European Stars and Stripes (Newspaper) - September 05, 1989, Darmstadt, Hesse                                Upon completion Frankfurt s Mes Szturm will be the tallest office building in Continental Europe. Businesses Are cheering the City s commercial growth but skyrocketing rents have residents questioning the Boom. Booming Manhattan by Ferdinand Protzman new York times s Continental Europe s leading financial Confer Frankfurt am Mam already sported enough gleaming skyscrapers to have been dubbed Mam Hallan and Bank furl by critics of its rapid growth. Now however a High Riso construction Boom fed by the european Community s plans for a single bord Erless Market by the end of 1992 is rapidly altering the City s Skyline and igniting conflict among developers realtors and City officials. It is a very pronounced Boom and i think it will continue for some  said Horst Schluter managing director of Jones Lang Wootton a Mph the West German subsidiary of a leading International real estate consulting firm. There Are a number of projects under construction and in the pipeline. And demand for office space far surpasses  Frankfurt has Long been the financial capital of West Germany a major transportation Hub and the first Stop for foreigners wanting to do business in the bundles Republic the Federal Republic. Its International importance has risen steadily during the last decade mirroring West Germany s economic and political Power. The nation has Western Europe s strongest Economy and is the world s leading exporter with this year s Trade surplus expected to to 140 billion Marks or about $74.8 billion at current Exchange Rales. The Bundesbank the West German Central Bank dominates Western european monetary policy from its Headquarters Here. Foreign Banks and businesses Are Rushing to set up or expand in Frankfurt betting that the City s influence will be enhanced by the Advent of liberalized european Trade in 1992. As a result Schluter said office rents have nearly doubled during the last five years. Top locations which rented for an average of 35 to 40 Marks $18 to $21 per Square meter five years ago now Are going for 65 to 70 Marks $34 to $37 he said. While that is relatively High for West Germany compared with rents in London Paris Luxembourg or Madrid it s fairly  that is Only part of the City s attraction. It has moderate weather one of Europe s Best served airports and a Central location that puts it within comfortable driving distance of most of Europe. With just 615.000 residents fewer than in Memphis it is Lar More compact than Paris or London it s not one of the most exciting cities in Europe but it is very  said Douglas c. Surgess the 33-Yoar-old manager of european Treasury operations for try inc. Even for those who Don t speak German Well the language problem is minimal because of the Large numbers of English speakers Bolh German and non German " the Boom has seen spending on commercial construction Rise even faster than rents going irom 1 7 billion Marks $900 million in 1986 to 36 billion $1 9 billion in 1988, according to City records and most of that spending has gone to High rises four Are currently approved or under construction and 20 new projects have been proposed while Frankfurt s business Community enthusiastically supports the Boom some Frankfurt residents including members of the Green parly of environmentalists and some social democratic parly politicians oppose More construction contending that the City already has too Many tall buildings. Critics of development won control of the City government in March ending 12 years of Rule by the Christian democrats. Frankfurt s housing shortage is nothing new but statistics indicate it is worsening. Spending on residential construction declined to 255 million Marks $136 million last year from 270 million Marks $144 million in 1985. In the Central neighbourhoods favored by foreigners rents have risen steeply enough to bring complaints from natives. Volker haul the new mayor is a social Democrat. To has suggested that approval of new High Rise commercial construction be lied to commitments from developers to build a certain amount of housing. West Germany s major Banks nearly All of which have moved into lowering new Headquarters in Frankfurt in the last 10 years Are not among the leading investors in current High Rise projects. Tishman Peyor properties inc. Of new York Heads the grandest project to Date the 500 million Mark $267 million Messel urm. With financing arranged by Citicorp. The big spectacular projects that Are under construction now Are All financed by  Schluter said. The Mes Szturm was designed by Helmut Jahn. A German born architect who works out of Chicago. When completed in the fall of 1990. The 53-Story office lower on the grounds of the Frankfurt fair will to the tallest building in Continental Europe. Dutch and British investors have been Active in Frankfurt for some time and have been joined in the current Boom by american and scandinavian investors. A swedish investment group recently bought the Bank fur Gemei Wirtschaft a s High Rise Headquarters building on theater Platz for 650 million Marks $347 million. German Banks Are expected to throw More of their considerable financial resources into the expansion if it continues. To Are certainly not opposed to financing High Rise construction and will be Active in this area in the future said a spokesman for Deutsche Bank which withdrew from the Mes Szturm project at an Early stage. Big Bank plans to build a new 560-foot-High Headquarters a few blocks away irom the building it sold. In the same area a subsidiary of the Deutsche  and a dutch pension fund Are planning to build a 666-foot-High building designed by Kohn Pedersen & Fox of new York City. But some West German investment fund managers believe the surge in High Rise construction will Lead to a glut of office space within two years. Commenting on the Mes Szturm the head of one real estate investment fund owned by a group a West German savings Banks said that even though it was designed by a Star architect its economic viability is far from  despite the housing shortage no High Rise apartment buildings Are being planned for downtown Frankfurt real estate and City officials said. Architects and some Urban planners said curtailing commercial High Rise construction was not going to solve Frankfurt s housing problem. Tuesday september 5,1989 the stars and stripes Page 13