Figures
Munich Office Market Q2 2026
Munich's office leasing market is gaining noticeable momentum
22 July 2026 5 Minute Read
Overview
The Munich office leasing market showed significant signs of recovery in the first half of 2026, reaching a total take-up of 335,600 sq m. The result was driven primarily by a strong second quarter, during which demand picked up noticeably, though it was also significantly driven by two large-scale owner-occupier transactions.
Large-scale transactions from the tech sector, industry, and AI-related future-oriented sectors such as robotics shaped market activity and underscored Munich’s role as a hub for innovation and production. At the same time, demand remained clearly quality-oriented: Modern, sustainable, and well-connected spaces in central locations continued to be the focus, while older properties in less sought-after locations remained under pressure to adjust.
For the first time in about four years, vacancy declined slightly from the first to the second quarter. The vacancy rate fell to 8.1%. In the CBD, supply remained extremely tight, with a vacancy rate of less than 2%.
Rent trends also reflected this polarization. The prime rent reached a new high of €62.00/sq m/month per month, driven by several high-priced leases in premium properties. The average rent rose moderately, indicating that, despite cost sensitivity, tenants are willing to accept higher rents in exchange for quality, location, and future-proof work environments.
Trends
- At 335,600 sq m, take-up in the first half of the year was well above the previous year’s level; the second quarter, at 179,800 sq m, was the strongest quarter in terms of take-up for almost four years
- Tech, robotics, defence and life sciences companies provided significant impetus to demand, underlining the high demand for modern office space
- Demand remained highly selective: alongside prime locations in the CBD, high-quality new-build and refurbished properties on the city outskirts are also gaining in importance, provided they meet high standards in terms of quality, connectivity and ESG criteria
- Rents continued to rise: the prime rent rose to €62.00/sq m/month, whilst the average rent increased moderately
- The office prime yield remained unchanged quarter-on-quarter and stands at 4.4%
Outlook
The recovery in the Munich office leasing market is expected to continue. The well-stocked demand pipeline, individual large-scale enquiries and the ongoing expansion of technology-driven companies are likely to continue to underpin leasing activity. In particular, AI-related business models are expected to generate additional office space requirements and further strengthen Munich’s role as a hub for innovation. At the same time, the polarization of the market is likely to deepen further: for modern, ESG-compliant space in central or very well-connected locations, supply will remain tight and the rate of take-up high, whilst older properties with no clear prospects for modernization will come under greater pressure. This provides owners with additional incentives for refurbishments, repositioning and, in some cases, conversions. As regards rents, further upside potential is expected due to the strong demand for high-quality properties. The vacancy rate is likely to stabilize further or even fall slightly.
Overall, there are many indications pointing to a robust second half of the year, provided that the broader economic conditions allow for this. This reinforces the forecast that annual take-up in Munich’s office leasing market could reach approximately 600,000 sq m for the full year 2026.
Research Contacts
Jirka Stachen
Senior Director | Head of Research Consulting Continental Europe
Dr. Jan Linsin
Managing Director | Head of Research Germany
Business Contacts
Georg Illichmann
Managing Director I Head of Office Leasing München
