Former Karstadt property in Hamburg to house parts of Wandsbek district office
On 23 May 2025, ISZ Immobilien Service Zentrum GmbH, part of Hamburg’s tax authority, and Union Investment signed a long-term lease agreement for the former Karstadt department store property at Wandsbeker Markt. The agreement paves the way for relocating parts of the Wandsbek district office to this central site. The 20-year lease covers around 11,400 square metres of space, with occupancy planned by 2029.
The building, which is partially protected as a historic structure, will be repurposed to accommodate approximately 370 employees from various departments, including basic social security, the youth welfare office, general social services, and social space management. The redesign also includes an open front-office area for public services and the creation of modern workspaces across roughly 10,500 square metres.
The lease is subject to the approval of Hamburg’s city parliament, which will now review the agreement.
Finance Senator Dr Andreas Dressel welcomed the development, describing it as a practical solution for revitalising a key site in Wandsbek. He noted that the repurposing of the former department store helps secure the future of a well-known property in Hamburg’s largest district.
Thorsten Baer, Deputy Head of the Wandsbek district, highlighted the collaborative approach to planning the new workspace. He stated that the decision to adapt an existing structure, rather than build a new one, is both efficient and beneficial for employees and the public. He also noted the site’s central location and public transport access as key advantages.
Union Investment, which owns the Karstadt property and the neighbouring QUARREE Wandsbek, views the project as part of a wider redevelopment plan. The goal is to establish a mixed-use urban area combining housing, offices, services, retail, and a new event and dining hall.
According to Christian Born, who oversees office leasing at Union Investment, the cooperation with ISZ and the district office resulted in the creation of flexible and sustainable office space. Project manager Ronald Behrendt emphasized the significance of the district office’s decision, pointing to the value of rethinking urban properties through adaptive reuse.
Construction activity at the site is set to begin in summer 2025 with the demolition of an existing car park and work on the building’s historic façade. Completion of the entire redevelopment is expected by the end of 2028.
Photo: Union Investment
