European office property landlords worry as big names cut costs
Deutsche Lufthansa recently moved 840 staff out of the Squaire complex, Germany’s biggest office property, to save money
Deutsche Lufthansa’s departure in December from a low-slung “groundscraper” near Frankfurt Airport highlights the pandemic-related risks facing European landlords — and sends a warning to investors who have piled into the market.
Over the holidays, the airline moved 840 staff out of the Squaire complex, Germany’s biggest office property, as part of a cost-cutting plan. While German real-estate has held up better than other European markets, with commercial rents at historical highs after a 10-year boom, that resilience is likely to be tested in 2021 as the prolonged economic weakness raises the prospect of more job cuts by cash-strapped companies such as Lufthansa...
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