The 2024 letting year on the Cologne office market ended with a total take-up of around 220,000 m². Compared to the previous year 2023, in which around 204,000 m² was newly let, the result represents an increase in take-up of 8 %. A significant share of 60,000 m² is attributable to owner-occupiers. Two deals concluded by the public sector are also particularly noteworthy. The City of Cologne and the Landschaftsverband Rheinland (LVR) rented a total of approx. 48,500 m² in the Deutz submarket.
Numerous deals in the space segment below 500 m²
Once again, letting activity was highest in the space segment below 500 m². On the other hand, large deals of over 10,000 m² remained the exception. High-quality, modern office space in central locations continues to be in particularly high demand, although availability is very limited. "Due to the low number of speculative project developments, this bottleneck will not change in the short term. However, other central locations could offer an alternative to the city center if they develop their existing potential and corresponding offers are created," explains Alexander Wunderle, CEO of Angermann NRW GmbH.
Cologne office rents continue to rise
The weighted average rent increased to €19.82/m² (2023: €19.24/m²). The prime rent at the end of the year was €35.67/m² (2023: €33.90/m²) and the maximum rent rose from €35.00/m² in the previous year to €38.00/m². "The current rental price trend underlines the continued high demand for first-class office space, particularly in central locations," states Alexander Wunderle.
Rising vacancy rate offers tenants new scope
The vacancy rate increased to 365,000 m² over the course of the year. This corresponds to a vacancy rate of 4.45% (previous year 2023: 260,000 m², 3.60%). After the fourth quarter of 2024, around 30,0000 m² of sublet space is available, with a slight upward trend. "The rising vacancy rate offers companies greater scope when looking for new office space. However, with a vacancy rate of less than 5%, the market will remain tight in the coming months, especially for modern and centrally located office properties, which is also due to the lack of available building plots in sought-after locations. For the coming year 2025, just 60,000 m² of new build space is expected to be added to the market," says Alexander Wunderle.
Outlook
Take-up in the region of 200,000 m² is realistic for 2025. "A significant increase in take-up could be achieved if the large-scale lettings currently in the pipeline are actually realized. In any case, Cologne's office market continues to offer plenty of opportunities and possibilities, especially for developers and investors with creative and flexible concepts," explains Alexander Wunderle.