The first nine months of 2026 brings a clear uptrend on the German office investment market

- Transaction volume of €4.6 billion, up significantly year on year
- Ten transactions above the €100 million mark determine market activity
- Munich as the top growth driver – locations outside the Top 7 more prominent

In the first three quarters of 2026, Germany’s office real estate investment market recorded a transaction volume of €4.6 billion, marking growth of 14 percent compared to the year-earlier period. Major single asset transactions made a major contribution to boosting market recovery. At the same time, demand remained focused on selected markets and premium properties. Office real estate took its place as the second strongest asset class on Germany’s commercial real estate investment market, hot on the heels of industrial and logistics properties. These are the conclusions drawn in a current analysis prepared by the global commercial real estate services company CBRE.

“More large-scale investments are being transacted in the office segment again. Willingness to invest depends on reliable rental income and whether the prospects of the respective property are compelling. Higher levels of activity therefore remain closely associated with the quality of the properties on offer and viable purchase prices.”
Marcus Lemli, Head of Capital Markets at CBRE Germany

The number of registered transactions edged up compared to the previous year’s period. At the same time, ten deals above the €100 million mark were recorded compared to six in the first nine months of 2025. The average transaction size rose to just under €27 million. Single asset properties continued to dominate market activity, albeit with somewhat less of a share compared with the year-earlier period. Portfolio transactions registered clear growth in terms of volume while nevertheless remaining below the ten percent mark.

At the level of risk classes, core plus investments came more to the fore, as opposed to core and value-added products that were traded in a volume that was lower than in the year-earlier period. Domestic investors upped their presence and played an even stronger role on the office investment market than in the year before.

“The trend in the core plus segment shows that investors are concertedly seeking additional upside potential. Selecting properties remained a challenging task, however. Given the still subdued economic environment and high financing costs, weighing up the potential returns against the investment requirements is especially important.”
Dr. Jan Linsin, Head of Research at CBRE Germany

Munich as the main engine of growth
Within the group of major office investment markets, Munich proved to be particularly dynamic. Here the transaction volume doubled compared to last year, making Bavaria’s state capital the most important growth driver. With an increase of 65 percent, Düsseldorf also recorded a significant upturn. By contrast, the volumes in Berlin and Cologne dropped 49 percent and 58 percent respectively below the year-earlier figures. This trend clearly shows how select single transactions can impact the result of the individual locations.

Regional markets weigh in more heavily
Outside the Top 7, the transaction volume soared by 59 percent year on year. These markets meanwhile account for just under one third of the nationwide office investment volume, thereby broadening the regional basis of transaction activity.

“Along with the established core markets, regional locations are also opening up opportunities for targeted investments. The local rental market, a building's long-term usability, and price levels are key factors in assessing such opportunities,” Lemli says.

Prime yield still holding steady in the Top 7
Office property prime yields remained stable in the top locations in the third quarter. Prime yield stood at 4.73 percent across the Top 7. Yields trending up were already being recorded in secondary locations and regional centers.

The elevated interest rate level is stepping up the pressure to adjust also in the large office markets. Rising long-term financing costs make it more difficult to calculate the cost of acquisitions, while higher yields on fixed income investments are prompting greater comparison of real estate investments with alternative investment options.

“The stability of prime yields in the top locations is being increasingly impacted by higher capital market interest rates. If financing costs and bond yields remain at an elevated level, these conditions will also be reflected in real estate prices. We therefore expect prime yields to come under upward pressure in the coming quarters.”
Sandro Höselbarth, Head of Valuation & Advisory Services at CBRE Germany

Outlook for the full year 2026
In the months ahead, large-scale transactions in particular harbor further potential for market activity. Demand is likely to continue to focus on premium office properties in attractive locations. At the same time, financing terms and conditions, along with a convergence of buyers’ and sellers’ ideas about pricing, will remain prerequisites for additional deals to be brought over the line.

The macroeconomic outlook could generate support in the medium term. Stimulus from the fiscal package and higher government spend on infrastructure and defense allow expectations for the economy to gradually rebound. On the real estate markets, these effects are nevertheless lightly to manifest with a time lag.

“If the moderately upbeat development on the office investment is to continue market players will need to factor the changed interest rate environment into their price expectations. If this does happen, the final quarter will bring more opportunities for deals, especially larger individual properties, to be concluded,” Lemli concludes. An investment volume of more than five billion euros appears quite realistic for the full year.