Prime retail rents in Berlin have started to rise but only slowly and only in the top prime pitch areas of Tauentzienstrasse and Kurfürstendamm.
Local agent Kemper reports a new top rent of DM380 per m2 a month in the Tauentzienstrasse. This amounts to a 0.8% rise during the year which is largely driven by demand from foreign retailers. Average rents in this area are DM300 to DM350 per m2 a month, held back only by a lack of space to accommodate new retailers.
Berlin remains one of the most sought after cities in Germany by international retailers and rents are the highest in the country apart from Munich.
UK fashion chain Laura Ashley was just one of the international names which wanted space in a new property at Kurfürstendamm, but which were turned down by the landlord in favour of a single tenant. C&A will move from a secondary location into the property in 2001. Laura Ashley has settled for space nearby in Kurfürstendamm.
Rents still drop sharply off-prime pitch. Till Martin Lemm, senior retail agent, of Healey & Baker says smaller retail units command rents of DM100 to 150 per m2 plus a turnover top up. In the East of the city, rents remain much lower with Friedrichstrasse commanding a top rent of DM 280 per m2. Overall, Kemper reckons retail rents in this part of the city are falling at around 5.8% pa.
