SEB Asset Management Signs Three Leases For Office Properties
News: Germany-based SEB Asset Management has signed three lease agreements for office properties in the German cities of Berlin, Mannheim and Cologne. The first transaction involves a long-term lease for 1,017 square metres (sq m) of office space with Jobcenter Berlin Tempelhof-Schönberg for an office building at Alarichstrasse 12-17 in Berlin. The lease begins on September 1 and includes two three-year extension options. The second transaction includes a lease of five years with Deutsche Post Immobilien for the office building at Dudenstrasse 46/57a in Mannheim. The third transaction included 3C Dialog extending a lease until 2019 for Colonius Carré building in Cologne. The asset was acquired in 2007 by SEB and includes office space of less than 3,000 sq m.
BMI View : In Q2 2014, we expect Germany's commercial real estate sector to continue to build on the stability seen during H213 and the first few weeks of 2014. A rapidly improving economic backdrop is likely to support demand for new commercial space and should help balance the significant amount of supply which is expected to come online over the course of the year. While rental rates and yields are likely to remain stable with little change forecast over the short-term, there is potential for some moderate growth over the year as a whole.