Top 5 office leasing markets holding steady at the year-earlier level: Berlin, Düsseldorf and Munich generate positive impetus

-  At the end of nine months, office take-up in the Top 5 markets virtually stable at around 1.74 million sqm; third quarter delivers growth of 11.6 percent year on year
-  Demand focused consistently on contemporary office space in central and well connected locations
-  Prime rent holding steady in all five markets or on the rise
-  Vacancy rate up 0.8 percentage points to 8.8 percent within a year; ongoing limited availability of high-quality office space in the premium segment

Germany’s Top 5 office leasing markets recorded overall take-up of 1.74 million sqm in the first three quarters of 2026, delivering a virtual repeat of the year-earlier level. Market trends varied across the individual locations. While Berlin, Düsseldorf and Munich generated significant growth in take-up, results in Frankfurt and Hamburg dropped below the year-earlier figures. Leasing activity overall picked up momentum in the third quarter. At around 605,900 sqm, 11.6 percent more office space was leased than in the third quarter of 2025. These are the conclusions drawn in a current analysis prepared by the global commercial real estate services company CBRE.

“The stronger third quarter highlights the fact that demand has remained basically stable in Germany’s Top 5 leasing markets despite economic headwinds. The trend nevertheless continues to vary between the locations as well as within the individual markets. Companies continue to focus on contemporary, sustainable office space that can be put to flexible use in central or very well-connected locations.” 
Carsten Ape, Head of Office Leasing Germany at CBRE

Along with the quality of the office space, importance is being increasingly placed on energy efficiency, along with the ambience and the working environment. As before, quality-oriented occupiers are prepared to accept higher rents for state-of-the-art office space in very good locations. By contrast, cost-oriented companies are giving more careful consideration to existing stock and decentralized alternatives.

"Differentiation by location and quality is becoming increasingly evident. Rising vacancies do not automatically mean that companies have more suitable premium office space to select from. While contemporary and ESG-compliant office space in the prime locations remains scarce, older stock and less well-connected locations offer occupiers more choice and a stronger basis for negotiations.”
Dr. Jan Linsin, Head of Research Germany at CBRE

Berlin, Düsseldorf and Munich generate take-up growth
How take-up develops continued to depend on the specific location and was partly influenced by major individual deals being signed and year-earlier figures in varying amounts. Large-scale deals made an important contribution while the smaller and mid-sized leasing business continued to form the broad market basis.

In the first nine months, Berlin achieved take-up of 567,400 sqm, marking growth of around 38 percent year on year. The market benefited from broad-based demand and numerous large-scale deals. All in all, 19 transactions above the 5,000 sqm mark were registered. IT companies and the public sector were virtually equal in topping the list of industries with the strongest demand. Both CBDs and city fringe locations reported higher take-up.

Take-up in Munich climbed by just under 19 percent to 467,600 sqm. The positive nine-month result was driven mainly by the strong first half year. The market registered 13 deals in excess of 5,000 sqm. Taken together, the manufacturing sector and IT companies accounted for more than half of the take-up. Approximately half of the entire take-up was attributable to locations within the ‘Mittlerer Ring’.

Düsseldorf saw growth of around 27 percent to around 201,500 sqm. Major lettings in the third quarter generated additional stimulus. Occupiers’ pronounced commitment to quality is evident in the 65 percent share in the take-up captured by premium office premises.

In Frankfurt, take-up declined by 42 percent to 267,700 sqm compared with the previous year’s period. Nevertheless, a positive boost came from major lease transactions in the third quarter: Three deals were grouped under the size category above 5,000 sqm. Large individual leasings by the public sector, including BaFin in Frankfurt and BVG in Berlin, played a key role in the respective location’s results.

Hamburg delivered take-up of 237,200 sqm, down 24 percent in a year-on-year comparison. Market activity remained largely small scale: More than four of five registered lease agreements involved office space of up to 1,000 sqm. Taken together, the five strongest submarkets captured approximately two thirds of take-up.

Along with established sectors such as financial services, consultancy, manufacturing and the public sector, technology and innovation-driven industries also stimulated demand. This included IT, artificial intelligence, robotics, new energy and defense most particularly in Berlin and Munich.

Vacancies on the rise
The supply side remained impacted by another rise in vacancies. At the end of the third quarter, the vacancy rate in the Top 5 markets had climbed 0.8 percentage points to 8.8 percent within the space of a year. Vacancies in general also increased in the central locations: The average vacancy rate in the Top 5 CBDs rose by 1.1 percentage points to 7.1 percent. In parallel, prime rents remained stable or continued to rise on the back of demand for premium office space with limited availability.

In many places, an additional supply of office space is becoming available mainly due to premises in older and decentralized stock being vacated. By contrast, contemporary space in central and well-connected locations remains in short supply. At the same time, completion activity dropped sharply in the third quarter: A volume of 99,900 sqm was completed in Top 5 markets, which is around 55 percent less than in the previous year’s quarter.

Prime rents stable or trending up
Compared with the year before, prime rent in Berlin increased by 3.3 percent to €46.50 per sqm and month. Weighted average rent rose by 5.2 percent to €27.17. The vacancy rate came in at 8.6 percent.

Prime rent in Düsseldorf stayed stable at €46.00 per sqm and month in a year-on-year comparison. Weighted average rent rose by 21.5 percent to €23.93, marking the sharpest increase of the Top 5 locations. At the same time, Düsseldorf registered the highest vacancy rate of 13.0 percent.

Prime rent in Frankfurt advanced by 2.8 percent to €56.00 per sqm and month. Conversely, weighted average rent declined by 14.1 percent to €26.88. The countertrend serves to highlight the growing price difference between lesser quality premium space and the broader supply of office space. The vacancy rate ran at 11.4 percent.

Hamburg reported the strongest percentage increase in prime rent that climbed 7.9 percent to €41.00 per sqm and month. Weighted average rent rose by 1.7 percent to €22.42 per sqm. At 4.6 percent, the vacancy rate was the lowest of the Top 5 markets.

Of the five locations, Munich continued to command the highest figure with prime rent of €62.50 per sqm and month, corresponding to year-on-year growth of 5.0 percent.  Weighted average rent advanced by 2.1 percent to €27.48 per sqm. While the vacancy rate in the overall market stood at 8.6 percent, Munich’s CBD posted a mere 1.8 percent.

Outlook for the full year
“The stronger third quarter suggests that demand will basically hold steady over the remainder of the year. Companies will nevertheless continue to consider their office space decisions carefully so processes through to signing may take longer,” Ape says. “The availability of office space that satisfies occupier requirements placed on quality, sustainability and accessibility will be decisive for future market development.”

The downtrend in completion activity and reduced project pipelines in several markets are likely to further limit the availability of contemporary office space going forward. Of the space earmarked for 2027, approximately 37.6 percent had been pre-let across the Top 5 by the end of the third quarter. The pre-lease rate for 2028 stood at 51.2 percent, with clear differences between the individual markets.

State-of-the-art, sustainable and well-connected office space is set to remain scarce and commensurately pricey, particularly in central locations. By contrast, further pressure on older stock and decentralized office space to adjust is likely.

“New opportunities will open up for landlords of existing buildings if they refurbish their properties in a targeted manner to meet changing occupier requirements,” Linsin explains. “The growing differentiation in the market is translating the quality of the individual building and its location into key factors for its lettability.”