A forthcoming renovation of the Federal Ministry of Economics and Technology in Berlin is expected to take significantly longer than previously known. The ministry at Scharnhorststraße in Berlin is set to vacate its main site in May and move to a temporary quarters at Chausseestraße, according to the “Welt am Sonntag”.
According to the latest planning, the property at Scharnhorststraße 34-37 will be comprehensively renovated from 2026 to the mid-2030s, initially focusing on three buildings, a spokesperson for the “Welt am Sonntag” reported. This will involve fire safety, roof renovation, hazardous substances, energy efficiency and modernization.
Following the renovation of buildings A to C, further renovation needs are identified on the property, particularly in buildings E, F and G.
In response to a small inquiry (Drucksache 20/810), the federal government in 2022 estimated the renovation of the buildings to take about four years. Now, the works are expected to be completed in around ten years. The ministry will be temporarily housed in the former headquarters of the energy company Vattenfall at Chausseestraße 23, which was previously rented for a period of 15 years by the former Federal Minister of Economics and Technology, Peter Altmaier (CDU), in 2021.
The federal government will pay almost 200 million euros in rent for the more than 21,000 square meter large building over the entire duration of the contract. The price per square meter initially amounts to 45 euros, increasing by 1.8 percent annually. “The rent of an average of 51 euros per square meter is already sporty, a bargain it is not at all” said Alexander Fieback, the Berlin branch manager of the commercial real estate consultancy Bulwiengesa, to the “Welt am Sonntag”.
However, he notes that the public sector generally pays higher prices because the lessor cannot claim the input tax. “If you consider this, the price is at the upper end of the usual range” said Fieback. He considers the duration of the contract to be unusual, though. “A rental contract of 15 years is a jackpot for the lessor, which is hardly found anymore” said the expert. “Such contracts only exist with the public sector, in the private sector, five years are usual, at most ten years.