In total, approximately 44,536 m² of office space was leased in the third quarter of 2022. This means that more space was let in the third quarter than in the entire first half of 2022 (1H 2022: 36,564 m²). This was mainly due to two further large-scale lettings of over 10,000 m² each. Together, these account for 34,805 m² of office space secured by rental agreements in the months from July to September inclusive. Furthermore, the Bonn office rental market would certainly have had the potential for even higher rental performance, but this has been slowed down by global uncertainties. Due to the current challenges surrounding the energy crisis, a possible recession, the unpredictable situation surrounding the coronavirus pandemic, and the resulting economic risks, companies in the free market economy in particular are currently acting with great caution. There is fundamental interest in relocating, but the respective decision-makers are reluctant to make a final decision.

A total of 62 lease agreements have been identified to date. This number also confirms the high frequency of activity on the Bonn office property market. In terms of quantity, companies in the size range up to 500 m² Office space. Users in this size category were able to finalize 44 lease agreements. This corresponds to a market share of around 71.0 percent (office space: approx. 9.135 m²). However, large-scale lettings continue to drive sales in terms of letting performance. The largest single letting was in the Bundesviertel submarket. A public-sector user secured approximately 23,000 m² as another major deal, the Rheinische Friedrich-Wilhelms-Universität secured around 12,000 m² of office space in Bonn-Endenich.

In addition to the aforementioned key figures, the rental price level in Beethoven's city has also seen a considerable increase. The maximum and prime rents, which were still under heavy pressure at the end of the first half of the year, have now reached EUR 31.66/m² and EUR 22.30/m² . The main reason for the significant increase is the high frequency of new-build space being let in attractive submarkets. Since the beginning of the coronavirus pandemic, and at the latest since the current energy crisis, modern building technology and sustainable construction, such as sustainable heating systems, have become a focus for those looking for space. These higher standards are leading to rising rents, particularly in view of increased construction costs. Accordingly, the average rent has also risen by EUR 0.55/m² to EUR 13.13/m².

The vacancy rate, which has come under increasing pressure in recent years, is recovering somewhat and currently stands at 2.35 percent. This corresponds to a vacancy rate of just under 94,400 square meters. In addition to the large leases mentioned above, which should theoretically lead to a further reduction in the vacancy rate, further vacancies are now coming into the reference periods defined by gif guidelines. Overall, however, the vacancy rate remains critical. This is because there is still a shortage of high-quality space of all sizes that is available at short notice.

Looking at Bonn's preferred submarkets, the federal district also ranked first in the warehouse ranking at the end of the third quarter of 2022, with a rental performance of approximately 46,735 m² Of office space (market share: 58.64 percent) and thus clearly ranked first in the warehouse ranking. In second place is the city center with a market share of just under 21.75 percent and a rental performance of 17,642 m². The Bad Godesberg submarket, in combination with the Godesberg center, ranks third with 5,423 m² of office space brokered (6.69 percent).

The experts at Larbig & Mortag Immobilien continue to expect total annual turnover for the Bonn office market to be between 90,000 and 100,000 m². The political situation described above and its impact on the economy will continue to be decisive factors.

Market figures at a glance for the third quarter of 2022