Düsseldorf's bureaucracy: Highest vacancy for years!

Düsseldorf's bureaucracy: Highest vacancy for years!

in Düsseldorf, one of the central economic nodes in Germany, is an important construction project. The property owner, the Hamburg development company Quantum, plans to convert the area at the Hofgarten, which extends between Jägerhofstrasse and Gartenstraße. Two buildings are to be revitalized on almost 5000 square meters, which served as the headquarters of a private bank for decades. The upheaval came when the financial institution moved out of the location during the Corona pandemic, which resulted in a vacancy that continues to this day. Despite initial plans for a larger office complex, the project failed, and the property was sold under new signs, such as rp-online.de reported.

The situation in Düsseldorf's office property market is complex. According to a statista analysis, the vacancies of office space in the city have increased in recent years. The rate was in 2024 in alarming 10%, which Düsseldorf's rank further confirmed in the list of cities with the highest vacancies. Düsseldorf is behind Frankfurt, where the quota is 11%. This development is particularly remarkable in the context of a stagnating market that feeds from a decline in area sales, which fell 4% in the 127 largest German office markets. This decline is largely due to the pandemic, which has fundamentally changed the work environment states Statista firmly .

challenges in the real estate market

The market for office properties, which is a key area for the economy, has experienced numerous challenges in recent years. The demographic change, the shortage of skilled workers and the continuous increase in home office workstations have influenced the demand for office space. At the same time, there is a significant need for renovation that estimates between 160 and 200 billion euros in so-called A cities. The need for targeted support programs for conversion and renovation leads to open questions about the future of objects such as those at the Hofgarten reports the Zia .

In addition, the top returns for office properties in 2024 increased, with A cities a profitability of 4.5% (+40 basis compared to 2023). For Düsseldorf, as a B-City, this is 5.1%, which shows a moderate dynamic despite the market adjustments. The development of rental prices also reflects the shifts in the market: in the A-cities, the average top rents rose from 40.30 to EUR 42.50 per square meter.

The need to use office space efficiently and adapt to modern standards will continue to play a crucial role in the future. In urban areas in particular, a balance between the revitalization of old structures and the creation of contemporary work environments must be found. The example of Düsseldorf illustrates these conflicts and opportunities, while the construction project at the Hofgarten should begin soon - should it be implemented successfully.