Study Office Investments in Secondary Locations
For Demire, we examined 35 secondary locations across Germany. Medium-sized economic structures make office markets more stable - one reason why markets in smaller cities are less susceptible to economic fluctuations. Compared to A-cities, they also have a higher yield potential.
When considering the German market for office properties, attention is mostly focused on the seven well-known A-locations of Berlin, Hamburg, Frankfurt, Munich, Cologne, Düsseldorf and Stuttgart. However, Germany is characterised by a decentralised economic structure with relevant secondary locations. The office locations there, however, have received rather less attention so far. In the study, DEMIRE and bulwiengesa explore the question of how secondary locations have reacted to the corona pandemic compared to A-locations and what prospects may arise for the future of these investment markets. The study examines a total of 35 locations. In addition to smaller communities such as Aschheim in Upper Bavaria, major cities such as Leipzig and Dortmund are also included in the analysis.
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