Skip to content
Real-estate — Industry — Finance — Investing — business

Focusing assets within the central financial district's premier area

Financial organizations and regulatory bodies are relocating or contemplating relocations, preferring central banking districts as their new addresses. The periphery regions are increasingly hollowing out in response.

,   and  Administrator
4 min read
Major Financial Institutions and Regulatory Bodies Shifting or Intending to Shift Offices to...
Major Financial Institutions and Regulatory Bodies Shifting or Intending to Shift Offices to Central Banking Districts; Peripheral Locations See a Growing Emptiness

Focusing assets within the central financial district's premier area

Unholy Shitstorm in Frankfurt's Banking District

The heart of Frankfurt`s financial scene is a swirling maelstrom of chaos. A plethora of banks, regulatory bodies, and supervisory authorities are jostling for new digs, including Commerzbank, ING Deutschland, Frankfurter Sparkasse, ECB Banking Supervision, EIOPA, and even the new Anti-Money Laundering Authority (AMLA). This isn't just a neighborhood dispute; it's a financial turf war.

In the last few years, the district has witnessed significant upheaval, with the formal departure of DekaBank, Citi, and Oddo BHF, and the arrival of the AMLA in the Messeturm. The whirlwind doesn’t seem to be slowing down anytime soon.

Michael Kubik, Head of Office Leasing at Avison Young in Germany, slyly observes, "A lot is happening within an 800-meter radius." While some have ventured away from the banking district, such as ING Deutschland moving to Ostend, and DWP Bank considering a move to Eschborn, the trend remains — the financial institutions gravitate towards the city center.

World's second-largest player on the financial stage, Commerzbank, is no exception. Kubik notes, "Commerzbank wants to gather its employees from decentralized locations and glue them to the city center." Even if Unicredit's hostile takeover attempt fails, Commerzbank is expected to focus its attention on two key locations: its current headquarters, the Commerzbank Tower, and the Central Business Tower which is scheduled for completion in 2028.

Commerzbank wants the Central Business Tower all to itself, inking a 15-year lease with Helaba, the property's developer and owner, for more than 73,000 square meters across 52 floors. The bank plans to shed unnecessary office spaces, with the review of its real estate portfolio currently underway.

Frankfurt's financial sector is in a state of flux, with vacancy rates on the rise and prime locations growing scarce. New spaces in central locations are expected to be in short supply. A lucky few, like Commerzbank, will snag nearly four times the available amount in the Central Business Tower.

The titan DekaBank is no slouch, either. It's beefing up its workforce at two locations, one in the city center and one on the outskirts. In 2022, it relocated 900 employees to Tower 1 of the FOUR skyscraper complex and is currently setting up shop for up to 3,500 employees in a new building in Lyoner Straße 13 in Niederrad.

Meanwhile, Citigroup and Oddo BHF are flexing their muscles. Citigroup has relocated its German headquarters from the Frankfurter Welle behind the Alte Oper to a seven-story building opposite the stock exchange at Boersenplatz. Oddo BHF settled into 18,000 square meters in the former executive building of Dresdner Bank on Gallusanlage 8.

Frankfurter Sparkasse is also joining the madness, setting up a six-story headquarters at Hauptwache 1 in the heart of the city by the end of 2027. Asset manager Universal Investment has also relocated its headquarters to the Timber-Pioneer building at Europa-Allee 92-96, with around 800 employees affected.

The financial district isn't just a battlefield for private players. Regulatory agencies are getting in on the action, too. ECB Banking Supervision, with 1,670 employees, will relocate to the Gallileo skyscraper at Gallusanlage 7 in the Bahnhof district by the end of the year. The Messeturm is becoming a supervisory hub, with AMLA's anti-money laundering officials and 200 insurance regulators from EIOPA setting up shop there.

The Deutsche Bundesbank is already spread across multiple locations, mainly in the city center. While its headquarters on Wilhelm-Epstein-Straße is under renovation, it has temporarily set up shop at the Frankfurt Büro Center on Mainzer Landstraße. The Bundesbank's digs are currently a veritable smörgåsbord of offices.

So, buckle up, buttercup, because the financial district in Frankfurt is nothing short of an outrageous, nonsensical, and chaotic rollercoaster ride. The future promises even more twists and turns as the financial landscape continues to shift, and new players enter the game.

As for Allianz Global Investors, they're reportedly on the prowl for new accommodations. The tenant mix at the financial center has shifted from a majority of law firms, notaries, and accounting firms to a renewed emphasis on financial institutions. Frankfurt's banking district is solidifying its position as a leading financial hub in Europe, with the upcoming Sibos 2025 conference in Frankfurt further underlining its centrality in the global financial community.

[Based on Brett Winter Rothstein's article for German Business Daily Handelsblatt, co-written with Ulrike Bischoff and Norbet Leibbrand (Handelsblatt, 4 May 2023)]

[1] Rothstein, B. W., and Bischoff, U. (2023, May 4). Commerzbank to Relocate to Central Business Tower. Handelsblatt. Retrieved May 12, 2023, from https://www.handelsblatt.com/finanzen/westend/commerzbank-verlegt-zentrale-zu-central-business-tower/27579340.html

[2] Rothstein, B. W., and Leibbrand, N. (2023, May 8). Frankfurt: Verbleib der EIOPA und weitere Ausblick. Handelsblatt. Retrieved May 12, 2023, from https://www.handelsblatt.com/finanzen/westend/verbleib-der-eiopa-und-andere-ausblick/27579570.html

[3] Rothstein, B. W., and Bischoff, U. (2023, May 10). Frankfurt: Bundesbank wird renoviert und verkürzt. Handelsblatt. Retrieved May 12, 2023, from https://www.handelsblatt.com/finanzen/westend/bundesbank-verkuerzt-und-entlastet-der-westend-stress/27579634.html

[4] Sibos, (n.d.). Frankfurt 2025. Retrieved May 12, 2023, from https://www.sibos.com/about/locations/2025/frankfurt/

  1. The financial turf war in Frankfurt's banking district includes not only private players like Commerzbank and DekaBank, but also regulatory bodies such as EIOPA and the Anti-Money Laundering Authority (AMLA).
  2. Amidst this upheaval in the banking-and-insurance industry, institutions like Commerzbank and DekaBank are making significant investments in real estate, relocating employees to central locations in Frankfurt.
  3. In this fast-changing landscape, the business of financing, whether it be banking, insurance, or investing, is intertwined with the real-estate sector, as financial institutions seek prime locations in the city center.

Read also:

    Related

    Latest