Office space
04.07.2019

Berlin’s office market is on the rise

19 million square feet to be finished in 2021

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. In 2017 and 2018, it was under significant pressure with squeezed supply and exploding demand, especially within the startup sector. 

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’s the capital's abundance of cultural attractions, rich heritage, and thriving club scene that truly lures in a young, tech-savvy crowd. In turn, this has been a major driver behind international companies’ decisions to locate here.

 A study by McKinsey&Company predicts this growth to result in 100,000 tech startup jobs by 2020, many of which will be opportunities for non-German speakers as companies look to expand across the European market. The Berlin ecosystem is considered one of Europe’s most dynamic cities, with 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

You can download this infographic from the Statista website and embed it on your sites. 

Given this steady influx of businesses and people, the demand for offices has grown rapidly in recent years. With a vacancy rate at less than 1,9%, the office rental market is tense, but real estate providers have responded. More than 4 million sqft of new office space is currently under construction - around twice as much new office space as in previous years. In 2020 this will increase to almost four times as much and, by 2021, a total of around 19 million sqft will be finished. No other city in Germany can compete with this kind of area increase.

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 submarkets, 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 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. Friedrichstrasse has drawn major attention from investors and renters, the most obvious sign of which is the prominent Rocket-Tower development which serves as headquarters to Rocket Internet. The new OMA-designed Axel Springer campus construction points to a bright future for this submarket.

Van Caem Projects plans to develop 118,4000 sqft of commercial space in 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. The new DSTRCT building is going up in close proximity and will have 527,000 sqft of sustainable and innovative architectural mobility.

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 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.

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 and, 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 importantly cost of living play a big role in the city's appeal. With the UK possibly losing tech talent to Brexit, friendlier locales like Berlin appear even more attractive to adventurous entrepreneurs. The capital's open attitude and cool image appeal to a young, tech-savvy crowd, along with the relatively low residential rents and affordable cost 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 or - if you have a special request or don't know where to start - please contact

Text: Melissa Embury


Header Image: Shridhar Gupta on Unsplash

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04.07.2019

Berlin’s office market is on the rise

19 million square feet to be finished in 2021

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. In 2017 and 2018, it was under significant pressure with squeezed supply and exploding demand, especially within the startup sector. 

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’s the capital's abundance of cultural attractions, rich heritage, and thriving club scene that truly lures in a young, tech-savvy crowd. In turn, this has been a major driver behind international companies’ decisions to locate here.

 A study by McKinsey&Company predicts this growth to result in 100,000 tech startup jobs by 2020, many of which will be opportunities for non-German speakers as companies look to expand across the European market. The Berlin ecosystem is considered one of Europe’s most dynamic cities, with 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

You can download this infographic from the Statista website and embed it on your sites. 

Given this steady influx of businesses and people, the demand for offices has grown rapidly in recent years. With a vacancy rate at less than 1,9%, the office rental market is tense, but real estate providers have responded. More than 4 million sqft of new office space is currently under construction - around twice as much new office space as in previous years. In 2020 this will increase to almost four times as much and, by 2021, a total of around 19 million sqft will be finished. No other city in Germany can compete with this kind of area increase.

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 submarkets, 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 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. Friedrichstrasse has drawn major attention from investors and renters, the most obvious sign of which is the prominent Rocket-Tower development which serves as headquarters to Rocket Internet. The new OMA-designed Axel Springer campus construction points to a bright future for this submarket.

Van Caem Projects plans to develop 118,4000 sqft of commercial space in 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. The new DSTRCT building is going up in close proximity and will have 527,000 sqft of sustainable and innovative architectural mobility.

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 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.

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 and, 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 importantly cost of living play a big role in the city's appeal. With the UK possibly losing tech talent to Brexit, friendlier locales like Berlin appear even more attractive to adventurous entrepreneurs. The capital's open attitude and cool image appeal to a young, tech-savvy crowd, along with the relatively low residential rents and affordable cost 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 or - if you have a special request or don't know where to start - please contact

Text: Melissa Embury


Header Image: Shridhar Gupta on Unsplash

Why should you start a business in Berlin?

Welcome to Berlin – the buzzing city at the heart of Europe! Berlin attracts businesses and startups from every industry. Science, research, and creative industries also love Berlin. True innovators love 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 airports make it quick and easy to reach from all over Europe, and its public transport network is extensive. Office space is also plentiful. Few cities have as many co-working spaces as Berlin. Although rents are rising, they are still lower than in most other European capitals.

>> Berlin - Heart of Europe

Innovative industries

In Berlin, you can build a network and discover businesses in all the key innovative industries, including high tech, healthcare, life sciences, service economy, mobility, and logistics. Berlin startups such as Zalando, DaWanda, and ImmobilienScout24 are influencers in the German market, and venture builders like Rocket Internet and Project A are also located in Berlin. There is potential for fruitful partnerships with research facilities and other companies in Berlin. Feel the spirit of entrepreneurship in Berlin!

>> Doing Business in Berlin

Research & sciences

Berlin is the main capital for researchers and scientists in Europe. You’ll find research on the hot topics in fields like bio technology, medicine, communication technology, mobility and transport and more.

>> Brain City Berlin - research & science in Berlin

Living in Berlin

Finally, the large pool of highly skilled specialists from all over the world is a key reason to start up a company in Berlin. Thanks to its relatively low cost of living and vibrant cultural life, Berlin attracts many highly talented people, which also benefits businesses located in the city.

>> Living in Berlin

A growing German economy – good times for entrepreneurs and investors

The GDP is rising and unemployment is low. Consumers are spending more. It's a great time for investments and market entry in Germany. Reason-Why.Berlin offers useful background information on the German economy.