Letting of office properties in Frankfurt/Main: NAI apollo publishes market figures for 2009

With approx. 350,000 sqm space the letting performance in the office market in Frankfurt (including Eschborn and Offenbach-Kaiserlei) was approx. 31 per cent lower than previous year's value (510,000 sqm). At the same time, the vacancy rate increased from 13.7 per cent (end of 2008) to 14.17 per cent. This is the conclusion reached by NAI apollo, independent real estate consulting group with its headquarters in Frankfurt. The major part of all lease contract conclusions were allotted to the locations financial district and trade fair with approx. 155,472 sqm (44 per cent of the total volume).
Altogether approx. 185,113 sqm and with it 75.6 per cent of all lease contract conclusions in the segment of office spaces larger than 1,000 sqm were mediated by brokerage and real estate consulting companies. 61 individual lease contracts were concluded in the space segment of over 1,000 sqm (approx. 245,000 sqm and with this 70 per cent of the total volume). The largest individual conclusion was the letting to the Deutsche Bahn in the Silvertower with approx. 72,000 sqm.
The quoted prime rent for properties that were obtainable within three months, was 39.00 €/sqm for a property that was completed in the 3rd quarter of 2009. The other prime properties ranged between 34.00 and 37.00 €/sqm. Although with this the prime rent was higher than previous year's level, it was relativised by the owner by granting incentives.
„Due to more incentives, the effective rent will continue to decrease in 2010“, says Martin Angersbach, Head of Office Letting NAI apollo. The constant uncertainty of the economic development in Germany will also form the letting performance for office properties in the Rhine-Main-area in 2010. For 2010, Martin Angersbach estimates a total volume of approx. 400,000 sqm. He does not expect a proper market recovery until the beginning to middle of 2011.

Detailed results for 2009:
* Total assets: 11.85 million sqm (2008: 11.60 million sqm)
* Vacancy: 1.68 million sqm (2008: 1.59 million sqm)
* Vacancy rate: 14.17% (2008: 13.7%)
* Letting performance: approx. 350,000 sqm (2008: approx. 510,000 sqm)
* Prime rent: 39,00 €/sqm (1 prime property), further prime properties: 34.00 - 37.00 €/sqm (2008: 38.00; 34.00 - 37.00 €/sqm)
* Weighted average rent: 20.30 €/qm (2008: 19.80 €/qm)