Munich’s office market showed a strong start to 2026, driven by limited large-scale lease transactions and sustained demand for high-quality space.
- Take-up: 156,600 sqm (up 15% YoY), with over 40% of activity exceeding 5,000 sqm.
- Key deals: JetBrains (23,000 sqm), E.ON SE (21,500 sqm), NXP Semiconductors (10,000 sqm).
- Vacancy rate: Increased slightly to 8.1% (1.88 million sqm), mostly older stock.
- Rents: Prime rent hit €57.50/sqm/month (record high), average rent €27.50/sqm/month.
- Sector focus: Industrial and ICT sectors accounted for over 60% of demand.
Submarket performance:
- City centre (€24.00–€57.50/sqm/month) dominated take-up, with prime locations seeing strong absorption.
Outlook:
- Market stabilization expected, with demand prioritizing modern, ESG-compliant central buildings.
- Secondary locations likely to underperform as quality and location become key determinants.
Investment market:
- Q1 2026 volume €672 million (up 50% YoY, 10% below 5-year average).
- Office assets led transactions (63%), followed by hotels (14%), light industrial/logistics (12%).
- Buyers: Private investors and family offices dominated; international investors cautious.
- Prime office yields stable at 4.3%, with pricing driven by quality and location.
Key conclusions:
- Market recovery gradual, with quality and location differentiating performance.
- Investment activity selective, favoring high-yield core assets in prime locations.
