As of now, up to 700 employees can start working in the Marienturm, more than twice as many as would have been available in the previous domicile, the Frankfurt MesseTurm. Whole teams of London bankers have already moved to Frankfurt, but the big boom is still a long way off. Because there is still uncertainty.
Instead of the Brexit, noticeable new leases have recently taken place in Frankfurt, especially through new coworking centers. Coworking providers rent office space in various sizes with short terms, so that companies can rent as flexibly as possible. However, these rentals mainly take place in new office buildings.
In comparison to the 7 largest cities in Germany, Frankfurt still has the highest percentage of vacancies in office space, as it has for many years. This vacancy rate has decreased in recent years, but is primarily due to the demolition of outdated office properties and the replacement of office buildings with residential properties.
According to the Financial Centre Study conducted by the Hessische Landesbank (Helaba) in October 2019, 31 foreign banks from 14 different countries have chosen Frankfurt as their new location. Helaba economists expect around 3,500 jobs to be created by Brexit in the main metropolis by the end of 2021. Dr. Mitropoulus participated in the Financial Centre Study and comments:
Regardless of the Brexit, numerous major banks are facing job changes in Frankfurt. Despite the Brexit bankers, the number of bank employees in Frankfurt will only increase by a total of about one percent compared to the end of 2018 by the end of 2021 – namely by around 600 to 64,500 bankers (according to the Helaba Financial Centre Study).
Experts attribute the less pronounced Brexit signals in the Frankfurt office property market to the fact that the UK’s exit date from the European Union has long been unclear for a long time. However, Great Britain left the EU on February 1, 2020. In any case, the real estate industry is equipped with the corresponding space to accommodate Brexit bankers and related activities.
Brexit or not: The Frankfurt city region has developed into the German economic capital in the recent decades. Frankfurt’s success is based on its central location within Germany and the EU, which cannot be copied. People come to Frankfurt very quickly and from here in all areas of the whole world. The location is also the reason why Frankfurt has become the most powerful Internet hub in the world today: from here, the large amounts of data are distributed.
Unfortunately, politics at the state and federal levels have largely disregarded this development in recent decades. Most of the beneficiaries of the “Hub Frankfurt” do not live there directly. Frankfurt today has metropolitan status, but has so far been insufficiently promoted by parties due to its actual population: SPD, CDU and Greens differ little on this point.
But at least the private sector is investing: the construction activity in office buildings that has existed for years and will continue. There will also be numerous new high-rise buildings, including speculatively constructed office towers such as the 190-meter tall skyscraper ONE, Global Tower, and the FOUR Frankfurt project in the Financial District. Frankfurt will therefore be prepared for an increasing demand for high-quality office space in the city center.