With Brexit on the horizon, Frankfurt’s office market breaks records

Large commercial deals pushed 2018 transaction volume to €10.4B

National /
Jan.January 12, 2019 01:00 PM

(Credit: iStock)

Ever since the Brexit referendum, Germany’s financial capital has been positioning itself to receive an influx of London bankers. With just months to go until the split is official, those ambitions have pushed Frankfurt’s commercial real estate market to record heights.

Frankfurt-based state-owned bank Helaba predicts that as many as 25 banks, including Goldman Sachs, Citi, JPMorgan and Barclays, will move operations and staff from London to Frankfurt, reported the Financial Times. In the long term, the number of staff employed by foreign banks is predicted to grow from 2,000 to as much as 8,000.

According to data from BNP Paribas Real Estate, Frankfurt saw a total of €10.4 billion in commercial real estate transactions last year, an all-time high and a 36 percent increase from 2017.

Major deals by professional investors drove much of this growth, with several large office towers changing hands. Two-thirds of the deals involved transactions of at least €100 million. At the same time, however, rising real estate prices have put downward pressure on returns. The average yield for office space in Frankfurt fell below 3 percent for the first time ever in the last quarter of 2018.

The United Kingdom’s exit from the European Union is scheduled for March 29. [FT] — Kevin Sun


Related Articles

arrow_forward_ios
1 North Moore (Google Maps, StreetEasy)
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Tribeca penthouse rents for $85K per month, possibly setting NYC record
Hudson Yards (Getty, iStock)
City’s bet on Hudson Yards beginning to pay off
City’s bet on Hudson Yards beginning to pay off
VTS CEO Nick Romito and Lane Technologies CEO Clinton Robinson 
VTS to buy office-app developer for $200M
VTS to buy office-app developer for $200M
From left: Marisa Lago, Anita Laremont and Mayor Bill de Blasio (LinkedIn, Getty, Wikimedia)
Politics, City Planning on collision course
Politics, City Planning on collision course
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Two of the eleven properties under threat of foreclosure (Google Maps)
Mack Real Estate may “strip” club owner of properties
Mack Real Estate may “strip” club owner of properties
270 W Montauk Hwy, Hampton Bays, NY (Loopnet)
Legendary Hampton Bays bar up for sale
Legendary Hampton Bays bar up for sale
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...