Guest contribution by Dirk Ruppert in REFIRE: Redevelopments in Germany's top city centres

In view of subdued economic growth and the trend towards hybrid working, vacancy rates are rising in many office markets. At the same time, prime rents in Germany's seven largest city centres remain stable and are even continuing to rise: both tenants and investors are increasingly focusing on high-quality space in central locations.

In a recent article for REFIRE magazine, CIO Dirk Ruppert analyses the market changes and identifies clear signals for a realignment, combined with attractive opportunities for investors who think long term.

"The strategy is to acquire older, disused buildings in prime city centre locations and convert them into state-of-the-art offices that meet today's tenant expectations. This can hit a sweet spot on the risk-return spectrum."

In addition, sustainability and location have established themselves as decisive prerequisites for long-term market success: demand for ESG-compliant offices in prime locations already exceeds supply. At the same time, attractive prime yields enable favourable entry prices.