MODERATE START TO THE YEAR WITH 82,000 SQM OF TAKE-UP
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In the first quarter of 2026, the Frankfurt office market recorded a take-up of 82,000 sqm. As expected, the market was unable to replicate the exceptionally strong record result achieved at the beginning of 2025, falling short by almost 60%. The long-term average was also missed at this stage, which, however, that is not unusual for Frankfurt early in the year. The banking hub is well known for gaining momentum as the year progresses, with leasing activity typically accelerating in the second half.
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The largest letting in the first quarter—the owner-occupier deal by DZ Bank in the Fifty Avon tower, comprising nearly 21,000 sqm—follows the trend of large-scale contracts observed in the previous year and once again illustrates the key driver of the Frankfurt market: strong demand for premium office space in prime locations. As this demand cannot be adequately met at short notice, commitments in development projects often represent the most viable alternative. New lettings are frequently accompanied by location consolidation strategies. In this case, DZ Bank will comprehensively modernize the tower acquired adjacent to its headquarters and consolidate various business units at this prime banking location.
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The prime rent has recently increased to €55.00/sqm, representing a 2% rise year-on-year. The more volatile average rent temporarily softened to €27.30/sqm but remains 5% above the previous year’s level and is expected to continue its upward trend over the medium term.