The amount of additional office space rented out in Germany’s five largest cities fell 13 percent in the first half as companies were deterred by economic uncertainty caused by the European debt crisis.
Office leases for 1.17 million square meters (12.6 million square feet) were signed in Berlin, Dusseldorf, Frankfurt, Hamburg and Munich, Los-Angeles based broker CBRE Group Inc. (CBG:US) said in a statement today.
“Against the backdrop of the continuing sovereign debt crisis, many companies are putting off their site decisions,” said Heiko Fischer, Head of Agency at CBRE’s Hamburg office.
Prime-office rents rose and vacancies fell because of a shrinking supply of new space, as developers built less and turned unused office buildings into hotels and apartments.
In Frankfurt, the amount of space rented fell 0.9 percent to 228,100 square meters in the first half from a year earlier. Prime rent was unchanged at 38 euros ($48) per square meter.
In Hamburg, new leases sank the most, by 21.4 percent to 205,500 square meters, and rents rose 6.7 percent. In Dusseldorf, prime rents rose the most, by 8.7 percent to 25 euros per square meter.
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