Companies that want to rent new office space in Frankfurt in the next few years have more choice than they have had in a long time.

According to the consulting firm BNP Paribas Real Estate, a total of 675,000 square meters are currently under construction.

Although this value has increased only slightly over the past year, the proportion of space for which there is still no tenant has risen significantly.

482,000 square meters are still available.

This is the highest value in the past ten years.

speculative projects

Gunter Murr

Editor in the Rhein-Main-Zeitung.

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According to Riza Demirci, Managing Director of the consulting firm BNP Paribas Real Estate, this is partly due to construction projects that are being carried out speculatively, i.e. without pre-letting.

The office and commercial building on the site of the former sports arena at the Hauptwache is just as much a part of this as the 205 meter high Central Business Tower on Neue Mainzer Straße.

At first glance, this is surprising, because last year's demand for offices was well below the long-term average, with a take-up of 472,000 square meters.

But with construction projects that are now being implemented, the beginnings date back several years.

And in the years 2017 to 2019, an above-average number of offices were let - which motivated developers to start new projects.

"Back then, nobody could have expected Corona and the war in Ukraine," says Demirci.

Waiting for tenants

At the moment nobody dares if there is no concrete user.

The real estate company of Landesbank Baden-Württemberg is waiting for tenants before beginning the redevelopment of a 16,000 square meter office building on Schaumainkai in Sachsenhausen.

In general, however, potential tenants are holding back, and decisions are being postponed, says Demirci.

As an example, he cites the Swiss bank UBS, which has its headquarters in the Opernturm.

She was looking for 12,000 square meters of new space, but is now waiting.

In any case, no company can hope to save on rental costs by moving.

Because both the prime rent and the average rent rose last year as a result of inflation.

On average, 23.20 euros per square meter are due, with a peak of 48 euros being achieved – for example in the “Central Parx” high-rise on Bockenheimer Landstrasse.

So far, the Bank Oddo BHF has been at home there.

This moves to the Gallusanlage, and after the revitalization of the tower, the Noerr law firm moves in there.

"We assume that rents will continue to rise," says Demirci.

This is not only due to inflation, but also to the so-called ESG criteria, which specify ecological standards, among other things.

These alone accounted for 1.50 to 2 euros per square meter.

Despite all the problems, Demirci is optimistic about the future.

Because decisions have been postponed, more deals can be expected in the first half of 2023.

And he does not see a dramatic decline in demand for office space.

The companies continued to hire new employees.