Overall vacant floor space rose to end-November to around 9.78million square meters from 9.43 million at the end of 2008, takingthe vacancy rate up to 9.3% from 9.0%, with prime rents fallingsome 8% to €23.20 per square meter on average. In the seven largestcities - Berlin, Dsseldorf, Frankfurt, Hamburg, Cologne, Munich,Stuttgart – letting activity fell to 2.3m sq.m., and was 29% below2008. The most active office market in the nation was, as in prioryears, the Bavarian capital of Munich with around 225,000 squaremeters leased. Dsseldorf saw the largest volume drop, down 47%,while Stuttgart, down 5%, was the only city to almost holdstable.

Looking forward, DIP said many companies this year remainuncertain and are unlikely to expand requirements short term. Theconsequence will be short-term contract extensions in propertystock, and delays in new large-space commitments. DIP, founded in1988, is the largest brokerage partnership in Germany and includesAengevelt, Arnold Hertz, Ellwanger & Geiger, BUM Immobilien,Frst Immobilien, KSK-Immobilien, Robert C. Spies, SpiegelfeldInternational and TLG Immobilien.

AllanSaundersonis a managing editor of Property FinanceEurope and a contributor to GlobeSt.com.

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