Market momentum on the Top 5 office markets keeps on moving in different directions: Berlin and Munich generate stimulus in a still selective market environment

- Prime rents continue their uptrend on the back of sustained demand focused on premium space in top locations
- In the first half of 2026, office take-up in the Top 5 markets shed six percent to 1.13 million sqm year on year
- Vacancy rate at 8.5 percent at the end of the second quarter (up 0.6 percentage points)

Germany’s Top 5 office leasing markets recorded take-up totaling 1.13 million sqm in the first half of 2026. Compared to the first six months of 2025, this marks a decline of 6.1 percent. Market development continued to move in different directions in the individual locations. While large-scale leasings and owner-occupations in Berlin and Munich boosted take-up significantly, Düsseldorf, Hamburg and Frankfurt produced results that trended down compared to the previous year’s period. Nevertheless, take-up from the first to the second quarter rose across almost all markets, which serves to highlight the stable demand situation and suggests a positive outlook for the remainder of the year. These are the conclusions drawn in a current analysis prepared by the global commercial real estate services company CBRE.

“We are seeing an ongoing trend indicating a marked differentiation in the market by location and quality. Premium office space in city centers is benefiting especially from sustained high demand, as opposed to older stock that is increasingly confronted with structural challenges.”
Carsten Ape, Head of Office Leasing Germany at CBRE

Furthermore, many tenants are paying greater attention to overall costs. Preference is being given to energetically sustainable, flexible and above all smaller office space, the aim being to leverage energy savings potential and lower ancillary costs.

The role played by office as a prestigious asset fostering employee retention and as a physical corporate identity calling card is gaining prominence.

“Customized interior designs reflect brand value and corporate culture, actively promote emotional bonding with the corporate philosophy and strengthen employees’ sense of belonging.”
Dr. Jan Linsin, Head of Research Germany at CBRE

The market environment remains permeated by uncertainty from various sources, which is why companies in many sectors are finding it difficult to calculate their future office space requirements. Against this backdrop, topics such as office space consolidation, cost optimization, and the integration of contemporary workplace concepts are becoming increasingly important. At the same time, technological developments – ultimately driven by artificial intelligence – are also creating fresh demand among the companies involved in these technologies.

Surge in demand from technology companies and artificial intelligence, especially in Berlin and Munich
Take-up development remains diverse and specific to the location. Berlin and Munich in particular saw significant growth, thereby generating important stimulus for overall market activity.

In Berlin, take-up exceeded the 200,000 sqm mark in the second quarter for the first time since 2022, which was mainly attributable to several major deals, first and foremost two owner-occupations. Take-up at mid-year came in at 385,500 sqm, reflecting tangible year-on year growth of 46 percent. The influence of the tech sector, also buoyed by AI, on take-up demand is also currently clearly in evidence in Berlin.

Munich continues to expand its position as an important tech metropolis and innovation location. Supported by the strongest second quarter for almost four years, the market achieved its highest mid-year take-up since 2022 of 335,600 sqm. Market activity was characterized both by large-scale leasing and owner-occupations from the flourishing industries of tech and robotics and was reflected in a high level of requirement for office space from local companies and those newly established in the market. The consultancy sector also attracted attention through numerous leasings, with a preference for Munich’s top locations. 

Take-up in Düsseldorf, Frankfurt and Hamburg proved to be much more modest. In Düsseldorf, half-year take-up that came in at around 99,000 sqm fell slightly short of the year-earlier figure. Frankfurt with 148,800 sqm sustained a decline of 57 percent while take-up in Hamburg contracted by approximately one third. Readiness to lease office space was notably muted in this location although larger deals were indeed sporadically concluded and first-rate properties in premium locations were in hot occupier demand.

Prime rents, along with vacancy rates, rise across all markets albeit in varying degrees of intensity
The supply side remains impacted by another moderate increase in vacancies. By the end of the second quarter, the vacancy rate in the Top 5 markets had advanced to around 8.5 percent. At the same time, prime rents rose on the back of strong demand for an extremely limited supply of premium office space in CBD locations, 

Prime rent in Berlin had climbed to €46.50 per square meter and month at the end of the second quarter, also due to big ticket deals in premium locations, and average rent has been the rise for some time now. Although the vacancy rate marked another year-on-year increase to 8.4 percent, growth nevertheless slowed notably in the second quarter.

Düsseldorf saw a moderate rise in prime rent to €46.00 per square meter and month, with the vacancy rate merely edging up to 12.6 percent.

Frankfurt’s prime rent increased moderately to €55.00 per square meter and month accompanied by a tangible drop in average rent. Companies are paying greater attention to costs. Consequently, demand for premium office space in CBDs only exists if there is a willingness to pay. Price-conscious occupiers are increasingly looking at decentralized alternatives. The vacancy rate advanced moderately to 11.2 percent.

Hamburg reported the greatest increase in prime rent of 13.9 percent to €41.00 per square meter and month. At 4.6 percent, the vacancy rate was the lowest of the Top 5 locations.

Unabated strong demand in Munich for premium office space within the ‘Mittlerer Ring’ resulted in prime rent hitting a new record high of €62.00 per square meter and month. The vacancy rate rose only slightly to currently 8.1 percent.

Outlook for the remainder of the year
“Despite the challenging market environment, we expect demand to stabilize gradually over the remainder of the year,” Ape comments. Accordingly, individual large-scale deals and growing demand from technology-driven sectors are likely to positively impact market activity in the months ahead. “The office leasing market will nonetheless still face challenges.”

That said: Upside supply in the Top 5 markets will remain modest against the backdrop of current speculative development pipeline under construction of 1.9 million sqm through to the end of 2028. This also means that premium office space will remain thin on the ground in central locations.

Discussions about converting vacant office buildings are set to intensify in all cities as the year progresses. In providing a sum total of €300 million, the German government intends to promote conversion to other usages, especially residential, while creating greater incentive for investors. The cities have recently also adopted a more open stance to repurposing. “Nevertheless, it remains to be seen whether the political will is sufficient for enabling change to actual usage in greater dimensions. The subsidy earmarked for this purpose is unfortunately a necessary incentive as the conversion of office space – even if no longer really required – would otherwise not be financially attractive enough,” Linsin explains.