Alstria sells office tower in Berlin-Reinickendorf - loss of billions!

Alstria sells office tower in Berlin-Reinickendorf - loss of billions!

Alstria, a prominent real estate company, recently sold an office building in Berlin-Reinickendorf. The sales price of 8.3 million euros is almost 3 million euros below the price Alstria paid for the building at Maxstrasse 3a in 2019. This sale highlights the challenges Alstria is currently facing, particularly given the increasing vacancy rate in its Berlin portfolio. According to IZ, Alstria is struggling with an increasing vacancy rate, which is particularly worrying given current market conditions.

The general situation on the Berlin office space market shows that the vacancy rate is expected to rise to 7.2% by the end of 2023. This development is supported in part by numerous new buildings and the adaptation of companies to hybrid working models. However, in central locations such as Potsdamer Platz and Friedrichstrasse, the vacancy rate for high-quality office space remains low, while peripheral locations suffer more from vacancies, reports Office Space Berlin.

Market dynamics and price development

In 2024, the Berlin office market showed signs of stabilization, with take-up of around 577,000 m², an increase of 9% compared to the previous year. The traction of the public sector, which holds a market share of almost 25%, plays a crucial role. The average rent in Berlin remains stable at €28.70/m², while prime rents even rise to up to €45.30/m², which corresponds to an increase of 4% compared to 2023, as SRE Berlin reports.

Demand for office space is stable despite the increase in the vacancy rate. Smaller and flexible office spaces in central locations are particularly in demand. There is an increasing demand for areas that meet economic and ecological requirements and are sustainably designed. Tenants value flexible floor plans and modern technical equipment, which also affects rent pricing.

Outlook for 2025

For 2025, experts expect a balanced market forecast, with stable rental prices and growing demand for high-quality office space. The supply of office space will increase significantly due to speculative new construction, while the pipeline of new projects could decline after 2025. This means that the vacancy rate could stabilize. However, companies must find suitable space in order to survive in the dynamic working world. Tenants are showing high demand for ESG-compliant office space in particular, which will have a significant impact on leasing strategies in the coming years.