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German Office Report - 2023

10/03/23
It is generally acknowledged that office markets are comparatively sensitive to economic cycles and that demand for office space is correspondingly strongly influenced by the overall economic situation and especially job creation. At the same time, as is the case for the real estate market as a whole, adjustments take place with a time lag and an economic downturn can rarely be read off directly from real estate fundamentals. Rather, these are "creeping" processes that often first make themselves felt in the form of reduced sales speeds both in leasing and in the transaction business. Even though 2022 closed with slightly positive economic growth and forecasts for the current year are cautiously optimistic, concerns about a recession have not disappeared. But what would a recession mean for the German office property market?

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