Office Market Remains Vital Even in Crisis

Current and regional market data are rare for real estate investors, especially regarding the office market. The newly developed office market indicator (BIBIX) of the IW Köln will remedy this drawback.

Using unemployment statistics and data on vacancies for office employees the indicator estimates the demand for office space which is primarily determined by the number of office users. Since changes in office demand have effects on rental revenues and vacancy rates the BIBIX is also an early indicator for the performance of office investments. First results for the BIBIX suggest that office demand has recently been declining. Especially in Düsseldorf and Frankfurt am Main the financial crisis seems to have left its marks. On the other hand, in Cologne and Berlin office employment has hardly deteriorated since June 2008. In comparison to the long-term average, the employment situation in the office sector is still vital in all major cities. Monthly results can be found at www.immobilienoekonomik.de.