The focus of this study is on the consequences of rising energy costs and demographical change in the city of Hamburg. In section 2 we present a class of models that help to understand and explain patterns of urban land use. Section 3 then discusses urban land use and the population structure of Hamburg. Section 4 addresses some future economic and demographic trends and relates them to rising energy costs. Section 5 finally highlights some conclusion drawn from the analysis. <em>The subsequent report is Part III of a research project which is realized in cooperation with alstria office REIT AG. See HWWI Policy Papers 1-14 and 1-17 for the first part and HWWI Policy Papers 1-23 and 1-24 for the second part of the research project.</em>