Stay informed – Subscribe to our Newsletter

Our newsletter offers the latest news as well as useful information about Berlin's economy. Receive regular information about new posts on reason-why.berlin.

Office space
09.08.2021

Berlin’s office market is on the rise

Millions of square feet of new office space completed year by year.

Of all European cities, Berlin stands out as the one where the office landscape has changed most significantly in recent years. Every 20 hours a new business is established in Berlin and the office market in Berlin is growing rapidly. Being one of the most dynamic cities in Europe, Berlin also has one of the world’s hottest office markets with exploding demand, especially within the startup sector. Berlin has the highest floor space turnover and lowest vacancy rates in Germany. Just as well that nearly 10 mio. sqft of new office space is due to be completed annually for the next couple of years.

Berlin office market: Spree river bank with office buildings
Spree river bank with office buildings © ArTo - Fotolia.com

Responding to the increased demand 

Entrepreneurs from all over the world are moving to the German capital for its large talent pool, easy access to financing, spirit of innovation, and inimitable way of life. The universities ensure a steady supply of professionals, but it is the capital's abundance of cultural attractions, rich heritage, and thriving club scene that lures in a young, tech-savvy crowd. In turn, this has been a major driver behind international companies’ decisions to locate here.

 This growth has resulted in tens of thousands of new startup jobs, many of which are opportunities for non-German speakers as companies look to expand across the European market. The Berlin startup ecosystem is considered one of Europe’s most dynamic, and the city has a population of 3.7 million that is forecasted to grow to 4 million by 2035, according to the Cologne Institute for Economic Research (IW).

Berlin office market: Berlin's office space is growing rapidly
(c) statista

Given this steady influx of businesses and people, the demand for offices has grown rapidly in recent years. In terms of the rental situation, after extended periods of home office, JLL sees that at the end of 2021 “the market has benefited from rising optimism and the return to the office”. With a vacancy rate at less than 1,9%, the office rental market may be tense, but real estate providers have responded. A total of around 19 million sqft of new office space was completed between 2018 and 2021, and millions sqft more are currently under construction. No other city in Germany can compete with this kind of area increase.

Berlin is increasingly attractive from the point of view of investment, and the recent report „Cities That Work 2021“ by Allianz Real Estate puts the German capital third place in a ranking of 26 European cities. “Berlin is globally interconnected with a rich history and world-class cultural offerings, has leveraged its open values and accessibility to attract international talent and cultivate a growing tech sector,” according to the report. 

The report „Emerging Trends in Real Estate, Europe 2022 – Road to Recovery“ by powerhouse PwC with the Urban Land Institute (ULI) puts Berlin at second place. In that ranking, when it comes to forecasts for investment and development Berlin is even ahead of London. According to PwC, Berlin is particularly attractive for foreign investors, not least due to Germany’s robust economy. More specific benefits include short commuting times to the city center (compared for example to sprawling metropoli such as London or Paris), “an aspect that became particularly important during the pandemic and from which commercial real estate will also benefit”.

Are you looking to locate or relocate in Berlin? Get a comprehensive overview of office locations, commercial estates and development zones in the city free of charge! Read more about Berlin Partner location services.

The growth of Berlin’s sub-markets

Competition for space has led to the development of new and existing sub-markets, as companies are forced further afield to find the right space at the right price for their employees. The rapid transformation seen in areas within and along the S-Bahn city rail ring illustrates the extent of the evolution underway.

The Berlin Business Atlas - including a 2-D map view and a 3-D surface model - makes it easy to find the perfect location. Have a look!

The City-West area has officially made a come-back. Overlooked by investors and renters until relatively recently, there are now a number of projects underway, particularly around the Zoologischer Garten station. One of the most prominent buildings here is the Zoofenster, a tower complex that is home to the glamorous Waldorf-Astoria hotel as well as high-end office and retail companies. On the famous Ku’damm shopping boulevard, Fuerst will occupy an entire city block of nearly 2 m sqft with offices, a theater, kindergarten, shopping, and more. The project is due for completion in 2023.

The area around the shopping strip Friedrichstrasse has drawn major attention from investors and renters, the most obvious sign of which is the prominent GWS Rocket-Tower development which serves as headquarters to Rocket Internet. Not far away, the new OMA-designed Axel Springer campus highlights the burgeoning of this sub-market. 

A stone’s throw from the iconic TV tower at Alexander Platz is the new Alexander Tower, “Berlin’s first residential skyscraper” at almost 500 ft for 35 storeys. At the bottom will be three floors of luxury retail while at the top there’ll be three floors of luxury penthouses, with 377 apartments in between. You can move in in 2023, but hurry, the apartments are being snapped up fast.

Van Caem Projects is developing 1,184,000 sqft of commercial space in eastern Berlin’s Lichtenberg district. Six new buildings, each with 59,000 to 400,000 sqft, are planned for the former site of the Post Office at Buchberger Strasse. In close proximity, 527,000 sqft of sustainable and innovative architecture of the new DSTRCT building is already almost fully leased.

Urbane Mitte fills one of Berlin’s last big gaps in the centre of the city. It links the Mitte, Schöneberg and Kreuzberg districts and forms a connecting bridge between the modern Park am Greisdreieck and the city. Seven buildings between 80 and 300 feet tall are in progress. The site is one of several development areas around Gleisdreieck railway station, where a new part of the city is being built. 

Slightly less trendy, the down-to-earth area around the southern railway station Südkreuz has also been developed. Südkreuz Offices by Hadi Teherani Architects und pbp (prasch buken partner) has residential and business space in this well connected and up-and-coming part of town.

You are an entrepreneur and looking for a suitable location in Berlin? Our real estate portal provides an overview of the commercial real estate and spaces offered by public sector and private owners. 

The city continues to evolve

Berlin’s growth continues to skyrocket. As big-name overseas developers look to secure increasingly larger holdings, more new locations, particularly those convenient to transport hubs, are emerging. 

Alongside investment opportunities, Berlin's culture and the overall quality of life and affordable cost of living play a big role in the city's appeal. The German capital's open attitude and cool image appeal to a young, tech-savvy crowd, as do the relatively low residential rents and comparatively high standard of living. 

With offices being in such high demand, the importance of flexible workspaces and coworking is growing significantly. With over 100 locations, Berlin is Germany’s hub for shared office spaces. See our article on Coworking in Berlin.

If you need support, Berlin Partner is here to help. You can find a load of information on our Business Location Center Berlin website. If you have a specific request or just don't know where to start – please contact:

Text: Melissa Embury, updated by Olaf Bryan Wielk
Header Image: Shridhar Gupta on Unsplash


Would you like to find out more about the economy in Berlin or funding opportunities? Interested in doing business in Berlin?

Contact Berlin Partner, the Economic Development Agency for Berlin. We're happy to help you. Just give us a call.

Our Service Hotline: Mo - Fr 8 am to 6 pm (CEST)
+49 30 46302-222 | Send us an Email

More articles

Next
09.08.2021

Berlin’s office market is on the rise

Millions of square feet of new office space completed year by year.

Of all European cities, Berlin stands out as the one where the office landscape has changed most significantly in recent years. Every 20 hours a new business is established in Berlin and the office market in Berlin is growing rapidly. Being one of the most dynamic cities in Europe, Berlin also has one of the world’s hottest office markets with exploding demand, especially within the startup sector. Berlin has the highest floor space turnover and lowest vacancy rates in Germany. Just as well that nearly 10 mio. sqft of new office space is due to be completed annually for the next couple of years.

Berlin office market: Spree river bank with office buildings
Spree river bank with office buildings © ArTo - Fotolia.com

Responding to the increased demand 

Entrepreneurs from all over the world are moving to the German capital for its large talent pool, easy access to financing, spirit of innovation, and inimitable way of life. The universities ensure a steady supply of professionals, but it is the capital's abundance of cultural attractions, rich heritage, and thriving club scene that lures in a young, tech-savvy crowd. In turn, this has been a major driver behind international companies’ decisions to locate here.

 This growth has resulted in tens of thousands of new startup jobs, many of which are opportunities for non-German speakers as companies look to expand across the European market. The Berlin startup ecosystem is considered one of Europe’s most dynamic, and the city has a population of 3.7 million that is forecasted to grow to 4 million by 2035, according to the Cologne Institute for Economic Research (IW).

Berlin office market: Berlin's office space is growing rapidly
(c) statista

Given this steady influx of businesses and people, the demand for offices has grown rapidly in recent years. In terms of the rental situation, after extended periods of home office, JLL sees that at the end of 2021 “the market has benefited from rising optimism and the return to the office”. With a vacancy rate at less than 1,9%, the office rental market may be tense, but real estate providers have responded. A total of around 19 million sqft of new office space was completed between 2018 and 2021, and millions sqft more are currently under construction. No other city in Germany can compete with this kind of area increase.

Berlin is increasingly attractive from the point of view of investment, and the recent report „Cities That Work 2021“ by Allianz Real Estate puts the German capital third place in a ranking of 26 European cities. “Berlin is globally interconnected with a rich history and world-class cultural offerings, has leveraged its open values and accessibility to attract international talent and cultivate a growing tech sector,” according to the report. 

The report „Emerging Trends in Real Estate, Europe 2022 – Road to Recovery“ by powerhouse PwC with the Urban Land Institute (ULI) puts Berlin at second place. In that ranking, when it comes to forecasts for investment and development Berlin is even ahead of London. According to PwC, Berlin is particularly attractive for foreign investors, not least due to Germany’s robust economy. More specific benefits include short commuting times to the city center (compared for example to sprawling metropoli such as London or Paris), “an aspect that became particularly important during the pandemic and from which commercial real estate will also benefit”.

Are you looking to locate or relocate in Berlin? Get a comprehensive overview of office locations, commercial estates and development zones in the city free of charge! Read more about Berlin Partner location services.

The growth of Berlin’s sub-markets

Competition for space has led to the development of new and existing sub-markets, as companies are forced further afield to find the right space at the right price for their employees. The rapid transformation seen in areas within and along the S-Bahn city rail ring illustrates the extent of the evolution underway.

The Berlin Business Atlas - including a 2-D map view and a 3-D surface model - makes it easy to find the perfect location. Have a look!

The City-West area has officially made a come-back. Overlooked by investors and renters until relatively recently, there are now a number of projects underway, particularly around the Zoologischer Garten station. One of the most prominent buildings here is the Zoofenster, a tower complex that is home to the glamorous Waldorf-Astoria hotel as well as high-end office and retail companies. On the famous Ku’damm shopping boulevard, Fuerst will occupy an entire city block of nearly 2 m sqft with offices, a theater, kindergarten, shopping, and more. The project is due for completion in 2023.

The area around the shopping strip Friedrichstrasse has drawn major attention from investors and renters, the most obvious sign of which is the prominent GWS Rocket-Tower development which serves as headquarters to Rocket Internet. Not far away, the new OMA-designed Axel Springer campus highlights the burgeoning of this sub-market. 

A stone’s throw from the iconic TV tower at Alexander Platz is the new Alexander Tower, “Berlin’s first residential skyscraper” at almost 500 ft for 35 storeys. At the bottom will be three floors of luxury retail while at the top there’ll be three floors of luxury penthouses, with 377 apartments in between. You can move in in 2023, but hurry, the apartments are being snapped up fast.

Van Caem Projects is developing 1,184,000 sqft of commercial space in eastern Berlin’s Lichtenberg district. Six new buildings, each with 59,000 to 400,000 sqft, are planned for the former site of the Post Office at Buchberger Strasse. In close proximity, 527,000 sqft of sustainable and innovative architecture of the new DSTRCT building is already almost fully leased.

Urbane Mitte fills one of Berlin’s last big gaps in the centre of the city. It links the Mitte, Schöneberg and Kreuzberg districts and forms a connecting bridge between the modern Park am Greisdreieck and the city. Seven buildings between 80 and 300 feet tall are in progress. The site is one of several development areas around Gleisdreieck railway station, where a new part of the city is being built. 

Slightly less trendy, the down-to-earth area around the southern railway station Südkreuz has also been developed. Südkreuz Offices by Hadi Teherani Architects und pbp (prasch buken partner) has residential and business space in this well connected and up-and-coming part of town.

You are an entrepreneur and looking for a suitable location in Berlin? Our real estate portal provides an overview of the commercial real estate and spaces offered by public sector and private owners. 

The city continues to evolve

Berlin’s growth continues to skyrocket. As big-name overseas developers look to secure increasingly larger holdings, more new locations, particularly those convenient to transport hubs, are emerging. 

Alongside investment opportunities, Berlin's culture and the overall quality of life and affordable cost of living play a big role in the city's appeal. The German capital's open attitude and cool image appeal to a young, tech-savvy crowd, as do the relatively low residential rents and comparatively high standard of living. 

With offices being in such high demand, the importance of flexible workspaces and coworking is growing significantly. With over 100 locations, Berlin is Germany’s hub for shared office spaces. See our article on Coworking in Berlin.

If you need support, Berlin Partner is here to help. You can find a load of information on our Business Location Center Berlin website. If you have a specific request or just don't know where to start – please contact:

Text: Melissa Embury, updated by Olaf Bryan Wielk
Header Image: Shridhar Gupta on Unsplash


Would you like to find out more about the economy in Berlin or funding opportunities? Interested in doing business in Berlin?

Contact Berlin Partner, the Economic Development Agency for Berlin. We're happy to help you. Just give us a call.

Our Service Hotline: Mo - Fr 8 am to 6 pm (CEST)
+49 30 46302-222 | Send us an Email

09.08.2021

Berlin’s office market is on the rise

Millions of square feet of new office space completed year by year.

Of all European cities, Berlin stands out as the one where the office landscape has changed most significantly in recent years. Every 20 hours a new business is established in Berlin and the office market in Berlin is growing rapidly. Being one of the most dynamic cities in Europe, Berlin also has one of the world’s hottest office markets with exploding demand, especially within the startup sector. Berlin has the highest floor space turnover and lowest vacancy rates in Germany. Just as well that nearly 10 mio. sqft of new office space is due to be completed annually for the next couple of years.

Berlin office market: Spree river bank with office buildings
Spree river bank with office buildings © ArTo - Fotolia.com

Responding to the increased demand 

Entrepreneurs from all over the world are moving to the German capital for its large talent pool, easy access to financing, spirit of innovation, and inimitable way of life. The universities ensure a steady supply of professionals, but it is the capital's abundance of cultural attractions, rich heritage, and thriving club scene that lures in a young, tech-savvy crowd. In turn, this has been a major driver behind international companies’ decisions to locate here.

 This growth has resulted in tens of thousands of new startup jobs, many of which are opportunities for non-German speakers as companies look to expand across the European market. The Berlin startup ecosystem is considered one of Europe’s most dynamic, and the city has a population of 3.7 million that is forecasted to grow to 4 million by 2035, according to the Cologne Institute for Economic Research (IW).

Berlin office market: Berlin's office space is growing rapidly
(c) statista

Given this steady influx of businesses and people, the demand for offices has grown rapidly in recent years. In terms of the rental situation, after extended periods of home office, JLL sees that at the end of 2021 “the market has benefited from rising optimism and the return to the office”. With a vacancy rate at less than 1,9%, the office rental market may be tense, but real estate providers have responded. A total of around 19 million sqft of new office space was completed between 2018 and 2021, and millions sqft more are currently under construction. No other city in Germany can compete with this kind of area increase.

Berlin is increasingly attractive from the point of view of investment, and the recent report „Cities That Work 2021“ by Allianz Real Estate puts the German capital third place in a ranking of 26 European cities. “Berlin is globally interconnected with a rich history and world-class cultural offerings, has leveraged its open values and accessibility to attract international talent and cultivate a growing tech sector,” according to the report. 

The report „Emerging Trends in Real Estate, Europe 2022 – Road to Recovery“ by powerhouse PwC with the Urban Land Institute (ULI) puts Berlin at second place. In that ranking, when it comes to forecasts for investment and development Berlin is even ahead of London. According to PwC, Berlin is particularly attractive for foreign investors, not least due to Germany’s robust economy. More specific benefits include short commuting times to the city center (compared for example to sprawling metropoli such as London or Paris), “an aspect that became particularly important during the pandemic and from which commercial real estate will also benefit”.

Are you looking to locate or relocate in Berlin? Get a comprehensive overview of office locations, commercial estates and development zones in the city free of charge! Read more about Berlin Partner location services.

The growth of Berlin’s sub-markets

Competition for space has led to the development of new and existing sub-markets, as companies are forced further afield to find the right space at the right price for their employees. The rapid transformation seen in areas within and along the S-Bahn city rail ring illustrates the extent of the evolution underway.

The Berlin Business Atlas - including a 2-D map view and a 3-D surface model - makes it easy to find the perfect location. Have a look!

The City-West area has officially made a come-back. Overlooked by investors and renters until relatively recently, there are now a number of projects underway, particularly around the Zoologischer Garten station. One of the most prominent buildings here is the Zoofenster, a tower complex that is home to the glamorous Waldorf-Astoria hotel as well as high-end office and retail companies. On the famous Ku’damm shopping boulevard, Fuerst will occupy an entire city block of nearly 2 m sqft with offices, a theater, kindergarten, shopping, and more. The project is due for completion in 2023.

The area around the shopping strip Friedrichstrasse has drawn major attention from investors and renters, the most obvious sign of which is the prominent GWS Rocket-Tower development which serves as headquarters to Rocket Internet. Not far away, the new OMA-designed Axel Springer campus highlights the burgeoning of this sub-market. 

A stone’s throw from the iconic TV tower at Alexander Platz is the new Alexander Tower, “Berlin’s first residential skyscraper” at almost 500 ft for 35 storeys. At the bottom will be three floors of luxury retail while at the top there’ll be three floors of luxury penthouses, with 377 apartments in between. You can move in in 2023, but hurry, the apartments are being snapped up fast.

Van Caem Projects is developing 1,184,000 sqft of commercial space in eastern Berlin’s Lichtenberg district. Six new buildings, each with 59,000 to 400,000 sqft, are planned for the former site of the Post Office at Buchberger Strasse. In close proximity, 527,000 sqft of sustainable and innovative architecture of the new DSTRCT building is already almost fully leased.

Urbane Mitte fills one of Berlin’s last big gaps in the centre of the city. It links the Mitte, Schöneberg and Kreuzberg districts and forms a connecting bridge between the modern Park am Greisdreieck and the city. Seven buildings between 80 and 300 feet tall are in progress. The site is one of several development areas around Gleisdreieck railway station, where a new part of the city is being built. 

Slightly less trendy, the down-to-earth area around the southern railway station Südkreuz has also been developed. Südkreuz Offices by Hadi Teherani Architects und pbp (prasch buken partner) has residential and business space in this well connected and up-and-coming part of town.

You are an entrepreneur and looking for a suitable location in Berlin? Our real estate portal provides an overview of the commercial real estate and spaces offered by public sector and private owners. 

The city continues to evolve

Berlin’s growth continues to skyrocket. As big-name overseas developers look to secure increasingly larger holdings, more new locations, particularly those convenient to transport hubs, are emerging. 

Alongside investment opportunities, Berlin's culture and the overall quality of life and affordable cost of living play a big role in the city's appeal. The German capital's open attitude and cool image appeal to a young, tech-savvy crowd, as do the relatively low residential rents and comparatively high standard of living. 

With offices being in such high demand, the importance of flexible workspaces and coworking is growing significantly. With over 100 locations, Berlin is Germany’s hub for shared office spaces. See our article on Coworking in Berlin.

If you need support, Berlin Partner is here to help. You can find a load of information on our Business Location Center Berlin website. If you have a specific request or just don't know where to start – please contact:

Text: Melissa Embury, updated by Olaf Bryan Wielk
Header Image: Shridhar Gupta on Unsplash


Would you like to find out more about the economy in Berlin or funding opportunities? Interested in doing business in Berlin?

Contact Berlin Partner, the Economic Development Agency for Berlin. We're happy to help you. Just give us a call.

Our Service Hotline: Mo - Fr 8 am to 6 pm (CEST)
+49 30 46302-222 | Send us an Email

Why should you start a business in Berlin?

Welcome to Berlin – the vibrant city in the heart of Europe! Berlin attracts businesses and startups from every sector. Science, research, and creative industries also love Berlin. True innovators enjoy living and working in Berlin, as the conditions for setting up a company in the city are outstanding.

Infrastructure

Berlin offers the ideal infrastructure for setting up a company. The city’s new international airport makes Berlin quicker and easier to reach than ever from all over Europe and the world. Berlin’s public transport network is extensive and excellent. Office space is plentiful and rents are still lower than in most European capitals. And if you just want to test the waters, few cities have as many co-working spaces as Berlin.

>> Berlin – Heart of Europe

Innovative Industries

In Berlin, you can join networks and discover businesses in all the key innovative industries, including high tech, healthcare, life sciences, service economy, mobility, and logistics. There is also plenty of potential for rewarding and conducive partnerships with research facilities and other institutions and organisations in Berlin.

>> Doing Business in Berlin

Starting Out and Scaling Up

Feel the spirit of entrepreneurship in Berlin! Berlin startups such as Zalando, DaWanda, and ImmobilienScout24 are major influencers in the German market, and venture builders like Rocket Internet and Project A are also located in Berlin. Accelerators and incubators exist at every level and for almost any sector.

>> Starting up in Berlin

Research & Science

Berlin is the capital for researchers and scientists in Europe. You’ll find research on the hottest topics in fields like bio technology, medicine, communication technology, photonics, mobility and transport, and more, carried out by top-level experts at universities and institutions of world renown.

>> Brain City Berlin

Living in Berlin

Finally, the large pool of highly skilled specialists from all over the world is a key reason to locate a company in Berlin. Thanks to the relatively low cost of living and vibrant cultural scenes, Berlin attracts many highly talented people – which directly benefits businesses in the city.

>> Life in Berlin

A growing German economy – good for entrepreneurs and investors

GDP growth is high and unemployment is low. A large market with consumers who like to spend. It's a great time for investments and market entry in Germany. Reason-Why.Berlin offers useful information on the German economy and various aspects of building business in Berlin.