Approx 14% office take-up in H1 2010 was “green”

According to international real estate advisor Savills, green buildings are becoming increasingly important in the five major German office markets Berlin, Düsseldorf, Frankfurt, Hamburg and Munich. Throughout the first half of 2010 leases totalling approximately 144,000 sq m were concluded on green buildings in the five cities, equating to a share of 14% of the total letting volume transacted. In comparison 2009 data shows circa 162,000 sq m of offices were let in green buildings representing 8% of total take-up. “These figures demonstrate that green buildings are becoming established in the German office markets”, comments Robert Kellershohn, director of office agency at Savills Germany.

The data indicates major differences between the cities. Green buildings are already playing a major role in Düsseldorf and Frankfurt representing 50% of the green market and 10% of total take-up during H1, in comparison Berlin did not record a green letting. Savills suggests this is primarily due to the high volume of office completions in Düsseldorf and Frankfurt, in contrast the availability of green buildings in Berlin is low. However, the Berlin office market is placing increasing importance on green buildings - Total’s new headquarters, which is currently under negotiation, will receive a LEED certificate.

Christian Leska, director of office agency at Savills Berlin, says: “Companies seeking new office accommodation are paying increasing attention to the sustainability of a building. This is particularly relevant with large office requirements, where the green building certificate is a must”.

Savills predicts that the share of green building lettings will continue to rise significantly, and that occupiers will put pressure on investors to obtain certification for development schemes in order to improve the relet opportunities of the properties. In addition, refurbishments are increasingly focused on the sustainability aspect for example Frankfurt’s Triton building (approx. 28,000 sqm) recently purchased by Allianz, and the Silver Tower (approx. 72,000 sqm) in the banking district let to Deutsche Bahn in 2009.

Letting transactions in Green Buildings and share of total take-up (exclusive of owner occupiers).

Editor’s Note:

The above analysis was undertaken on the basis of data provided on lettings in buildings certified or pre-certified according to DGNB or LEED standard. Lettings in buildings for which investors or owners aim to achieve such environmental certification are also reflected.