OCCUPIER CAUTION CONTINUES TO WEIGH ON MARKET ACTIVITY
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Cologne’s office market recorded take-up of 107,000 sqm by the end of the third quarter of 2026. As a result, take-up remained significantly below both the prior-year level (-40%) and the ten-year average of 187,600 sqm (-43%). However, this subdued performance needs to be viewed in the context of the still challenging market environment and the lack of a broader economic recovery to date.
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Market activity remained similarly moderate across all three quarters of the year. The letting of 1,800 sqm to cloud platform developer for the energy sector epilot was the only somewhat larger contract recorded in the third quarter. At the same time, the number of lease agreements signed declined compared with the previous two quarters. Cologne’s office market therefore continues to be characterized by a high degree of occupier caution. Against the backdrop of economic uncertainty and structural changes in the workplace environment, many leasing decisions are currently being examined in greater detail, resulting in noticeably longer marketing and decision-making processes.
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Prime rent remained stable at €33.50/sqm, while the average rent also held steady at €20.90/sqm/month. This highlights the resilience of rental levels despite the subdued leasing market environment.