Anyone looking to invest in or develop office or mixed-use properties in Germany will probably consider the usual suspects: the classic top seven cities. But even in this select group, it is worth separating the wheat from the chaff. With their unique urban dynamics, international flair and high quality of life, Berlin and Munich are the clear winners for many companies, from multinationals to innovative tech companies and up-and-coming start-ups. These same qualities also make them a magnet for young professionals from all over the world. As a result, the two cities face a specialized demand which they are sure to meet with their outstanding potential.
Three reasons speak for the metropolises on the Spree and Isar:
1. The economic factor:
Magnets for talents and businesses
Berlin and Munich both boast a unique ecosystem of innovation and science thanks to countless educational and research institutions and companies from future-oriented industries. This makes them particularly strong magnets for new business establishments and ensure a steady influx of young talent and junior staff.
While Munich has the highest concentration of blue-chip companies in Germany, Berlin is the epicentre of the republic for start-ups and emerging young companies in the digital economy. In addition, Munich’s “Isar Valley” is the most important industrial tech hub in the country.
It is hardly surprising that both cities offer more jobs in the fields of information and communication technology, but also mathematics, computer science, natural sciences and technology than the seven cities do on average.
Consequently, the surplus demand for modern office space that meets the new work requirements of technology, information and communication companies is high: Vacancy rates are below the average of competitors with 2.4 per cent in Berlin and 3.0 per cent in Munich.
2. The sustainability factor:
Demand for green office space
Green office properties are in particularly high demand in Berlin and Munich due to the cities’ economic structure. Start-ups or young and dynamic companies, for example, attract above all new employees that belong to generations Y and Z. For the latter, sustainability is intrinsically important and their choice of workplace reflects this.
A survey by the personnel marketing group Königsteiner shows that around two thirds of the employees surveyed pay close attention to a company’s attitude to climate protection when looking for a job. This also includes checking out the ecological and social quality of the office space.
In the competition for young talent, sustainable, climate-neutral office spaces increasingly give companies an important competitive edge. Multinational listed companies meanwhile increasingly look for sustainable office spaces due to their reporting obligations and regulatory requirements. For them, this is not only a question of reputation and cost, but also an increasingly important factor in attracting investors. Focused as we are on the sustainable design of office properties, it is our aim to drive such green refurbishments and help corporate tenants achieve their climate goals.
3. The cultural factor:
‘Berlin air’ and Italy’s northernmost city
Munich and Berlin each offer a unique way of life and a superlative cultural life that is on a par with that of international metropolises.
Our own employees are the best proof of this. Find out here why they chose to live in Berlin and Munich.
“In just 45 minutes, I’m in the Alps. There are crystal-clear lakes just outside of the city. Even Italy and the Mediterranean are not too far away. I appreciate the contrast: on the one hand, tradition and Bavarian customs with the “da bin i dahoam” feeling. And on the other hand, the high-tech location with start-ups and LMU and TU, both universities of excellence”
“Berlin feels like ten cities in one – and Berlin is the only real metropolis in Germany that can compete with cities like NYC. There are interesting people here, especially from the tech and creative industries – the boundaries are fluid. I feel inspired here. Everything is possible.“
“As a Munich native, I feel our federal state’s capital has a strong community, unlike other cities. Munich is also innovative, forward-looking and constantly growing. I appreciate the high quality of life and the feeling of being secure in the city, simply being dahoam.”
“Berlin is straightforward, direct and often a mixture of mocking and smug, not to mention rakish. It takes some getting used to, but I can't imagine life without it.
I feel free here. I appreciate the spontaneity and flexibility of the people very much.“