The Impact of Low Trade Tax on Office Real Estate Demand: The Case of Schönefeld near Berlin

Schönefeld, a rapidly developing suburb of Berlin, has become an attractive destination for businesses due to its favorable economic conditions and strategic location. A key factor driving this trend is the low trade tax (Gewerbesteuer), which reduces costs for enterprises and increases demand for commercial real estate, particularly office spaces.
The aim of this article is to examine how the low trade tax regime influences the office real estate market in Schönefeld and why this area has become especially appealing to businesses.
1. Trade Tax as a Business Incentive
In Germany, the trade tax rate varies depending on the municipality where a company operates. In Berlin, the trade tax rate stands at approximately 14%, one of the highest in the country. In Schönefeld, however, the rate is significantly lower, ranging between 10-12%. For many businesses, this difference is critical, particularly for small and medium-sized enterprises (SMEs) or startups aiming to optimize their expenses.
Companies relocating to Schönefeld from neighboring areas benefit from reduced tax burdens and can redirect the savings toward growth initiatives, hiring skilled employees, or implementing innovations.
2. Low Tax Rates and the Office Real Estate Market
The influence of low trade tax on the office real estate market can be observed in several key areas:
Inflow of Companies and Demand Creation
Schönefeld has emerged as a viable alternative to the overcrowded and expensive center of Berlin. Lower tax burdens make relocating to this area attractive for both local and international companies. This is particularly noticeable in sectors such as logistics, technology, and manufacturing.
Growth of Investment Activity
Stable demand for office spaces attracts investors and developers who actively build infrastructure in Schönefeld. The area is witnessing the construction of modern business parks, flexible office spaces, and logistics hubs, creating additional jobs and boosting the local economy.
Affordable Real Estate Costs
Despite rising demand, rental and purchase prices for office properties in Schönefeld remain lower than in central Berlin. This combination of low tax rates and affordable real estate allows companies to significantly reduce operational costs.
3. Examples of Office Market Development in Schönefeld
Several successful projects illustrate how tax policy influences the development of the office real estate market:
• Gatelands Business Park – a modern business park that has already attracted several international companies thanks to its strategic location and favorable tax rates. The park offers excellent infrastructure for efficient business operations.
• BüroCenter Schönefeld – an office center providing modern workspaces at competitive prices. Thanks to low taxes and affordable rents, it has become a hub for startups and small businesses.
• Logistikzentrum Schönefeld – a major logistics hub that combines administrative and warehouse spaces, helping companies in logistics and manufacturing save on costs.
These examples demonstrate how the combination of low taxation and a favorable location can transform the commercial real estate market in a region.
4. Business Advantages in Schönefeld
Companies choosing Schönefeld for their offices enjoy several significant advantages:
1. Optimization of Tax Expenses Lower trade tax allows companies to allocate savings toward business expansion, employee salaries, or technology implementation.
2. Access to International Markets Proximity to BER (Berlin Brandenburg Airport) provides businesses with convenient connections to international markets, which is particularly important for global corporations.
3. Reduced Operational Costs The cost of renting or purchasing office spaces in Schönefeld is lower compared to Berlin, making the area especially advantageous for businesses.
4. Creation of Business Clusters The influx of companies from various sectors fosters the formation of business clusters, which enhance economic activity in the region and facilitate professional collaboration.
5. Prospects and Forecasts
Experts predict that Schönefeld will continue to develop and strengthen its position as a key business hub in the region. The low trade tax and strategic location will remain the primary drivers of this growth.
Key Future Trends:
1. Construction of New Office Centers Investors will continue to fund the development of modern office spaces to meet the growing demand from businesses.
2. Attraction of International Companies Companies from other EU countries and beyond will view Schönefeld as a cost-effective alternative to expensive business districts in Berlin.
3. Increase in Employment Opportunities Infrastructure development and the creation of new business centers will lead to a rise in employment and attract skilled professionals to the region.
Conclusion
The case of Schönefeld demonstrates that a well-structured tax policy can serve as a powerful tool for attracting businesses and developing the commercial real estate market. Low trade tax stimulates demand for office spaces, attracts investments, and promotes economic growth in the region.
Schönefeld serves as a prime example of how a combination of economic incentives and strategic location can transform a suburban area into a thriving business hub. This experience can be applied to other regions in Germany and Europe to create competitive conditions for businesses and enhance investment attractiveness.