Dusseldorf office leasing market shows stable development; real estate investment market quadruples investment volume

- Office take- remained largely unchanged at 40,800 sq m year-on-year
- Prime rent at €46.00/sq m/month, 2% higher than in Q1 2025
- Investment volume quadrupled year-on-year to €417m

The Dusseldorf office leasing market recorded an overall stable development in Q1 2026, with increasing positive momentum. At 40,800 sq m, take-up was at the same level as in the comparable quarter of the previous year. By contrast, the real estate investment market recorded growth of 309%. Total investment volume amounted to €417m, four times the previous year’s level. This high figure was primarily driven by a large-volume single transaction. Growth in commercial real estate exceeded that in residential properties. These findings are based on a current analysis by global real estate services provider CBRE.

Office leasing market
The weighted average rent continued its positive trend in Q1 2026, increasing by almost 17% to €20.78/sq m/month. This development was largely driven by the high share of high-quality, correspondingly higher-priced space in total take-up. An analysis of rental performance by quality segment underlines occupiers’ clear preference for modern, high-quality office space which — based on new space concepts and workplace environments — meets with greater acceptance of the higher rental level. The sustainably achievable prime rent also recorded a slight year-on-year increase of 2% to €46.00/sq m/month.

“The competition for talent, for which Düsseldorf as an international business location integrated into the Rhine-Ruhr metropolitan region is generally very well positioned, increases the importance of attractive locations, top building quality and fit-out for companies seeking to position themselves optimally in the labor market,” said Simon Herlitz, Head of Office Leasing Düsseldorf & Cologne at CBRE. “Demand for modern, high-quality space is reflected in rental growth and underlines the continued attractiveness of the location.”

While take-up in Q1 2026 remained stable year-on-year, average deal size presents a more differentiated picture. It increased compared with the reference period, as occupiers once again made leasing decisions in the mid-sized and larger space segments. Accordingly, larger transactions again accounted for an above-average share of total volume, which can be interpreted as an indication that market-relevant uncertainty is gradually easing and that strategic location decisions are being pursued more actively again.

On the supply side, the market in Q1 2026 continued to be characterized by low completion activity. Vacancy remained broadly at the previous quarter’s level, while space offered for sublease increased moderately. The volume of speculative space for the next twelve months declined slightly. At the same time, the development pipeline continues to flatten, with increasing differentiation between projects already under construction and those still in the planning phase. In the medium term, owner-occupier projects in particular account for a larger share of the pipeline. Speculative developments, by contrast, are almost never launched without a corresponding pre-letting rate. In ongoing projects, however, a large proportion of space remains unlet, meaning that some new space will still come to market during the course of the year.

“Against the backdrop of stabilizing demand, rising absorption can be expected over the medium term, particularly as the flight to quality continues while limited corresponding product is available due to countercyclical construction activity,” said Herlitz. Qualitative differentiation of vacancy is becoming increasingly important. While modern, marketable space — particularly in good locations — continues to be absorbed relatively quickly, structural vacancy is concentrated primarily in older, no longer market-appropriate properties. Overall, this development already in Q1 2026 points to ongoing market consolidation in favor of high-quality office space, meaning that vacancy — unless non-marketable properties are upgraded or repurposed — is expected to stabilize or develop more positively than recently.

Real estate investment market
“Based purely on headline figures, a market recovery can be observed in Düsseldorf’s real estate investment market,” said Georg Hölz, City Lead & Head of Investment Rhine-Ruhr at CBRE. “However, the sharp increase is exclusively attributable to the large-volume transaction of the mixed-use Deiker Höfe property and does not reflect overall market sentiment.” As a result, the average transaction size increased from €11m in Q1 2025 to €28m most recently, although the total number of transactions also rose. “Market polarization was also evident in the size structure. Transactions above €50m accounted for almost three quarters of market activity, while volumes in the mid-sized segment declined,” said Hölz.

In Q1 2026, market activity was concentrated primarily in the northern submarket, where the sale of Deiker Höfe also represented the largest transaction. Significant deals were also recorded in the City, the CBD, and selectively in left-bank locations. By use type, residential and office properties dominated, accounting for almost three quarters of total investment volume, a share likewise influenced by the sale of Deiker Höfe.

The risk profile shifted clearly in favor of core-plus investments. “While traditional core products also remained in demand, value-add transactions declined,” said Sebastian Tiemann, Team Leader Valuation Advisory Services Office. Investors are again showing slightly greater risk appetite while remaining clearly yield-focused. On the buyer side, closed-end real estate funds, private investors and family offices, as well as corporates, dominated market activity. Domestic investors accounted for the majority of transaction volume.

Prime yields (net initial yields) remained stable across all asset classes. For office properties in the CBD, yields stood at 4.9%, unchanged from year-end 2025.

Outlook for the remainder of 2026
“Positive prospects for a revival in leasing activity are emerging for 2026,” said Herlitz. At least one concrete large-scale transaction in the five-digit sq m range is currently under negotiation and is expected to be completed later in the year. Owner-occupier developments on Haroldstraße, which will be included in take-up statistics once construction commences, will also have a stabilizing effect on market activity, making total annual take-up of around 300,000 sq m a realistic scenario.

“Properties continue to come to market on a regular basis, but in many cases no transactions are ultimately concluded. While some owners have become more willing to accept price discounts, others continue to hope for book values that are not achievable in the current market environment and are unlikely to be attainable in the foreseeable future. Portfolio adjustments by open-ended real estate funds are also not expected to lead to a further supply surge in Düsseldorf this year, as locally active fund managers are currently largely stable,” said Hölz.