HIH Invest Real Estate Extends Hauptzollamt Darmstadt Lease for Nearly 8,000 Square Meters at Atrium Office

HIH Invest Real Estate has extended a long-term lease with Hauptzollamt Darmstadt for nearly 8,000 square meters of office space at the Atrium Office, located at Hilpertstraße 20a in Darmstadt, Germany, the firm announced Sept. 24.

The customs authority has been a longstanding anchor tenant and principal user of the property. The renewed lease covers approximately 59% of the building's total rental area of roughly 13,500 square meters, or about 145,300 square feet, across five floors.

Atrium Office: Building Features and Location

The Atrium Office is a five-story office and administrative building in the Bürostadt West submarket in Darmstadt-West, near the B26. The structure features a landscaped atrium that channels natural daylight into interior areas, flexible floor plans accommodating individual offices, combination offices and open-space configurations, floor-to-ceiling windows, external solar shading, passenger elevators, a roof terrace, storage areas and 176 underground parking spaces.

Darmstadt Hauptbahnhof is reachable by bus or car within minutes, and the property offers regional and interregional road access via the A5 and A67 motorways. Frankfurt Airport is approximately 20 minutes away by car.

The building's location outside Darmstadt's central business district makes the continued presence of a large public-sector tenant particularly significant. Government and administrative occupiers typically prioritize functional layouts, parking availability, accessibility and operational continuity over central prestige addresses.

Lease Extension Reflects Asset and Tenant Stability

Markus Leuchte, Head of Letting Management Frankfurt at HIH Real Estate, said the renewal confirms both the building's quality and the strength of the long-term relationship with the tenant.

"That the Hauptzollamt has once again committed long-term to the Atrium Office confirms the quality and functionality of the building," Leuchte said. "At the same time, the lease extension is the result of the trusting cooperation that has developed over many years. Flexible space structures and good accessibility are important factors, especially for long-term users. The Atrium Office offers both."

The tenancy is legally represented on behalf of Hauptzollamt Darmstadt by Germany's federal real estate agency, the Bundesanstalt für Immobilienaufgaben. Other tenants in the building include VWR International, BuyIn and ObSe Objekt Service.

Warburg-HIH Invest acquired the Atrium Office in an asset deal for an individual fund in 2020. At the time of acquisition, the building was reported to contain approximately 13,620 square meters of rental area, with the customs authority occupying roughly 7,000 square meters and VWR International occupying approximately 5,100 square meters. The current lease area for the customs authority is larger than the figure reported at acquisition, which may reflect an expansion, departmental consolidation or revised measurement methodology.

Darmstadt Office Market Context

The lease extension comes as Darmstadt's office market shows signs of recovery, though rents remain under pressure. Office take-up in the city reached 42,700 square meters in 2025, while immediately available supply declined to approximately 133,400 square meters. The vacancy rate fell to 6.9% from 10% the prior year.

Despite improving demand, rents have not fully recovered. Prime rent stood at €15.00 per square meter per month, down 3% year over year, while average rent was €12.80 per square meter per month, a decline of 1.5% year over year. Those conditions give tenants continued leverage, particularly where buildings compete with newer or more efficient space.

Retaining a long-standing public-sector occupier reduces near-term vacancy and reletting risk for the asset. With the customs authority accounting for roughly 59% of the building's reported rental area, a future non-renewal would have a material effect on occupancy and valuation — a concentration that also underscores the strategic importance of the current extension for the fund's income profile.

Broader Implications for Office Landlords

The transaction reflects several dynamics shaping the German office market. Tenants increasingly favor buildings with efficient layouts, natural light, solar shading, accessibility and amenities — features the Atrium Office provides through its landscaped atrium, flexible floor plans, roof terrace and underground parking. In a market where vacancy remains above pre-pandemic levels in many submarkets, extending an existing lease with a creditworthy government occupier can be more attractive to institutional owners than testing the market for a large vacant block, which would typically require capital expenditure, refurbishment and extended downtime.

Public-sector tenants also offer comparatively strong covenant characteristics and the potential for long-duration income, attributes that are valued by institutional funds managing office assets in secondary locations.

Sources

HIH Invest Real Estate — Official Announcement, Sept. 24, 2026