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Office Market Profile
Wiesbaden | 4th quarter 2017 Published in June 2018
Office Market Data Q4 17 Change Q4 16
12-Month Outlook
Take-up (000s sqm) 92.1 43 %
Vacancy (000s sqm) 62.0 -18 %
Vacancy Rate (%) 2.7 -0.6
Prime Rent (€/sqm/month) 14.50 0.0 %
Under Constr. (000s sqm) 43.5 100 %
Capital Value (€/sqm) 4,094 12 %
Prime Yield (%) 4.25 -0.50
Best result for 10 years
At 92,100 sqm, Wiesbaden achieved its best office space take-up
result since 2007 (116,000 sqm) which was partly attributable to five
deals of units larger than 5,000 sqm; nonetheless, most contracts
(55%) were concluded in the <500 sqm size category segment. As
always, demand was strongest in the city centre which accounted for
43% of the letting volume and half of all leases; however, due to the
strong letting performance of recent years and the low volume of new
construction the supply pipeline has been greatly diminished. The take-
up volume could have been much higher, but many of the tenants
wishing to relocate from their existing premises have been forced to
extend their current contracts. Two of the largest lettings concerned
new-build developments that still have to be built. Vacancies have
been reducing almost steadily since 2010. With just 10,000 sqm avail-
able in the much sought-after, high-quality segment in the short term,
the desperate need for new office space is evident from the fall in the
vacancy rate to below 3.0% for the first time since 2001. The supply of
contiguous office space on one level is particularly limited. A mere
44,000 sqm of new office space is currently under construction or
being refurbished, and just 9,000 sqm of this still available. Nonethe-
less, there are a few speculative developments expected which should
ease the tight supply situation slightly. Whilst in 2016 the reduction in
the office stock was greater than the supply of new space released
onto the market, it increased slightly again in 2017: the very low com-
pletion volume of 10,000 sqm was partially offset by the removal of
3,700 sqm from the office stock through conversion to hotel or residen-
tial use.
There has been a steady, albeit marginal rise in the weighted average
rent over the past 12 months. Although the prime rent has remained
stable since 2014, it is expected to increase to approximately
€15.00/sqm/month in 2018.
The investment market recorded a substantial 70% increase in the
transaction volume to €427 million, with the vast majority of this (81%)
attributable to office properties. The largest demand group was foreign
investors. The prime yield has now fallen to 4.25% and a further slight
decline is expected here in 2018.
JLL • Office Market Profile • Wiesbaden • June 2018 | 2 ssa
Take-up
Vacancy and Vacancy Rate
Rents
Prime Yield
Under Construction End of Q4 2017
Take-up by Business Sector 2017
0
20
40
60
80
100
2012 2013 2014 2015 2016 2017
,000 sqm
Take-up
5-Year Average: 61,800 sqm
0
2
4
6
8
10
0
50
100
150
200
2012 2013 2014 2015 2016 2017
,000 sqm
Vacancy incl. sub lettings (in 000s sqm)
Vacancy Rate (in %)
€/sqm/month
0
5
10
15
20
Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Q4 17
Achieved Maximum Rent
Prime Rent
Weighted Average Rent
4.00
4.20
4.40
4.60
4.80
5.00
5.20
5.40
5.60
5.80
6.00
Q4 12 Q4 13 Q4 14 Q4 15 Q4 16 Q4 17
%
Prime Yield
5-Year Average: 5.22 %
0 5 10 15 20 25 30
Mainzer Straße
Abraham-Lincoln-Straße
City
,000 sqm
35 %
21 %
16 %
6 %
10 %
Construction, Real Estate
Public Administration
Insurance
Business Services
IT
Media, Publishing
Trade
Manufacturing
Social and personal Services
Others, unknown
jll.de For further information about JLL please visit our Company website
jll.de/research For further Research reports please visit our Research website
COPYRIGHT © JONES LANG LASALLE IP, INC. 2018.
No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on
material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any war ranty that it contains no factual
errors. We would like to be told of any such errors in order to correct them.
JLL • Office Market Profile • Wiesbaden • June 2018 | 3 ssa
Stephan Leimbach
Head of Office Leasing Germany
Frankfurt
+49 (0) 69 2003 1245
Helge Scheunemann
Head of Research Germany
Hamburg
+49 (0) 40 350011 225
Contact
Nino Grubišić
Team Leader Office Leasing Rhein-Main
Frankfurt
+49 (0) 69 2003 1936
Christian Lanfer
Team Leader Office Investment
Frankfurt
+49 (0) 69 2003 1228
