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Essen’s Office Market

The dynamic economic development, the good infrastructure, the central location, nine of the 100 German groups with the highest turnover, an innovative middle class and a rapidly growing start-up community – these are some of the factors which make Essen the largest workplace location within the Metropole Ruhr. Essen now has around 3.16 million m² of office space.

New projects enrich the cityscape

Attractive and formative district developments and office properties will enrich Essen's cityscape in the coming years. In addition to the new corporate headquarters of RWE, ALDI Nord and HOCHTIEF, these include the Literatur Quartier of OFB Projektentwicklung GmbH on the site of the former FUNKE MEDIENGRUPPE, the Kontorhausviertel of Greve Development GmbH in the weststadt and the Trium project of Aurelis Real Estate near the city centre. In the weststadt a 4 to 5-storey office building with approx. 7,800 m² of office space of CFI Conzepte für Immobilien GmbH from Wiesbaden is already under construction.

Attractive yield level offers outstanding opportunities for investors

Whether funds, insurers, pension schemes or private investors: the good economic conditions and net initial yields that exceed the average yield level of the seven largest office locations make the Essen market attractive. The average net initial yield in the seven largest office locations will be 2.9 % in 2019. In Essen, these are 4.2 % in the central locations. In decentralized locations they reach 5.2 %.

High demand for space ensures record turnover

The demand for office space in Essen has been consistently high for years. The average office space turnover of the last 10 years is around 119,000 m². In 2019, the Essen office market will record the highest space turnover ever achieved with 165,000 m². Compared to the already very successful previous year, this represents a further increase of 6 %. Third-party lettings also reached a new record with around 143,000 m². At 13 %, the owner-occupier ratio is almost the 10-year average.

Declining supply and vacancies

The supply reserve has almost halved over the past two years from around 203,000 m² to around 102,000 m². The vacancy rate now stands at 3.3 %. In 2019, only nine office buildings with a total rental space of around 20,000 m² were built. At the end of 2019, around 73,000 m² of space was under construction. Compared to 2018, the volume of space under construction has thus increased considerably by 44 %, but only around 4,000 m² of this space is currently available, mainly due to pre-letting and owner-occupiers. Construction activity is concentrated mainly in secondary locations.

Moderate rent levels with rising trend

Essen's location advantages and the moderate rent levels for office properties for a large city ensure constant demand in the letting market. The top rent realised in 2019 will be around €15.00/m² and will be at the same level as in the previous year. The achievable top rent ranges between 16.00 €/m² and 17.00 €/m² and is achieved in selected new building projects in the preferred locations of the city centre/south district and Rüttenscheid/Bredeney. The average rent in Essen is around 11.80 €/m².

Your contact person

Andreas Hill
Authorised Signatory and Head of Real Estate
0201 / 820 24 36
E-mail

Your contact person

Agnieszka Hampel
Office and Commercial Space Service / Investor Consulting
0201 / 820 24 47
E-mail