Istanbul office occupancy hits 12-year high

ISTANBUL

Istanbul’s office market achieved a remarkable milestone in June as occupancy rates soared nearly 90 percent, reaching their highest level in 12 years.

The total office supply in the city now stands at 7.12 million square meters.

According to a real estate market report prepared by a global commercial real estate services firm, commercial real estate developments in the first half of 2024 favored property owners, driven by a robust increase in rents.

Office rents surged by 77 percent in the office market and doubled in the industrial sector compared to the same period in 2023.

The highest office rents were reported in Levent, where prices reached $42 per square per month. This was followed by the Anatolian side of Istanbul at $35 per square meter, Esentepe-Gayrettepe at $32 and Maslak at $30. In contrast, office rents in İzmir and Ankara were significantly lower, averaging $18 per square meter.

According to the report, rental levels on main streets and primary shopping centers in the retail sector were the same as last year.

The demand for flexible office spaces, particularly from small enterprises, has increased alongside the growing interest from international brands eyeing Türkiye for expansion.

Retail trends such as concept retailing, luxury retail and pop-up stores have also gained traction, contributing to the market’s growth.

The report also highlighted a 138 percent year-on-year increase in warehouse space leasing activities in the first half of 2024, totaling 179,700 square meters.

Significant leasing tractions were recorded in the manufacturing and e-commerce sectors, although the supply of qualified warehouse spaces remained limited. Consequently, demand for warehouses with large closed areas has risen sharply.